[anne1980]

Hello,

I lived in the US for about 10 years on a green card. From 1995 until 2005. In 2005 I moved back to Norway and abandoned my Green card status in 2006. I now live and work in Norway. In 2010 I withdrew all the money in my 401k plan. Approximately 102,000 USD. I filed out the 8W BEN form, so no 10% penalty or aditional taxes were withheld by the bank/agent. From what I have learned on this web site, I have to pay US taxes on this, even though I no longer reside in the US.

I am now working on the 1040NR form and have a few queastions:

1: I have considered the amount as Effectively connected with a US business. Is this correct?

2: I can not list my 2 year old daugther as a dependent since Im not a us citizen/resident?

3: Can I deduct moving exspenses? The instructions for form 1040NR says something about this being in general for moves within the US.

4: The amount owed based on my calculations turns out to be 21,310 USD. Does this sound correct? That`s only about 20% of the total amount in my 401k. Were does the aditional 10% early withdrawl penalty come in to play? Am I missing something on the 1040NR form, or will I get billed for this later after I file the 1040NR.

I apreciate any comments/answeres.

[ebaines]

1. Correct - this is deferred wages from your US-based job. You report the distribution on line 17a of 1040-NR, "Pensions and annuities."

2. Correct - you cannot claim your daughter as you are not a US resident.

3. No - you deduct moving expenses in the year you incur them, and the move must be to or within the US or its possessions.

4. The amount seems reasonable. You report the 10% early withdrawal penalty on line on line 56 of your form 1040-NR (“Additional tax on IRAs, other qualified retirement plans, etc.").

[anne1980]

ebaines,

Thanks a lot for your reply. That's very helpful!