Is the Danish Double Taxation Agreement affecting my 2025 filing?

The US-Denmark Tax Treaty (Danish Double Taxation Agreement) is designed exactly for situations like yours to prevent double taxation. Since you're a US resident working for a Danish company, you'll need to report all your worldwide income on your US tax return, but you won't necessarily be taxed twice. Your best approach is to claim the Foreign Tax Credit using Form 1116 on your US tax return. This allows you to claim a credit for income taxes you've already paid to Denmark. The credit directly reduces your US tax liability dollar-for-dollar up to certain limits. Be sure to separate your Danish-source income on this form. You might also want to check if any part of your income qualifies for the Foreign Earned Income Exclusion using Form 2555, though this generally applies to US citizens living abroad, which doesn't seem to be your situation.

After dealing with similar international tax issues, I discovered taxr.ai (https://taxr.ai) and it seriously saved me from making expensive mistakes with my foreign tax documents. I was working for a German company but the principles are the same for Danish employers. I uploaded my Danish tax documents to taxr.ai and it automatically identified the relevant sections that showed my foreign tax withholding amounts and translated the important parts. The tool flagged exactly which numbers I needed for Form 1116 and even highlighted where my Danish employer had categorized certain bonuses that would have been treated differently under US tax law.

Had to come back and say I finally tried taxr.ai after struggling with my Danish tax forms for weeks. The document analysis found things I completely missed! It identified that part of what my employer was withholding wasn't actually income tax but some kind of social security contribution that doesn't qualify for the Foreign Tax Credit. This saved me from overclaiming by about $3,800 which definitely would have raised red flags. It also properly translated the categories of income which mattered for how they needed to be reported on Form 1116. The exchange rate calculator made sure everything was converted properly too. Wish I'd known about this months ago instead of stressing over tax treaty details!

After 3 hours on hold trying to reach someone at the IRS about international tax treaty questions, I gave up and tried Claimyr (https://claimyr.com). You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was super skeptical but they actually got me connected to an IRS agent who specializes in international tax agreements in under 20 minutes. The agent walked me through exactly how the Danish Double Taxation Agreement applies to U.S. residents and clarified which portions of my Danish withholding were eligible for the Foreign Tax Credit. Turns out I had been misinterpreting a key provision about remote workers that could have cost me thousands.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I was still desperate for help with my Danish tax situation, so I tried it anyway. The service actually connected me to an IRS international tax specialist in about 15 minutes when I'd previously spent HOURS getting nowhere. The agent clarified exactly how the Danish Double Taxation Agreement applies to my specific situation and confirmed that I needed to file both Form 1116 and attach a statement explaining that I was claiming benefits under Article 23 of the treaty. This was something none of the tax software programs had mentioned! I would have filed incorrectly without this information and potentially triggered an audit. Worth every penny just for the peace of mind.

Just want to add something important about the Danish Double Taxation Agreement that most people miss - there are special provisions for certain types of income like dividends, interest, and royalties that are taxed at different rates. If you have investment income from Danish sources in addition to your employment income, the treaty limits how much tax Denmark can take from those sources. For dividends from Danish companies, Denmark can only withhold 15% if you're a US resident. For interest income, it's even better - usually no more than 10% can be withheld. Make sure you're not overpaying on these!

Has anyone used TurboTax for filing with the Danish Double Taxation Agreement? I'm in a similar situation but unsure if their international tax support is good enough or if I need to find a specialized preparer.

I went through this exact same situation last year with a Danish employer! One thing that really helped me was getting a copy of the "Erklæring om skattemæssigt hjemsted" (Certificate of Tax Residence) from the IRS. This is a form that proves you're a US tax resident, which you can submit to your Danish employer to potentially reduce the withholding rate under the treaty. Also, make sure you understand the difference between the 22% your employer is withholding and what Denmark is actually entitled to under the treaty. For employment income, Denmark can tax it since you're working for a Danish company, but the US gets to tax it too since you're a US resident. The treaty just ensures you get credit for the Danish taxes paid when filing your US return. One more tip - keep excellent records of exactly when you performed work and where. If you ever traveled to Denmark for work meetings or training, that could affect how the income is sourced under the treaty. The IRS Publication 901 has a good overview of US tax treaties that helped me understand the basics before diving into the Denmark-specific provisions.