I'm an American in Germany where I pay taxes on my income, can the IRS tax me on the same Income?

Question

I'm an American in Germany where I pay taxes on my income, can the IRS tax me on the same Income?

Answer 1

No, they will not double tax you, but every US citizen or resident IS required to file a US tax return.  You will get credit for income taxes paid to Germany and other credits so you will not owe the US any tax, but you still have to file a return declaring all of your worldwide income.

Answer 2

Yes, but you can use your German tax as a credit against your USA tax. This should wipe out any liability.

Answer 3

Please get IRS publication 54.  As a US Citiizen working in Germany, you have a filing requirement with the US.

The IRS offers two methods to reduce the impact of double taxation.

Publication 54 covers form 2555 for the foreign earned income exclusion and Publication 514 covers the form 1116 for the foreign tax credit.

You get these if you file.  If you don't file, you could easily owe money.