Living/working in Germany and paying taxes???

Question

If I am a U.S. citizen but live and work in Germany...obviously I have to pay taxes there...but do I need to file a yearly income tax for the state and federal back in the U.S.???

Answer 1

Go to www.expatica.com ... they have good information about stuff like that!!!

Answer 2

Yes, you will need to file a Form 1040 with the IRS but for US Citizens living overseas but I believe you have a 2 or 3 month automatic extension as well as a nonresident state tax return wherever you have designated as your legal residence.  My oldest son has lived and worked in Europe for the last 5 years since January 2002 starting in Munich Germany and he now lives and works in London UK.  I just have him send me his European tax documents along with a spreadsheet compliling his income from like January 1, 2006 through December 31, 2006. Most likely you will not have to pay any US or state income taxes unless your annual salary exceeds $82,500.  Also there is a special IRS Form where you list your foreign address, employer and compute the days you lived overseas into a percentage.

Answer 3

US citizens are taxed on worldwide income. Get tax help. Since you will be taxed slighter higher in Germany, your taxes in the US should be offset.

Answer 4

It's called Foreign Earned Income.  You don't have to pay taxes on it, but you do have to report it.  It's so that you can still receive credit for work while not in the US.

Answer 5

technically yes...and you will be taxed further...but you will also get back part of what you paid in German taxes...it can get really complicated...