US Tax Filing for Americans Living in Germany
Germany is home to a large American expat community, including employees of multinational companies, military personnel, academics, and remote workers. US citizens living in Germany face one of the more complex cross-border tax situations because Germany has high income taxes and a robust US-Germany tax treaty. Understanding whether the Foreign Tax Credit or FEIE is optimal — and how German benefits like Kindergeld interact with US filing — requires specialist knowledge. We handle it all at a fixed price.
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What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
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- ✓Everything in Standard
- ✓Schedule C & SE for self-employment
- ✓Multiple income sources and currencies
- ✓Everything in Premier
- ✓Foreign Earned Income Exclusion (Form 2555)
- ✓Foreign Tax Credit (Form 1116)
- ✓FBAR filing (FinCEN 114) included
- ✓Everything in Expat
- ✓Schedules D & E for investments and rentals
- ✓Foreign asset reporting (Form 8938)
- ✓FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for Americans Living in Germany
Germany has very high taxes — will I owe additional US tax?
Unlikely. Germany's effective income tax rates are generally higher than US rates, so the Foreign Tax Credit typically eliminates your US tax bill entirely. You still must file a US return, but the credit offsets the liability. Our CPAs run the calculation for your exact income level.
Can I claim both FEIE and Foreign Tax Credit?
Not on the same income. You can use FEIE to exclude some earned income, then use Foreign Tax Credit for taxes paid on any remaining income. However, for most Americans in Germany, using the Foreign Tax Credit on all income is more advantageous because Germany's taxes are high enough to wipe out most US liability.
What is a Lohnsteuerbescheinigung and why do I need it?
It's Germany's equivalent of a US W-2 — a year-end summary of wages paid and taxes withheld, issued by your German employer. We use it to determine your German taxable income and the German taxes paid, which form the basis for your Foreign Tax Credit claim.
I have a German pension or Riester account — how is this treated on my US return?
German pension schemes, including Riester and betriebliche Altersversorgung, are generally not treated as tax-deferred under US law in the same way as US 401(k)s. Contributions and earnings may have ongoing US reporting requirements. Our CPAs assess the correct treatment based on your specific pension type.
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