We prepare US tax returns for the highest possible level of IRS scrutiny. This is critical for our clients in Germany and elsewhere around the world as the IRS has been auditing and penalizing international returns at higher and higher frequencies. Because the international penalty scheme of FBARs, and FATCA is so daunting, our clients fully appreciate our thoroughness in making sure we have eliminated all surprises.
While it may be difficult to find a US tax preparation firm that can handle all of the issues that US expats in Germany have - we have expertise and a record of success in not just filing quality returns that are processed with little issue, but also - we are able to fully support our work in the unlikely event of an examinaiton.
And surely, US-German Expat returns can be full of surprises - as we discuss in this video below.
Contact us now to put us to work for you.
The US taxes its persons on a worldwide basis. So what you earn in Germany, even if it is taxed by the German taxing authority, is subject to additional taxes by the IRS. This is true even if you have a "tax-free" account in Germany. However, you are entitled to a credit for taxes paid. In the alternative, there is a foreign income exclusion which will exempt a portion of your income from income taxes.
If you are a Green Card holder you are subject to universal taxing jurisdiction on all your income, anywhere in the world. If you are a visa holder the rules are a bit more complicated about when universal taxing jurisdiction is triggered.
Citizens and residents living and working outside the U.S. may be entitled to a foreign earned income exclusion that reduces taxable income. In addition, you may exclude housing expenses, but with limits. There are limits and special rules about who qualifies for the exclusion, and we can help you understand if you qualify.
This is a non-refundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. The foreign tax credit is available to anyone who either worked in a foreign country or has investment income from a foreign source. There are qualifying factors, and we can help you understand if you are eligible to tax advantage of this credit.
If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of German-Americans and others from around the globe properly disclose to the IRS. We can help you too. Click here to visit our Offshore Disclosure summary page.