pk
Level 15
Level 15

Get your taxes done using TurboTax

@michaelkaiser250  as I understand the situation here --

(a) you and your wife are both US persons ( citizen/ GreenCard ) , living and earning in Germany

(b) you have investments  in the US through US broker and expect to receive  1099-DIV / 1099-INT etc. on passive income.

(c) article 10 of US-German tax treaty is generally applicable  in your case  ( for the dividends ).  Note that there are  some  tax treatment differences  depending on the type of entity issuing the dividends.  But generally both the country of domicile and residency can tax the dividends.  There are contortions to this depending where the underlying entity is registered.

(d) given the above the easiest path may be  to use the foreign tax credit  ( form 1116 ) ---- note that is is passive  income .  Depending on your household income  you may also have to use a form 1116 ( wages / self-employment ) for foreign tax credit on income above and beyond foreign earned income exclusion limit for the year in question.

(e) In TurboTax , you you enter the dividend income just as shown on the  form 1099-DIV.   Then under deductions and credits chapter, you show the same dividend as foreign income and the taxes paid thereon.  This will force a 1116 to be populated, make sure it is shown as passive ( tick box) and fill the rest out.

 

Does this help and/or do you need more on this topic ?

 

pk

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