Hello PK and thank you for your reply.
What you say makes sense and I will follow your guidance. I am still uncertain about the timing of the foreign tax claim I want to make.
- The German tax return (EKSt) is processed later than the US1040 in a given year. And the EKSt is based on the US return. My German tax obligation is a result of my US income stated to the IRS in my US1040.
- So, typically I would pay the German taxes at a later time, after the US return has been filed: more than likely in the following Tax Year.
- Q: Do I need to file an amended tax return in the US, adding the German paid taxes when the amount has been stated in my EKSt? I have tried to enter it this way in TurboTax but I would have to enter a future date which is rejected. I.e., I paid 2000Euro EKSt converted to 2200US$ in the year 2021 on US Dividends received and included in my US1040-2020. Only in the 2020 US1040 I can link the EKSt tax payments to the specific underlying Dividend income and that again requires a future date in the year 2021 in my amended US1040-2020.
- I could amend the US 2021 return, however, here the underlying income is not specified as it was received in 2020.
Any advice is much appreciated.
Cheers, Michael
