I have some questions regarding my tax residency for 2024, please see below the bullet points that explain my situation for 2024:
- I have been a non-resident alien in the USA since 2017, and a resident alien since 2019.
- In 2024 (July 18th) I permanently moved outside of the USA, to Germany.
- In 2024, while I was in Germany, I had employment income and income taxes deducted from my German employer, as well as interest income (and relevant tax deducted) from a German Savings account.
- In 2024, while I was in the USA, I had W-2 income and income taxes deducted through my employer.
- Throughout the year 2024 (every month) I received reportable interest income (1099-INT) from a Savings account in the USA.
- I didn't have non-USA-sourced income while I was in the USA.
- I didn't have USA-sourced income while I was outside the USA apart from my USA savings account interest as mentioned above.
- I am a citizen of Cyprus.
- I am married and my spouse didn't have any income either in the USA or Germany.
My questions are:
- Am I a resident alien for the full year of 2024?
- If yes, I understand that I should report my German income on my 1040. But how can I exclude my German income from being doubly taxed? How can I use the foreign earned income exclusion, or somehow deduct the taxes that I already paid in Germany for my German-sourced income?
- If not, do I need to file my taxes as dual-status individual where I file both 1040 and 1040NR for the periods of being in USA and Germany, respectively? In this case, do I also need to "split" and report my USA Savings account interest in both forms for the corresponding periods of being a resident alien and non-resident alien? Other than this interest income, I don't have any other US-sourced income to report on the 1040NR form for the period of being a non-resident alien. Also, are there any limitations for being a dual-status individual?
I appreciate the help.
