@chrisKa
Based on the answers that you have kindly provided :
(a) For tax year 2024, you would be best served ( tax beneficial ), by filing as a dual status person.
1. As a Dual Staus person, you file a form 1040 covering your wages while present in the USA . Germany would also tax you on your world income once you became a resident of Germany. Thus there is no FEIE or FTC to consider ( except for the interest earning).
2. For the Non-Resident period , your German earnings are not under the purview of the USA and not taxed . You report your US source income ( interest earning ) as an NRA using form 1040-NR ( Not supported by TurboTax -- have to download from IRS --fillable .pdf OR use a local tax professional or ?? ). Note that generally ( often a bone of contention ) interest earnings are sourced to the state where the taxpayer is a resident of. -- this is strictly observed for US states but IRS will generally oppose this when countries are concerned. However, the tax on the interest income is generally not much ( NRAs may be taxed at 30% though and therefore a perusal of the US-Germany treaty is strongly suggested). You can also file for a tax credit on this portion with Germany since you are resident of Germany during the NRA period.
3. One problem with this "double-status " filing is that you have to use itemized deduction for the 1040 filing, because you did not stay here for a full calendar year.
(b) If you choose to file as a resident for the year
1. You file only form 1040 ( fully supported by TurboTax ) -- you can e-file.
2. AS long you file after completing a test period of continuous 12 months in which you meet the 330 days out of the country ( USA ) , have a foreign tax home, you can exclude your Foreign earned income from US taxes.
3. This also allows you to use standard deduction.
4. For the tax year 2025 onward you do n ot need to file a US tax return, if you do not have any US sourced in come.
Is there more can do for you ? If you want more help , please consider adding to this thread or PM me ( just NO PII -- Personally Identifiable Information) and I will most happy to help.
pk
