Yes she does have to report the German Social Security income on a US tax return.
See this IRS Publication 915 Social
Security
and
Equivalent
Railroad
Retirement
Benefits for information - https://www.irs.gov/pub/irs-pdf/p915.pdf#page=6
Canadian or German social security benefits paid to
U.S. residents
. Under income tax treaties with Canada
and Germany, social security benefits paid by those countries
to U.S. residents are treated for U.S. income tax purposes
as if they were paid under the social security legislation
of the United States.
The German Social Security benefits received are reported on your US tax return in the section for reporting US Social Security benefits. Form 1040 Line 20a, Form 1040A Line 14a
Using TurboTax -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On Social Security (SSA-1099, RRB-1099), click the start or update button
Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security reaches:
- Married Filing Jointly - $32,000
- Single or Head of Household - $25,000
- Married Filing Separately - 0
