We need to consult expert @pk
In general, if there is a tax treaty with the other country, there are two ways to handle government social benefit payments that are like Social Security.
1. Follow the treaty. This generally means that you must report the benefit and pay tax to the home country following the home country's tax laws, and leave the benefit off your US return completely.
2. Ignore the treaty. Report the benefit on your US tax return as "other income" and ignore any requirements you have in the home country.
So it depends on how the benefit would be taxed if you filed a return in Germany vs how much it is taxed in the US. And, if the tax treaty with Germany follows these general rules or different rules. You should discuss this with an expert.
