yurigul
Returning Member

Retirement tax questions

I am a US citizen and leave un Germany. I receive Social Security pension (SS-pension) both from Germany and form the US. My understanding is that: (a) under the US-Germany tax treaty I shall not pay any US tax on income from my US SS-pension (this is for sure); (b) however my German SS-pension is taxable by the US. Could you please confirm, if my understanding regarding German SS-pension is correct. Does the US, under the US-Germany tax treaty,  shall tax the German SS-pension at a reduced rate similar to the taxation of US SS-pension?

 

According to your recommendations, I shall add US and German SS-pensions and enter the amount in Box 5 and then answer "yes" for the next TT's question regarding leaving in one of the following countries (Germany in my case). However this seems does not work correctly. When I do this TT totally excludes my both pensions from taxation. Means TT calculates my US tax for both pensions as zero. It looks as TT considers both pensions as US Social Security (not a mix of US and foreign pensions). Therefore it calculates tax as zero, as US SS-pension is not taxed for US citizens leaving in Germany. 

 

Could you please comment. What do I do wrong and how to solve the problem.

Thanks a lot for you kind help and advise.