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You are correct. There is a tax treaty between the US and Germany, and you can take the Foreign Tax Credit to offsest the tax that you paid to Germany on your IRA. That's done on Form 1116.
Here's how to get to Form 1116 for 2020:
There's a deduction available as well as well as a credit but in most cases, taking the credit works out better. We'll help you decide which one's best for you when you go through this section.
If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit if your situation requires it.
Thank you very much!
I was getting hung up on the phrase "foreign income" (because it's US funds taken from a US account) but if I'm understanding correctly I think what I need to do is check "income re-sourced by treaty".
I'm still working my way through but this has been a big help. The relevant turbotax forms are not super intuitive but with the 1116 in front of me I'm reverse engineering it.
Rich
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