Can Turbotax help with returns when I worked in 2 different countries in 2021 (Germany and US)?

[philipweitnauer]

I am US and German Citizen. In 2021 I moved to Germany and worked for a German company from January - July. In August I moved back to the US and worked for a US company for the rest of the year. I know I need to do a German tax return (not in question here). Can Turbotax staff or the Turbotax product help me with the US return in such a complex situation? For example, I read that I have to finish the Germany tax return first before starting the US one. I wonder how this would all work... Thank you!

[DanaB27]

Yes, you will need to know the correct amount of German taxes paid to be able to claim the foreign tax credit. If you expect to get a refund of German taxes paid then it would be best to wait until you finished your German Tax return and received the refund.

You might want to file an extension. If you expect to owe a balance due then please make a payment with your extension. Please see How do I file an IRS extension (Form 4868) in TurboTax Online?

To file your 2021 return you will enter your foreign income by following these steps:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “foreign income”
3. Click on “Jump to foreign income”
4. Answer "Yes" to "Did You Make Any Money Outside the United States?" and follow the on-screen instructions.

To enter the foreign taxes paid:

1. Search for "foreign tax credit" and select the Jump to link in the search results
2. Answer "Yes" to "Did you pay foreign taxes in 2021 or have credits to use from a prior year?"
3. Follow the instructions to get the credit or deduction

[philipweitnauer]

Thank you for the very fast reply!

I am pretty sure I will get a tax credit from germany, as I am in a tax bracket for a full annual salary, but have only worked for 6 months. So Germany kept more taxes then they should have.

Do I understand your answer below correctly that I always have to enter both: foreign income, as well as foreign taxes paid?

Regarding the foreign taxes paid: 

There is income tax, social security tax, even church tax that's deducted in Germany. Would turbotax differentiate between all those tax types or would i enter a lump sum for all german taxes paid combined?

And what supporting documents do I need to provide? Of course they are all in German...

Thank you!

[DanaB27]

Yes, you will have to enter your foreign income and the taxes paid since you do not qualify for the Foreign Earned Income Exclusion with only being 6 months in Germany.

"You can claim a credit only for foreign taxes that are imposed on you by a foreign country or U.S. possession. Generally, only income, war profits and excess profits taxes qualify for the credit. See Foreign Taxes that Qualify For The Foreign Tax Credit for more information" (IRS ).

You do not have to submit any documents but will keep all documents that show income and taxes paid for your records (German Tax return, paystubs etc.).

[philipweitnauer]

in the meantime, I have finished my Germany tax return (not submitted yet). 

I see TurboTax has a service called "do taxes for me". As this year is a complex situation with foreign income and taxes, I am planning to use this service. However, I want to make sure to get a consultant who is knowledgeable with foreign income/tax situations. Can you confirm that will be the case?

Thanks!

[RobertB4444]

@philipweitnauer  The tax preparation team at TurboTax changed their procedure for this year so yes, we can confirm that that will be the case.  When you submit your request to have a professional prepare your return you will have a few interview questions.  Enter in there that you have foreign earned income and foreign taxes paid and they will find you an expert familiar with your problem.