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inkaschindler
New Member

Does Turbo Tax work for expatriate tax returns (federal and state)? Moved to Germany in August 2017 and have been paying German income tax.

I have called the IRS and they recommend taking the credit for paying foreign income, form 1116. They were not sure about the dual taxation treaties.
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ToddL
New Member

Does Turbo Tax work for expatriate tax returns (federal and state)? Moved to Germany in August 2017 and have been paying German income tax.

Yes, TurboTax will prepare  U.S. or state returns for its  expats. 

The following posts have some overlap but together they cover how to report foreign income, exclude foreign income from U.S. tax and how to get credit for foreign taxes you paid.

Here is how to report foreign income:

https://ttlc.intuit.com/replies/3290703

How to exclude some of your foreign income from U.S. and state tax:

https://ttlc.intuit.com/replies/3301984

How to get credit for foreign taxes you paid:

https://ttlc.intuit.com/replies/3302405


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3 Replies
ToddL
New Member

Does Turbo Tax work for expatriate tax returns (federal and state)? Moved to Germany in August 2017 and have been paying German income tax.

Yes, TurboTax will prepare  U.S. or state returns for its  expats. 

The following posts have some overlap but together they cover how to report foreign income, exclude foreign income from U.S. tax and how to get credit for foreign taxes you paid.

Here is how to report foreign income:

https://ttlc.intuit.com/replies/3290703

How to exclude some of your foreign income from U.S. and state tax:

https://ttlc.intuit.com/replies/3301984

How to get credit for foreign taxes you paid:

https://ttlc.intuit.com/replies/3302405


View solution in original post

madmanc20
Level 3

Does Turbo Tax work for expatriate tax returns (federal and state)? Moved to Germany in August 2017 and have been paying German income tax.

Have a friend in similar situation.

 

1. US Citizen, retired, moved to Germany since a few years ago. Staying year round.

2. All income from US bank CDs, Ponzi scheme loss recoveries (Ponzi scheme was a US company), no wage income in Germany.

3. German tax law requires all her income is taxed in Germany regardless where it is earned.

 

To avoid double taxation in Germany and US.

 

- Should they designate all income in #2 as foreign income even though they are from US entity? 

- File US tax return and claim foreign tax credit deduction to eliminate US tax liability?

MarilynG1
Expert Alumni

Does Turbo Tax work for expatriate tax returns (federal and state)? Moved to Germany in August 2017 and have been paying German income tax.

@madmanc20 They could report their income as Foreign Earned Income, and take the Foreign Earned Income Exclusion and the Foreign Tax Credit.

 

Or, report the income as US income, and claim the credit only.

 

Click this link for more info on Foreign Income and Tax Credit

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