Dual citizenship

[Ahtaxquestion]

My friend has a dual citizenship for USA and Germany. He no longer lives or works in USA. He moved to Germany and live and works there now. Is he still required to file a USA tax return for the money that he makes in Germany? Even though he has not worked or made any money in the USA for that year? If he does have to file will he be taxed twice, for each country?

[dgcarey16]

I am not a tax expert so please assess my response accordingly.....

I also have dual citizenship (US and Canada) and now am resident in Canada so I've had to research and answer the same questions.  Here is what I have found:

• All US citizens must file a US income tax return every year that reports worldwide income regardless of residency
• As a non resident your friend would most likely use the 1040NR form
• There is most likely a tax treaty between Germany and the US that reduces (but likely does not eliminate) double taxation.  I'd suggest getting information directly from the German taxation department

[buddhadude]

My Sweetie has dual citizenship (US and Canada).  She must file tax returns in both countries.  Which Turbotax CD product will handle that task?  Thanks.

[pk]

@Ahtaxquestion , @buddhadude , @dgcarey16 ,  having read through the original post and comments thereto:

(a) for tax purposes , US does not recognize dual citizenship.  Thus as a citizen/resident ( Greencard ) US taxes you on your world income, no matter where earned.  So all citizen/Residents must file  form 1040 reporting world income.

(b) the tax treaties  between US and "the other country"  generally are for the purpose  of  1. ameliorate double taxation and 2. provide treatment for special circumstances / situation.

(c) for US citizen/Residents earning and living in another country, there is  "Foreign Earned Income" exclusion  available to reduce the effects of double taxation and foreign tax credit/ deduction  for taxes on  income still double taxed.

(d) same rules to avoid  double taxation  apply for countries  with whom US does not have a tax treaty, but in such cases  there are no protection  for special situations.

Bottom line is  that as dual citizen you must still file US return to be able to take advantage of ,   or assert  tax treaty conditions, such benefits.

Does this answer your query or do you need situation specific answers  ( in which you would need to provide  your country of residence, countries of citizenship, your employer whether US government,  US  private entity, foreign government, foreign private entity, presence type -- how long and plans to return or stay permanently, family situation -- accompanied or not,  etc. etc.  )

[buddhadude]

Country of residence is Canada where she has lived for 24 years and every year filed both US and Canadian tax returns not using Turbotax.

My QUESTION is: which Turbotax CD product(s) can we use to file both the US and Canadian returns?   (Hopefully the Turbotax programs talk to each other like Turbotax state programs do, to reduce redundancy in filling out forms.)

Thank you for your response.

[pk]

@buddhadude   TurboTax  products are geared to each country  separately i.e. the US version  does  only US return preparation and the Canadian version does only Canada returns.  So you would have to purchase  two different pieces  of software -- one for the US return and one for the  Canadian return.    Am not familiar with Canadian  tax laws  and/or the TurboTax product  for Canada and so cannot comment on that side  but the US version I am familiar with and can say does a good job of preparing  the  US return.

Is there something more I can do for you ?