I just completed filing my German income tax filing for 2020 I know that sounds late but COVID extensions went on forever. We're retired, and pensions and SS from the US were our only income. Since this is my first time paying German taxes, I wondering if I can claim them on my 2021 US return which I filed in Feb. 2022. There is also the matter of a tax consultant fee of $500.
Now I have to start my 2021 German filing, so any help is appreciated!
@pcpablo321 , generally , the foreign taxes paid on income that is taxed by both US and foreign country, can ONLY be recognized in that tax year. Thus no matter when paid, the taxes paid to Germany for 2020 tax year can only be recognized in US 2020 tax return. You can do this by amending your 2020 US return.
But I also need to more info on (a) Pension -- is it for service in Germany (i.e. from a German entity for work done in Germany) or work done in the USA?; (b) Social Security -- US or German?; (c) do these apply to both you and your spouse or ?; (d) are you also German citizen ?; ( e) when did you establish your German residence -- exact arrival date in Germany ? Please as much info as you can?
Also your tax consultant was covering only German taxes or was he aware of your need to file US taxes also i.e. was/she aware of US-German Tax treaty and take that into consideration ?
Please help--yes ?
Thank you for the reply! All income is coming from the US (Social Security, pensions, both of us). We're retired as residents, not citizens, in Germany since August 2019 and earn nothing here. The tax prep was done here by a German firm, and I did the 2020 US taxes with Turbo Tax which I will be amending. Thanks again.
@pcpablo321 , please see the treaty details below --- note that there are some changes between the earlier treaty and the later protocol--
is there more I can do for you?
Where do you live -- I used to live in Koln in early eighties, in a small village called Pech ( Gensha's home was also there ), near Bad Godesburg bei Bonn