Hi,

I am F1 student on OPT, citizen of Germany, in the US since 2001. For 2006, I will need to file my taxes for the first time as a resident.

Now I read that I need to report my world-wide income. I have some unsubstantial income in Germany (couple of $100 in interest), nothing big, which properly taxed in Germany and I paid the taxes. I don't have any other source of income in Germany. Would I need to report that? Or is this income not subject to US tax, since there is a tax treaty between Germany and the US and I already paid taxes in Germany?

Thanks,
-- Sascha

Yes, you need to include it on your tax return.

You can file Form 1116 to claim a dollar-for-dollar credit for the taxes you paid to Germany.

If you need my professional tax help, contact me at [email protected].

Thanks,

I will try to do it myself, but if I need help I will definitely contact you for professional help. You (and taxsearcher) have been a huge help thus far, I really appreciate it.

-- Sascha

Glad to help!

Ok,

I got all of my account statements from my German banks together. So, what do I need to do now to report the foreign interest income? I assume I add it to my gross income and also fill out 1040 Schedule B? But do I also need to fill out a TD F 90-22.1? And also, what exchange rate do I need to use to convert from Euro to US $?

Thanks!
-- Sascha

Sascha:

I believe Form TDF 90-22.1 is required, but I am not sure. TaxSearcher?

You can use the exchange rate for today or the average exchange rate for 2006. The IRS will not quibble over the differences.

It is required. On the IRS website they give you a few links to websites that post annual conversion rates (from the US treasury to Oanda). For 2006 it was 1.2563.

By the way: Are there any people out there that are qualified as CPAs (or equivalent) in Germany and the US. I have some complex issues myself. I need a CPA with specific German experience.

No CPA here; I am just an ordinary tax consultant.