PDA

View Full Version : Taxation in germany and USA with new spouse


wQ6Cy2383
Dec 11, 2015, 12:54 AM
Hello,

I'm recently married (june 2015) and my spouse is both germany and american.

I am only american.

I was paid in USA and filed as single.

She made about 10K€ in germany before quiting her job to move with me.

Should we file as married in both places?
We we be further taxed on my income in germany? She paid taxes in germany assuming she would work the whole year so I assume that since she was a resident for only 5 months it will be a bit different.

AtlantaTaxExpert
Dec 11, 2015, 09:02 AM
I can only address definitively about the U.S. tax return.

When you said "filed as single", I assume you mean you had taxes withheld at the SINGLE rate.

You have TWO filing choices: Married Filing Jointly and Married Filing Separately.

If you each file separately, you would each file a U.S. return reporting all world-wide income. Your wife ( who is required to file because she is an American citizen) would also file Form 1116 to claim the Foreign Tax Credit for the German taxes she paid. She may also be eligible to file Form 2555 to claim the Foreign Earned Income Exclusion.

If you file jointly, ALL world-wide income must be reported on the joint return, and the options for Forms 1116 and/or Form 2555 are also available.

I am not sure, but I believe that each individual must file their own tax return and the German tax will be imposed only on income earned while living IN Germany.