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    German-American's Avatar
    German-American Posts: 2, Reputation: 1
    New Member
     
    #1

    Mar 3, 2008, 03:25 PM
    Working in Germany and Two US States
    Hello,

    I worked at a German company for all of 2007 (started in July 2006) and lived in Germany for 7 months of the year. I moved to Michigan for 5 months during 2007 but continued being paid from the German company and paid no US taxes. I maintained a mailing address in Rhode Island but did not pay rent there.
    I am married and my wife earned income in both RI and MI during 2007 and we are filing jointly for 2007.
    Should I complete a Non-Resident MI Return and Resident RI Return or Part-Time Resident Return for each state?

    Thank you for your help!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Mar 3, 2008, 03:33 PM
    If you are a U.S, citizen or resident, you must report your worldwide income (even Germany income) on your tax return and you can only file a resident tax return.
    For taxes paid in Germany, you will get credit. For this you file Form 1116. You may even have to pay State taxes.

    You will file state tax returns of all the states where you had income.
    German-American's Avatar
    German-American Posts: 2, Reputation: 1
    New Member
     
    #3

    Mar 4, 2008, 05:13 AM
    MukatA,

    Thanks for the help. My follow-up question would be, do I file as a Resident / Part-Time Resident / Non-Resident for my State Returns (MI / RI)?
    I will file a normal 1040 for the Federal Return, using Form 1116 but it makes a large difference as to whether I am a Resident or not for the State Returns.
    Thanks again for your help!

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