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    konradsa's Avatar
    konradsa Posts: 28, Reputation: 1
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    #1

    Feb 25, 2007, 12:52 PM
    Negligible amount of income in Germany
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 26, 2007, 10:54 AM
    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].
    konradsa's Avatar
    konradsa Posts: 28, Reputation: 1
    New Member
    		  
    #3

    Feb 26, 2007, 07:34 PM
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 27, 2007, 11:48 AM
    Glad to help!
    konradsa's Avatar
    konradsa Posts: 28, Reputation: 1
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    #5

    Mar 11, 2007, 03:25 PM
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Mar 12, 2007, 10:51 AM
    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.
    German's Avatar
    German Posts: 2, Reputation: 1
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    #7

    Mar 24, 2007, 10:13 PM
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Mar 28, 2007, 11:28 AM
    No CPA here; I am just an ordinary tax consultant.
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