US Green Card holder in Germany - where does he pay tax
Hi, I'm a German citizen and resident alien currently employed and living in the US. For a special project, I would like to work as a freelancer for 2-3 years for a German Corporation in Germany, but I will maintain my residence (alien status) in the US. I do understand I have to file a tax return in the US anyway. But will I be able to tax my income in the US or do I have to tax it in Germany? Thank your for your advise. Kind Regards, WXCXXXX =================================== David Ingram replies "What An interesting question". But the answer is simple. You will pay tax to Germany first because you are performing the work in Germany. Then you will convert everything to US dollars and report everything again on your US return. You will then either claim an exemption of the German money on schedule 2555 or you will file a foreign tax credit on form 1116 OR if you have earned over $80,000 US in Germany, you might have to fill out both forms. Hate to be commercial but it is the kind of thing we look after because we specialize in US taxpayers living out of the USA. You also have to get a returning resident permit BEFORE you leave the US to keep your Green Card (resident alien card) alive. David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 913-9133 - Fax 913-9123 [email protected] www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" http://www.grisoft.com). Version: 6.0.507 / Virus Database: 304 - Release Date: 8/4/03
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