U.S. and German taxes, prepared to agree
Germany taxes residents on worldwide income and the U.S. taxes its citizens wherever they live — so an American in Munich or a German engineer in Miami lives under both systems at once. The treaty and the credits are built to prevent double tax; the work is applying them in the right order on both returns.
Who this is for
Americans working or retired in Germany
German nationals living and working in the U.S.
Owners of a GmbH or other German company with U.S. ties
Families with German pensions, property, or inheritances
Where these files go wrong
- 01
German tax paid but never credited on the U.S. return — or credited in the wrong year
- 02
German investment funds and savings plans reported without the passive foreign investment company analysis
- 03
A GmbH owned by a U.S. person with no Form 5471
- 04
Treaty benefits available but never claimed on either side
- 05
Social security contributions paid twice because nobody applied the totalization agreement
Working between the U.S. and Germany
On the U.S. side
- Annual returnAnnual U.S. return for citizens and green-card holders in Germany
- TreatyU.S.–Germany income tax treaty positions where they help
- CreditsForeign tax credit for German income tax
- ReportingReporting of German accounts, pensions, and companies
On the German side
- ResidencyWorldwide taxation for German residents
- Pensions and church taxGerman pension and church-tax interactions
- Social securityA totalization agreement with the U.S. for social security
- Local filingLocal filing by a German adviser, coordinated with ours
General orientation, not advice — confirmed for your facts in the engagement.
What we handle, start to finish
U.S. returns for expats and new residents
Forms 1040 and 1040-NR, dual-status years, foreign earned income exclusion (Form 2555), foreign tax credit (Form 1116)
Foreign account and asset reporting
FBAR (FinCEN 114) and Form 8938
Foreign company and partnership reporting
Forms 5471, 5472, 8858, and 8865
Treaty positions
Form 8833 and withholding coordination, where a treaty exists
Foreign trusts, pensions, and funds
Forms 3520 and 3520-A, PFIC analysis (Form 8621)
Catch-up filings
The Streamlined Filing Compliance Procedures for people who didn’t know they had to file
U.S. taxpayer numbers and real estate
Coordination with the foreign return
Whoever prepares the other country’s return, we make sure credits, dates, and positions match before either is filed
Three kinds of returns. One team that makes them agree.
We handle U.S. domestic returns, cross-border (U.S.–Canada) returns, and international tax returns. When a case calls for deeper expertise — in any country — we bring in hand-picked specialists who work under our lead. One team, one point of contact, one plan — and returns that agree.
- You know who is working on your file
- One plan and one price, quoted in writing
- Both returns reviewed together before anything is filed
How your file is staffed
- U.S. domestic returnsour U.S. Tax Desk
- Cross-border (U.S.–Canada)our U.S. and Canadian Tax Desks, together
- Internationalhand-picked country specialists, under our lead
- Your single point of contactFairlight
From first call to filed, on both sides
A free fit call
Fifteen minutes. Which countries, which years, what’s been filed. We tell you honestly what’s needed and whether we can coordinate the foreign side.
A written scope and price
The U.S. work and the coordination, quoted in writing before anything starts. No hourly meter.
Both sides prepared together
Each return is prepared with the same facts, and credits, dates, and positions are matched before either is filed.
Filed, and on a schedule
Both returns filed, deadlines tracked, and the next year planned — not just the one behind you.
U.S.–Germany tax, up front
Is there a tax treaty between the U.S. and Germany?
Yes. It governs which country taxes what and supports credits and exemptions. Most benefits still have to be claimed on the return, which is where we come in.
Will I pay social security in both countries?
Usually not. The U.S.–Germany totalization agreement assigns coverage to one country for most assignments; the paperwork has to be in place.
How are German pensions and investment funds treated in the U.S.?
Carefully. Some German funds fall under the passive foreign investment company rules, and German pensions have their own treaty treatment. We review each before filing.
I own a German company. What does the U.S. want?
Typically Form 5471 and related disclosures, every year, with penalties for missing them. We prepare them alongside your return.
What does it cost?
It depends on the countries, the years, and the forms involved, so we quote it in writing after a short call — fixed, before any work begins. No hourly meter and no surprise add-ons.
How do we get started?
Book a free 15-minute fit call. Bring your last filed returns if you have them; if you don’t, book anyway.
An American living outside the U.S.? See U.S. expat returns for the filing rules that apply wherever you live, or all international tax.
Read our guide: U.S. Expat Taxes in Germany — What Americans Need to Know →
Ties to Germany? Start here.
A free 15-minute call, then a written scope and price. No payment until after.
The content on this page is for informational purposes only and does not constitute professional tax advice. International tax requirements depend on individual facts and circumstances and are subject to change. Foreign-country rules summarized here are general and change; your situation is confirmed in the engagement. See our full legal disclaimer.