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Pensions paid by, or out of funds created by, Germany, its political subdivisions, local authorities, or instrumentalities for services performed for the paying governmental body are exempt from U.S. income tax unless the recipient is both a resident and a national of the United States.
This exemption does not apply to income or pensions for services performed in connection with a business carried on by Germany, its political subdivisions, local authorities, or instrumentalities.
sorry to be obtuse but just to make sure I understand...my husband will remain a German citizen but will become a legal resident, a green card holder of the US and therefore will not have to pay US taxes on his German pension.