How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3444
Experience:  3+ decades of varied tax industry exp. Tax Biz owner
58285678
Type Your Tax Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

I am a US citizen looking to go to work for a Germany company.

This answer was rated:

I am a US citizen looking to go to work for a Germany company. My question is releated to what types of taxes will I be subject too? Which taxes do I have to pay and which if any are optional.

I have both Roth IRA & conventional IRA setup for retirement, will have have to contribute to the Germany pension system or can I continue with my US plans?
Where can I find information on the amount of tax I will pay?

Welcome. THANK YOU for choosing Just Answer. My goal is to help make YOUR life, a little...LESS taxing.

Your question relates to tax laws of Germany and the U.S. I can answer the U.S. part, but as I not familiar with the tax laws in Germany. Note that U.S. citizens are taxed on their worldwide income. However you may be eligible to claim the Foreign Earned Income Exclusion, foreign housing exclusion, or claim the foreign tax credit. There is a tax treaty between the U.S. and Germany that eliminates double taxation, so you don't have to worry about being double taxed. Relating to the Foreign Earned Income Exclusion, SEE BELOW:

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is now adjusted for inflation ($91,400 for 2009, $91,500 for 2010, $92,900 for 2011, $95,100 for 2012). In addition, you can exclude or deduct certain foreign housing amounts. --It is not yet noted whether the amount of the exclusion will be the same for TY 2013. For more detailed information regarding the FEIE, you can refer to the following IRS webpage:

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

--------------------------------------------------------

Q: I have both Roth IRA & conventional IRA setup for retirement, will have have to contribute to the Germany pension system or can I continue with my US plans?

A: As a general overview, many Americans who live and work abroad qualify for the foreign earned income exclusion, which provides that the first $91,500 (for 2012) of foreign wages or self-employed income is excluded from US federal income taxes. People working abroad may also be eligible for the foreign housing exclusion. Any income that is excluded from income taxes as a result of either of these two tax breaks will be income that cannot be contributed into an individual retirement account. Any income that is not excluded from tax, however, can potentially be contributed to an IRA. You may want to refer to the following webpage for more detailed information relating to living abroad and contributing to your IRA.

 

http://taxes.about.com/od/retirementtaxes/qt/Individual-Retirement-Accounts-For-Americans-Working-Abroad.htm

-----------------------------------------------
Q: Where can I find information on the amount of tax I will pay?

A: The amount of tax that you will pay depends on if you qualify to take either the foreign earned income exclusion or the foreign tax credit, and what rate your income is taxed at. A person's tax rate is determined by gross and filing status. You will find the tax rates for 2013 on the following webpage:

http://www.bankrate.com/finance/taxes/2013-tax-bracket-rates.aspx

Please let me know if I can be of further assistance to you regarding this matter.

Thank you again for using JUST ANSWER.


Tax.appeal.168 and 2 other Tax Specialists are ready to help you