# Looking for a good tax preparer



## Überling (Mar 18, 2021)

Hello all. I’m in need of a tax preparer experienced with both US and Germany taxes (and who knows the potential tax pitfalls and how to avoid them) for a US ex-pat couple living mainly on investment income who are moving to Germany soon. Has anybody here worked with any such firm or individual you would recommend?

Thanks!


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## Gaertnerin (Sep 17, 2021)

Überling said:


> Hello all. I’m in need of a tax preparer experienced with both US and Germany taxes (and who knows the potential tax pitfalls and how to avoid them) for a US ex-pat couple living mainly on investment income who are moving to Germany soon. Has anybody here worked with any such firm or individual you would recommend?
> 
> Thanks!


My husband and I tried finding help for our US & German taxes through a single preparer as well. We couldn't find it through a single local firm and ended up using one of the Big 4 accounting firms, thinking they were global and could help us the best, but it was a total nightmare. They were completely uncoordinated and in the end the German side actually didn't understand our US tax situation and made huge mistakes. We ended up going back to using our US tax preparer and finding German tax preparer, both well-versed in understanding the US-Germany tax treaty. We have to coordinate between the two and make sure that we're looking at our taxes holistically, but in the end it's been better for us this way. Google for "Cross-Border" or "International" tax advisors / Steuerberater to see who comes up in the area you are moving to. 

If you're living off of investment income, find a German preparer that understands US investment accounts. This actually caused the most confusion for us understanding what we needed to report and what we didn't. 

It's best to start understanding the tax situation now, before you move. Based on it, you may or may not want to make some changes to your accounts before you move to Germany.


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## Bevdeforges (Nov 16, 2007)

I see someone else takes my approach - you're ultimately better off using a US tax person for your US taxes and a German Steuerberater for your German taxes. Given that the US is the only country (well, other than Eritrea) that taxes its citizens based on citizenship, there aren't lots of tax preparers or advisors out there who can juggle both sides effectively. 

You could start by taking a look at the IRS publication 54 on Overseas Taxpayers to get some idea what you're getting yourselves into. The US places some heavy restrictions on owning "foreign" investments and accounts. And US based "tax free" investments and accounts may or may not be recognized as such by the German tax system. Despite what some will try to tell you, it's not a matter of "simply" deducting what you pay to one country from the tax obligation you have in the other country. And Germany does have a tendency to claim taxing rights on certain types of income that the US taxes for those in other countries. US Social Security is the big one.


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## Überling (Mar 18, 2021)

Yikes, it’s enough to make your head spin. It seems one could fall into some tax pitfall rather easily. I’m not even sure how to go about finding quality tax preparers in each country. Any advice there?

And thanks for the input.


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## Bevdeforges (Nov 16, 2007)

Not sure if it's still the case, but when I lived in Germany (many) years ago, the fees for a Steuerberater were strictly regulated and a function of the income to be declared on the forms. That at least takes the cost out of the consideration. There is also that matter that German taxes are quite a bit more straight forward than US taxes. It's more of a declarative system than the US - so much less room for "interpretation" like you get with the IRS. 

Take a look at the US Embassy website for Germany and see if they have a list of tax preparers (who speak English) in their US Citizens Services section. While they don't recommend anyone, those lists do generally include those with substantial US citizen clientele. Start here: Other English-Speaking Services


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## Überling (Mar 18, 2021)

Bevdeforges said:


> Not sure if it's still the case, but when I lived in Germany (many) years ago, the fees for a Steuerberater were strictly regulated and a function of the income to be declared on the forms. That at least takes the cost out of the consideration. There is also that matter that German taxes are quite a bit more straight forward than US taxes. It's more of a declarative system than the US - so much less room for "interpretation" like you get with the IRS.
> 
> Take a look at the US Embassy website for Germany and see if they have a list of tax preparers (who speak English) in their US Citizens Services section. While they don't recommend anyone, those lists do generally include those with substantial US citizen clientele. Start here: Other English-Speaking Services


Most appreciated. Thanks!


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## Gaertnerin (Sep 17, 2021)

Bevdeforges said:


> Not sure if it's still the case, but when I lived in Germany (many) years ago, the fees for a Steuerberater were strictly regulated and a function of the income to be declared on the forms.


There are still Steuerberater who go by the regulated fees, but there are also those that charge by the hour as well. A contract with the hourly rates outlined is provided and you should ask for a quote on the work to be done in advance to make sure it aligns with what you have budgeted (and then you may have to manage them to it!).


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