# Exemption - Net Investment Income Tax



## AmiGermany (Apr 5, 2020)

Dear All,

I earned over 125 USDk for the first time in 2019 and also had over 6 USDk in capital gains (interest income, dividends and realized gains on stock). I am an American but permanent resident in Germany. This means I am facing a new tax on my US tax return this year - the Net Investment Income Tax (NIIT). I am also married filing separately meaning the 125 USDk is relevant. 

I have read on several forums that I can exempt myself from this tax since Germany and the US have both a tax and social security treaty. Also, I have found that a form 8833 and form 1040-NR would be needed. However, I am unsure how it truly works. Do I only fill out a 1040-NR or do I still need a form 1040 for my usual employer income and the foreign tax credit? And do I only put my capital gains on the 1040-NR or on both forms? Or only the deduction on the 1040-NR? Also, I have never completed the form 8833.

Any help would be greatly appreciated! The US Government likes to make these things as complicated as possible...

Thanks!
AmiGermany


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