# German Taxes?



## cleeplusminaj (Feb 16, 2013)

Hi, Me and my mom will be going on a trip to Germany for two weeks. We are leaning on living there but theres one big problem. Taxes. We know we qualify for a limited residential permit according to the German Mission in California. But would we still pay the high German taxes? My dad works and lives in the U.S. and my mom gets paid spousal which supports her. I get child support which is tax free here. If we were to move to Germany for a year our income wouldn't be from Germany its from my dads U.S. job so would our income tax be based on U.S? If so how? Because my moms spousal is taxed by state but we wouldn't be living in any particular state so how would that work too? Also is child support taxed in Germany? That would be a big problem. If we were to be taxed in German our USD dollars would first be converted into how much we net in Euros right? She nets $108,000 a year so in Euros thats 82644.63 €. How much would German income tax on that amount be? If anyone could answer all these question it would be great! Thanks, Christopher


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## Gioppino (Aug 25, 2012)

I can;t answer all of your questions but one thing for sure if you live in any of the EU countries for more than 183 days a year you are considered resident and you'll have to pay tax in Germany on all of your income, regardless of where it is generated.

If, as I believe, there is a double taxation treaty between the two countries you might be able to recover some of all the excess tax paid.

To have a rough idea of what you'll be paying:
Steuerrechner 2013 Steuer Rechner Steuerberechnung


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## Bevdeforges (Nov 16, 2007)

Where you pay taxes is based (primarily) on where you are resident - which, if you move to Germany, will be Germany.

As US citizens, you both (you and your mother) will have to continue to file US tax returns, no matter where you live in the world, and you will have to declare your worldwide income to the IRS. There are provisions in the various tax treaties, however, so that you won't be taxed twice on the same income. Generally, this amounts to the US granting you a tax credit for the income taxes you pay on your income to the German government. (Child support and spousal support do NOT count as "earned income" so aren't eligible for the foreign earned income exclusion.)

As far as state taxes go, once you establish Germany as your residence, you have no further state tax obligation - neither to file nor to pay. (Though if your mother hangs onto property back in the US, this can get tricky.)
Cheers,
Bev


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