Question

Complicated Double Tax Income Situation (Green Card Holder)

Forum|Forum|4 years ago
February 18, 2022
1 reply
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Hi, I'm a Green Card Holder but going to college in Germany (I'm a German citizen and have a reentry permit so I can study there without losing my US Green Card). My goal is to live in the United States after college.

My college requires me to do an internship for one semester. I planned on doing the internship at an American company while still living in Germany (via home office).

Though there is a double taxation agreement in place between Germany and the US, I'm afraid that Germany will tax me since currently my life takes place there and I would stay in Germany for the internship. At the same time, I'd be interning at an American company (which does not exist in Germany) so I would earn money in the US. That makes me think the US will also tax me.

Is there any possibility to avoid taxation from the US for this internship without losing my Green Card?

Any help greatly appreciated! Thanks!

DaveF1006

Yes, if you are taxed by Germany on both incomes, you can claim a foreign tax credit for taxes withheld in Germany on your US return to avoid being double-taxed by both countries

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