I’m a U.S. citizen who lives full time in the states. I’m a musician which is basically a sort of independent contractor and most of my gigs are in the U.S. This year, however, I had a gig in Germany and my paycheck there was taxed by Germany. What do I need to do this coming tax year about my income received there? I typically do my own taxes each year but I’m afraid my computer tax software doesn’t cover this…

Comments

You must log in or register to comment.

Mysunsai t1_iyf19dt wrote on November 30, 2022 at 10:21 PM

You report the income on your US taxes exactly like income you earned in the US, US citizens are taxed on worldwide income by the US.

If you paid taxes to Germany, you can claim a tax credit for those taxes using form 1116.

https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit

anjuaria OP t1_iyf1g5x wrote on November 30, 2022 at 10:22 PM

Thank you!!

1hotjava t1_iyf911b wrote on November 30, 2022 at 11:17 PM

If you get a gig playing on the moon, the terrestrial IRS will expect you to claim that income on your taxes. Bonus though is you can also claim the Tranquility Base Municipal tax paid on the moon on your IRS filing.

AutoModerator t1_iyf0ed7 wrote on November 30, 2022 at 10:15 PM

You may be interested in our regional index.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

Werewolfdad t1_iyf0m4m wrote on November 30, 2022 at 10:16 PM

Americans pay taxes on their world wide income

texas_asic t1_iyf1unt wrote on November 30, 2022 at 10:25 PM

You owe US taxes on worldwide income so that income is also taxed by the IRS. However, you get a dollar-for-dollar credit on taxes paid to Germany so you're probably safe from double-taxation. Read up on the Foreign Tax Credit and Form 1116. Turbotax and its competitors probably handle this. Here's turbotax's blurb on it: https://turbotax.intuit.com/tax-tips/military/filing-irs-form-1116-to-claim-the-foreign-tax-credit/L2ODfqp89