Submitted by anjuaria t3_z955jk in personalfinance

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…

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Werewolfdad t1_iyf0m4m wrote

Americans pay taxes on their world wide income

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texas_asic t1_iyf1unt wrote

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

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1hotjava t1_iyf911b wrote

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.

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