How do I proceed if I have worked abroad and now need to file a tax return?
February 28, 2022 | 40,00 EUR | answered by Wolfgang Stricker
Dear tax advisor,
My name is Marcus Schmid and I worked abroad last year. Now I am facing the challenge of having to file my tax return, but I am unsure of how to proceed.
I worked in the USA for a total of six months and paid taxes there. Additionally, I also earned income during my time abroad that needs to be taxed in Germany. I have already tried to inform myself online about the topic, but I am feeling overwhelmed due to the complex regulations and differences between countries.
My concern is that I might make errors in my tax return and risk having to make additional payments or even face penalties. Therefore, it is very important to me to learn from you the best way to proceed in order to submit my tax return correctly and on time. Are there specific forms I need to fill out? What documents are required and how can I possibly offset taxes paid abroad?
I would greatly appreciate it if you could help me with this complex issue and provide me with possible solutions so that I can submit my tax return without any problems.
Thank you in advance for your support.
Best regards,
Marcus Schmid
Dear Mr. Schmid,
Thank you for your inquiry regarding your tax return after working abroad, especially in the USA. I understand that the various regulations and differences between countries can be confusing and it is important to submit everything correctly and on time to avoid potential additional payments or penalties.
First and foremost, it is important that you declare the income you have earned abroad in your German tax return. You must consider that Germany follows a worldwide income principle, meaning that all income worldwide must be taxed.
For the offsetting of taxes already paid abroad, there is the so-called Double Taxation Agreement (DTA) between Germany and the USA. This agreement regulates how taxes on income are divided between the two countries. Generally, you can offset the taxes paid abroad against your German tax liability to avoid double taxation.
To submit your tax return correctly, you must fill out specific forms. For income from abroad, you usually need to fill out Annex AUS to declare the income earned abroad. Additionally, you should have all relevant documents such as pay slips, tax assessments from abroad, and other receipts ready to support your information.
If you are unsure if you have done everything correctly, I recommend seeking advice from a tax advisor. They can help you professionally prepare your tax return and avoid any potential mistakes.
I hope that my response has been helpful to you and wish you success with your tax return.
Best regards,
Wolfgang Stricker
