Hello,
We are US Citizens living in Germany, filing local and US tax returns, paying local taxes.
How do I reflect the amount of taxes we in Germany when using Net Price calculators? Otherwise I end up with the “sticker price” even though alsmost 1/3 of our income are German income taxes.
Thank you
I’m not an expert at all on this…but wouldn’t you use the U.S. IRS Tax return info for the right year when doing your net price calculators?
I honestly am not familiar with situations where a family files returns in both countries. Is your U.S. income essentially untaxed due to the foreign income exclusion?
Exactly. We have to file both returns - US income taxation is based on citizenship (for citizens).
Specific part of the income is untaxed in US (foreign income exclusion) , but taxed in Germany.
I am trying to but if I follow instructions (use line such and such) , I come up with 0 for taxes paid
0 taxes paid but aren’t you getting a $100k income reduction on the US return so your AGI is $100k less?
I know that you are supposed to enter the income and tax from your German tax return, in USD (converted at the rate on the day you file your FAFSA) in the income section. It’s a little tricky for you, because you need to indicate that you file a US return, but you won’t enter the amounts from that return for income and taxes paid. That could possibly trigger some questions from the school, but you’ll be able to explain. To get ahead of things, it might be wise to contact your child’s top school to explain your situation & ask for advice on completing the FAFSA. Ask to speak with someone who can help you with completing the FAFSA when the family files US & foreign returns.