Tax Treaty Meaning

[Kram BergGold]

In Pub 901 page 29 for Germany it says a government German pension is not taxable in the US unless the recipient is both a resident and national of the US. My client is a US citizen? So is the pension exempt or taxable?

[jimmcg]

Taxable.... The individual is not a "national" under provisions of US Code but is a US citizen. Thus US citizen who is a full time resident .............all income taxable.........Not aware of any provisions of Code which would exclude it for US resident citizen.

[oceanlovin'ea]

taxable

I have a German lady who gets a pension from Germany and Canada and US. The German and Canadian are both that country's social security pensions. She gets no statement from Germany. We add up the amount deposited in her bank account for the year and add it to her other social security.

Linda, EA

[Kram BergGold]

To Oceanlovin'EA

So you believe the German pension is taxed in the same way as US SS which can be anywhere from zero percnet to 85% taxable depending upon income?

[Gretel]

So you believe the German pension is taxed in the same way as US SS which can be anywhere from zero percnet to 85% taxable depending upon income?

Yes, it is same as Social Security here. The American SS Adminstrations works closely with the German SS A. at time of SS start. If a person qualifies for SS in both countries there are limitations on the total amount received.

[oceanlovin'ea]

Gretel knows

Believe what Gretel says. She helped me when I first got this client. We had letters from Germany but they were in German. Gretel translated them for me and she also had prior experience with the issue.
I would consider her an expert on the subject.

Linda, EA