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Civilian working for US Military, how does that work?

Last activity 02 October 2017 by Cynic

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serinchen

Hallo!

Does anyone have experience with working as a civilian for the American Military? Do you pay Germany taxes only in Germany?

Thanks!

Serina

beppi

There are exemptions from local tax and other rules for foreign military and diplomats in Germany, but not for civilians working for them - you'd be treated just like any other person working and earning in Germany. Everything else would just be unfair!

serinchen

beppi wrote:

There are exemptions from local tax and other rules for foreign military and diplomats in Germany, but not for civilians working for them - you'd be treated just like any other person working and earning in Germany. Everything else would just be unfair!


I expected this..i just want to make sure i don't have to pay any additional taxes like a US tax etc...do you know?

beppi

As far as I know (although other forum members may be better at explaining the details), US citizens have to declare and possibly ay tax on their world income even if living abroad (and being tax-liable there). I know peopl who gave up their citizenship because of that!

serinchen

beppi wrote:

As far as I know (although other forum members may be better at explaining the details), US citizens have to declare and possibly ay tax on their world income even if living abroad (and being tax-liable there). I know peopl who gave up their citizenship because of that!


Yes you are accurate on this. You must state the income you are earning when living abroad however i do not know if there are exceptions to the rule, definitely a question for ask a tax accountant. :)

TominStuttgart

You have to file and declare all money made worldwide as an American. There are ZERO exceptions. Whether you have to actually pay any additional tax to what you'll have paid locally is another question - that depends on a number of factors. Most people making under 100,000 dollars a year are going to be able to eliminate any additional US Federal Income tax through the Foreign Earned Income Exclusion and/or through tax credits. I have posted extensively about this subject so I do not want to repeat it all. A quick check through some of my previous posts include the following threads that might be helpful:

https://www.expat.com/forum/viewtopic.p … 30#3812882https://www.expat.com/forum/viewtopic.p … 62#3697452https://www.expat.com/forum/viewtopic.p … 30#3514831https://www.expat.com/forum/viewtopic.p … 30#3509841

Also, you can find out all of the rules and forms from the official IRS site at:
www.irs.gov

For example, their page about the Foreign Earned Income Exclusion is here:
https://www.irs.gov/newsroom/foreign-ea … usion-2016

serinchen

TominStuttgart wrote:

You have to file and declare all money made worldwide as an American. There are ZERO exceptions. Whether you have to actually pay any additional tax to what you'll have paid locally is another question - that depends on a number of factors. Most people making under 100,000 dollars a year are going to be able to eliminate any additional US Federal Income tax through the Foreign Earned Income Exclusion and/or through tax credits. I have posted extensively about this subject so I do not want to repeat it all. A quick check through some of my previous posts include the following threads that might be helpful:

https://www.expat.com/forum/viewtopic.p … 30#3812882https://www.expat.com/forum/viewtopic.p … 62#3697452https://www.expat.com/forum/viewtopic.p … 30#3514831https://www.expat.com/forum/viewtopic.p … 30#3509841

Also, you can find out all of the rules and forms from the official IRS site at:
www.irs.gov

For example, their page about the Foreign Earned Income Exclusion is here:
https://www.irs.gov/newsroom/foreign-ea … usion-2016


Thank you!

Cynic

I'm ex-military in Germany (albeit a Brit).  How the system worked was that civilian staff who were classed as US Nationals working for the forces (normally specialist roles within DoD), were treated as US Nationals under the Status of Forces Agreement, were housed and wholly administered by the US Government. 

All others were treated exactly the same as German nationals working anywhere else in Germany and liable to pay all local taxes. They could not use any of the base facilities (PX/BX etc).  There were no exemptions for applicable taxes in the US.

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