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  1. Hello,    I hope someone can help me solve the following case:   Let's say I have received as income 100 coins of a cryptocurrency called AAA.  At the time of receiving those 100 coins, the rate was: 1 AAA = 5 EUR.   I don't plan to sell the 100 AAA, but I still need to declare the corresponding amount of EUR as income in my tax report, which would be: 100 x 5 = 500 EUR.   However, the coin AAA has low liquidity, and after estimating how much I would have earned from selling all the 100 AAA they day I received them, I would have only made 50 EUR in return.    My question is what should I then declare in my tax report?   1. 500 EUR of income, given that exchanges pointed to the highest price of: 1 AAA = 5 EUR, or 2. 50 EUR of income, given that the liquidity forced an average/real price of: 1 AAA = 0.5 EUR.   Thanks in advance.  
  2. Independent contractor

    Hello, I work as an online English teacher on a platform that teaches adults conversational English in other countries. I work from home via webcam and set my own hours. I am confused as to how I go about paying taxes. I do not have a employment contract as a normal job would have and get paid via PayPal. I keep records of all of my “paychecks” but I don’t know how to file taxes. I don’t believe I am a freelancer because my income is from one source. Can anyone help with this?
  3. Teaching English online taxes

    Hello,   I am planning to begin teaching English online through a website that lets me teach to people in China. I will set my own hours and will get paid into my PayPal account. How do I go about paying taxes? I’m not sure if this qualifies for freelance because I will only be using this one source of income. Also what percentage of my income can I expect to pay earning about 15 euro an hour working 40 hours a week? Will I have to pay US taxes? I read that I will have to file a return with the IRS but my income would be exempt if I earned it overseas. However this is a work from home job and I could work anywhere. 
  4. Taxes on non-German accumulating ETF

    Hello everybody,   Posting for the first time.   I would like to invest in an accumulating ETF which is operated by Deutsche Bank and is domiciled in Luxembourg. The fund is "transparent", i.e. it reports to the German tax authorities.   As far as I understand, the taxing process is extremely complex. The German authorities behave as if they aren't aware of the dividend/interest gains and you're obliged to declare and pay them every year. However, upon selling, they suddenly become aware of these gains and tax you again. Then, in order not to be double-taxed, you must prove that you correctly declared all gains and paid the taxes lawfully, and only then will you get your taxes back.   Is this really the case? Is investing in transparent, German-operated funds in the EU really that complex?   Thanks in advance!
  5. So I just read that the deadline to submit taxes for a previous year in Germany is July 31st and I think I'm screwed.  I was tax class 1 all of 2019 until November 1st when I got married (in Germany, to a German. Yes, we did all the paper work/bureaucracy and all that)  My tax class then changed to tax class 4. I make decent money and was excited at the prospect of my tax class being retroactively changed to 4 for all the months leading up to November, expecting a big refund check the following year.  My wife and I went to a tax professional at the beginning of 2020 and provided her with all our tax related documents for 2019. It's now almost December and we haven't heard anything from our tax professional. My wife has called and emailed her a few times over the past few months. We've either been told she's bouncing between cities and only does the work for the customers in X city when she's at the office in that city, that she's working on it, or we get her voice mail.  I'm really upset and frustrated that it's now practically December 2020 and I haven't heard anything about my 2019 taxes and I'm terrified that I'll miss out on a large refund for all the taxes I paid for the 10 months of the year that I was tax class 1 in 2019. Is it possible to file late? I think I need to find a new tax professional. She's always been great for my wife, but my wife is German and has only part-time and free-lance jobs. I'm a salaried tech engineer who also has the entanglement of US citizenship and stocks awarded to me in the US as compensation for work done in Germany as a German employee.
  6. Another Self Employment Tax question

    Hello knowledgable TT people. I have a sort of specific and random tax question. I looked around on here and even used my amazing Google skills before posting another thread on an often covered topic but did not find an answer.   I am an American living here in Germany. I have no plans to return to the states to live. I have been researching opening an ecommerce business (a store) online for a while and am planning on biting the bullet this year and opening the store from here in Germany. I am more or less retired and dont need the profits from the store to live so I plan on saving any profits. I will be opening an LLC in the states, opening an American bank account and keeping any and all profits in said American bank account. The store will not ship to europe and I do not plan on wiring any of the profits to my German Sparkasse account.   I am wondering if I need to claim any profits with the Germans tax wise. I asked an American tax person who lives and operates here and files my American taxes and he believed I did not but he was not 100% sure. I know how the Germans operate and im sure if I ask the Finanzampt they will tell me yes of course I need to file because they want the money. Would this just fall under Progressionsvorbehalt? Do I need to claim it with them? I wanted to ask here first before I shell out a few hundred euros to a German/ American tax person for an answer.   Hypothetically (please dont lecture me on morality), say I did need to pay taxes on this money, what would be the chances of the germans finding out I ran a business in the states from here and was making an income if said income never showed up here? Does the IRS report American bank accounts to the Germans the same way they report my Sparkasse account to the Americans? Just curious. I know tax avoidance/ fraud is punished severely here. Thanks!
  7. Amnesty program

    Hi guys it has been awhile since last I posted here.  Hope you are all well.   I have been here in Germany since 2010, working since 2012 (I think) and never once was really aware that I need to file for US taxes too. I thought Germany taxes and some treaty blah blah blah.   I am a US citizen born in the US to US citizen parents although we left the states when I was very young returning only twice for a few months.   Now I am in the process of trying to file for Greencards to bring my wife and 4 children back to the US they are all Germans without US citizenship as I don't meet the requirements to pass on citizenship.    When filling out the affidavit for support I noticed they require 3 years of Federal income tax returns.  My immigration lawyer initially told me a translated file from my work would be sufficient but now says I need to give my tax returns which I don't have.   I went online and checked out American Overseas website and they highly recommend using one of their tax agents, my immigration lawyer also insists that we use a tax lawyer too but stateside.   I am willing to file for my taxes and back taxes for the last few years, I barely make it over the US poverty line, but I realize I still need to file regardless.   Am I able to just file for the last 3 years or am I obligated to go through with this amnesty program? If I file without a tax lawyer and use the amnesty program what are things I need to be aware of? Is anyone here a tax accountant or can recommend me someone they know and trust?   Help!
  8. I use Elster exclusively to send forms to the Finanzamt, which works great. My problem is that whenever I submit a form electronically, I get an answer in my physical mailbox by post. Is there some option I am not setting in Elster that would enable getting all replies electronically? I had the same issue on the Deutsche Rentenversicherung site and I eventually found an option to opt-in to all replies electronically.   Many thanks in advance.
  9. Greetings, I am looking at dipping my toes into the world of stocks and have a question about taxes. U.S. citizen with long term residency in Germany and planning on staying for the forseeable future. I maintain a US based checking/brokerage account that is still registered at my family address back home. I would transfer post-tax EUR from my German account as USD to my US account using some exchange service like TW. I expect this account to generate primarily short-term and also long term capital gains (hopefully!). How would these gains be taxed? As I understand, due to my residency status, the Finanzamt would have the first right to taxation on those gains. As such, those gains would be covered by the FEIE unless I break the 10x,xxx per year limit (unforseeable). Is this correct? (Yes I know speaking with a tax German CPA would be my best chance at a clear answer, but I figure some of you might already deal with this). Thanks everyone!
  10. Hello Everyone,   I’m way behind on my taxes. I searched up and down this site and couldn’t quite find the answer to my question, so maybe someone can point me in the right direction.   I am a US citizen living in Germany. I married a German in 2016 and we now have two children together. I have not filed my taxes since we got married because I can not figure out what to do. I tried filing married, filing separately, but it still asks for a tax ID for my husband or SSN. I tried twice to apply for a tax number but never received anything back. We pay German taxes and make below the threshold to get taxed in the US, but obviously I would like to get up to date and file. Any Americans married to Germans and working in Germany what can tell me what they did?   I have emailed a tax expert I found on this site to see why he thinks, but haven’t heard back yet.    Thanks!