German- US taxes: File jointly or not?

[R&OC 355]

Please help.

 

My husband needs to file an extension this weekend. He is the US Citizen, I am a citizen of Germany.

 

We are inclined to file for married but separately - yet, we are hesitant as we are wondering whether or not this may actually create a problem with the immigration and/or future purchases of real estate. I already have a SSN from way back when I was a student. 

 

However, as I am already paying such high taxes on my German income, I would be more than happy to avoid any additional tax repayments. We are both earning well but with four kids and the first going to college, money needs to be spend wisely. We can not file for income exemption as my German income is above the $106000 threshold (or was it 108000?) unless I am allowed to apply tax deductibles such as property taxes, mortgage interest or other large deductibles here.

 

However, if we choose to file jointly which amount would we report? Gross income? Are there any deductibles allowed? We just purchased a property in 2017 and paid property taxes in Germany. Its owner occupied right now until we know for sure whether or not my husband will be able to get a job in Stuttgart but could we deduct those taxes from the gross income?

 

I am rather overwhelmed with this all.

Edited April 13, 2018 by R&OC

[Californiansunset 332]

10 minutes ago, R&OC said:

Please help.

 

My husband needs to file an extension this weekend. He is the US Citizen, I am a citizen of Germany.

 

We are inclined to file for married but separately - yet, we are hesitant as we are wondering whether or not this may actually create a problem with the immigration and/or future purchases of real estate. I already have a SSN from way back when I was a student. 

 

However, as I am already paying such high taxes on my German income, I would be more than happy to avoid any additional tax repayments. We are both earning well but with four kids and the first going to college, money needs to be spend wisely. We can not file for income exemption as my German income is above the $106000 threshold (or was it 108000?) unless I am allowed to apply tax deductibles such as property taxes, mortgage interest or other large deductibles here.

 

However, if we choose to file jointly which amount would we report? Gross income? Are there any deductibles allowed? We just purchased a property in 2017 and paid property taxes in Germany. Its owner occupied right now until we know for sure whether or not my husband will be able to get a job in Stuttgart but could we deduct those taxes from the gross income?

 

I am rather overwhelmed with this all.

Have you considered getting a tax advisor? I've always done my taxes myself in Germany despite having real estate and stocks and savings accounts (so a little bit more complicated). This was the first time I paid a tax advisor (German-American) to do my US taxes... she is certified here and used to have an office in Newport Beach. She wasn't expensive at all ($400) and saved us a good amount of money (I guess yours might be a bit more complicated with your purchase last year though so not sure whether she would charge you more). Message me if you want her info!

 

On a side note: Hey I am living in San Diego too! I live in Pacific Beach, not far from you. My family is from Stuttgart (Raum Freudenstadt) too.

[R&OC 355]

11 minutes ago, Californiansunset said:

Have you considered getting a tax advisor? I've always done my taxes myself in Germany despite having real estate and stocks and savings accounts (so a little bit more complicated). This was the first time I paid a tax advisor (German-American) to do my US taxes... she is certified here and used to have an office in Newport Beach. She wasn't expensive at all ($400) and saved us a good amount of money (I guess yours might be a bit more complicated with your purchase last year though so not sure whether she would charge you more). Message me if you want her info!

 

On a side note: Hey I am living in San Diego too! I live in Pacific Beach, not far from you. My family is from Stuttgart (Raum Freudenstadt) too.

Hey, I just sent you a PM! Please forward me your contact - I am so glad you have one!