Americans’ Income Tax Service offers professional tax preparation with a focus on individuals.
We offer the following services:

  • US Tax Returns
    – Federal and State
    – Current or prior years
    – for expats or foreign nationals with US income within or outside the US
  • German Tax Returns
  • Resolution of Tax Problems & Assessments
    – Federal or State, any year
    – IRS Offers in Compromise and payment plans
  • Tax Planning
  • Refund of German Social Security Payments
  • IRS Certifying ACCEPTANCE AGENT for ITIN (Individual Tax Identification Number) applications

Info about the German “Abgeltungsteuer” or Withholding tax – in effect as of January 1, 2009

  • all investment income that is incurred within Germany will be subject to the withholding tax
  • the investment income will be subject to a flat 25% tax, in addition to the Solidarity tax and church tax for a total of approx. 28%
  • The bank or financial institution will withhold the tax and forward to the German tax authorities.
  • This investment income and the withholding tax will not be required to be reported in the income tax return
  • If the investment income is from outside of Germany, and if Germany has the right to tax this income according to the tax treaty with the country in question, then the income must be reported on the income tax return and will be taxed at the 25% flat rate.
  • The speculation term of one year for stock and security transactions will no longer apply; and the exemption of EUR 512 for capital gains on security transactions will no longer be valid.
  • Dividends and capital gains no longer come under the “Halbeinkuenfteverfahren” or half income system, and will be completely taxable.
  • The tax exemption on dividends and interest, as well as the income related expenses will now be composed of one tax free allowance for savers of EUR 801 for single filers and EUR 1602 for joint returns.
  • Losses from the sales of stocks can be offset from the gains from sales of stocks if the stocks were acquired after December 31, 2008.
  • Losses from stocks, securities and futures can be used to offset income from all categories of investment income (ie/ interest, dividends, etc).
  • If the investors income tax rate is below the flat 25%, he or she can request a refund of the withheld tax by including the income on the income tax return
  • the actual income related expenses (ie/ banking fees) can no longer be deducted on the income tax return.