Posted on Jul 23, 2020
‘This is discrimination’: Germany seeks income taxes from US airman because he's married to local...
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That is interesting news my friend Maj Robert Thornton that "German tax authorities are demanding that Ramstein-based Master Sgt. Matthew Larsen pay German income taxes because he is married to a local woman Kathrin, setting up a potentially precedent-setting case that could have financial implications for scores of U.S. troops in the country."
"Larsen said a worker at the Kusel-Landstuhl tax office told him his marriage to a German is an indication he is in the country for reasons other than his job and that this obligates him to pay German income tax."
Since the article you referenced was dated April 2, German elected officials have been looking into the matter.
I expect this will be resolved favorably - although governments tend to move slowly.
I did a little research and learned that German legislators are looking into this matter
BLUF "As of late April, the Landstuhl-Kusel tax office, which covers Ramstein and is the focus of their probe, said nearly 400 Americans with connections to the military in the area faced hefty German tax bills.
The German lawmakers [Marlies Kohnle-Gros, a state parliamentarian in Rheinland-Pfalz, and fellow Christian Democratic Union lawmaker Marcus Klein] have requested information from the Kusel-Landstuhl tax office and expect a response later this month.
"KAISERSLAUTERN, Germany -- Regional lawmakers in Germany are investigating why a finance office near Ramstein Air Base has stepped up efforts to collect income tax from American troops and military civilians, possibly breaching an international treaty that governs U.S. forces in the country.
Marlies Kohnle-Gros, a state parliamentarian in Rheinland-Pfalz, and fellow Christian Democratic Union lawmaker Marcus Klein are investigating whether there has been an official change in policy regarding how German tax offices treat U.S. personnel. They've also asked how many U.S. military members have been targeted for taxation and how much money has been seized over the past five years, they said in an interview last week.
The two lawmakers became aware of the issue after Stars and Stripes spotlighted attempts by German authorities to collect income tax despite the NATO Status of Forces Agreement, which, among other protections provided to members of the military, civilian employees and dependents stationed on orders in NATO partner countries, prevents them from being taxed in the host country and at home simultaneously.
As of late April, the Landstuhl-Kusel tax office, which covers Ramstein and is the focus of their probe, said nearly 400 Americans with connections to the military in the area faced hefty German tax bills.
The German lawmakers have requested information from the Kusel-Landstuhl tax office and expect a response later this month.
As an international treaty, the SOFA trumps German tax law, said Andreas Kindler, a spokesman for the Steuerberatung tax consultancy, which operates in the Ramstein area. The firm has received numerous calls in recent months from Americans targeted by German tax authorities, he said.
"German (regional) tax authorities are undermining the (SOFA) treaty," Kindler said.
Historically, the SOFA safeguarded U.S. personnel from double taxation, but in recent years some German tax offices have interpreted the treaty differently.
Some local tax officials have asserted that SOFA protections no longer apply if a person has "special ties" to Germany, such as being married to a German, extending military tours, owning property or sending a child to a German school.
Some Americans say they took none of those steps, yet still face tax bills upwards of nearly $200,000, along with legal fights to avoid penalties. The situation has affected active duty personnel, military civilians and contractors.
Most cases so far have been in the greater Kaiserslautern area, home to the largest overseas U.S. military community, but attorneys and tax officials say the issue has also popped up elsewhere -- from Wiesbaden and Heidelberg to Stuttgart, which is home to U.S. European Command."
FYI LTC John Shaw Lt Col Charlie Brown Col Carl Whicker TSgt Joe C. TSgt David L. SPC Margaret Higgins PO2 (Join to see) SGT David A. 'Cowboy' Groth SPC Lynwood A. (Glynn) Peeples
"Larsen said a worker at the Kusel-Landstuhl tax office told him his marriage to a German is an indication he is in the country for reasons other than his job and that this obligates him to pay German income tax."
Since the article you referenced was dated April 2, German elected officials have been looking into the matter.
I expect this will be resolved favorably - although governments tend to move slowly.
I did a little research and learned that German legislators are looking into this matter
BLUF "As of late April, the Landstuhl-Kusel tax office, which covers Ramstein and is the focus of their probe, said nearly 400 Americans with connections to the military in the area faced hefty German tax bills.
The German lawmakers [Marlies Kohnle-Gros, a state parliamentarian in Rheinland-Pfalz, and fellow Christian Democratic Union lawmaker Marcus Klein] have requested information from the Kusel-Landstuhl tax office and expect a response later this month.
"KAISERSLAUTERN, Germany -- Regional lawmakers in Germany are investigating why a finance office near Ramstein Air Base has stepped up efforts to collect income tax from American troops and military civilians, possibly breaching an international treaty that governs U.S. forces in the country.
Marlies Kohnle-Gros, a state parliamentarian in Rheinland-Pfalz, and fellow Christian Democratic Union lawmaker Marcus Klein are investigating whether there has been an official change in policy regarding how German tax offices treat U.S. personnel. They've also asked how many U.S. military members have been targeted for taxation and how much money has been seized over the past five years, they said in an interview last week.
The two lawmakers became aware of the issue after Stars and Stripes spotlighted attempts by German authorities to collect income tax despite the NATO Status of Forces Agreement, which, among other protections provided to members of the military, civilian employees and dependents stationed on orders in NATO partner countries, prevents them from being taxed in the host country and at home simultaneously.
As of late April, the Landstuhl-Kusel tax office, which covers Ramstein and is the focus of their probe, said nearly 400 Americans with connections to the military in the area faced hefty German tax bills.
The German lawmakers have requested information from the Kusel-Landstuhl tax office and expect a response later this month.
As an international treaty, the SOFA trumps German tax law, said Andreas Kindler, a spokesman for the Steuerberatung tax consultancy, which operates in the Ramstein area. The firm has received numerous calls in recent months from Americans targeted by German tax authorities, he said.
"German (regional) tax authorities are undermining the (SOFA) treaty," Kindler said.
Historically, the SOFA safeguarded U.S. personnel from double taxation, but in recent years some German tax offices have interpreted the treaty differently.
Some local tax officials have asserted that SOFA protections no longer apply if a person has "special ties" to Germany, such as being married to a German, extending military tours, owning property or sending a child to a German school.
Some Americans say they took none of those steps, yet still face tax bills upwards of nearly $200,000, along with legal fights to avoid penalties. The situation has affected active duty personnel, military civilians and contractors.
Most cases so far have been in the greater Kaiserslautern area, home to the largest overseas U.S. military community, but attorneys and tax officials say the issue has also popped up elsewhere -- from Wiesbaden and Heidelberg to Stuttgart, which is home to U.S. European Command."
FYI LTC John Shaw Lt Col Charlie Brown Col Carl Whicker TSgt Joe C. TSgt David L. SPC Margaret Higgins PO2 (Join to see) SGT David A. 'Cowboy' Groth SPC Lynwood A. (Glynn) Peeples
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SPC Lynwood A. (Glynn) Peeples
Thanks for the update. Sounds like to me that regional tax office is overstepping their authority. I sure hope and have faith that is will get resolved. Thanks again for the update.
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SFC Wendell Pruitt
The Status of Forces Agreement with Germany covers Active duty Personnel and their dependents to a large degree, The only area which I know to exist is Taxation of any German Based income the German Spouse may have from working off base, That is still German taxable income, Retirees and American Expats are not covered under the SOFA agreement and any income is Taxable under current german law.
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Well I'm kind of in the same boat. I'm a retired American citizen, married to a German and living in Germany. I still file my taxes in the states but they don't take anything out. I also have to file with my wife in Germany and we pay taxes over here, which is OK with me because we can deduct 100% of what we pay for our health insurance. There is a tax agreement with the US and Germany and it's not really as bad as it sounds. But when I worked for the US over here as a civilian, I just filed in the US and my wife filed in Germany. H&R block is really up on the tax agreement. They have offices in Germany, so I would go talk to them.
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LTC Stephen F.
FYI SPC Lynwood A. (Glynn) Peeples this is limited to the Landstuhl-Kusel tax office area near Ramstein. If you have not received a bill by now you are not affected.
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