last year I won my CUE claim with the help of many here and I received a nice amount of retro pay. Well, I did my German taxes earlier this year and needless to say, that Retro Pay got some attention. In the past, I claimed my retirement and disability and it went smoothly. These are not taxed here in Germany, but I simply need to report the income. Seems someone at the German Tax Office (Finanzamt) didn't understand the treaty between the USA and Germany, so I was sent a bill for 11000 Euros! I've had to hire a tax expert and this has actually become work.
One of the things I need and cannot find is an explanation on the disability compensation system. Germany recognises military injuries and illnesses much like the Americans. Their's go two ways. One is for life and the other is term or limited until retirement age. The US type is different and more fluid, so to say. It can change or the disability rating can change, as we all know. But I can find nothing that clarifies how the disability compensation works. I need something official with a letter from the VA or DoD or similar. Does anyone know of such a website or document that can clarify how this maddening system works?
For the Germans, limited is seen as an income and is taxed, whereas life is non-taxed. Our is basically a lifetime compensation, but it can change at any time through an examination.
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Scottish_Knight
Right then,
last year I won my CUE claim with the help of many here and I received a nice amount of retro pay. Well, I did my German taxes earlier this year and needless to say, that Retro Pay got some attention. In the past, I claimed my retirement and disability and it went smoothly. These are not taxed here in Germany, but I simply need to report the income. Seems someone at the German Tax Office (Finanzamt) didn't understand the treaty between the USA and Germany, so I was sent a bill for 11000 Euros! I've had to hire a tax expert and this has actually become work.
One of the things I need and cannot find is an explanation on the disability compensation system. Germany recognises military injuries and illnesses much like the Americans. Their's go two ways. One is for life and the other is term or limited until retirement age. The US type is different and more fluid, so to say. It can change or the disability rating can change, as we all know. But I can find nothing that clarifies how the disability compensation works. I need something official with a letter from the VA or DoD or similar. Does anyone know of such a website or document that can clarify how this maddening system works?
For the Germans, limited is seen as an income and is taxed, whereas life is non-taxed. Our is basically a lifetime compensation, but it can change at any time through an examination.
Any help on this would be greatly appreciated.
Cheers!
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pacmanx1
As stated in my second post not trying to steer you the wrong way, you can let your tax adviser and the German tax office read over this information and see what will happen and take it from there and
Scottish_Knight
Well this was odd indeed. I wrote what I felt was a good explanation of VA disability compensation and added words in order to define it in comparison to the German system. My tax advisor read it an
pacmanx1
Good news, hope this helps and solve your problem.
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