U. S. Expats Are Revealing The "We're Being Scammed" Realizations They Had After Moving Abroad

[DFW]

76. It has to do with the source of the income

Certain categories of US income to US citizens are by law taxed in the USA, no discussion. That’s OK if the Germans recognize it and don’t want to tax it again. But that is not the case. Then there’s the Roth IRA. I was still a legal resident of the US when I made the conversion, paid the whole chunk of taxes due. The Germans are saying, “well, pay us again!” After paying the IRS 39.6%, I do not agree with paying the Germans another 50%. That does not leave a whole hell of a lot over. Heil Honecker.

I earn only a small portion of my income in Germany. I have to submit a detailed accounting at the end of every year of each of the 365 days. There are six categories: US working, Us not working, Germany working, Germany not working, Third country working, Third country not working. Each is treated separately. “Germany working” is only a small percentage. Most of my work week is spent in France, Belgium, Switzerland, Spain, NL, etc. Germany is a convenient geographical location, but it is not where most of my actual work is.

If I were to retire, that would simplify some issues, but not my Roth IRA. One German accountant advised me to move back to the USA for 367 days and take a 100% payout, and then come back. How practical. Plus, I’m not retired. I was discussing this with Mark Kelly on Friday night, and he agreed: “and then do WHAT?” Exactly. I’d rather die of overwork than of boredom. When he retired from the Navy, Mark faced the same choice, and Gabby fully supported his decision to go full steam into something else. US Senator is not a part time job.

I’m only 72, and not ready to retire. I speak German, Dutch, French, Catalan, Spanish and a few other European languages, so I’m comfortable in my surroundings here. If I move back to the US, I want it to be on my terms, not forced by German bureaucrats. My wife, who IS retired, has less free time than she did when she was working. Her mom is 97 luves in a small village up north with no public transportation, and needs constant care, but will not live in assisted living, most of which is awful. That is a 3 hour drive in each direction. Plus, our younger daughter has two small girls (4 and 6) down in the Taunus hills, and though they have a competent and dedicated nanny, she does not live close by, and does get sick on occasion. That is a 2 hour drive in each direction. I tremble every time she leaves, but once a social worker, always a social worker, I guess. She is my age, and we will both be 73 later this year. Her government pension is now up to about €1400 a month, and that’s taxable, so in other words, nearly nothing. That is another reason I am fighting my own battle. The German government leaves her nothing to fall back on if I’m no longer there.