My wife works remotely for a U.S. company. We're currently in NC but will be PCSing to Germany soon and are trying to figure out what her tax situation will be under Germany's SOFA agreement with the U.S.
I'm TDY for training for the next 4 months, so I won't be able to schedule an appointment with JAG, and then we PCS almost immediately after. I'd like to get an answer before we start the PCS process because my wife is interviewing for other U.S. company remote jobs. The job interviews are confused about whether they can hire her under our circumstances and she has already been passed over for some job offers because of this.
This document suggests that she can work for a U.S. employer remotely while living in Germany, her employer will have to submit some documentation exempting her from U.S. taxes, and she will pay German taxes instead. Am I understanding this correctly?
SOFA agreement with Germany—military spouse working remotely for U.S. company. What’s the tax situation?
byu/Harry_Coolahan inMilitaryFinance
Posted by Harry_Coolahan
3 Comments
She is not exempt from state or federal taxes. Just like you, she has to pay US taxes. It’s a complicated situation and most companies do not want the hassle of navigating a complex tax situation.
I’m pretty sure under MSRRA, she could file quarterly taxes with your legal residence or her employers state. Contact military one source for verification.
You (or your spouse) need to make time to contact the Legal Assistance Office in Germany.