Complete Labor Law Poster for $24.95
from, includes
State, Federal, & OSHA posting requirements


No announcement yet.

Retroactive Taxation for German Citizen

  • Filter
  • Time
  • Show
Clear All
new posts

  • Retroactive Taxation for German Citizen


    I am a graduate student and German citizen in the US (employed as a
    research assistant) and I am here since August of 2001. For 2002 and
    2003 I claimed a tax exemption on my income of $6,000 and $5,000,
    respectively. While filing my taxes for 2004 now, I saw that this tax
    exemption (20(4)) has a retroactive clause, stating that if I should
    reside in the U.S. longer than 4 years, I will be liable for tax for all
    years claiming treaty exemptions.

    As far as I understand that means I would have to pay back all the taxes
    I saved with the exemption, plus penalties. I was not aware of this
    retroactive clause when I filed my taxes. And I will definitely still be
    in the US during 2005 and 2006, meaning that this retroactive clause
    will apply to me. Can anybody give me some advice on what I need to do?

    -- Sascha
The forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on are opinions and suggestions of members and is not a representation of the opinions of does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.