US Citizens in Germany Need an EA. Here's Why.

2026-07-09

Last reviewed: July 9, 2026. This article reflects current IRS rules and EA exam requirements as of this date.

An estimated 100,000-150,000 Americans live in Germany. Every single one of them must file US taxes. Most also file German taxes. The overlap between the two systems creates a substantial market for US-credentialed tax professionals.

What Makes Germany Different

US-Germany income tax treaty, signed 1989 and updated by a 2006 protocol, prevents double taxation. But it doesn't eliminate the filing burden. Americans in Germany file Form 1040 with the IRS. They also file with the German tax authority. The complexity comes from the interaction between the two systems.

German tax rates are high — the FTC usually wins. Germany's top income tax rate is 45% plus 5.5% solidarity surcharge on the tax liability, for an effective top rate of 47.475%. Church tax adds another 8-9% of income tax in some states. This almost always exceeds the US tax rate on the same income, making the Foreign Tax Credit the better election over the FEIE. A preparer who defaults to the FEIE for a German resident is costing the client money and wasting foreign tax credits that could be carried forward.

German pension contributions are deductible — on both sides. Mandatory contributions to the German statutory pension (Rentenversicherung) are deductible in Germany. The US-Germany treaty Article 18 provides rules for pension contributions and distributions. The treaty creates a framework where German social security contributions may reduce US taxable income, but the mechanics depend on whether the individual is self-employed or employed and whether the contributions are mandatory or voluntary.

The Riester and Rürup pensions create US reporting. These subsidized German private pensions (Riester-Rente, Rürup-Rente) receive government allowances. From a US perspective, they may be foreign grantor trusts requiring Forms 3520 and 3520-A. The government subsidy may be US-taxable income. Most Americans in Germany don't report these plans because their German tax advisor doesn't know US rules.

Kindergeld (child benefit) complicates the Child Tax Credit. Germany pays Kindergeld — a monthly child benefit of €250 per child. The US Child Tax Credit is $2,000 per qualifying child. The interaction: Kindergeld is not US-taxable but may reduce the foreign tax credit calculation. The dual filing strategy depends on whether the family claims the Child Tax Credit, the Additional Child Tax Credit, or the Credit for Other Dependents.

Why an EA Specifically

The Enrolled Agent is the only federal tax credential that is 100% tax-focused, has no degree requirement, and carries unlimited IRS representation rights. For expats, representation rights matter — international returns are audited at higher rates. An EA in Germany can serve the American expat community and build a practice that operates across borders.

The Demand Signal

Major expat tax firms list Germany as a core market. The complexity is structural. The supply of preparers who understand both the US and German tax systems is thin. The EA credential is the fastest path to building US-side tax authority for anyone who wants to serve this market.

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