How to Report German Social Security on Your U.S. Tax Return

German social security paid to someone living in the United States goes on the same two lines of Form 1040 as a domestic Social Security check. To report German Social Security on a U.S. tax return, convert the year’s euro payments to dollars, run the total through the taxable-portion worksheet that applies to U.S. Social Security, and enter the gross amount on line 6a and the taxable amount on line 6b. The reason this works is Article 19(2) of the U.S.-Germany tax treaty, which gives the United States exclusive taxing rights over the benefit and directs the IRS to treat it “as though it were a social security benefit paid under the social security legislation of” the United States.¹

The treaty’s Protocol carves Article 19(2) out of the usual Savings Clause, so the treaty rules control even for U.S. citizens.¹ That is the legal basis for skipping any special foreign-pension treatment and using the ordinary Social Security lines instead.

Convert Your Euro Payments to Dollars

All income on a U.S. return must be expressed in dollars, and the IRS says to use the exchange rate prevailing when you receive the income.² For a monthly Rente that arrives all year, most taxpayers use the IRS yearly average rate rather than converting each payment at the daily spot rate. Both methods are acceptable; the yearly average is far simpler.

The IRS publishes yearly average rates on its website. Divide the total euro amount by the rate listed for the Euro Zone in the applicable tax year’s table.³ The 2025 yearly average rate for the euro was 0.886, so €12,000 received during 2025 converts to about $13,544 (12,000 ÷ 0.886).

You will not receive an SSA-1099 for a German benefit. Keep your Rentenbescheid and annual payment notices, bank records showing the deposit amounts and dates, and a note of the exchange rate you used. Those documents are your proof if the IRS ever asks how you arrived at the dollar figure.

Figure Out the Taxable Portion

Because the treaty requires U.S. treatment as if the payment were domestic Social Security, the taxable share is calculated under Internal Revenue Code Section 86.⁴ Depending on your income, anywhere from 0% to 85% of the benefit ends up in taxable income. The percentage turns on your “combined income,” which is adjusted gross income plus tax-exempt interest plus half of all social security benefits (the German benefit included).

Single filers:

Combined income below $25,000: none of the benefit is taxable.
Combined income between $25,000 and $34,000: up to 50% is taxable.
Combined income above $34,000: up to 85% is taxable.

Married filing jointly:

Combined income below $32,000: none of the benefit is taxable.
Combined income between $32,000 and $44,000: up to 50% is taxable.
Combined income above $44,000: up to 85% is taxable.

Married filing separately taxpayers who lived with their spouse at any point during the year have a base amount of zero, so up to 85% of the benefit is taxable regardless of income.⁴ If you also collect U.S. Social Security, combine both benefits before running the worksheet.

Enter the Numbers on Form 1040

Enter the total gross benefit in dollars on line 6a, labeled “Social security benefits.” Enter the taxable portion on line 6b.⁵ The Social Security Benefits Worksheet in the Form 1040 instructions walks through the math.⁶

Because there is no SSA-1099, tax software may ask where the figure came from. Enter the converted dollar amount manually in the field for Social Security benefits. Attach a brief statement to the return noting that the amount represents German social security treated as U.S. Social Security under the treaty.

You Usually Do Not File Form 8833

Form 8833 is the disclosure form for a treaty-based return position that overrides the Internal Revenue Code, and the penalty for missing a required Form 8833 is $1,000 under IRC Section 6712.⁷ The instinct is that Article 19 clearly overrides the Code and therefore triggers Form 8833.

It does not. Regulation Section 301.6114-1(c) waives the Form 8833 requirement for individuals whose treaty position reduces or modifies the taxation of income from social security and other public pensions.⁸ Reporting a German Rente under Article 19 falls inside that waiver, and the $1,000 penalty does not apply. Some practitioners still file Form 8833 as a protective measure, listing Germany as the treaty country, Article 19(2) as the provision, and IRC Section 86 as the domestic rule being modified. Filing voluntarily costs nothing; skipping it here also costs nothing.

If You Received a Lump-Sum Back Payment

Germany sometimes issues retroactive payments covering benefits owed for prior years. The default rule is that you include the entire lump sum in income for the year you receive it, even if it covers earlier periods.⁹

That default can push you into a higher taxable percentage for the year. A special election lets you recalculate by attributing the back-payment portion to the earlier year it covers, using that earlier year’s income to figure the taxable amount. You do not amend the earlier year. You add the recalculated taxable amount to the current year’s return and check the box on Form 1040, line 6c to make the election.⁹ The worksheets in Publication 915 run both calculations so you can compare and choose the lower result.

If Germany Withheld Tax From Your Rente

Because the treaty gives the U.S. exclusive taxing rights, Germany should not be withholding on your Rente. In practice, Germany may withhold until you formally claim the treaty exemption. Article 29 of the treaty provides that withheld tax must be refunded on application when the treaty limits Germany’s right to collect.¹

The application generally goes to the German Federal Central Tax Office (Bundeszentralamt für Steuern), and Germany may want proof of U.S. tax residency, which typically means a certificate of residence from the IRS. Once approved, future payments arrive without German tax deducted.

Trying to recover German withholding through a U.S. foreign tax credit is complicated. The treaty directs you to treat the income as if it were U.S. Social Security, which may re-source it for foreign tax credit purposes, and Form 1116 only offsets U.S. tax on foreign-source income.¹⁰ The cleaner path is pursuing the German refund. If a significant amount was withheld, talk to a cross-border tax professional before choosing between the credit and the refund.

One boundary worth naming: the Foreign Earned Income Exclusion on Form 2555 does not apply. That exclusion covers wages and self-employment income, not pensions or social security.¹¹

Foreign Account Reports That Often Ride Along

If your Rente is deposited into a bank account in Germany, that account can trigger two U.S. reporting obligations separate from your income tax return.

The first is the FBAR. Any U.S. person with a financial interest in or signature authority over foreign accounts whose combined value exceeds $10,000 at any point during the year must file FinCEN Form 114 electronically through the BSA E-Filing System.¹² The deadline is April 15, with an automatic extension to October 15. A non-willful failure to file can result in a penalty of up to $10,000 per violation.

The second is FATCA reporting on Form 8938. Single filers living in the U.S. must file if foreign financial assets exceed $50,000 on the last day of the year or $75,000 at any time during the year. For joint filers, the thresholds are $100,000 and $150,000.¹³ Form 8938 is filed with your tax return.

Neither filing applies if your German account balance never reaches the relevant threshold. Both exist independently of the tax on the pension itself.

If You Live in Germany Instead of the United States

The rule above assumes you live in the United States. Article 19(2) gives exclusive taxing rights to the country of residence, so a U.S. citizen living in Germany who receives a German Rente owes tax only to Germany on that benefit.¹⁴ You still have a U.S. filing obligation as a citizen and must report worldwide income, but the treaty position should eliminate or heavily reduce U.S. tax on the German social security. The mechanics in that scenario are more complex than the U.S.-resident case, and a cross-border tax professional is the right call.

1
Internal Revenue Service. Convention Between the United States of America and the Federal Republic of Germany
2
Internal Revenue Service. Foreign Currency and Currency Exchange Rates
3
Internal Revenue Service. Yearly Average Currency Exchange Rates
4
Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits
5
Internal Revenue Service. Social Security Income
6
Internal Revenue Service. Instructions for Form 1040 – Lines 6a, 6b, 6c, and 6d
7
Office of the Law Revision Counsel. 26 USC 6712 – Failure to Disclose Treaty-Based Return Positions
8
Internal Revenue Service. Form 8833 – Treaty-Based Return Position Disclosure
9
Internal Revenue Service. Publication 915 – Social Security and Equivalent Railroad Retirement Benefits
10
Internal Revenue Service. Instructions for Form 1116
11
Internal Revenue Service. Instructions for Form 2555 – Foreign Earned Income
12
Internal Revenue Service. Report of Foreign Bank and Financial Accounts (FBAR)
13
Internal Revenue Service. Summary of FATCA Reporting for U.S. Taxpayers
14
U.S. Department of State. Convention Between the United States of America and Germany