Do I have to pay federal and/or state tax as a German permanent resident in MT?

I will freelance for a German company who will pay me in Euros and the money will go to my account in Germany.

if you are living in Montana (or did during the year), you are subject to US Federal Income tax and Montana state income tax, unless there is a tax treaty between Germany and the US which says you are not.

off hand, the only class of people I can imagine who would not be subject to the tax would be German military personnel temporarily located in the US for training, etc. or someone who is part of the various German embassy and consulate missions to the US.

it is much more likely that the Germany-US tax treaty specifies which country gets 1st crack at taking your income and that the other country allows you a credit for the amount of taxes paid to the first one.


search irs.gov website for detail

Yes. For federal tax purposes, a green card holder, just like a citizen, must pay tax on all income wherever earned. It's not likely that Montana's state tax rules are any different. You may be able to get a credit or deduction against U.S. taxes for any taxes paid to Germany - consult a CPA for details based on your fact situation.