On investment income, foreign taxes are automatically deducted and paid. If you are a German national living in the US, you would file as if you lived in Germany.
You will need to send German authorities a tax return for all income earned from German sources. The IRS lets you take a credit for all taxes paid to Germany.
No, i dont think so. Why should you be paying taxes for germany when you are in america. To me this is strange. Why would some one pay taxes for a country they not live in.