According to Miles and More Flight Award Chart , taxes and fees for the residents of US are capped at $1000.
What are you talking about?
Where do the Terms and Conditions talk about US
Residents?
Flight awards are always exclusive of taxes and charges. These are charged separately and settled by credit card (taxes and charges in the USA up to 1,000 dollars are determined by the service class booked (First/Business/Economy) e.g. 30,000 miles plus taxes and charges and airline-related charges ).
USA can mean many things.
It could be flights to, from, whole inside the US or whatever?
You cannot legally derive with your statement "taxes and fees for the residents of US are capped at $1000. "