# US tax requirements



## edgomon (Feb 7, 2016)

what are the US and state tax requirements if 100% of my income and residence is in Mexico?

I will only own two condo's (NJ & FL). I have 1 US mortgage only.


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## Raypinciotti (Jan 20, 2016)

You need to get an accountant, you will file taxes every year just like you do now, but now you have to list any accounts that are gaining interests in Mexico, which might include your Afore. You will also have to declare your income in Mexico and the taxes you paid to the Mexican government. Most likely you won't be double-taxed unless you are seriously making a lot of cash. Yep, sometimes being an American sucks.


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## Isla Verde (Oct 19, 2011)

Raypinciotti said:


> You need to get an accountant, you will file taxes every year just like you do now, but now you have to list any accounts that are gaining interests in Mexico, which might include your Afore. You will also have to declare your income in Mexico and the taxes you paid to the Mexican government. Most likely you won't be double-taxed unless you are seriously making a lot of cash. Yep, sometimes being an American sucks.


I'm not sure of the exact amount, but if your total Mexican income is less than $90,000 US a year, _más o menos_, you won't have to pay US taxes, but you will have to file an IRS tax return. You'll need to find an accountant here who is familiar with US tax laws.


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## JetLee (Oct 29, 2015)

*US person always needs to report tax*



edgomon said:


> what are the US and state tax requirements if 100% of my income and residence is in Mexico?
> 
> I will only own two condo's (NJ & FL). I have 1 US mortgage only.


I am filing my 2015 Tax return right not. Basically, it does not matter whether you are. As long as you are a US person, you need to file tax return.

If your income is still your your income. Report it, but claim that you already paid tax in Mexico, which is deductible from your tax. Hopefully, you will even it out and find you need to pay $0 to US IRS.


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## dwwhiteside (Apr 17, 2013)

One other thing you may need to be aware of, if you are not already, is the FBAR. This is the requirement that all "US Persons" (there is a precise definition of what that means but, if you are a citizen then you are also a US Person) must report any bank accounts not in the US which, at any point in time, had more than the equivalent of $10,000 USD. 

Yep, sometimes it really sucks to be a US citizen.


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## TundraGreen (Jul 15, 2010)

Isla Verde said:


> I'm not sure of the exact amount, but if your total Mexican income is less than $90,000 US a year, _más o menos_, you won't have to pay US taxes, but you will have to file an IRS tax return. You'll need to find an accountant here who is familiar with US tax laws.


For 2015 the US Foreign Earned Income Exclusion is $100,800 (it goes up every year). You have to be "bona fide" resident in another country, or spend at least 330 days outside the US.


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## Isla Verde (Oct 19, 2011)

TundraGreen said:


> For 2015 the US Foreign Earned Income Exclusion is $100,800 (it goes up every year). You have to be "bona fide" resident in another country, or spend at least 330 days outside the US.


Thanks for providing the exact figures, TG.


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## AlanMexicali (Jun 1, 2011)

TundraGreen said:


> For 2015 the US Foreign Earned Income Exclusion is $100,800 (it goes up every year). You have to be "bona fide" resident in another country, or spend at least 330 days outside the US.


I have read several times that US citizens that work and are paid in Mexico that do not qualify for the 330 days absence from the US file US taxes to the IRS and pay on World wide income and as the previous poster stated get the Mexican portion deducted. For example Mexico charged 15% taxes on thier Mexican income and the IRS would charge 20% for that amount of income then the IRS would need you to pay a 5% tax to them.


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## Bevdeforges (Nov 16, 2007)

You may want to take a look at the Expat Tax section of the forum here: Expat Tax - Expat Forum For People Moving Overseas And Living Abroad

There's a whole lot more than you need to know - but since we're just getting into US tax season, there should be quite a bit of information that is useful for you.

Other than that, take a look at IRS Publication 54 for all the gory details. https://www.irs.gov/uac/About-Publication-54
Cheers,
Bev


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