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Need advice re taxes: I live in Mexico but work remotely for a US company


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I'm sure this has been covered before on this forum but I couldn't find it in a search. I'm a US citizen, and for all of 2018, I lived in Guadalajara and worked remotely --out of my home office-- for my US employer based in Oregon. My understanding from a lot of online searching is that I owe taxes to the US federal government AND the Oregon state government AND the Mexican federal government, but I remain confused about the details in part because all the advice I've been finding seems to assume that I either work for a Mexican employer or for a US employer that has a presence in Mexico. 

So, if anyone has experience similar to my situation and/or can point me to a service that can help me deal with my taxes (including the Mexican taxes; the few 'expat tax services' places I've found seem to only deal with US taxes), please let me know!

Thanks,

Daniel

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16 minutes ago, mudgirl said:

You don't owe taxes to Mexico. You aren't working for anyone in Mexico, you are working for a US company online. You have to file your US taxes and state taxes just as you did when you lived up north.

.... and of course you can do all that online too, which completes the circle. Work from Mexico, file from Mexico. 

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1 hour ago, Yo1 said:

If one lives in Vancouver, WA but works in Oregon, they must pay Oregon income tax.  Same with OP, unfortunately.  Check the link that Tiny posted--explains it clearly.

Ah, thanks for explanation. I thought you meant Vancouver, Canada, so it didn't make sense to me. Yes, it does make sense that you would pay state income tax on the $ earned if you are working in that state. But someone working for a US company online, getting paid in US $ to their US bank account is considered to be working in the US,  even if they happen to be sitting at their computer in Mexico, or wherever.

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Please see an expert. Much of the info is just plain wrong.  Suggest finding a address in Washington State to legally avoid dealing with Oregon income tax.  Washington has no income tax and since you live here big time sales tax doesn't matter. Issue of taxes is much easier if you are just collecting Social Security rather than working. Yes you can avoid paying Mexican income tax but how legal it is I don't know.  It depends on whether being paid in US is considered tax free here if you live here. Where did you make the money? The US doesn't care they tax on worldwide income.  Mexico does not but you made the money working here.  

Time for a GOOD tax person for exact details on this stuff and not trust a board.

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If you use a tax consultant, I would recommend you still do your own research. I had a tax consultant that miss something concerning a state taxes they were not familiar with. It was a state that the consultant didn't live in or did taxes for.

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I have worked remotely for 12 years.  I file a form for Foreign Earned Income Tax Exclusion.  I only pay my self employment tax.  I have no state income tax and you don't pay Mexican tax.  I don't know what the limit is this year but it is in the neighborhood of $100,000.  I E-file and it walks me through it.  For some reason I can't attach a link but Google it for more info.

 

 

 

 

 

 

 

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I know Scott, he one of my tax preparation peers, he does excellent tax work, 

even though I am raising money for Have Hammer by doing taxes and give the money you Have Hammer school.

I have only good things to say about Scott. He is a professional.

 

Clients have asked me for a second opinion, i seen the some of the tax returns hes prepared

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I definitely agree with the recommendations to get professional advice.

A couple of thoughts that might be relevant when talking to those professionals -

  • Is your paycheck deposited in a U.S. bank or in a Mexican bank?
  • Does the company you work for have operations in Mexico - even if you don't work on those aspect of the business?
  • Are you living in and working from Mexico most or all of the year? Or do you travel to the U.S. or other countries? How often? How many days a year are you out of Mexico each year?
  • Do you have employee benefits like health insurance purchased in Mexico and paid for by your employer?
  • I think there might be a slight distinction between where the money is "earned" and where you are "paid". But ask the pros.

The professionals will need to give you all the details but these are things I considered as I have a business in the U.S. but work from here - going on 13 years now. All my clients are in the U.S. and all payments are made to my U.S. bank. Definitely very practical to work from here. Just make sure to cross all the T's and dot all the I's.

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12 hours ago, traderspoc said:

I know Scott, he one of my tax preparation peers, he does excellent tax work, 

even though I am raising money for Have Hammer by doing taxes and give the money you Have Hammer school.

I have only good things to say about Scott. He is a professional.

 

Clients have asked me for a second opinion, i seen the some of the tax returns hes prepared

Traderspoc aka Wayne has been doing our taxes for years and has saved us A LOT of money.

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