Close

Taxes

I recently moved to Tijuana work In San Diego with a Mexican tourist visa about to apply for a temporary residence permit from Mexico how will I handle taxes o make about 50k per year?

Lou1216 :

I recently moved to Tijuana work In San Diego with a Mexican tourist visa about to apply for a temporary residence permit from Mexico how will I handle taxes o make about 50k per year?

If you do not make money in Mexico you don't owe taxes to Mexico. So the tax issue is with the U.S.  If you have a very large amount ( over 10 thousand U.S.) of money in a Mexican interest paying bank  , that complicates the tax issue.
Of course if you recently flew into Mexico you might have heard or seen that number on declaration forms.

I am no tax expert, but have been checking this issue for my own personal consumption.  Here's my understanding.  You only pay Mexican taxes on what you earn in Mexico.  You will pay US Federal taxes.  You might not have to pay California state income taxes if you can show you have little or no ties to CA.  CA doesn't really care where you live if you own property in CA, have a bank account in CA, register your cars in CA, or have a CA driver's license you will probably have to pay CA income taxes.  We have two rental properties in CA and plan to live in Mexico at least 6-10 months out of the year and travel to visit grandkids the remainder.  I don't want to give up my CA DL or hassle with re-reg my cars, so I am pretty much stuck paying CA income taxes.  We are considering applying for the permanent resident.  But I don't want to give up my SENTRI pass, which I think I have to have a US address to keep it.

jamesr3939 :

I am no tax expert, but have been checking this issue for my own personal consumption.  Here's my understanding.  You only pay Mexican taxes on what you earn in Mexico.  You will pay US Federal taxes.  You might not have to pay California state income taxes if you can show you have little or no ties to CA.  CA doesn't really care where you live if you own property in CA, have a bank account in CA, register your cars in CA, or have a CA driver's license you will probably have to pay CA income taxes.  We have two rental properties in CA and plan to live in Mexico at least 6-10 months out of the year and travel to visit grandkids the remainder.  I don't want to give up my CA DL or hassle with re-reg my cars, so I am pretty much stuck paying CA income taxes.  We are considering applying for the permanent resident.  But I don't want to give up my SENTRI pass, which I think I have to have a US address to keep it.

Hi, old quote "you can't have it both ways"

Basically, you must pay taxes in the place you live normally but you have to pay taxes on all your worldwide income.

Adios, GyC.

I don't mind paying my fair share, but CA seems to want more than that.  #2 reason we are moving to Mexico.  Since I am not living in CA I am not using CA services so shouldn't have to pay state taxes.  I still pay county and city property taxes on my rental to support local infrastructure.  I think that's fair! 

Since I have kids living in Texas and Arizona I might just use their addresses or get a drop box.  Funny thing is I can still keep my CA DL and car reg with CA even with an AZ or TX address.  CA doesn't care where I live as long as they get their money.

mexicogc :

Basically, you must pay taxes in the place you live normally but you have to pay taxes on all your worldwide income.

Adios, GyC.

Not totally accurate, if you stay outside the US for more than 330 days you don't pay US federal taxes on income earned outside the US.  There is an upper limit but I can't recall it.  I had friends who worked as contractors to the US State Department in Iraqi and their income was US tax exempt.

New topic