I am a US Citizen working in Manufacturing Company in Mexico Border region. I have been working here for over 10 years now. My payroll comes from US and have all normal US and State taxes deducted until last year have to be on Tax Equalization/ Hypo Tax . My employer hired company appointed tax advisers, this would be first time. My questions my situation is different because technically I'm not a expat. I live in the U.S.A . side of border and commute to work across to Mexico daily and head back Home stateside every afternoon. Somewhat common in Maquiladora / Manufacturing sites in Mexican Border cities. I have Mexican Worker visa INM permission . The tax advisers online questioner keep on asking how long I lived In Mexico, Who is currently residing at the house in the United States? What is/was your host country living arrangement? These question are not for cross border commuter. I have asked tax advisers that I don't live in Mexico and are only at work 5 days a week minus U.S. holidays plus my vacation days. Tax advisers say that doesn't matter that for Mexico I reside in Mexico full time. I was hoping for some guidance if anyone has been in this same situation
Tax Equalization hypo tax Mexico
When I was working in the Maquiladoras I would just do my taxes as usual and include the taxes paid in Mexico as part of my obligation. You cannot use the foreign tax exemption unless you are out of the country for at least 330 days a year.
Chilangolite wrote:When I was working in the Maquiladoras I would just do my taxes as usual and include the taxes paid in Mexico as part of my obligation. You cannot use the foreign tax exemption unless you are out of the country for at least 330 days a year.
Does this means that your revenues for the IRS would have been the total of US and Mexican revenues. The Mexican revenues if paid in pesos would be converted to US dollars.
Adios y buen dia a todos. GyC
There is an IRS publication about this. As I recall the income is taxed where you earn it. If you search the IRS site you might find the cross border agreement.
mexicogc wrote:Chilangolite wrote:When I was working in the Maquiladoras I would just do my taxes as usual and include the taxes paid in Mexico as part of my obligation. You cannot use the foreign tax exemption unless you are out of the country for at least 330 days a year.
Does this means that your revenues for the IRS would have been the total of US and Mexican revenues. The Mexican revenues if paid in pesos would be converted to US dollars.
Adios y buen dia a todos. GyC
Yes,Since this is reported to the IRS as income and I paid taxes on it in Mexico then the taxes I paid in Mexico is deducted from the taxes I owed in the US. it falls under foreign earned income.
However your situation might be different than mine so my advice would be to talk to an expert like a tax consultant. HR block could help you in that capacity.
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