What Americans Living in Mexico Need to Know About Taxes

[@chriso5842]

This is the most helpful tax person I’ve seen on KZbin. Direct answers. I’m buying his book for sure. International tax experts will charge $200 for a 30 min call.

[@AlmostRetiredinMexico]

Great! I'm glad you found this helpful.

[@traditionrider]

You can use a soft phone account like Anveo for two factor authentication. The SMS is received by the soft phone provider and it is forwarded to whatever number or email you want. Another advantage of using a soft phone, you can keep a local number and forward incoming calls to your foreign phone number.

[@AlmostRetiredinMexico]

Thanks for the tip!

[@anitahamlin2411]

Wow I had no idea about the tax benefits of being in Mexico. Thanks! I am contemplating moving there!

[@AlmostRetiredinMexico]

Happy to share Anita. Definitely worth exploring!

[@josephsmith961]

I'd read the phone book for 108K! Thanks for this great video, there's so little good info out there for the tax issues.

[@AlmostRetiredinMexico]

That is a great way to put it!

[@rachaellee1562]

This is such a helpful video! I am so thankful you made this, thank you! Definitely answers a lot of huge tax questions.

[@AlmostRetiredinMexico]

Glad to share Rachael!

[@yestohappiness2721]

Great video! There are other states besides FL/TX that do not tax on dividends/pensions/IRA withdrawals. It is sometimes wiser to go with those states due to other perks like better subsidies for medical plans if you are early retired and you may need healthcare while visiting US. I'm amazed that all these experts never talk about that. FL/TX are good if the majority of your money is earned income...

[@AlmostRetiredinMexico]

We didn’t talk much about state taxes in this video, but that’s a great topic! Not only which states to move to, but how to make it official. I’ll add that to my future video list!

[@qq1651]

which ones are better for people who have retired on ss, 401k and federal pensions?

[@ovh992]

Name those states please

[@yestohappiness2721]

@@qq1651 see my reply just below - 11 states don't tax retirement income

[@jackieturner4629]

Moving to Mexico summer 2022 on Social Security. I needed clarity on my impending tax situation.This is quite informative. Thank you!

[@AlmostRetiredinMexico]

Glad it was helpful Jackie

[@1EQUALS-INFINITY]

Come visit Queretaro. You'll thank me later.

[@amylee9]

did you move to mexico? how do you like it?

[@glony01]

Thank you so much for this extremely informative video. I will be moving to Mexico so this will help out tremendously. 🙌🏼

[@AlmostRetiredinMexico]

Glad it was helpful!

[@tonyesqueda9186]

Thank you so much for this. This is so helpful.

[@AlmostRetiredinMexico]

Glad to help Tony!

[@sharonl4821]

Just came across this. Very helpful. Thank you!

[@AlmostRetiredinMexico]

Glad it was helpful!

[@sr9253]

Thank you for this very useful advice!

[@AlmostRetiredinMexico]

Glad it was helpful!

[@mikethayer8122]

Thanks Brighton for all the info in this video. My jaw hit the desk when I heard about the 108k exemption!

[@AlmostRetiredinMexico]

Yes! It’s the reason I’m trying to get my wife to move full time. There’s no “half benefit” for half-timers :-(

[@AMJordanYT]

So incredibly helpful. Thank you so much!

[@AlmostRetiredinMexico]

Glad to share!

[@mohammedsharif2651]

Great and useful interview. Thank you both 👏🙏.

[@AlmostRetiredinMexico]

Our pleasure!

[@filmplayer333]

02:27 What about online poker?... Sounds like it would be the same as the stock market or so. I hope you see this. My situation is interesting because Im also a Mexican citizen. Im not sure where to start. Lawyers charge so much money for a call...

[@DrEverardoCastro]

Justo for general Knowlegde, if you’re moving to Mexico, then you’re not an Expatriate, you’re an immigrant! 😅

[@AlmostRetiredinMexico]

Thanks for your comment. I think of Expat as a word that describes leaving your country and immigrant describes coming to a new country. But I know there is some racism built into the distinction too. But when it comes to tax advice, I think expat is a great term for people from the US trying to get away from taxes. I think I'm going to post a poll on my channel.

[@annastayziaa]

thank you!

[@AlmostRetiredinMexico]

You're welcome!

[@TomBTerrific]

When I was working over seas it was the first $80k and the 330 was still the magic number. Unfortunately One year I came back to the US and during that time my mother passed away. Because I stayed for her funeral services and work with my sister regarding her estate I went under the 330 and was required to pay taxes. Really sucked.

[@AlmostRetiredinMexico]

Oh - sorry about your mom and about staying too many days in the US. It's hard to keep those days under 35! Especially when you have family in the states.

[@svanvelk]

Extremely useful thank you

[@AlmostRetiredinMexico]

You're welcome - I'm happy to share!

[@sl5946]

Clinton sounds like he really knows his stuff, I'll definitely be calling him before tax season

[@AlmostRetiredinMexico]

Definitely Scott. And he can cover all your crypto-currency needs too ;-)

[@bluemoon8268]

… this will be extremely helpful this coming year … but this information is two years old … does Mr. Donnelly have a website for updates to the book information … ?

[@johnnyralston4696]

I agree. Do American expats who are (tax) residents of Mexico have to file a Mexican tax return for pension, dividend and capital gains derived from the United States.

[@danh-or5nt]

YES! However, there is some dispute about whether US SS benefits paid to US citizens resident in Mexico must pay Mexican income tax on this benefit. Like most countries, Mexico taxes WORLDWIDE income if you are deemed a resident of Mexico for tax purposes. The US has a tax treaty with Mexico that enables US citizens resident in Mexico for tax purposes to offset their Mexican tax obligations against their US tax obligation. You will find however that in most instances your Mexican tax obligation will be higher because of Mexico's much steeper marginal tax rates. So you may pay little if any US tax but much higher Mexican tax. I'm aware, however, that many (most?) foreign nationals deemed residents in Mexico for tax purposes do NOT file Mexican tax returns, even though they may be obligated to do so. Mexico may not want to "poke the bear" by going after the millions of foreign nationals resident in Mexico who do not file Mexican tax returns for fear of driving them and their money out of Mexico. Last year though Mexico instituted a program that requires ALL residents in Mexico to obtain a tax ID# (RFC). This now must be used to buy new (and some used) cars; set up Mexican bank accounts; pay utility bills; buy and sell a home, among other items. Being Mexico though, it's not always easy to get an RFC, and whether its needed or not is also questionable for some purchases. Eventually over the next couple years the kinks in getting and using an RFC will be worked out. As part of this RFC, Mexico will obtain biometrics (fingerprint and eye scans) and residence information. In the next few years, Mexico could if they decide to do this, track and trace your sources of income (via treaty and other means) and link this to your RFC. From there they could inquire why you haven't filed a tax return on unreported worldwide income they have identified in your file. OOPS!!

[@paolomoras5504]

Isn't there an agreement between the USA and Mexico to avoid double taxation, like the USA has with other countries ?

[@ken9295]

It wasn't clear or mentioned about income taxes on Social Security or pensions. Maybe those fall under the $108K earned income exemption as well? I have a temporary resident visa for now and will have a permanent resident visa in a few years when I retire full time to Mexico.

[@AlmostRetiredinMexico]

I'm not the expert, but I believe SS and pensions are un-earned income and not eligible for the exemption.

[@blancasanchez7538]

What if you have dual citizenship? Do you pay taxes to Mexico or the US?

[@JohnS-zq8ks]

Maybe I missed it, but this would be a stronger video if it addressed income taxes of retired expats in MX living off passive income from the US.

[@AlmostRetiredinMexico]

Sorry John. I believe that there is no benefit of living overseas if you are earning passive income. You need to have earned income to get a tax break :-(

[@patienceisalpha]

@@AlmostRetiredinMexico that depends on the tax treaty.

[@LivingSimplyinMexico]

Helpful video!

[@AlmostRetiredinMexico]

Thanks! Are y'all prepared for Hurricane Pamela? Looks like it will miss La Paz.

[@LivingSimplyinMexico]

@@AlmostRetiredinMexico we are up in the SF Bay Area this week and it looks like PV missed bad weather with Pamela tracking North. Nora really got PV from the flooding though earlier in the season. A bit crazy during Nora when we were in the eye of the Hurricane. Luckily PV is quite sheltered with mountains: kzbin.info/www/bejne/p4Haq4SibddofbM

[@tobyleach176]

Good video. I'm toying with the idea of moving myself and family to Mexico (my wife and kids are mexican citizens). I work a rotational job in the oil field of west texas. (2 weeks on / 2 weeks off) Thinking about spending all my off time in Mexico and my wife and kids living there full time. (I really only work less than 5 months out of the year.) I have no idea how taxes will be handled. I'll definitely be looking into a virtual mailbox and doing alot more research. Thanks for your video!

[@AlmostRetiredinMexico]

Glad to share! I hope you can make Mexico work out!

[@chriso5842]

Your best bet is the bona fide resident test for the FEIE. You would not pass the physical presence test.

[@donovanduncan5733]

If your a us citizen and only get social security disability and veteran disability payments and your are a permanent residence of mexico. Do we have to file taxes in mexico for our ssdi and veterans disability payments

[@AlmostRetiredinMexico]

I’m not sure. Clinton doesn’t read the comments here. You may need to reach out to a tax expert. I’m hoping to find someone to talk specifically about taxes paid by gringos to Mexico.

[@williamshaw8106]

That's what I want to know!! 😮

[@rightright6582]

@@williamshaw8106 ditto here, Guests on the show should answer the questions

[@qq1651]

Given the quick one two on the "I dont make much on the book" thing for $175 for 130 page book (which is a bit cringy), and the time that has passed since this video, do you still recommend him as a tax consultant/preparer?

[@AlmostRetiredinMexico]

I think what he's saying is that he doesn't have a big market for the book, so overall, not much revenue for him. As a tax preparer, you could try 1040abroad.com. I'm giving him a try this year. kzbin.info/www/bejne/a3ixqKaoeqeeaKs

[@drgandalf2003]

Just out of curiosity, what is the other country that will track you down over taxes?

[@AlmostRetiredinMexico]

I think you’re asking for the other country that taxes worldwide income like the US: Eritrea.

[@nextchaptermexico3283]

very helpful

[@AlmostRetiredinMexico]

Thanks! And I just subscribed to your channel.

[@AA-ju7lk]

Super helpful. But I couldn’t find anywhere the Social Security form 6172 (?) to let the SSA know that you are still alive and thus prevent your SS checks from being stopped, when you live outside the US (and have not been showing signs of life by using Medicare, etc.).

[@AlmostRetiredinMexico]

I think you got the numbers transposed. I think it's 7162. cr.usembassy.gov/wp-content/uploads/sites/248/ssa7162ocrsm.pdf

[@AA-ju7lk]

Thanks so much. You’re the best! @@AlmostRetiredinMexico

[@blessed2878]

How safe are vitural mailbox services regarding privacy?

[@AlmostRetiredinMexico]

Brenda - I hadn't thought about that. I would think it depends on the service. Most will promise security - but some will have background checks for employees, etc. I'm sure it's more secure than a regular mailbox along the street that any teenager can get into...

[@rightright6582]

what if u do not file?

[@rightright6582]

wait...i do not pay income tax on the first 108k earned income but I pay self employment tax of 15%...please expound upon

[@rightright6582]

what about green card holders ?

[@gavnonadoroge3092]

thank you

[@AlmostRetiredinMexico]

You're welcome

[@howardchestnut5782]

Speaking of taxes-don't forget about capitol gains tax after selling your home. Mexican tax can be quite high for expats if they cannot prove you were a resident.

[@AlmostRetiredinMexico]

Yes! And there can even be "reverse capital gains" you get charged if your property goes down in value. It's pretty tricky!

[@AlmostRetiredinMexico]

Howard - please email me at [e-mail]. I'd love to send you something privately.

[@howardchestnut5782]

@@AlmostRetiredinMexico Done

[@humbertorojas9445]

@Erik Gonzalez Legal residents of Mexico (green card holders) and Mexicans are taxed at the same rate on capital gains, that is 35% of the profit made on selling your home. The 35% can go lower if you can successfully prove certain deductions with the help of a real estate attorney or tax advisor. You can also apply for a capital gain tax exemption if you can prove the house was your primary home for the last three years by having the bills on your name ( power bill, water bill and bank statements in a Mexican bank account on your name), for this you will also need to be a green card holder.

[@mkeuphoria]

Great question! I’m also curious about how US ex-pats are taxed on rental property income in Mexico. Anyone have any advice on that?

[@marybethmcclure5929]

One concern: doesn't one need to maintain a US address (& it can't be a POB) to keep Medicare? I now have to pay taxes in Mexico for my Airbnb business in Mexico, but I was told by my Mexican accountant that there's a non-duplicate tax law, so if I pay the tax in Mexico, I don't have to pay it again in the US

[@AlmostRetiredinMexico]

Correct on the "no duplicate taxes." The Medicare is less clear to me. But it looks like Part A and B don't require a US address. But anything beyond that does.

[@gman_78]

Yeah ok

[@AlmostRetiredinMexico]

Ok

[@alendryaldimera]

1. There's a BIG legal difference between living in Mexico on a perpetual tourist visa, and being a temporary or permanent resident. 2. There's one thing the tax guy forgot to say about foreign bank accounts. He said you have to file the FBAR form if you have more than $10k in a foreign account. That's wrong. You actually have to file the FBAR form if you have more than $10k TOTAL in foreign accounts. For example, if you have 2 accounts with $5k in each of them, then that's a total amount of $10k so you have to file a FBAR form. 3. A cheap U.S. phone service is U.S. Mobile. I bought a flip-phone from them for $75. It's also a dumb-phone, so it only can do talk and text, but it cheaply serves the purpose of having a U.S. phone number. You can customize how many talk minutes and text messages you want per month. I only pay $12 per month for my plan.

[@AlmostRetiredinMexico]

Thanks for adding this!

[@rightright6582]

can u roam in Mexico, sms and calls?

[@pablohernandez1159]

How about retirement income?

[@AlmostRetiredinMexico]

I believe retirement income is taxed where your plan is based. I found that there are US retirement accounts and international retirement accounts. And it seems there are benefits and costs associated with each one. I hope that little bit helps!

[@humbertorojas9445]

Retirement income does not pay taxes in Mexico.

[@roti1873]

That you can still qualify for FEIE once you're a bona fide resident is huge news to me! Can you still deduct business expenses from self-employment tax (FICA/Medicare and Social Security) even if you claim FEIE? If so, how much of it can you deduct? I've heard it's only 50%, and I've also heard you have to pay the full 15% and there's nothing else you can deduct from that, if you already claim FEIE. What's the truth?!

[@BlueMoon_24]

You never address a person who retires and doesn't work in Mexico - and that is a large number! I am thinking of NOT retiring to Mexico because I would have an income tax bill of about $4,500 USD whereas I only owe under $200 in US. That hits HARD because you have to add Private Health Insurance to that.

[@AlmostRetiredinMexico]

Help me understand. Do you have lots of Roth IRA type income? I'm looking for a tax expert to explain how this works. That income isn't taxable in the US because it was taxed once, but it's income in Mexico. But there is a tax treaty to avoid double taxation. I wanna know how it all comes together. Do you have other un-taxable income?

[@BlueMoon_24]

@@AlmostRetiredinMexico I have Social Security Benefits and a small pension. I don't get taxed in the US on my SS because it doesn't exceed the combined income limit. I read Mexico taxes ALL income - earned and unearned. And since I am mot taxed on my SS, would Mexico tax it?

[@matthawksworth]

Really good comprehensive information. Its great that you can exempt $108k US taxes, but as an American small business owner, do you have to pay any Mexican corporate/personal income taxes? Thanks!

[@AlmostRetiredinMexico]

It's not 100% clear to me, but my wife and I make sure we don't have any income from Mexican sources (no clients, Airbnb, etc.) which is important. We are also part time residents, which could make a difference.

[@efexzium]

Move to another country where the taxes are lower Mexico taxes are very aggressive.

[@chrisAnAussie]

Australian taxes are super aggressive also@@efexzium

[@AnRvMoto]

Great info especially the crypto part. We're crypto centric and in La Paz too. Marantha probably down the street from you lol

[@AlmostRetiredinMexico]

I guess there are lots of crypto expats! I go to Cafe Exquisito a few times a week. I'm hoping that RV park gets busy again. I know it's been a tough couple of years. It looks like a really nice place!

[@AnRvMoto]

@@AlmostRetiredinMexico we are looking to open a small park with a Casitas as well as a garden, solar ect. We were considering Centinario but noticed 2 failed parks and Maranatha doesn't do alot of business. I guess we'll be roaming from here to Cabo until we find a spot that fills the bill.

[@AlmostRetiredinMexico]

Yeah- I don't understand why the RV parks aren't more popular. Especially since the pandemic - prices of used RV's have gone way up. I would think the parks would be full. One of those failed parks in El Centenario is just down the beach from me. Such a perfect spot! I could see if a developer bought it to build condos, but it's just vacant. I've heard the one further down the beach is being redeveloped into houses / condos.

[@AnRvMoto]

@@AlmostRetiredinMexico We like smaller better. I would love to find out about that one.

[@efexzium]

Do you qualify for the 109k exception if you marry a foreign citizen?

[@Mikesadventures-m2q]

I hear South Dakota is good. Do you need to get a drivers liceense from there too?

[@AlmostRetiredinMexico]

I think it may depend on where you move from. Sorry I can’t help more.

[@memphiskong8868]

His book is $175 yikes!

[@AlmostRetiredinMexico]

I just sent him an email to check on that price. It may be priced more like a textbook. Thanks for pointing that out!

[@ginnieporter641]

Wow, i just checked the price and it is now like $124. Sheesh! I suppose worth it if you are elibigle for tax savings.

[@Mikesadventures-m2q]

@smr144 Kindle price is $175 for a virtual download.

[@TomBTerrific]

Remember the irs has publication. Also turbo tax walk you through it pretty go.

[@onto.greatness]

Is there a source that can point to the law that says we have to pay federal taxes?

[@AlmostRetiredinMexico]

It seems like the first line of the Income Tax Act would cover it. Here's a translation, but it seems like it's probably out of date. www.global-regulation.com/translation/mexico/560197/the-income-tax-act.html

[@ginnieporter641]

Having to verify who you are via text is a SUPER PAIN when in mexico. Some businesses will allow this verification to be via email. Verizon and att charge $10 a day for their short term travel plan - out rageous! Does anyone have a usa phone plan that is actually affordable in mexico? Mexican phone plans are so reasonable. I would rather not even use my usa phone and i dont’ most of the time while here.

[@AlmostRetiredinMexico]

You may be able to add a local phone plan to your phone. That's what I did. I have an iPhone 10 with ATT. I bought a monthly pre-paid plan in Mexico. I think I pay $15 a month for a Mexican number and data. With an iPhone 10 or newer, they can do it electronically (called an e-Sim) for other iPhones and some Androids, it's a physical card.

[@paolomoras5504]

In regards to retaining your US cell phone number, is there any company that can do it virtually, so that you don't need to keep paying TMobile, Verizon or ATT ?

[@AlmostRetiredinMexico]

That is a great question! Maybe move the number to Google Voice?

[@rightright6582]

@@AlmostRetiredinMexico goolge voice is not accepted for 2FA authentication or bank sent sms authentication....as far as I know...i have skype and is not accepted for bank authentication

[@fpn66]

Is a pension considered "earned income" in this context?

[@AlmostRetiredinMexico]

Looks like it is not www.irs.gov/government-entities/indian-tribal-governments/itg-faq-2-answer-what-income-is-considered-earned-income

[@magomago7819]

How do you handle Jury duty for US. Citizens?

[@AlmostRetiredinMexico]

Great question. I didn't know the answer, so I reached out to my local courthouse. They said that if you receive a jury summons while living overseas, you'd just need to file a form saying that you aren't residing in the area and you'd be excused from service.

[@magomago7819]

@@AlmostRetiredinMexico Thanks for looking into this. I will also check with my state courthouse(this state is quite weird, love hate relationship with it) for living full time and short vacation. I've gone on a 2 week vacation and almost missed my jury date to appear by 1 day. Welcome back🙂. I will let you know as well for this state of US, you might imagine what state it might be.

[@andreawisner7358]

What if I spend 330 days in Mexico but want to pay US taxes?

[@roti1873]

Agh, he went over self-employment income tax and didn't say anything about deductions. Nobody does. That's a bad sign, crap. It's like 15%

[@pnachtwey]

So what happens if you don't pay your US taxes when living abroad?

[@AlmostRetiredinMexico]

Great question. I guess the US could take your passport and not let you back into the country. But I'm not sure what else they could do.

[@pkaseven]

I am seeking Temporary Residency(more than 180 days) in Mexico. I work remotely for a US company. There are no clients or customers in Mexico. My bank and deposits will be US. Just to be clear, I will NOT be liable for Mexico Income Tax? What is the Mexico SAT law that supports that? I need to provide to my employer so they will be at ease for my move. The HR Dept is currently speculating tax implications. I didn’t think it to be so but need confirmation. Please help.

[@AlmostRetiredinMexico]

You may need to consult with someone in Mexico. And I think that most Americans are operating in a grey area. So you may not be able to get anyone to write down that you'll definitely be clear from Mexican taxes.

[@pkaseven]

@@AlmostRetiredinMexico thank you. This is probably the most clear answer I’ve gotten. I’ve seen videos where people say they work online and paid by a US based company… specifically DO NOT work for a Mexican company, no customers in Mexico… so no taxes to pay Mexico. I just need the law from Mexico. That would really help me know where I stand. Sigh

[@cactusjack9877]

Do you have to pay tax to mexico if you are working remotely and living there?

[@AlmostRetiredinMexico]

I'm not an expert, but if you have no income from Mexico (I don't take any clients in Mexico) and you live here part-time, you don't need to pay income taxes here. If you do need to pay taxes here, you get a refund off your US tax bill.

[@humbertorojas9445]

No, if your income comes from another country you dont have to pay taxes in Mexico even if you live here. Regardless of that, I recommend that you keep that income in your American/Canadian bank instead of having it in a Mexican account.

[@tutornotepad]

I would be glad to pay my taxes to any country that does not export war. Thanks!

[@AlmostRetiredinMexico]

I’m pretty sure Mexico is better at that than the US (maybe not better than Canada.)

[@edwinortiz9844]

What is a virtual address

[@AlmostRetiredinMexico]

It's an address where you don't live but where you get your mail. Like you can get from Mailboxes, etc.

[@edwinortiz9844]

@@AlmostRetiredinMexico is it a P.O. Box or families house

[@MegaJak2]

I need some remote working sites so I can move down there lol

[@AlmostRetiredinMexico]

Do you mean that you need a job that you can work remote, or are you looking for something like a coworking space?

[@MegaJak2]

@@AlmostRetiredinMexico sorry, I didn’t specify I meant a remote type job would be perfect!

[@AlmostRetiredinMexico]

@Joseleon Jimenez - Thanks for clarifying. I just reached out to FlexJobs.com to see if they'd be interested in being a guest for a live stream. This is a great topic to cover with an expert!

[@MegaJak2]

@@AlmostRetiredinMexico also I’ll be down there in July and I might see you there it’s a nice change from Portland lol have a good one my friend.

[@oscaravila3398]

If I move to Mexico and work in the United States do I pay taxes in Mexico and in the United States for the money that I earned in the United States

[@AlmostRetiredinMexico]

It seems like you can work in Mexico, with no income in Mexico and only owe taxes to the USA. But you should check that with a professional.

[@humbertorojas9445]

Mexico and the USA have a treaty in place to avoid double taxation. In other words, as long as you pay taxes in the USA you don't have to pay taxes in Mexico if that income was made in the USA and viceversa.

[@janakdesai4869]

@@humbertorojas9445 @Almost Retired in Mexico - I thought if you are resident in Mexico you are required to pay taxes on worldwide income. So if your earned income from elsewhere( or US) then I suppose the US will give you a break up to ~$104K through the FEIC, but won't you have to pay Mexico taxes?

[@humbertorojas9445]

@@janakdesai4869 The treaty I mentioned is between the USA, Canada, and Mexico. As long as any of your income comes from any of these three countries, you won't be required to pay taxes on the other country. Example: you made 100k dollars in Canada, and you wire the money back to Mexico from your personal account to your other personal account in Mexico; since you paid taxes for your 100k in Canada, then once the money gets to Mexico, you won't be required to pay taxes in Mexico and vice-versa. If you made money in Mexico and you decide to wire the money to the USA, you won't pay taxes in the USA as you supposedly paid taxes in Mexico first.

[@jayvincent8860]

I have to give this a like!! Great job and thank you,,, just get rid of that goofy hat and get a hair cut.

[@AlmostRetiredinMexico]

But I love the hat and hair. You should check out Paul - no hair and no hat: kzbin.info/door/MTgskZ3-d3KpPXLSWSm0yw

[@patienceisalpha]

Always amazes me that US citizens are presenting the foreign earned income inclusion as a tax break or a benefit lol

[@alendryaldimera]

Not paying taxes to the U.S. on $108k income IS a benefit. Doesn't mean that you DID pay taxes on $108k income to another country. And if you did pay taxes to another country, doesn't mean you paid a higher tax rate there than you would have in the U.S. Check out the website or KZbin channel of Nomad Capitalist.

[@patienceisalpha]

@@alendryaldimera a benefit to still be taxed by a country where you don't reside? Delusional at best. No other country does citizenship based taxation. The Kool aid is so strong with the US

[@alendryaldimera]

@@patienceisalpha 1. Actually, there is one other country that has citizenship-based taxation, but most people couldn't find it on a map. The F.E.I. allows you to make up to $108k and NOT pay tax to the U.S. What part of that do you not understand? The benefit is in NOT having to pay Uncle Sam on that first $108k income. 2. As the world's currencies collapse, and their standards of living drop, expect more and more countries (especially European) to move to a citizenship-based taxation structure. That situation is coming soon, guaranteed. Just like the "Global Minimum Tax" idea the U.S. is pushing for.

[@patienceisalpha]

@@alendryaldimera citizenship based taxation cannot happen in a lot of countries due to the nature of theor constitution and the already signed treaties. In Fact France explored it through Eric Coquerel and it led to 0. The US has a tax treaty model from day 1 that has a savings clause. No other country has that. Eritrea has a flat tax 2.5% for its diaspora nothing comparable to the US CBT with FATCA, FBAR penalties, the 3520,the 8854 etc.. The FEIE only applies to earned income. Not passive income. And we don't even start talking about self employment taxes. If you think you're better off good for you. But this is Kool aid. Also double taxation happens everywhere. With the Canadian RRSP or the Australian superannuation. Good luck

[@AlmostRetiredinMexico]

The US definitely has a messed up tax system. The only way to escape is to renounce your citizenship or die. BUt if you don't want to do one of those two things, then the "tax break" is a good deal.

[@801oap]

Do you know if the income from cryptocurrency staking pools, which the U.S. government currently requires to be reported as Income, would qualify for this tax break?

[@AlmostRetiredinMexico]

I don’t know, but Clinton would as crypto is his second area of expertise. Check the description for a link to his website.

[@jlop2057]

Want happen if i invvest in crypto and stocks?

[@AlmostRetiredinMexico]

If you are a full time tax resident of Mexico,, you'll pay taxes on your gains in Mexico. If you are still a resident for tax purposes in the US, you pay Uncle Sam tax on your gains.

[@alfredolarsi5600]

If you moved to Mexico... would it too demeaning for you calling yourselves IMMIGRANTS instead of EXPATS? I know the word expat might make you feel cool and special, but recognizing yourselves as immigrants will help you integrate to the rest of the society instead of being seeing as snobs with a laptop living in a bubble. Gracias.

[@AlmostRetiredinMexico]

Thanks for your kind words Alfredo. I do think it’s strange how people use the terms expat and immigrant. But I’m not sure how a change in terminology would change much about how people integrate.

[@luyzqint3760]

American is a Continental identity, not a nationality. We are 35 American countries in the American Continent. Respect to be respected.

[@AlmostRetiredinMexico]

I hate using the term "American" to describe people from the US. But it's what people from the US use to describe themselves, so it's the term I use in my videos. Both Mexico and the USA are "United States of..." Got a better term to suggest?

[@luyzqint3760]

@@AlmostRetiredinMexico US citizens.✌️

[@luyzqint3760]

@@AlmostRetiredinMexico But México has a name (Mexican United States) and the US has a discrimination (United States within the American Continent)..

[@ken9295]

What do people from other countries call US citizens?? Do people from Mexico call themselves American, what about from Argentina, Chile, El Salvador? So it's more than just what people from the US use to describe themselves. That is such a bogus comment. I am an American with a Mexican wife.

[@luyzqint3760]

@@ken9295 People from other countries called them what Hollywood calls them; and everyone born in the American/s Continent/s, is an American (of course, including the US). I think you need to look up the definition of Continental identity.

[@bionysos41]

And for Eu citizen?

[@jps3b]

Great information!!

[@AlmostRetiredinMexico]

Glad it was helpful!