While it may be easy to let the days freely flow by while you are enjoying your permanent Mexican holiday, you should remember that yet again tax season has arrived in the United States. Some people feel some confusion on this topic, while living in Mexico, especially if they have established residency.
But long behold, Mexican residency does not relieve you of your American duties. Every American citizen, even those who hold residency outside of the U.S. still have to file their taxes.
If you are an expat you may need to pay a little extra attention to detail and get yourself well informed about the tax laws for expatriates living outside of the U.S.
If you own a home in Mexico, are working here or are simply residing here, even with a Mexican residency card, you should contact your local U.S. consulate for information or get in contact an expert tax professional who can help prepare your taxes the correct way, based on your situation.
Federal Taxes can still be prepared using a paper method or an e-file system which is likely to be most convenient for those living in Mexico.
If you are not sure whether or not you need to file a state return you will need to examine the rules of your U.S. state closely, as those requirements vary from state to state. Some you will find to be more lenient while others make it a bit more tedious.
The rules and procedures will vary depending on each personal situation and can be complicated when living in Mexico or anywhere aboard, that is why we recommend to work directly with a tax professional to clear up any misunderstandings and to avoid making mistakes.
Remember: If you are living in Mexico you can also go to your local United States consulate to ask any questions you may have about taxes or any other issues pertaining to your U.S. citizenship rights and responsibilities.
For information on foreign home ownership and the foreign home buying process in Mexico contact your experienced Mexico real estate agent.