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Old 05-07-2012, 02:29 PM   #1096
Witold
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Originally Posted by eakins View Post
...now if you have no income from the US and no records ie W2, 1099, SS heading to the IRS each year and you don't file...are they really gonna know about your foreign income?

not sure if foreign income affects future SS payments, but I doubt it.
you'll still have to deal w/ the local tax issue of the country you're earning the $ however.

when i was living in mexico i meet expats working full time, from professional, tourism, real estate to waiting tables and i asked about taxes (as i was thinking about working myself). they basicly all said, i live in mexico full time, i get paid in mexico and it didn't go beyond there as far as IRS is concerned.

take that how you want.
Well, what do people do with their earned income? They generally put it in a bank. And what are foreign banks REQUIRED to do for each USA citizen account holder? That's right... they are required to report it back to the USA. (Not all countries, but USA is working on this.)

Just because you are abroad doesn't mean the USA doesn't know what you are doing. As we all know, there are thousands of people who are not filing taxes each year living right here in the USA as well, but that doesn't make it a good idea, either. As technology increases and the world is getting smaller each year, it is increasingly easy to track people down who are trying to pull a fast one.

Witold screwed with this post 05-07-2012 at 02:47 PM
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Old 05-09-2012, 06:24 AM   #1097
guiseppe pussagetty
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Spoke to my accountant on this as I have lived out of the country twice. Was told that as long as you are out of the US for 330 days per calendar year there is (up to) an $80,000 dollar exemption per per person for the tax purposes. You could visit any other countries...no problem...but the clock starts running even if you touch down in the US on a flight to somewhere else! Some food for thought. This info is two years old and may have changed slightly so check with who you have to check with.
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Old 05-17-2012, 09:22 PM   #1098
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I believe you still have to file.
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Old 05-17-2012, 10:27 PM   #1099
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Originally Posted by Witold View Post
Well, what do people do with their earned income? They generally put it in a bank. And what are foreign banks REQUIRED to do for each USA citizen account holder? That's right... they are required to report it back to the USA. (Not all countries, but USA is working on this.)

Just because you are abroad doesn't mean the USA doesn't know what you are doing. As we all know, there are thousands of people who are not filing taxes each year living right here in the USA as well, but that doesn't make it a good idea, either. As technology increases and the world is getting smaller each year, it is increasingly easy to track people down who are trying to pull a fast one.
no doubt all what you say is true and valid, however mexico is a cash society all the way around, taxing and income reporting is marginal at best, safe sales are prevalent, security is prison like (bars everywhere) and most living in mexico are escaping any thing related to the US.

from the conversations i've had, most all self employed work in mexico is cash in pocket, cash out for bills and no questions asked. take that how you want.

for the year i lived in mexico, cash was the only payment accepted for 95% of the things that needed to be paid for. everyone accepted cash payments on the spot or 3rd party payment spots for everything. most of the country does not have a credit or debit card nor were checks used like in the US. i asked a motorcycle shop sales guy about how people buy bikes. he said even the wealthy just show up with a wad of cash. i think the credit cards charged 6% transaction fees to accept so most businesses did want to accept or passed that fee along. use a card you pay 6% more...guess what everyone has cash in hand.
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eakins screwed with this post 05-17-2012 at 10:34 PM
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Old 05-17-2012, 10:40 PM   #1100
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from the conversations i've had, most all self employed work in mexico is cash in pocket, cash out for bills and no questions asked. take that how you want.
Ya that's pretty much it....
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Old 05-17-2012, 10:41 PM   #1101
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i asked everyone who was swinging a stick to make a buck in mexico if they had working papers and almost everyone laughed and said no...nobody bothers. if the US is a country of laws, Mexico is a country of DIY. you need to live there for any amount of time to comprehend this fact. when i first got there i keep asking is it ok to do this or that...after a bit the longer timers said do what you need to do and don't worry about what other think as they don't care what you do. if you are not affecting me then have at it is the mindset. this concept freaks out way too many people in the US.


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Originally Posted by Tucson Jim View Post
Didn't read this whole post but does anyone consider the Mexican Federal work permit process for working in Mexico as a foreigner?

I believe it is quite complicated and you risk jail time if you are caught working without one.

Work Permits: Advice from an old hat


By Julie Black © 1999 All Rights Reserved.
Ask no more. Yes, foreigners can legally work in Mexico, for any length of time, provided they obtain the required permission from the Mexican Immigrations Office. If you are one of those souls here in Mexico for an "extended stay" or longer, you may wonder, fret, or even wring your hands in worry, as the case may be, about how to acquire that most essential of documents - the work permit.
The answer's simple, although painstaking at times. It's a matter of accumulating an inordinate amount of paper work and dutifully paying the fee. Over the years I've become quite familiar with obtaining this permit, known as an FM-3 Visa and would like to share the procedure with you. Please bear in mind that minor changes may occur and expect the entire procedure to require at least several trips to the Immigrations Office; in my own experience, up to five. Also, make sure to have two photo copies of each document that you present.
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Old 05-18-2012, 06:50 AM   #1102
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I believe you still have to file.
Yep, if you are a "US person", i.e. citizen or green card holder, you have to file and you must report ALL holdings (along with your earnings) outside the US if their value totals over $10,000 US. And that includes any accounts you have "signing authority" whether it is your money or not. The penalties for not doing this are onerous. Part of the reason for the current rush to renounce US citizenship, perhaps?
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Old 05-18-2012, 04:20 PM   #1103
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Yep, if you are a "US person", i.e. citizen or green card holder, you have to file and you must report ALL holdings (along with your earnings) outside the US if their value totals over $10,000 US. And that includes any accounts you have "signing authority" whether it is your money or not. The penalties for not doing this are onerous. Part of the reason for the current rush to renounce US citizenship, perhaps?
It is freaking out a lot of Yanks that live up here. They are clamping down this year (or maybe last year, whatever).
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Old 05-18-2012, 04:40 PM   #1104
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It is freaking out a lot of Yanks that live up here. They are clamping down this year (or maybe last year, whatever).
A lot of the draft resisters who came here in the 60's and 70's could see a major hit to their RRSP's and such if they've ignored the filing/reporting requirements. McNamara's revenge.
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Old 05-18-2012, 05:10 PM   #1105
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...if the US is a country of laws, Mexico is a country of DIY. you need to live there for any amount of time to comprehend this fact......
Good post.
Yes, diy.
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Old 05-19-2012, 05:19 AM   #1106
eepeqez
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Originally Posted by Brunssd View Post
Yep, if you are a "US person", i.e. citizen or green card holder, you have to file and you must report ALL holdings (along with your earnings) outside the US if their value totals over $10,000 US.
I'm a British/New Zealand dual citizen living in Australia (not American, not living in America) and yet because I own some shares listed on the New York exchange, I have to fill out some basic US tax forms. I was not impressed, not least because my shares were originally listed on London and got changed to the NYSE by my broker.

I've just finished reading Frederick Forsyth's Dogs of War. There's quite a bit of discussion about moving money around Europe in the early 1970s and I was struck by both how much more complicated and how much simpler it was then. Communications was far more complicated, but the Swiss and Belgians in particular were prepared to move money around with very little information about it's source, destination or owner attached.
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Old 05-19-2012, 04:07 PM   #1107
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....I've just finished reading Frederick Forsyth's Dogs of War......
The movie is also worth your time, imo.
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Old 05-19-2012, 04:21 PM   #1108
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Originally Posted by eepeqez View Post
I'm a British/New Zealand dual citizen living in Australia (not American, not living in America) and yet because I own some shares listed on the New York exchange, I have to fill out some basic US tax forms. I was not impressed, not least because my shares were originally listed on London and got changed to the NYSE by my broker.

I've just finished reading Frederick Forsyth's Dogs of War. There's quite a bit of discussion about moving money around Europe in the early 1970s and I was struck by both how much more complicated and how much simpler it was then. Communications was far more complicated, but the Swiss and Belgians in particular were prepared to move money around with very little information about it's source, destination or owner attached.
Money and the custody/changing has always been the motivator for the Swiss. They don't care where it comes from, where its going or who is involved; as long as they can skim a little piece of it everything is OK.
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Old 05-19-2012, 05:46 PM   #1109
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Money and the custody/changing has always been the motivator for the Swiss. They don't care where it comes from, where its going or who is involved; as long as they can skim a little piece of it everything is OK.
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Old 05-19-2012, 10:42 PM   #1110
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Just FYI if you have less than $600 in income then you don't have to file a tax return. There is an IRS form to acknowledge that you aren't filing but it is optional and not a requirement.

Many entrepreneurs claim that their first year(s) living expenses are a return of capital, and that isn't taxable income.

Soooo ... as a practical matter I don't want to tell anyone to falsify a tax return but I can also see plenty of ways that a person with a foreign ca$h income could avoid reporting same.
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