Great! I'm glad you found this helpful.

Our pleasure!

Glad to share Rachael!

Glad to share!

Glad it was helpful!

Glad it was helpful!

Glad to help Tony!

Glad it was helpful!

Glad it was helpful!

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

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

Happy to share Anita. Definitely worth exploring!

You're welcome!

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

@@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: kzfaq.info/get/bejne/p7anrbSdndiZd4U.html

Thanks! And I just subscribed to your channel.

You're welcome

That is a great way to put it!

Thanks for the tip!

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!

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

Name those states please

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

Glad it was helpful Jackie

Come visit Queretaro. You'll thank me later.

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

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.

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

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

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.

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. kzfaq.info/get/bejne/a61-qtajqqjPYn0.html

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!

@@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.

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.

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

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

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.

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

Australian taxes are super aggressive also@@efexzium

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

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...

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

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 :-(

@@AlmostRetiredinMexico that depends on the tax treaty.

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!!

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

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

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?

@@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?

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.

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

Howard - please email me at brighton@brightonwestvideo.com. I'd love to send you something privately.

@@AlmostRetiredinMexico Done

@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.

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?

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

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

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.

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.

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

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.

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.

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.

That's what I want to know!! 😮

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

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

Ok

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.

@@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

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!

Retirement income does not pay taxes in Mexico.

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.

@@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.

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.

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.

@@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?

@@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.

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

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

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

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

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

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

Thanks for adding this!

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

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

@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!

@@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.

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

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

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

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.

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 KZfaq channel of Nomad Capitalist.

@@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

@@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.

@@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

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.

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.

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?

@@AlmostRetiredinMexico US citizens.✌️

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

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.

@@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.