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aimeed

Feb 4, 2012, 11:17 AM

Post #1 of 10 (6278 views)

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Paying taxes to retain immigrant status

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Can anybody help me out about? I'm an inmigrante familiar because I'm married to a MX citizen. That means I don't have a work visa but I do teach private English classes. When I reported that to INM (which may have been a big mistake) they told me I had to register wtih Hacienda, which I did to be able to renew my residence. Now, I think I have to pay taxes, which the accountant says are 33% of my income. We don't have very much money and this is obviously excessive. I can't figure out how to get out this mess. Any tips? I've thought about applying for mx citizenship, which I think I can do after two years as a resident, but I'm not sure. And I don't want to lose my US citizenship, obviously. However, is it necessary to pay taxes to become a citizen? If I lie and say I didn't make any money, will I get in trouble? And if anybody can throw light on the tax system, here, that would be fabulous because it's completely confusing to me. Thanks so much.

richmx2

Feb 4, 2012, 12:03 PM

Post #2 of 10 (6261 views)

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Re: [aimeed] Paying taxes to retain immigrant status

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A 33% income tax rate is "obviously excessive"... where?

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mazbook1

Feb 4, 2012, 12:05 PM

Post #3 of 10 (6261 views)

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Re: [aimeed] Paying taxes to retain immigrant status

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You DON'T need the advice available on this forum! What you need is the advice of a GOOD, WELL RECOMMENDED, ENGLISH SPEAKING Mexican accountant (L.C.P. - equivalent to a CPA in the U.S.). ONLY an L.C.P. has all the tax laws and information at his fingertips.

Every visa that allows you to work in México requires that you give INM a copy of your latest official tax form filed with Hacienda when renewing the visa. I've never heard of any exemptions for this.

(This post was edited by mazbook1 on Feb 4, 2012, 12:08 PM)

Rolly

Feb 4, 2012, 12:53 PM

Post #4 of 10 (6248 views)

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Re: [aimeed] Paying taxes to retain immigrant status

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I don't want to lose my US citizenship,
You will not lose your US citizenship by becoming a Mexican citizen.
Both countries recognize dual citizenship.

Rolly Pirate

La Isla

Feb 4, 2012, 1:40 PM

Post #5 of 10 (6233 views)

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Re: [aimeed] Paying taxes to retain immigrant status

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It's too bad that you told INM you'd been teaching privately without permission, but that's water under the bridge. I have a No-Inmigrante visa that allows me to work independently as an English teacher, and I pay taxes every month. I have a good accountant whom I work with mostly online. Every month I send him an accounting of my income plus deductible expenses, mostly my Telmex bill (since I work at home, my telephone line and internet connection are considered business expenses) and things like books for teaching, toner for my printer, and also premiums for my private health insurance policy. The percentage of my income that I pay in taxes varies, but it's usually between 13% and 28%. Thirty-three percent sounds awfully high to me!

surebought

Feb 5, 2012, 8:07 AM

Post #6 of 10 (6134 views)

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Re: [aimeed] Paying taxes to retain immigrant status

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The other problem with going to Sevicios Migratorios was that they could have said that you need a cambio de charactoristica to work which is more money. If you didn't tell them paperwork wise, then maybe you can just pretend it never happened. Oh "I was just thinking about doing that." You guys understood me wrong. If push comes to shove, the worst thing that can happen is do what Islas is doing.

arbon

Feb 5, 2012, 12:24 PM

Post #7 of 10 (6085 views)

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Re: [richmx2] Paying taxes to retain immigrant status

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In Reply To

A 33% income tax rate is "obviously excessive"... where?

Income tax in Canada is as low as 15%.
~~~~~~~~~~~~~~~~~~~~~~~

richmx2

Feb 5, 2012, 12:38 PM

Post #8 of 10 (6080 views)

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Re: [arbon] Paying taxes to retain immigrant status

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I read the original post as the "highest" rate, given that deductions, etc. haven't been calculated like the would for a normal worker (even a self employed one) and this is just cash earnings, no different than winning a lottery or hitting the jackpot at a casino. The U.S. FEDERAL withholding rate on those kinds of windfalls is 28 % for residents (20% for non-resident aliens). That's not counting state and local taxes.

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richmx2

Feb 5, 2012, 5:09 PM

Post #9 of 10 (6051 views)

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Re: [richmx2] Paying taxes to retain immigrant status

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OOPS, sloppy fingers: 30 percent for foreign non-residents, not 20 percent.

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Aaron+

Feb 7, 2012, 2:30 PM

Post #10 of 10 (5945 views)

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Re: [aimeed] Paying taxes to retain immigrant status

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Aimeed writes, in part, that: "is it necessary to pay taxes to become a citizen?" Duh, yes, if you have Mexican-based income.

"If I lie and say I didn't make any money, will I get in trouble?" Duh, really? Is your entire post trying to be funny? Lie to the IRS or to Mexican tax officials at your own peril.

Yucatan Expatriate Services and others sell good documentation on Mexican taxation requirements.