Income tax obligations while living in El Paso and working in Juarez (gated)

[DaaBux]

Has anyone on here worked in Juarez commuting daily from El Paso? I am a US citizen and will be working for my US based company at a plant that does contract manufacturing for us. I asked our controller how taxes were worked out and he said that it was set up before he started and that they take 15% of the wages and sends that to the outfit that owns the plant in Juarez. He is in the dark what happens after that. The person I am replacing is currently on vacation and I cannot contact him.

Thanks for any info

[TexasCCW]

If you work for an American company then it is the same as if you're in the states. Your check is in dollars and they are in charge of paying your taxes.

[HookTheBrotherUp]

Originally Posted by TexasCCW

If you work for an American company then it is the same as if you're in the states. Your check is in dollars and they are in charge of paying your taxes.

The US is the only country in the world (well, second, the other is tiny dictatorship African nation) that taxes its citizens anywhere they live in the universe as long as they are US citizens, or residents, and it does not matter whether it is a US national, or foreign owned company. There are tax treaties setup in almost all western nations where if you work for a foreign company, the company will deduct taxes based on the host country's tax laws.

You can claim up to 95K in exemptions, but that does not mean that if you earn less than 95K that you won't pay, you still will owe taxes on all income. If you pay the Mexican taxes of 15%, then you will deduct that amount of what you will owe the US. Still, there are benefits to be had, but if you only commute to Juarez to work you won't get much of any tax break. If you lived there, you could claim more exemptions, such as housing, and living expenses.

Bottom line, you will still pay the US. My wife is from Europe, and even if she was to move back, and still had a US Green Card, she would still be liable for US taxes. The only way out is to give up your US citizenship/residency, but even then you are still obligated to pay US taxes for up to five years after giving up your US citizenship, or residency. Good luck!

[Lowexpectations]

Originally Posted by HookTheBrotherUp

The US is the only country in the world (well, second, the other is tiny dictatorship African nation) that taxes its citizens anywhere they live in the universe as long as they are US citizens, or residents, and it does not matter whether it is a US national, or foreign owned company. There are tax treaties setup in almost all western nations where if you work for a foreign company, the company will deduct taxes based on the host country's tax laws.

You can claim up to 95K in exemptions, but that does not mean that if you earn less than 95K that you won't pay, you still will owe taxes on all income. If you pay the Mexican taxes of 15%, then you will deduct that amount of what you will owe the US. Still, there are benefits to be had, but if you only commute to Juarez to work you won't get much of any tax break. If you lived there, you could claim more exemptions, such as housing, and living expenses.

Bottom line, you will still pay the US. My wife is from Europe, and even if she was to move back, and still had a US Green Card, she would still be liable for US taxes. The only way out is to give up your US citizenship/residency, but even then you are still obligated to pay US taxes for up to five years after giving up your US citizenship, or residency. Good luck!

To be clear you aren't taxes twice. If your Mexico rate was 15% and the US rate is 25% you only owe the delta, just wanted to point that out becuase your closing paragraph conflicts with reality at least in some cases. If your tax rate is higher in Europe than it would be in the US you would not owe anything to the US