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14

Since you are a US citizen, you have to pay US income tax on your world-wide income, but you do get to deduct (or take a tax credit for) taxes paid to other countries from the taxes you owe to the US. Tax treaties also affect such matters. Also watch out for reporting requirements for foreign accounts that you have, or will likely have once you start ...


9

But I suspect this isn't the correct way to do things. You should be paying taxes in the US (you're a US resident by citizenship) and Mexico (you're probably a Mexican resident for tax purposes). There's a tax treaty between the US and Mexico, that will probably affect you. In addition you should remember the foreign income exclusion and foreign tax credit,...


9

In addition to the Foreign Tax Credit, which @DilipSarwate mentioned, if you stay out of the U.S. for more than 330 days of the year, you can also use the Foreign Earned Income Exclusion, with which you can exclude your first ~$95K of income from U.S. taxes. In any case, you will still have to file U.S. tax returns, regardless of whether you actually have ...


6

It is certainly legal to transfer money between people, no matter how often, as long as the money is not originally from illegal sources. If you are gaining in the process, you need to pay taxes on your (net) gain, as on any income; but as always, taxed income is still income. Consider the accumulating transaction cost, the inherent risk (of your friend ...


5

What you are describing is perfectly legal, and is well under the threshold to attract the attention of the IRS ($10K+). The money is not income, because it is repayment for goods provided or a loan made to your friends. I do this myself oftentimes to take advantage of the rewards on my credit cards. With cash to cover expenses coming in immediately from ...


5

I would highly recommend having the bank issue a new card and also explain to the bank what happened. It's very likely that the vendor your friend made the purchase at is violating the rules regarding credit card security, and his bank would be privy to those regulations. He could save others from potential fraud by being the one to get that business to ...


3

Read a lot and educate yourself financially. Start investing in "secure" investments such as short-term bonds. Once you have enough capital and experience, start investing in more "risky" investments such as stocks. PROFIT! Whatever you do, don't ignore the first step. Investing without educating yourself first is like jumping to a deep pool without ...


3

I believe that the form you will need to fill out for the company is the IRS' W-8ECI form. My US-based Fortune 50 company pays my rent in Germany, and had my landlord fill one out so that they would not need to do any withholding for the payments. From this IRS site on withholding income for payments to Foreign Individuals: Withholding exemption. In ...


2

If your friend is paying you same amount as the charge, there should be no problem. If the friend is paying you an amount in excess of the ticket (or in excess of the club tab in the 2nd example), you need to report the excess amount as income. I would keep the receipts for the purchases, credit card statements, bank statements, and checks/or electronic ...


2

@littleadv has good advice here. You most likely owe taxes to both countries, but the question is "how much?" I have this to add: IRS Publication 54 is about the US taxes of Americans living overseas. In particular, Chapter 2 covers the topic of employer withholding, and mentions a Form 673 you might be able to file with an employer to reduce withholding ...


2

Here's a decent rule of thumb for extra money. This list is in order, so start at #1, and work your way down. Setup emergency fund. This is money set aside for emergencies like house or car repairs, etc. In the USA it's about $1000 or so, but figure 1/2 - 1 month's income as a nice solid amount. Pay off all consumer debt: credit cards, car loans, merchant ...


2

You probably do. There may be some specific exclusions and exceptions under the tax treaty, but the general rule is that the country you do the work in (Mexico in this case) has the first right to tax your earnings. I'm sure your employer can help you with reimbursement for a tax consultation with a local licensed tax adviser on this issue, and even if not -...


2

Mexico. You are a resident in Mexico and therefore pay taxes there. Your income from US companies is the same as if an online store had customers from the US. It doesn't matter where your customer is from. If you were employed (as in on salary or wage) with an American company there could be more hoops to jump through but as you've laid it out here, that ...


2

You can and are supposed to report self-employment income on Schedule C (or C-EZ if eligible, which a programmer likely is) even when the payer isn't required to give you 1099-MISC (or 1099-K for a payment network now). From there, after deducting permitted expenses, it flows to 1040 (for income tax) and Schedule SE (for self-employment tax). See https://www....


2

What you need is a International Trading Brokerage Account that's based out of Mexico. I'm not familiar with Finanzen, but it looks like it's Germany based. International trading brokerage accounts allow you to make Stock/ETF trades in other countries, but not all international brokerage accounts allow trading in all countries. You can usually look on the ...


1

Simply, this is a dual currency bond which means it is quoted in euro but to be paid back in Pesos : 1 EUR=23.23 MXN 23.23×4.5€=104.535MXN


1

The recommendations you read were, very probably, talking about US listed funds in US dollars. The mexican Bolsa de Valores says that they list over 600 mutual funds so "Yes" you can invest in Mexico using Pesos if that is what you want. You need a Corredor de Bolsa or mexico broker. Here they are. Most international investors use exchange traded funds ...


1

Not very safely. Signing over checks to someone else is rare these days and is likely to be looked at very carefully since it might be theft. Explaining that it was authorized is going to be painful at best. A better answer might be for them to sign your name to the check and deposit it into your account. It's still technically fraudulent, but the fact that ...


1

Normally you could either head down to the office supply store and pick up a copy of a tax program, or you could head over to the IRS office and pick up the instructions and forms. However, in your case you should be talking to a tax lawyer. The unfiled taxes are bad enough but you own a business outside the USA and most likely have bank accounts also. ...


1

Mint can probably do this. They probably have apps now and their online service has had charts for years.


1

I would start by saying that the bulk of your savings shouldn't be in cash. If you haven't done so already, open an investment account (I'm not sure what kind of tax-advantaged accounts there are in Mexico, but you should look into it). If you buy a mix of stocks and bonds with American and international coverage -- which is as easy as buying a handful of ...


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