Monday, March 12, 2012

Tax Aspects of Dual US and Mexican Citizenship

One of the most frequent questions we receive is, What tax returns and need to be filed with the IRS when I have become a dual citizen of the US and Mexico?  So long as you keep your US Citizenship your US tax return filing obligations does not change at all!  This is true even if you are filing tax returns with the Mexican Hacienda. THERE IS NO CHANGE AT ALL.  Regardless of your dual Citizenship, you must still report your worldwide income and financial assets to the IRS each year.

You may get some benefits though under the US/Mexican tax treaty provisions and you can claim foreign tax credits on your US tax return for any income taxes you had to pay on the same income in Mexico. But you must also remember to file some additional forms which may be required such as form 5471 for your Mexican corporation or Form TDF 90-22.1 for your Mexican bank and financial accounts.  For 2011 there is a new form 8938 which may have to be filed to report your foreign financial assets.  We are experts at preparing these complex forms for Gringos living in Mexico.  Visit our website at to learn more and download our 2011 tax questionnaire. 

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