AIO Financial – U.S. citizen earning $150,000 and living in Mexico?

Here’s what you need to know about taxes!

If you’re living in Mexico and paying Mexican taxes, you might wonder if you qualify for the $130,000 foreign income exclusion. The answer? It depends!

To qualify for the exclusion:
You need to meet the U.S. requirement of spending 330 full days outside the U.S. even if you’re paid by a U.S. company or run your own firm, your income could be considered foreign-earned.

If you don’t meet the 330-day rule, you’ll still face U.S. taxes on the full $150,000—BUT the Foreign Tax Credit helps offset what you’ve paid in Mexican taxes.

Don’t worry if you’re paying taxes as a resident in Mexico. The foreign income exclusion doesn’t apply in that case, but Foreign Tax Credits are still your relief!

Welcome to AIO Financial!
We’re a fee-only financial planning firm that helps individuals and families make smart, ethical financial decisions. We specialize in Socially Responsible Investing (SRI) and expat finances, offering comprehensive financial advice to help you plan for a secure future.

🌐 Visit us at AIO Financial
to learn more and get started with personalized financial planning.

If you found this video helpful, don’t forget to like, comment, and subscribe for more tips on investing, financial planning, and living abroad.
Stay informed, and take control of your financial future with AIO Financial!

source