US Tax Filing for Americans Living in Mexico
Mexico is consistently among the top destinations for American expats, retirees, and remote workers. Whether you're in Mexico City, the Yucatán, Puerto Vallarta, or San Miguel de Allende, your US filing obligations don't stop at the border. We handle your FEIE election, Foreign Tax Credit analysis, FBAR for Mexican bank accounts, and any rental or investment income reporting — all reviewed by licensed CPAs.
Get started with your filingWho this is for
- ✓ US citizens and green card holders residing in Mexico as expats, retirees, or remote workers
- ✓ Americans with Mexican rental income from property owned in Mexico
- ✓ Digital nomads and freelancers working from Mexico with non-Mexican clients
- ✓ Retirees receiving US Social Security, IRA distributions, or pension payments while living in Mexico
- ✓ Americans with Mexican bank accounts, brokerage accounts, or other financial assets
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Form 1040 — US Individual Income Tax Return
- 2 Form 2555 — Foreign Earned Income Exclusion for qualifying residents
- 3 Form 1116 — Foreign Tax Credit for Mexican taxes paid (ISR — Impuesto Sobre la Renta)
- 4 FinCEN Form 114 (FBAR) — Mexican bank and investment accounts
- 5 Form 8938 — FATCA reporting if foreign financial assets exceed reporting thresholds
- 6 Schedule E — for rental income from Mexican property
- 7 Schedule C — for self-employed Americans and freelancers
Documents usually needed
- 📄 Passport or border crossing records showing days inside and outside Mexico and the US
- 📄 Mexican employer payslips or Constancia de Situación Fiscal
- 📄 Mexican bank statements for all accounts
- 📄 Mexican rental income records and expense documentation if applicable
- 📄 Annual ISR tax summary (Declaración Anual) if filed in Mexico
- 📄 Prior year US tax return
- 📄 Social Security number or ITIN
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
Tell us about your Mexico residency, income sources, and any Mexican tax payments
Upload your documents to your secure Nomadic.Tax dashboard
Our AI identifies the best FEIE vs Foreign Tax Credit strategy for Mexico's tax environment
A CPA reviews and e-files your return — including FBAR if needed
When human review matters
- ⓘ Mexico has a lower effective tax rate than the US for many income levels, so FEIE is often preferred over FTC for earned income
- ⓘ Rental income from Mexican property has specific rules — deductible expenses and depreciation require careful documentation
- ⓘ Retirees receiving Social Security while in Mexico may have reduced US withholding available — our CPAs advise on this
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- retired teacher, Mérida, Mexico
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Automatic online filing
- ✓ One federal + one state return
- ✓ W-2, 1099 and basic deductions
- ✓ Everything in Standard
- ✓ Schedule C & SE for self-employment
- ✓ Multiple income sources and currencies
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about US Tax Filing for Americans Living in Mexico
Do I need to pay taxes in both Mexico and the US?
You may have obligations in both countries, but the US-Mexico tax treaty and the Foreign Tax Credit generally prevent true double taxation. If you pay Mexican income tax, it can offset your US liability dollar for dollar. Many lower-income expats in Mexico owe nothing to the IRS after applying the FEIE.
I receive rent from a house I own in Mexico — how is that reported?
Mexican rental income is reported on Schedule E of your US tax return. You can deduct Mexican property taxes, maintenance, management fees, and depreciation. You also need to report any Mexican bank accounts used to receive rent if they exceed the FBAR threshold.
I'm a retiree living in Mexico on Social Security — do I still have to file?
Yes, if your total income (including Social Security) exceeds the filing threshold. Social Security benefits received by US citizens abroad are still subject to US tax. However, depending on your total income level, the taxable portion may be small or zero after standard deductions.
Can I use a Mexican address on my US tax return?
Yes. The IRS accepts foreign addresses on Form 1040. You simply indicate your country of residence and provide your Mexican address. Using Form 2555 to claim the FEIE confirms to the IRS that you are living abroad.