Nomadic.Tax
JURISDICTION/US AUTHORITY/IRS TAX YEAR/2025 CLUSTER/US

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.

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APPLICABILITY/WHO THIS IS FOR

Who 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
FILING RECORD/FORMS THAT MAY APPLY

What this filing may involve

Every situation is different. The forms below commonly apply — your specific filing may vary.

Form 1040 — US Individual Income Tax Return
Form 2555 — Foreign Earned Income Exclusion for qualifying residents
Form 1116 — Foreign Tax Credit for Mexican taxes paid (ISR — Impuesto Sobre la Renta)
FinCEN Form 114 — FBAR) — Mexican bank and investment accounts
Form 8938 — FATCA reporting if foreign financial assets exceed reporting thresholds
Schedule E — for rental income from Mexican property
Schedule C — for self-employed Americans and freelancers
DOCUMENTS/INFORMATION REQUIRED

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
PROCESS/RETURN ASSEMBLY

How Nomadic.Tax works

AI-assisted preparation with licensed professional review — every time.

1
INFORMATION
Tell us about your Mexico residency, income sources, and any Mexican tax payments
2
DOCUMENTS
Upload your documents to your secure Nomadic.Tax dashboard
3
AI PREPARATION
Our AI identifies the best FEIE vs Foreign Tax Credit strategy for Mexico's tax environment
4
PROFESSIONAL REVIEW / E-FILE
A CPA reviews and e-files your return — including FBAR if needed
PROFESSIONAL REVIEW/CPA / ACCOUNTANT SIGN-OFF

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

Relevant plans

Choose the package that best fits your situation, or view all plans.

Standard
$249
Best for US-based taxpayers with salary or simple remote work.
  • ✓Automatic online filing
  • ✓One federal + one state return
  • ✓W-2, 1099 and basic deductions
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Premier
$349
For self-employed nomads, freelancers and platform earners.
  • ✓Everything in Standard
  • ✓Schedule C & SE for self-employment
  • ✓Multiple income sources and currencies
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Most popular

Expat
$499
For Americans living abroad — FEIE, foreign tax credits and FBAR included.
  • ✓Everything in Premier
  • ✓Foreign Earned Income Exclusion (Form 2555)
  • ✓Foreign Tax Credit (Form 1116)
  • ✓FBAR filing (FinCEN 114) included
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REFERENCE/COMMON QUESTIONS

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.

Who is this for?

Browse by your situation for tailored guidance and the right package.

US Expats Abroad Americans living in Mexico who remain subject to US worldwide income tax. See who this is for → Digital Nomads Nomads based in Mexico filing US returns with the Foreign Earned Income Exclusion. See who this is for →

Related filing services

US Expat Tax Filing → View filing service FEIE — Form 2555 → View filing service FBAR Filing → View filing service Retiring Abroad — US Tax Filing → View filing service See All Pricing & Plans → View pricing & packages

Ready to get your Americans in Mexico filing handled?

AI-assisted preparation, reviewed and e-filed by licensed professionals. Fixed price, no surprises.

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