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Smut Villain,
Too Late! A-hahahahaha! I had never even CONSIDERED Mexico (TJ or Juarez), but the two of you brought to light some very valid (and alluring) points that I never thought of. I should take Spanish again and make plans. If you're in a bar South of the Border and you see a black guy whose shaven head resembles the helmet of the Juggernaut (for you X-Men fans) kicking back with a cerveza and a chica, raise your bottle in a silent toast!
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Smut Villain,
I've never bothered visiting TJ anywhere but the zona and the college bars, so I'll take your word for the southern part (and maybe spend a month of vacation there to take advantage of any freebies to be had).
Still, I can't imagine having to commute from there. Even half of a 2 hour border crossing is horrible, and the trolley was never meant as a serious commuter alternative: just a tourist vehicle. Seems to me like it amounts to moving to some shithole like Temecula (condolences to those who have to live there). You'd save a little bit of money, but you'd waste a disproportionate amount of time getting back to real life.
Now, if I could get a remote job, moving to Mexico would be great.
Question, if you live in TJ and commute into the states each day, do you still get your Fed tax returned at the end of the year (assuming you meet the 35 day limit)?
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The answer to the tax question is NO. You have to be out of the country ALL DAY for 330 out of 365 days (even time spent over international waters does not count). Sorry about that.
However, those who are fluent in Spanish and thinking about expatriating should consider other Spanish speaking countries. México is no longer all that cheap and even though I love the country, and even though the most beautiful Méxicanas are among the most beautiful women in the world, the [b]average[/b] Méjicana cannot compare to the average Tica, Colombiana, or Argentina. Also they tend to get fat.
Richard Head, CPA
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Dickhead's right about the tax exemption. The 330 day option is called something like "personal presence". I worked out of the USA for 18 years, but only managed to get two years tax free due to meetings or courses that I had to attend inside the US.
If I had actually been a resident of some other country, I probably would have been able to avoid US taxes altogether. Foreign residency allows for a more generous time allotment within the US. The problem with this though, is that it is very difficult for a single man to prove foreign residence to the IRS. Just paying rent on an apartment isn't sufficient. By the IRS rules, you basically have to be married with children who live in the country you are claiming as your residence. They are essentially your "tax hostages".
The Tax exemption has a limit $60K or $80K (this may have changed. 20 years ago I think it was $80K, then it went to $60K, then I think it went back to $80K). Anything above the limit is taxed. I never had to worry about going over the limit, so I never paid too much attention to it.
VERY IMPORTANT: Even if you qualify for the "personal presence" exemption by being outside the country for 330 days, YOU MUST FILE your tax return. I know half a dozen people who got burned a few years ago because they thought that being exempt meant they didn't have to file. The IRS caught one guy based on a tip from the taxing authority in his country of residence, then came after all the expats working for his company. In short, if you don't file and the IRS catches you, you lose your tax exempt status and have to pay penalties, interest as well as the tax (even though you qualified as exempt). Statute of limitation is 7 years I think, because everyone I talked to that got busted had to pay up to 7 years worth of taxes, penalties and interest (in some cases, enough to buy a house), even though some of these guys hadn't filed in 15 or 20 years.
CW
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It's called physical presence, not personal presence, and the maximum exclusion is indeed $80k. A few other things to know if you are thinking about doing this: The 330 days do not have to be in the same calendar year and you can chose the 330 day period that minimizes your tax liability (because the exemption is pro-rated). "Foreign earned income" means the work was performed out of the country, so it doesn't matter if it is a US employer or a foreign employer. Self-employment income does qualify (although you'd usually be violating the host country's immigration laws if you had self-employment without establishing residency). However, if you work for the US government, that does NOT qualify as foreign earned income for whatever reason. Investment income or other unearned income such as gambling winnings cannot be excluded. Also you don't have to be working the whole time you are out of the country.
As an example, I left the US on Jan 7. That day doesn't count as one of my 330 days. I landed in Europe on Jan. 8 after an overnight flight, so that day doesn't count either since I was over international airspace at midnight. So my 330 days starts Jan. 9, the first day I was considered to be out of the country the entire day. I will only be working until the end of May and will start working again in mid-August. All the work will be performed in one or more foreign countries. So, I'd need to stay out of the country until the 339th day, meaning I couldn't leave to fly back to the states until Dec. 5th.
But, I'll be in the US for 5 days in May and it's another overnight flight to leave the country so that costs me 6 days (it's not an overnight flight going back to the US but I am counting the day of flight as one of the 5 days I'll be in the US for at least part of the day, as is required). Therefore, I can't leave to fly back to the states until Dec. 11th. However, since I will be working through the end of December, the part of my salary that covers Dec. 11th through December 31st can't be excluded since the work would be performed in the US.
This topic is covered in IRS Publication 555.
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"Seems to me like it amounts to moving to some shithole like Temecula (condolences to those who have to live there)."
Damn, dude, that's pretty cold (ROFLMAO). BTW, You're right
about the trolley being mostly a tourist vehicle, but it seems
to work pretty well as a way into town, at least for me it did!
"...the average Méjicana cannot compare to the average Tica, Colombiana, or Argentina. "
D.H., If I could get down that way (and still enjoy my U.S.
paycheck), I'd do it, believe me!
All I would need is an overseas position with a company.
You know of any openings :D ?
"If you're in a bar South of the Border and you see a black guy whose shaven head resembles the helmet of the Juggernaut (for you X-Men fans) kicking back with a cerveza and a chica, raise your bottle in a silent toast!"
S.M., how about I just buy you a beer instead :) ?
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"D.H., If I could get down that way (and still enjoy my U.S.
paycheck), I'd do it, believe me!"
Well, as of August 16th I will be working for a US company, doing my job over the internet from Buenos Aires or wherever else I happen to be mongering, and getting paid in US dollars, so it can be done. Unfortunately the job will require me to work at least 10 hours a week, 6 months out of the year to earn enough to live on so I don't imagine I'll be able to monger more than two or three times a day or so. Sure am going to miss those American women, though. Or not.
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That's the big catch 22, if you meet a beauty abroad who is an absolute princess, she might become someone else the moment you bring her back to States. Especially considering the rabid feminist culture of North America, the chances of this happening are very high. So pretty much whatever magic that happened abroad stays there. Though guys in other Western countries have it better, I knew this 60 year old German plumber and he had a 25 year old gorgeous Czech wife, if she divorces him she loses her residence permit, so she can't pull a fast one on him and ditch him. In the US, a green card can't be voided upon a divorce, so that is why so many mail order brides ditch their husbands as soon as their green card is ready, they also tend to take a good chunk of their husband's incomes away in divorce court. Australia has a Eros visa system, where a guy can have a girfriend kicked out of the country if their relationship lapses.
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"That's the big catch 22, if you meet a beauty abroad who is an absolute princess, she might become someone else the moment you bring her back to States. "
CBGB, that's the EXACT reason I want to become an expatriate (again)! Like I said before, there's something in the American culture that causes these women to turn on you, regardless of where they came from.
In the U.S., the game is pretty much rigged: even if you win, you lose!
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Note that CBGB's German plumber is screwed as of Saturday when the Czech Republic becomes one of 10 new countries to join the European Union. Bummer.
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Actually there is a restriction on citizens of new EU member states with regards to residency and work permits. It's going to be several years before citizens of the new EU states can live and work in other EU states like Germany and the UK. Germany's rules are quite strict even people from other big European countries like France and Italy can only live and work up to 5 years in Germany unless they get married. So this guy still has some leverage, so even when Czechs become EU nationals, she still can't dump him and stay in Germany.
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I think you'll find the restrictions only apply to working. They may have to leave the country every few months but then they can come right back in if they are EU nationals.
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CBGB, Dickhead:
After reading your last few posts, it strikes me as very ironic how most people in this forum and on this site probably take marriage more seriously than the average "Joe". Using myself as an example, I know I wouldn't dive headfirst into something like that considering the implications if Mrs. Right turns out to be Mrs. Wrong (and how holy matrimony tends to crimp our lifestyles).
But just because I take it more seriously doesn't mean I want to do it that much more; in fact , the opposite is true (for me, anyway). I have absolutely no desire to set myself up for custody battles/alimony payments/character assasinations/unrealistic expectations and other things that come with failed marriages.
But then, maybe the uneven playing field in the U.S. just made me more cynical ;)
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Marriage is an institution, but do you really want to spend the rest of your life in an institution?
Now in Bolivia, they have trial marriage. It lasts a year. If the guy is not satisfied with his "wife," he can kick her out, even if there is a kid involved. If he is satisfied, then there is a second ceremony where everyone throws rocks at them. Really. I guess they figure if you can live through the rocks you can live through the trials and tribulations of marriage.
Of course, the woman doesn't have the same right, but then again the male-female ratio in Bolivia is all screwed up (too few men) so the men are in the driver's seat.
Oh, wait a minute. The men are in the driver's seat in [b]all[/b] Latin American countries. 25 days and counting until I am out of England and back in Argentina.
In industrialized countries where women have full equality, marriage is a pointless anachronism. That is my opinion.
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Can one attract american women with money (and bad looks)? Do they generally do anal and bbbjtcws? or are they bitchy and arrogant in bed as well?