TN and Tax

[ppluserb]

Hi, I know this is a Canada – US forum, but I hope you can help me, I think my situation can be similar to a Canadian professional:

I’m a Mexican with a TN status. Since March 2011 I started to work and live in the US, I work for a Mexican company which gives IT Consultancy to a big US Client, my income and travel expenses are paid and deposited by my Mexican employer in my Mexican checking account in Mexican pesos, my credit/debits cards are Mexican, I pay my taxes in Mexico, my housing and transportation expenses in US are paid by my employer, my family lives in Mexico and they’re Mexicans, the question is, do I have to pay taxes in US? Somebody told me that despite the above I need to pay my income’s taxes here in the states. I’ll appreciate your responses.

[nelsona]

Yes, IF you are spending more than 183 days per year, your income is subject to US tax. If you limit your time in US to less than 183 days per year, since your employer is Mexican, you can avoid US taxation altogether.

So, it becomes a matter of counting days.

[ppluserb]

Ops, well I think I need to discuss this with my employer. I need a deep research on this regard. Thank you for your quick response. I appreciate it.

[nelsona]

Not so much reasearc. You need to have your employer take care of your US tax, if it is more than Mex tax.

Us tax will be credited on your Mex tax returns.

[ppluserb]

Thank you again.