Have business in Mexico but can´t use w-8 BEN form to charge in US. What can I do?
I have both a US and Mexican citizenship (Born in the US, but have mexican parents), and recently opened a computer systems business in Mexico as a Mexican citizen. I recently got contracts with American companies but I have had to charge them through my individual US citizenship in the US. I cannot use form w8-BEN since I am a US citizen and it does not apply. However taxes are killing me, since I am charging in the US but I am spending money in Mexico and I cant deduce anywhere. I need to start charging through my business to be able to deduce my spending. What can I do? Please help.
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1. You must fill out W-9 as you are a US citizen and are taxed on worldwide income.
2. You must keep detailed records on expenses. Your expenses are deductible on the US tax form.
3. If you pay tax to Mexico on the same income, use form 1116 to take a credit.