Have you made the brave choice of moving outside of your home country? Maybe you wanted some adventure, a good story, or an experience of a lifetime! Whatever your reason is for moving to Latin America, if you're working in another country, you want to make sure you're not creating legal trouble in your home country regarding taxes. 

Some jobs in Latin America that are really needed are English teachers, doctors, and nurses. We're going to go over some things you should know about taxes as an Expat in Latin America. 

There's an Extension 

It depends on the country you're from, but in the United States, you get an extension for filing taxes if you have income from another country. Usually, you must file before April 15th. However, you'll get an extension until June 15th to file your taxes. 

Be careful, though, because if you have any income from the United States, like online with a company based out of the USA, you have to file by April 15th. It doesn't matter if you're physically in the country or not. It matters where your income is coming from, an American company, or a foreign one. Check out a website with tax information from your place of birth to see the rules and regulations.

Don't Pay Twice 

Just because you have to file taxes in the United States, doesn't mean you owe US income tax, if you make an income outside of the country. There are many deductibles and credits you can apply for. 

There is the Foreign Tax Credit, which you can apply for if you already pay taxes on your income in the country you're living in. Who wants to pay taxes twice on the money you earn? Doing this can save you a lot of money and help you stay legal as well. 

Think About Including Children

You might know that you can receive the Child Tax Credit if you're American and have children. Even if your child is born outside of the States, because you're a citizen, they are able to be a US citizen also. If you do that, then it's possible to get the tax credit for them. Your child must have a US Social Security number for this.

However, you need to consider what their life in the future will look like. By accepting the Child Tax Credit, your child will have a US tax obligation for the rest of their lives, unless they choose to renounce their citizenship. 

This is something to think about and talk to your partner about for your child. 

The Bottom Line 

If you've made a choice to move outside of your home country to be an Expat in Latin America to experience the vivid culture and the delicious food but also are working, there are some things about taxes you should know. 

You have an extension to when you have to file your taxes, and you don't owe extra taxes to your home country if you're already paying in another country. Claiming your child as a dependent is a life long tax commitment for them. 

Once you've figured out all of the tax information you need, you can live your life in Latin America without worrying you'll have legal troubles at home.