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steelyonfly
Returning Member

Do I have to pay Mexican income taxes on cash won from a fishing tournament in Mexico? Will I pay US income taxes when I repatriate the money? Or no taxes at all?

2022 tournament winnings.
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1 Reply
JohnB5677
Expert Alumni

Do I have to pay Mexican income taxes on cash won from a fishing tournament in Mexico? Will I pay US income taxes when I repatriate the money? Or no taxes at all?

Yes, If Mexico taxes winnings you will have to abide by their laws.

 

Regardless of if you repatriate the money or not, you will owe tax in the US on the money.  The US taxes your worldwide income, and your winnings are included.  You will have to convert the value to US dollars.  

 

If you do have to pay taxes in Mexico, you can get a credit for that in the US by filling for a Foreign tax Credit.

Claiming the Foreign Tax Credit with Form 1116

Where do I enter the foreign tax credit (Form 1116) or deduction?

 

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