Amarillo Cross-Border Tax

International Ties on the High Plains

Amarillo has long resettled refugees, and its beef plant and farms employ workers from many countries, including Myanmar, Somalia, Iraq, Mexico and Central America. Foreign investors own ranches and farmland in the Panhandle. These create cross-border tax questions, which BOMCAS handles remotely.

Treaty and Canada–U.S. basics sit on the Texas cross-border tax page; this one covers Amarillo's immigrant families and foreign landowners.

Refugee and Immigrant Families

Refugees and other immigrants become U.S. tax residents when they arrive under the green card or substantial presence tests. In their first year they may be dual-status. Children with Social Security numbers qualify for the child tax credit, and relatives without numbers may need ITINs.

Money and Property Abroad

Residents report income from accounts and property abroad. FBARs are filed when foreign accounts total more than $10,000 at any time in the year. Money sent home to relatives is not taxable or deductible.

Mexican Ties

Families with property or businesses in Mexico can use the U.S.–Mexico treaty and foreign tax credits for income taxed in Mexico.

Canadian Ranch and Farm Owners

Canadians who own Panhandle land or cattle file U.S. returns on income from them and report it in Canada with credits. Canadians who move to Amarillo become U.S. residents and may owe Canadian departure tax.

Foreign Owners of Land

Foreign individuals and companies owning ranches or farmland file U.S. returns on rent, farm income and royalties. Nonresidents with U.S. farm or rental income can elect to be taxed on net income. When foreign owners sell, buyers generally withhold 15 percent under FIRPTA.

H-2A Workers

H-2A workers who are nonresidents file Form 1040-NR when they have tax to report or refunds to claim. Their wages are exempt from Social Security and Medicare.

Refugee Assistance and Benefits

Resettlement cash assistance and most public benefits received by refugee families are not taxable income. Wages from the beef plant and other jobs are, and new arrivals often qualify for the earned income credit and child tax credit once they meet the identification rules.

International Students

Students at West Texas A&M University and Amarillo College on F-1 visas are generally nonresidents for their first five calendar years, exempt from Social Security and Medicare on campus jobs and practical training, and file Form 8843 even with no income.

Foreign Partners in Cattle and Land

When foreign investors hold interests in a feedyard partnership or land company, the partnership must withhold U.S. tax on their share of business income and file Forms 8804 and 8805. The investors then file U.S. returns to report the income and claim the withholding.

Workers With Temporary Status

Some plant workers live in Amarillo under temporary protected status or with asylum applications pending. They pay the same federal tax as other residents once they meet the residency tests, and they need valid Social Security numbers for employment. Accurate returns can matter later in immigration proceedings, so we keep copies and transcripts organised for each year.

Canadian Cattle and Grain Buyers

Canadian companies that buy cattle or grain in the Panhandle without an office or employees here generally do not owe U.S. income tax on those purchases under the treaty, but those that keep staff or facilities in Texas may have a permanent establishment and file U.S. returns, along with Form 5472 for related-party payments.

Common Filings

Form 1040 and 1040-NR.
FBAR and Form 8938.
Form 1116.
Form 8288 for FIRPTA.
Form 5472 for foreign-owned companies.
Form W-7 for ITINs.