Amarillo Personal Tax Preparation

Panhandle Households

Amarillo households include workers at Pantex, Tyson and Bell, nurses and doctors at the city's hospitals, teachers, truckers and ranch families who live in town and work land outside it. Many own mineral interests or receive wind lease payments. Texas has no income tax, so the federal return is the main filing. BOMCAS prepares personal returns for Amarillo residents remotely.

The Texas personal tax page explains homestead and community property rules, so this page focuses on Amarillo households.

Plant Workers and Overtime

Beef plant and aircraft workers often earn overtime. The qualified overtime deduction for 2025 through 2028 covers the premium half of overtime required by federal law, up to $12,500, or $25,000 on a joint return, with a phase-out at higher incomes. Union contract overtime beyond the federal requirement does not qualify.

Pantex and Federal Contractor Staff

Pantex employees work for the federal government's contractor and have pension and 401(k) plans through it. Those changing jobs or retiring should review whether to roll over their plan balance, and how pension payments will be taxed, before deciding.

Mineral Royalties

Many Amarillo families own royalty interests in Panhandle wells. Royalties are reported on Schedule E, and owners can generally take percentage depletion of 15 percent of gross income from the property, subject to limits, or cost depletion if it is larger. Severance taxes withheld by the operator are deductible. Inherited minerals take a basis equal to their value at death.

Wind Lease and Easement Payments

Landowners with wind turbines receive rent for the turbines, payments for easements and sometimes a share of revenue. Annual rent and royalty payments are ordinary income. One-time easement payments may be treated differently depending on what rights are granted, so the lease terms matter. Payments are usually reported on Form 1099-MISC.

Farm and Ranch Families

Families who farm or ranch file Schedule F, with government programme payments, crop insurance and livestock sales. Crop insurance and disaster payments can sometimes be deferred to the next year. Farm income averaging can spread a high-income year across the previous three years' brackets.

Landlords Who Rent Farmland

Retired farmers and heirs often rent land to a neighbour. Cash rent is reported on Schedule E and is not subject to self-employment tax. Crop-share rent is reported on Form 4835 when the landlord does not materially participate, and the landlord's share of expenses is deducted there. Landlords who do materially participate report on Schedule F and pay self-employment tax.

Hail and Storm Damage

Hail regularly damages Amarillo roofs, vehicles and crops. Insurance proceeds that pay for repairs are not income. A personal casualty loss beyond insurance is deductible only when the damage results from a federally declared disaster, and business and farm property losses follow separate rules.

Medical Professionals

Nurses, physicians and technicians at Amarillo's hospitals often work extra shifts or locum assignments. Independent contractor work is reported on Schedule C, with self-employment tax and deductions for licences, continuing education and travel.

Retirees and Homeowners

Retirees receive Social Security, pensions and IRA withdrawals, and people 65 or older can take an extra deduction of up to $6,000 each from 2025 through 2028. Homes in Amarillo are appraised by the Potter-Randall Appraisal District, which serves both counties. Owners 65 or older get an extra school exemption and a freeze on school taxes.

What to Bring

W-2s, 1099s and pay stubs.
Royalty statements and Form 1099-MISC.
Wind lease agreements and payments.
Farm income and expenses.
Property tax statements.
Last year's return.