Personal Returns on the Border
An El Paso household may include a soldier at Fort Bliss, a parent who works in Santa Teresa, New Mexico, grandparents with a house in Juárez and a student at UTEP. Texas has no personal income tax, but federal returns here regularly involve another state or another country. BOMCAS prepares federal returns for El Paso residents remotely and coordinates with advisers in New Mexico and Mexico when needed.
For homestead and community property basics, see Texas personal tax preparation. This page covers soldiers, New Mexico paychecks and Mexican ties.
Fort Bliss Households
Soldiers stationed at Fort Bliss keep their state of legal residence, and spouses may choose to share it. Housing and subsistence allowances are not taxable, combat zone pay is excluded and deployments extend filing deadlines. Soldiers moving on permanent change of station orders can deduct unreimbursed moving costs. A spouse working in New Mexico, or the soldier's training time on the New Mexico part of the range, can raise questions about New Mexico filing, which usually depend on the person's residence and where the income is earned.
Working in New Mexico
El Paso residents who work in Las Cruces, Santa Teresa, Sunland Park or at the industrial parks along the state line earn New Mexico income. New Mexico taxes nonresidents on wages earned there, so the employer normally withholds New Mexico tax and the employee files a New Mexico nonresident return. Remote workers living in El Paso and working for a New Mexico employer from home may owe New Mexico nothing on those days, so tracking work location matters.
Income and Property in Mexico
U.S. citizens and residents report worldwide income, so rent from a house in Juárez, interest from a Mexican bank or a business in Chihuahua belongs on the U.S. return. Mexican tax paid on that income can usually be claimed as a foreign tax credit. Mexican bank accounts, Afore retirement accounts and investment accounts count toward FBAR and Form 8938 thresholds, and gifts or inheritances from relatives in Mexico above $100,000 in a year are reported on Form 3520. We prepare these forms with the return.
Family Members Without Social Security Numbers
Many El Paso families include spouses, children or parents who live in Mexico or who are not eligible for a Social Security number. They may need ITINs to be claimed as dependents or for a joint return, and some credits require an SSN for the child. Applications require Form W-7 and original or certified identity documents. We help prepare the applications along with the return.
Students and Hospital Staff
UTEP students, including many from Mexico, and residents and staff at University Medical Center and the Texas Tech health sciences campus have scholarships, stipends and education credits to sort out. International students may be nonresidents and file Form 1040-NR with Form 8843.
Buying a Home in El Paso
Military families and new arrivals buying homes in El Paso should apply to the El Paso Central Appraisal District for the residence homestead exemption, which lowers the school tax value by $140,000 and limits annual increases in the taxable value. Mortgage interest and property tax are deductible federally only if you itemize, within the SALT cap. Soldiers who buy with a VA loan and later rent the house out after a transfer need depreciation and rental schedules on the return.
Retirees
Retirees from Fort Bliss, federal service and local employers receive pensions and Social Security that are federally taxable but untaxed by Texas. A U.S. retiree who moves to Mexico still files U.S. returns, and Social Security paid to residents of Mexico has its own treaty rules.
What to Send
- W-2s, including any New Mexico wages, and military statements.
- Mexican bank, rental and pension information.
- ITIN documents for family members.
- Scholarship and education forms.
- Property tax statements and last year's return.
El Paso Personal Tax Preparation Questions
I live in El Paso but work in New Mexico. Do I file in New Mexico?
Usually yes. New Mexico taxes nonresidents on wages earned there, and you file a nonresident return to settle the withholding.
Do I report rent from a house in Juárez?
Yes. U.S. residents report worldwide income, and Mexican tax paid can usually be claimed as a credit.
Can my spouse in Mexico be on my return?
A spouse without an SSN may need an ITIN to file jointly. We help with Form W-7.
Are military housing allowances taxable?
No. Basic allowances for housing and subsistence are not taxable.
Talk to BOMCAS About Personal Tax Preparation in El Paso
Family business owners need the company return and records finished first. A household employee goes through payroll, a small shop may owe sales tax, property in Mexico belongs in planning, missed FBARs or New Mexico returns in late filing, and foreign reporting under cross-border tax. Our state pages on business returns, sales tax, bookkeeping, payroll, planning, catching up and international filings explain the Texas rules away from the border, and the Texas overview summarises them.
Tell BOMCAS about your El Paso company or household and we will explain what we would do first and which papers would let us quote. Reach us through the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Every El Paso service is on the El Paso overview. This page offers general information only, not advice for your case.