Lubbock Cross-Border Tax

International Lubbock

Texas Tech and its Health Sciences Center bring students, researchers, doctors and faculty from around the world. Agriculture links Lubbock to Mexico through workers and families, and to Canada through farmers and academics. We handle the U.S. returns and information forms, and Canada–U.S. questions are the core of our cross-border work.

Our Texas cross-border tax page sets out treaty and Canada–U.S. basics; this page covers Lubbock's students, faculty and farm ties.

International Students

Students on F-1 or J-1 visas generally do not count their days toward U.S. residency for five calendar years; during that time they file a nonresident return, Form 1040-NR, if they had U.S. income, and Form 8843 in every case. Treaties may exempt some scholarship or wage income, which requires Form 8233 with the employer or Form 8833 with the return. Students with no income still file Form 8843.

Researchers and Faculty

Visiting researchers and professors on J-1 visas are normally exempt individuals for two calendar years, so those days do not count toward residency. Certain treaties exempt teaching and research income for a limited period. Faculty on H-1B visas become residents and report worldwide income.

Canadians at Texas Tech and on the Plains

Canadian faculty, physicians and farmers who move to Lubbock become U.S. residents and file departure returns in Canada. An RRSP or RRIF continues to grow without current U.S. tax under the treaty, but a TFSA or RESP gets no such protection and its income is reported in the U.S. Canadian farmers who keep land in Canada report rent or farm income in the U.S. with credits for Canadian tax.

Mexican Family Ties

Many Lubbock families have relatives and property in Mexico. Residents report worldwide income, foreign accounts over $10,000 on FBAR and gifts or inheritances over $100,000 on Form 3520. Family members without SSNs may need ITINs.

Foreign Buyers of Farmland

Foreign individuals and companies that acquire U.S. agricultural land must report it to USDA under the Agricultural Foreign Investment Disclosure Act. Texas has also passed laws restricting land purchases by certain foreign persons. Rental income from farmland owned by nonresidents is taxed in the U.S., and a sale may require FIRPTA withholding.

H-2A Workers and Seasonal Crews

Workers who come from Mexico on H-2A visas for the farm or gin season are usually nonresident aliens. Their wages are reported on Form W-2 but are exempt from Social Security and Medicare, and federal income tax is withheld only if the worker and employer agree to it. Some file Form 1040-NR to claim refunds or report other income. Farms that use labour contractors should confirm who is the employer of record for reporting.

Physicians Trained Abroad

The Health Sciences Center and the hospitals employ many physicians who trained abroad, often on J-1 visas during residency and later on H-1B or with a waiver to work in underserved areas. Their residency status can change in the middle of training, so the return type may change from year to year, and foreign accounts start counting for FBAR once they become residents.

Leaving After Graduation

Graduates who leave the U.S. after their programme should file a final return for the year of departure and close or report U.S. accounts properly. Those who stay on OPT or H-1B may become residents and need a dual-status return.

Common Filings

Form 1040-NR and Form 8843.
Forms 8233 and 8833.
FBAR, Form 8938 and Form 3520.
FIRPTA certificates and refunds.
ITIN applications.