Brandon Personal Tax Preparation

Returns for Brandon Families

A typical Brandon return belongs to a family with children in the Brandon Valley schools, a mortgage on a newer house, two incomes and perhaps a small business or side job. Some work in town, many commute and a growing number work from home for employers based elsewhere. South Dakota has no income tax, so the federal return is the main filing, but working for an employer in another state or moving from one can bring a state return too. BOMCAS prepares personal returns for Brandon households remotely.

Our statewide personal tax page explains residency and the federal basics; below we look at Brandon families, remote workers and recent arrivals from Minnesota and Iowa.

Credits for Families

The child tax credit, the credit for other dependants and the child and dependent care credit are worth a lot to Brandon's young families. Day care, before- and after-school care and summer day camps generally count toward the dependent care credit, and a dependent care account at work can save more for some families, though the same costs cannot be used for both. Families with lower incomes may also qualify for the earned income credit. We check each one.

Remote Workers

Brandon residents working from home for employers in Minnesota, Iowa or elsewhere usually owe no state income tax on that work, because it is performed in South Dakota. Problems arise when an employer withholds tax for its own state by mistake, or when the employee travels to the office regularly. We review withholding and file nonresident returns to recover tax withheld in error, where the other state allows it. A few states tax remote employees of their employers on a convenience basis; we check the employer's state rules.

Commuters to Minnesota

Residents who physically work in Minnesota owe Minnesota tax on those wages and file a nonresident return. Minnesota and South Dakota have no reciprocity agreement, so withholding should be set up correctly with the employer.

Moving From Minnesota or Iowa

Families who moved to Brandon from Minnesota or Iowa file a part-year return in the old state for the year of the move. Minnesota looks closely at whether a former resident really changed domicile, so selling or renting the old home, registering vehicles and voting in South Dakota, and changing driver's licences all help establish the move. Income from a rental property kept in the old state remains taxable there.

New Homeowners

Buying a house in one of Brandon's newer subdivisions brings mortgage interest, points paid at closing and property tax, which may be deductible if you itemise. With the standard deduction now higher, many families do not itemise, and we compare both. Property tax in Minnehaha County is assessed by the county, and owner-occupied classification lowers the levy, so new owners should make sure it is in place.

Side Businesses and Gig Work

Side work such as photography, crafts, tutoring, delivery driving or online sales goes on Schedule C, with self-employment tax on the profit. Payment apps and marketplaces may issue Forms 1099-K, and the income should be reported even without one.

What to Bring

W-2s and 1099s, including 1099-K forms.
Child care provider names, tax ID numbers and amounts paid.
Mortgage and property tax statements.
Records for side businesses.
Last year's federal and any state returns.

Health Savings and Benefits

Many Brandon families have high-deductible health plans with a health savings account. Contributions through work are excluded from wages, and contributions made directly are deductible. We report HSA activity on Form 8889 and check that withdrawals were used for medical costs.

Families with a child starting college can also look at education credits, and we check whether parents or the student should claim them.