Federal Returns for Pierre Households
Pierre households file only a federal income tax return unless they earned income in another state, but public employment makes many of those returns more detailed than they look. Pensions, deferred compensation, health savings accounts, travel reimbursements and second jobs all need to be reported correctly. BOMCAS prepares personal returns for Pierre and Fort Pierre households remotely.
Residency rules and federal basics for the whole state are in our South Dakota personal returns guide, and below we turn to public employees, retirees, guides and ranch families in Pierre.
State and Federal Employees
State employees contribute to the South Dakota Retirement System, and many also save in a 457(b) deferred compensation plan. Contributions to 457(b) plans reduce taxable wages, and withdrawals after leaving employment are not subject to the 10 percent early withdrawal penalty that applies to most IRAs and 401(k) plans. Federal employees save in the Thrift Savings Plan, which has both traditional and Roth options. We check that contributions stay within the annual limits and that catch-up contributions are applied correctly.
Retirees from Public Service
SDRS and federal pensions are taxable on the federal return, though part of each payment may be a tax-free return of contributions already taxed. Retirees should also plan for the taxable share of social security, required minimum distributions and the additional federal deduction of up to $6,000 each for people 65 and older from 2025 through 2028, which phases out at higher incomes.
Legislators, Lobbyists and Session Workers
Legislators receive salary and expense allowances, and lobbyists and session staff may come to Pierre for several weeks each winter. Expense allowances and reimbursements are treated differently depending on whether they are paid under an accountable plan. Contract lobbyists are self-employed and need to track mileage, lodging and meals and pay estimated tax.
Ranch and Farm Families
Ranch families report calf sales, cull cows, grazing income and government programme payments, often on Schedule F or through a family entity. Livestock sold because of drought can sometimes be reported in the following year, and farm income averaging can soften a high-income year.
Guides and Side Businesses
Many Pierre residents guide anglers or hunters on weekends, run a bait shop or rent out a boat. That income is self-employment income, and expenses for boats, fuel, licences and equipment are deductible when the activity is a business. Collecting sales tax on taxable services is also required.
Homeowners and Landlords
Owners of rentals, including houses rented to session staff for a few months, report rents and expenses on Schedule E. A main home rented for fewer than 15 days in a year may not need to report that rental income.
Health Savings and Benefits
Public employees often have high-deductible health plans with health savings accounts, flexible spending accounts and dependent care accounts. HSA contributions through payroll are excluded from wages, but contributions made directly must be claimed on Form 8889, and withdrawals for non-medical expenses are taxable. Dependent care benefits reduce the expenses that can be used for the child and dependent care credit.
Families Across the Bridge
A household that lives in Fort Pierre and works in Pierre, or the reverse, files the same federal return either way, since neither city nor county taxes income. What changes is the sales tax on purchases delivered to the home and, from July 2027, whether the Hughes County tax applies.
What to Bring
- W-2s, 1099-R forms and Form 1099-SSA.
- Statements for 457(b), TSP, IRA and HSA accounts.
- Ranch or farm income and expense records.
- Guiding or side business records.
- Rental records.
- Last year's return.
Pierre Personal Tax Preparation Questions
Is my SDRS pension taxable?
Yes, on your federal return, though a small part may be a tax-free return of after-tax contributions. South Dakota does not tax it.
Can I take money from my 457(b) without penalty?
Withdrawals after you leave your employer are generally not subject to the 10 percent early withdrawal penalty, though they are taxable.
I guide fishing trips on weekends. Is that taxable?
Yes. It is self-employment income, and guide services may also be subject to sales tax.
Do I need a South Dakota return?
No. South Dakota has no personal income tax. You file a federal return and possibly a return in another state where you earned income.
Talk to BOMCAS About Personal Tax Preparation in Pierre
Owners need their business returns and books done first. Households paying a caregiver can use payroll, weekend guides and boat renters should check sales and tourism tax, retirement decisions belong in planning, unfiled years in late filing, and Canadian-born families can read about Canada–U.S. tax. For work elsewhere in the state, we keep South Dakota pages on business tax returns, sales and use tax, bookkeeping, payroll, tax planning, back taxes and cross-border tax, linked from the South Dakota overview.
Send BOMCAS a note about your Pierre business, organisation or household and we will reply with next steps and what we need for a quote. Use the contact page or the form below, phone 780-667-5250 or email info@bomcas.ca. Every Pierre service is on the Pierre overview. This page is general information, not advice for your situation.