Sturgis Personal Tax Preparation

Personal Returns in Sturgis

Many Sturgis households have a rally line on their return: rent from the house during rally week, wages from a rally job, income from parking cars in the yard or selling food. Others are VA staff at Fort Meade, veterans, military retirees, ranchers or retirees who chose the northern Black Hills. South Dakota has no income tax, so the federal return is the main filing. BOMCAS prepares personal returns for Sturgis households remotely.

Our statewide personal tax page explains residency and the federal basics, and below we turn to rally rentals, VA staff, veterans and ranch families in Sturgis.

Renting Your Home for the Rally

A federal rule lets you exclude rent from a home you live in if you rent it for fewer than 15 days in the year. Many Sturgis families who rent their house for the ten days of the rally can leave that rent off their federal return entirely, and they cannot deduct rental expenses either. Rent for 15 days or more is reportable. The federal exclusion does not change sales tax: the Department of Revenue says people renting a room in their home for 10 or more days a year must collect sales tax, so a family can owe sales tax on rent that is free of federal income tax.

Parking, Camping and Side Jobs

Charging for parking or camping in a yard, selling food or running a shuttle is self-employment income, with self-employment tax on the profit. Wages from rally jobs come on a W-2 and may need extra withholding if they push a household into a higher bracket.

VA Employees

Federal employees at the Fort Meade campus contribute to FERS and the Thrift Savings Plan. Traditional TSP contributions reduce taxable wages, while Roth TSP contributions do not. Federal employees who retire early, change roles or combine federal and military service should review how their pension and TSP will be taxed.

Veterans and Military Retirees

VA disability compensation is tax-free. Military retired pay is taxable federally, although part of it may be waived in exchange for tax-free VA disability pay, and combat-related special compensation is tax-free. Veterans who receive a retroactive disability rating may be able to claim refunds on earlier retired pay through amended returns. South Dakota does not tax retirement income, which is a reason many veterans settle here.

Ranch Families

Meade County ranch families report cattle and hay sales on Schedule F, with special rules for raised breeding stock, drought sales and crop insurance. Selling livestock early because of drought may allow the income to be deferred or replaced.

Retirees

Retirees benefit from South Dakota's lack of income tax, but federal tax on Social Security, pensions and IRA withdrawals still applies. Qualified charitable distributions and careful timing of withdrawals can reduce it.

What to Bring

W-2s, 1099s and VA or DFAS statements.
Records of rally rental days and amounts.
Side-income records.
Ranch sales and expense records.
Last year's return.

Renting Out a Second Property

Owners of a second house, cabin or RV lot near Sturgis who rent it during the rally and at other times report the rent on Schedule E, with expenses split between rental and personal days. If personal use is more than 14 days or 10 percent of rental days, deductions are limited to rental income.

Black Hills National Cemetery and Survivors

Surviving spouses of veterans may receive Dependency and Indemnity Compensation, which is tax-free, and Survivor Benefit Plan annuities, which are taxable. We check how each payment is reported.

Withholding for Rally Workers

Residents who take a second job during the rally may find that neither employer withholds enough, because each assumes it is the only job. Adjusting the W-4 or making an estimated payment in September avoids a balance and a penalty at filing time.