Tea Personal Tax Preparation

Returns for Tea Households

Tea households are often built around skilled work: a pipefitter or electrician, a machine operator, a nurse working shifts across the metro, a spouse running a small business from home. Overtime, union benefits, tools and work travel show up on these returns, along with children, a newer house and retirement savings. South Dakota has no income tax, so the federal return is the main filing. BOMCAS prepares personal returns for Tea households remotely.

Federal basics and residency rules are explained under South Dakota personal tax preparation; below we focus on Tea's skilled workers, families and newcomers.

Overtime and Tips

For 2025 through 2028, federal law allows a deduction for qualified overtime premium pay, up to an annual limit and phased out at higher incomes. The deduction applies to the extra half of time-and-a-half pay required by federal law, not the whole overtime paycheck, so the amount reported by the employer matters. Workers in Tea's restaurants may also deduct qualified tips under a similar rule.

Trades and Union Workers

Union electricians, plumbers and pipefitters often have pension and annuity plans, health and welfare funds and travel to job sites outside the metro. Unreimbursed employee expenses such as tools and union dues are not deductible for most employees under current law, so it can help to negotiate reimbursement through the employer.

Young Families

The child tax credit, the credit for other dependants and the child and dependent care credit are worth a lot to Tea families. Dependent care accounts through work can save more for some households. Families should keep provider names and tax numbers for each child care provider.

Commuters and Remote Workers

Residents commuting to Sioux Falls pay no state income tax. Those who work part of the year in Iowa or Minnesota owe tax there on those days' wages, and remote workers for out-of-state employers should check that the employer is not withholding another state's tax by mistake.

New Residents

Families who moved to Tea from a state with an income tax file a part-year return there for the year of the move. Keeping proof of the move, such as a South Dakota licence, vehicle registration and voter registration, helps if the old state asks.

Business Owners

Owners of Tea businesses organised as S corporations or partnerships receive K-1s, and the timing of those affects when their personal returns can be filed. Sole proprietors report on Schedule C. We prepare business and personal returns together when we handle both.

What to Bring

W-2s and union pension statements.
1099s and K-1s.
Child care costs and provider details.
Mortgage and property tax statements.
Last year's returns.

Homeowners

Many Tea families live in houses built in the last decade. Mortgage interest and property tax may be deductible if you itemise, though many families now take the larger standard deduction. Make sure the home is classified as owner-occupied with Lincoln County, which sets the levy and, from 2027, the credit funded by the county sales tax.

Retirement Savings

Workers with 401(k) or union annuity plans can reduce taxable income now, or choose Roth contributions for tax-free withdrawals later. Spouses without workplace plans can still contribute to an IRA, and families with high-deductible health plans can use an HSA.

Education

Parents of students at community colleges, technical schools or universities can claim the American opportunity credit for the first four years, and many Tea students attend technical programmes in the trades, which qualify when the school is eligible.

We also review last year's refund or balance and adjust W-4s so withholding fits the household's current jobs, overtime and credits.

Households receiving a union pension or annuity distribution should check the withholding on it as well.