Personal Returns for Dallas Households
Many of our Dallas clients arrived within the last few years, often following an employer that moved its headquarters or a large office to North Texas. Texas has no personal income tax, so after the move they file only a federal return, but the year of the move and the first few years after it can still involve the state they left. BOMCAS prepares federal returns for Dallas households remotely and handles the part-year issues that come with a relocation.
For homestead, community property and the move to Texas in general, see Texas personal tax preparation. This page is about the Dallas households we work with.
The Year You Move
A household moving from California, New York or Illinois files a part-year return in the old state covering income earned while living there. Bonuses earned there but paid later, stock options granted there and exercised after the move, deferred compensation and the gain on a home sold after leaving can all be taxed by the old state, in whole or in part. Keeping records that show when residence changed, such as the lease or purchase in Dallas, a Texas driver's licence, voter registration and school enrolment, matters if the old state questions the move.
Executives and Stock Compensation
Dallas executives often have restricted stock units, non-qualified options, incentive stock options and deferred compensation plans. Exercising incentive stock options can trigger alternative minimum tax, and selling those shares too soon turns the gain into wages. Supplemental wages, including large vesting events, are usually withheld at a flat 22 percent federal rate, or 37 percent above $1 million, which often leaves a balance due. We project the tax before vesting dates and exercises.
Property Tax Across Five Counties
The City of Dallas extends into Dallas, Collin, Denton, Kaufman and Rockwall counties, and each has its own appraisal district. Homeowners pay the county, the city, a school district, Parkland Health's hospital district in Dallas County and a community college district, and should apply for the homestead exemption with the appraisal district for their county. Property tax counts toward the federal state and local tax deduction, which is capped at $40,000 for 2025, a little more in later years, and less for higher incomes.
Charitable Giving
Dallas has a strong philanthropic tradition, and higher-income households often give appreciated stock, use donor-advised funds or bunch several years of gifts into one year so itemising is worthwhile. Gifts of appreciated shares held more than a year can be deducted at their value without paying tax on the gain. From 2026, federal law adds a floor on itemised charitable deductions, so timing gifts matters more than before.
Rental Property and Second Homes
Dallas residents often own rentals in the suburbs or keep a home in the state they came from. Renting out a former home after moving can preserve part of the home sale exclusion if it is sold within the allowed period, and depreciation taken during the rental years is taxed when it is sold.
Gig Work and Side Businesses
Consultants, real estate agents, photographers and drivers report self-employment income on Schedule C and pay self-employment tax. Payment apps report through Form 1099-K once payments pass $20,000 and 200 transactions under current federal law, but all income is taxable whether or not a form arrives.
What to Send
- W-2s, 1099s and brokerage statements, with equity award records.
- Moving dates and records from the old state.
- Property tax statements for each county.
- Charitable receipts and donor-advised fund records.
- Last year's federal and state returns.
Dallas Personal Tax Preparation Questions
Do I still owe tax to my old state after moving to Dallas?
For income earned while you lived there, and sometimes on later payments linked to that period, such as bonuses, options and deferred pay.
Why did I owe tax after my RSUs vested?
Supplemental wages are usually withheld at 22 percent, which is often less than an executive's actual federal rate.
Which appraisal district handles my Dallas home?
The one for the county your home is in. Dallas extends into five counties.
Is giving stock better than giving cash?
Often. Appreciated shares held over a year can be deducted at their value without tax on the gain.
Talk to BOMCAS About Personal Tax Preparation in Dallas
Owners need their business returns and books finished first. Household staff go through payroll, a side business may owe sales tax, moves and gifts belong in planning, missed years in late filing, and Canadian accounts under cross-border tax. Elsewhere in Texas, our statewide pages explain business returns, sales and use tax, bookkeeping, payroll, tax planning, catching up on back taxes and Canada–U.S. tax, and the Texas page ties them together.
Write to BOMCAS about your Dallas company or household and we will answer with next steps and what we need to prepare a quote. Use the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. You can find every Dallas service on the Dallas overview. This is general information, not advice for your own situation.