Federal Returns in Fort Worth
Fort Worth households file a federal return and no state income tax return, but the federal return here often has something unusual on it. Thousands of homeowners receive small royalty cheques from gas wells under their lots, airline and aerospace employees have pensions, stock and union benefits, and many families own ranch land outside the city. BOMCAS prepares federal returns for Fort Worth residents remotely and keeps each year's records ready for the next.
Homestead, community property and relocation rules are described under Texas personal tax preparation; here we look at Fort Worth households.
Gas Royalties on City Lots
During the Barnett Shale boom, operators leased mineral rights under entire Fort Worth neighbourhoods and drilled from pad sites, so many homeowners receive monthly or quarterly royalty payments. The amounts can be small, but they are taxable income reported on Schedule E, usually from Form 1099-MISC once payments reach the reporting threshold. Severance tax withheld by the operator is shown on the statement, percentage depletion can reduce the taxable amount, and the mineral interest may be taxed separately as property. If you sell the minerals, the gain depends on your basis, which is often very low unless the interest was inherited.
Aerospace, Airline and Rail Employees
Employees of Lockheed Martin, Bell, American Airlines and BNSF often have pensions, 401(k) plans with company matches, employee stock purchase plans and, for some, union benefits. Railroad workers receive Railroad Retirement benefits instead of Social Security, reported on Form RRB-1099 and RRB-1099-R, and the Social Security equivalent part of Tier 1 is taxed like Social Security while the rest, including Tier 2, is taxed like a pension. Airline employees with travel benefits for family members generally do not pay tax on standby travel under the no-additional-cost rules.
Military and Reserve Families
Naval Air Station Joint Reserve Base Fort Worth hosts Navy, Marine Corps, Air Force and Army reserve units and Texas Air National Guard members. Reservists who travel more than 100 miles from home for drills can deduct unreimbursed travel expenses as an adjustment to income, even without itemising. Active-duty members stationed here can keep their home state, and combat zone pay is excluded.
Ranch Land and Hunting Leases
Families with land in surrounding counties may have farm income on Schedule F, rental income from grazing leases, or hunting lease income. Whether land is a farm business or an investment affects how expenses are deducted and whether losses are allowed. Land under agricultural or wildlife valuation for property tax should be reported consistently with that use.
Homeowners Across Five Counties
Fort Worth extends into Tarrant, Denton, Parker, Wise and Johnson counties, and new subdivisions in the north and west often include municipal utility districts or public improvement districts. Property tax, including MUD taxes, counts toward the federal state and local tax deduction, capped at $40,000 for 2025 and slightly more after that, with a lower cap at higher incomes.
Retirees
Retired employees of the city's large employers often have pensions, lump-sum options and required minimum distributions to plan for. Texas does not tax pensions, so the decisions are about federal brackets, Medicare premiums and the taxation of Social Security or Railroad Retirement.
What to Send
- W-2s, 1099-R and RRB forms.
- Royalty statements and Forms 1099-MISC.
- Property tax and MUD statements.
- Farm, grazing or hunting lease records.
- Last year's return.
Fort Worth Personal Tax Preparation Questions
Do I have to report a small gas royalty cheque?
Yes. All royalty income is taxable, even if it is small and no Form 1099-MISC was issued.
How is Railroad Retirement taxed?
The Social Security equivalent part is taxed like Social Security and the rest like a pension, using Forms RRB-1099 and RRB-1099-R.
Can reservists deduct drill travel?
Yes, if they travel more than 100 miles from home, as an adjustment to income.
Does Texas tax my pension?
No. Texas has no personal income tax, so only the federal return applies.
Talk to BOMCAS About Personal Tax Preparation in Fort Worth
Owners need the business return and books ready first. Ranch hands or household staff go through payroll, a side business may owe sales tax, mineral and land decisions belong in planning, unreported royalties in late filing, and Canadian accounts under cross-border tax. If you operate beyond Fort Worth, our state guides to company returns, sales and use tax, monthly books, payroll, planning, overdue filings and cross-border matters apply too, and the Texas overview gathers them in one place.
Let BOMCAS know about your Fort Worth business or household and we will reply with next steps and the information we need for a quote. Contact us through the contact page or the form below, on 780-667-5250 or at info@bomcas.ca. Every Fort Worth service is listed on the Fort Worth overview. This page is general information, not advice for your circumstances.