Frisco Personal Tax Preparation

A City of Newcomers

Most Frisco households arrived recently, from elsewhere in Texas, from California, Illinois or New York, or from abroad. Many work for corporate employers in Frisco, Plano and Dallas, and many have stock pay. Texas has no income tax, but the first Texas year often involves another state's return. BOMCAS prepares personal returns for Frisco residents remotely.

Statewide homestead and community property points are on the Texas personal tax page; below are the questions Frisco newcomers ask.

The Year You Moved

People who moved from a state with income tax usually file a part-year resident return there for the year of the move. That state taxes income earned while you lived there, and some states continue to tax certain income after you leave. California, for example, can tax part of stock options and RSUs that vest after the move, based on the share of the vesting period you worked in California. Severance and deferred compensation from your old job may also remain taxable there. Keeping proof of the move date, such as a lease, driver's licence and voter registration, helps if residency is questioned.

Stock Pay

RSUs are taxed as wages when they vest, and the shares then take a basis equal to that value. Broker forms often show a basis of zero, which leads to double tax unless corrected. Employee stock purchase plans and incentive stock options have their own rules, and exercising incentive options can create alternative minimum tax.

Sports Industry Staff and Athletes

Frisco is home to staff and players of the Cowboys, FC Dallas and other teams, and to many coaches and trainers. Professional athletes and travelling staff usually owe income tax in the states where games are played, based on days worked there, even though they live in Texas. Coaches and trainers who work for themselves report income on Schedule C.

New Homes

Many Frisco homes were built in the last ten years, and some in and around the city sit in subdivisions with public improvement district assessments or water district taxes in addition to regular property tax. Buyers of new homes can deduct mortgage interest and property tax if they itemize, with the state and local tax limit at $40,000 for most households from 2025. Apply for the homestead exemption as soon as you own and live in the home.

Two Counties

Frisco lies in both Collin and Denton counties, so homes are appraised by either the Collin Central Appraisal District or the Denton Central Appraisal District, with different school districts and tax rates depending on location. The deadline to protest is generally May 15 or 30 days after the notice arrives, whichever is later.

Young Families

Parents can claim the child tax credit of $2,200 per child for 2025, the child and dependent care credit for daycare and after-school care and the employer dependent care account. Sports fees and club dues are personal expenses and are not deductible, but day camps can count as dependent care for children under 13 while parents work.

Visa Holders

Frisco has a large community of H-1B and L-1 workers and their families, many from India. In their first year they may be dual-status, and they report income and accounts from home once they are residents.

Documents to Send

W-2s, 1099s and broker supplements.
Vesting and stock plan records.
Move date documents for the year you arrived.
Form 1098 and property tax statements.
Childcare costs and provider details.
Last year's return, including any other state.