Working Families
Garland is a city of working households. Many residents work in its plants and warehouses, for Garland ISD, for the city and its electric utility, or in shops and restaurants, and many commute to Dallas. Texas has no income tax, so most families file only a federal return. BOMCAS prepares personal returns for Garland residents remotely.
For homestead exemptions and community property, see the Texas personal tax page. This page is about Garland households.
Overtime and Shift Pay
Factory and warehouse workers often earn large amounts of overtime. For 2025 through 2028, the federal deduction for qualified overtime lets workers deduct the premium part of overtime pay required by federal law, the extra half of time and a half, up to $12,500 a year, or $25,000 for married couples filing jointly, with a phase-out at higher incomes. It is claimed whether or not you itemize. Overtime paid under a union contract or company policy beyond the federal requirement does not qualify for the extra part.
Tips
Servers, bartenders, salon workers and delivery drivers who receive tips may deduct up to $25,000 of qualified tips a year from 2025 through 2028, again with a phase-out at higher incomes. The tips must be reported, and cash tips should be recorded each day.
Teachers and Public Employees
Garland ISD teachers belong to the Teacher Retirement System of Texas, and city employees to the Texas Municipal Retirement System. Teachers can deduct up to $300 of classroom supplies, and many contribute to 403(b) or 457 plans that reduce taxable income. The Social Security Fairness Act, signed in January 2025, ended the reductions that used to cut Social Security benefits for many teachers with non-covered pensions, so retired teachers may have new benefits to report.
Vietnamese and Immigrant Families
Many Garland families came from Vietnam, Mexico, Central America or South Asia. Some have relatives' names on accounts abroad, own property back home or receive gifts from family overseas. These do not always create tax, but they can require forms. Relatives without Social Security numbers may need ITINs to be claimed as dependents or to file a joint return.
Homeowners Around Lake Ray Hubbard
Homes range from 1950s houses in central Garland to newer subdivisions near Firewheel and lakefront homes on Lake Ray Hubbard. Mortgage interest and property tax are deductible if you itemize, with the state and local tax deduction limit raised to $40,000 for most households from 2025. When a home is sold, up to $250,000 of gain, or $500,000 for married couples, is excluded if you meet the ownership and use tests.
Side Work
Many residents run side businesses, fix cars, do construction work or drive for apps. That income goes on Schedule C, with self-employment tax, and expenses such as tools, supplies and mileage are deductible. Payment apps report payments to the IRS, so records should match.
Retirees
Retirees receive Social Security, TRS or TMRS pensions and IRA withdrawals. From 2025 through 2028 people 65 or older can take an additional deduction of up to $6,000 each, phasing out at higher incomes. Required minimum distributions start at 73, and they can be paid directly to charity.
What to Bring
- W-2s, 1099s and pay stubs showing overtime.
- Records of tips received.
- Form 1098 and property tax statements.
- Side business income and expenses.
- Details of accounts or property abroad.
- Last year's return.
Garland Personal Tax Preparation Questions
Is all my overtime deductible?
No. Only the extra half of time-and-a-half pay required by federal law, up to the annual limit.
Do I have to itemize to claim the overtime or tip deduction?
No. Both are available whether or not you itemize.
Do retired teachers get more Social Security now?
Many do, since the Social Security Fairness Act removed the old reductions.
Does Garland have a city income tax?
No. Texas and Garland have no income tax.
Talk to BOMCAS About Personal Tax Preparation in Garland
If you own a shop or salon, its books and business return come before your own. Household staff run through payroll, a lake rental may owe hotel tax, retirement choices belong in planning, missed years in late filing and family property abroad in cross-border tax. For the rules that apply everywhere in Texas, read our state pages on business tax, sales and use tax, bookkeeping, payroll, planning, back taxes or cross-border tax, all gathered on the Texas overview.
If you run a Garland plant, shop or restaurant, or simply need your family’s return done right, send BOMCAS a few lines about it and we will tell you what to send and what the work would cost. Reach us through the contact page or the form below, by phone at 780-667-5250 or at info@bomcas.ca. All Garland services are listed on the Garland overview. What you read here is general information and not advice on your situation.