Laredo Households
Laredo had about 270,000 residents in the Census Bureau's 2025 estimate, and its two school districts, the city, federal agencies at the border and the freight industry employ most of them. Many families have parents, children or property across the river in Nuevo Laredo. Texas collects no personal income tax, so the federal Form 1040 is the return that matters. BOMCAS prepares Laredo returns remotely.
Our Texas personal tax page explains homestead and community property rules. This page turns to Laredo drivers, officers and families.
Drivers and Owner-Operators
Company drivers receive W-2s and cannot deduct unreimbursed expenses on their federal returns, but drivers who own or lease their trucks are in business for themselves. Owner-operators report revenue and costs on Schedule C, pay self-employment tax and can deduct fuel, maintenance, insurance, permits, truck payments or depreciation, and meals at the transportation per diem rate when away from home overnight. Quarterly estimated payments help avoid a large bill in April.
Federal Officers
The Border Patrol's Laredo Sector, Customs and Border Protection at the bridges and other federal agencies employ thousands of Laredo residents. Their pay often includes overtime and premium pay, and they save through the Thrift Savings Plan, including Roth TSP. Federal law enforcement officers can retire earlier than most employees and may receive a supplement until Social Security age, both of which affect retirement planning and withholding.
Teachers and School Staff
United ISD and Laredo ISD together serve well over 50,000 students and are the city's largest employers. Teachers can deduct up to $300 of classroom supplies, contribute to 403(b) and 457 plans and participate in the Teacher Retirement System. Teachers who also coach, drive buses or teach summer school may have more than one W-2.
Family Across the River
Laredo residents who are U.S. citizens or green card holders report their worldwide income, including rent from a house in Nuevo Laredo or interest from a Mexican bank. Mexican tax on that income can usually be credited. Relatives in Mexico can be claimed as dependents only in limited cases, since a qualifying relative generally must be a U.S. citizen, resident or national, or a resident of Canada or Mexico, and must meet the support and income tests. Parents and spouses without SSNs need ITINs.
Royalty Owners
Families with mineral rights in Webb County and neighbouring counties report royalties on Schedule E and take depletion, usually at 15 percent of gross income for small owners. Royalty statements show deductions for production taxes and post-production costs, which affect the amount reported. Bonus payments for signing a lease are ordinary income.
Homeowners
The Webb County Appraisal District values homes in Laredo. The residence homestead exemption lowers school taxable value by $140,000, and owners 65 or older or disabled receive more. Protests are generally due by May 15. On the federal return, property tax is deductible only if you itemize, within the SALT cap.
Earned Income and Child Credits
Many Laredo families with modest incomes qualify for the earned income credit and the child tax credit, which together can produce large refunds. The child tax credit requires the child to have a Social Security number, while the earned income credit requires one for every person counted. Refunds that include these credits are not issued before mid-February.
Students
Students at Texas A&M International University and Laredo College often work part time. The American Opportunity credit can refund up to $1,000 per student even when no tax is owed, and Pell Grants used for tuition are tax free.
Documents to Gather
- W-2s, 1099-NEC and 1099-K forms.
- Truck, fuel and mileage records for owner-operators.
- Mexican bank or rental details.
- Royalty statements and Form 1099-MISC.
- Appraisal district and mortgage statements.
Laredo Personal Tax Preparation Questions
Can owner-operators deduct meals?
Yes, at the special per diem rate for transportation workers when away from home overnight.
Can I claim my parents in Nuevo Laredo as dependents?
Possibly, since residents of Mexico can be qualifying relatives, but the support and income tests must be met and they need ITINs.
Are royalties taxable?
Yes, on Schedule E, usually with 15 percent percentage depletion for small owners.
Who values homes in Laredo?
The Webb County Appraisal District.
Talk to BOMCAS About Personal Tax Preparation in Laredo
Owner-operators and family business owners need business returns and clean records first. Household staff belong on payroll, small stores collect sales tax, ranch land and retirement are planning matters, missed years go to catch-up filing, and Mexican assets to cross-border reporting. Beyond the port, the statewide rules for business tax returns, sales and use tax, bookkeeping, payroll, tax planning, back taxes and cross-border matters are on our Texas pages, starting from the Texas overview.
Send BOMCAS a few lines about your Laredo fleet, brokerage, store or family and we will reply with a first step and a list of records for a quote. Write through the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Our other Laredo services are listed on the Laredo overview. The information here is general and not advice for your business or family.