Lubbock Personal Tax Preparation

Returns for South Plains Households

About 273,000 people live in Lubbock by the Census Bureau's 2025 estimate, and the university adds tens of thousands of students each autumn. Many households earn wages from Texas Tech, the hospitals or local businesses, while others have farm income, land leases or royalties. Texas has no personal income tax, so the federal return is the main filing. BOMCAS prepares returns for Lubbock households remotely.

Homestead and community property rules are on the Texas personal tax page; this page covers students, farm families and landowners.

Texas Tech Students and Parents

Texas Tech enrolled 46,296 students in fall 2026, a record. Students and parents can claim the American Opportunity credit, worth up to $2,500 per student for four years, or the Lifetime Learning credit, using Form 1098-T and receipts. Scholarships used for tuition and required fees are tax free, while amounts used for room and board are taxable. Graduate assistants receive wages, and some tuition waivers for graduate students are tax free. Students who are claimed as dependents still file if their income exceeds the filing threshold.

University and Medical Staff

Faculty and staff at Texas Tech and the Health Sciences Center may participate in the Teacher Retirement System or the Optional Retirement Program, plus 403(b) and 457 plans. Physicians, residents and nurses at Covenant and UMC have their own retirement plans, moonlighting income and continuing education costs. Residents and fellows often have student loans and may benefit from income-driven repayment plans, which depend on adjusted gross income.

Farm Families

Farm families often combine farm income on Schedule F with wages from off-farm jobs. Self-employment tax applies to farm profits, and the farm optional method can help low-income years earn Social Security credits. Families that rent farmland to tenants report cash rent on Schedule E or Form 4835, depending on their involvement.

Wind Leases and Royalties

Landowners with wind turbine leases receive annual payments, sometimes with bonus or construction payments, reported as rental income. Royalty owners report oil and gas income on Schedule E and can claim percentage depletion. Severance taxes are paid by producers, but royalty statements show deductions that affect reporting.

Hail and Storm Damage

Lubbock sees frequent hailstorms that damage roofs and cars. Insurance payments for personal property are generally not taxable if they do not exceed the property's basis. Uninsured damage is deductible only if it occurs in a federally declared disaster. Homeowners who replace a roof can add the cost to the home's basis.

Homeowners

The Lubbock Central Appraisal District values property. The residence homestead exemption reduces the school tax value by $140,000 and caps annual increases in taxable value at 10 percent. Protests are generally due by May 15. On the federal return, property tax is deductible only if you itemize, within the SALT cap.

Inherited Land and Minerals

Farmland and mineral rights often pass between generations in Lubbock families. Heirs receive a basis equal to the value at death, so selling soon after inheriting usually produces little gain, but a valuation is needed to prove it. Heirs who keep the land and rent it out report rent on Schedule E, and those who inherit royalties start their own depletion from the new basis. Several heirs owning undivided interests should agree on who receives each 1099.

Retirees

Retirees from Texas Tech, the hospitals and farming receive pensions, Social Security and IRA withdrawals that are federally taxable but untaxed by Texas. Retired farmers who sell land or equipment should plan for capital gains and depreciation recapture.

What to Send

W-2s and Form 1098-T.
Farm, lease and royalty statements.
Insurance claim documents.
Property tax and mortgage statements.
Last year's return.