Federal Returns for San Antonio Households
San Antonio calls itself Military City USA, and the description fits. Joint Base San Antonio, which joins Fort Sam Houston, Lackland and Randolph, had about 74,700 direct employees in the Comptroller's 2025 study, and many more military retirees have stayed in the area. Texas has no personal income tax, so the federal return is the one income tax return most families file. BOMCAS prepares federal returns for San Antonio residents remotely, including the military-specific rules that general software often handles badly.
Statewide basics such as homestead and community property are under Texas personal tax preparation, while this page deals with military families, retirees and royalty owners in San Antonio.
Active-Duty Families
Service members keep their legal residence when stationed in Texas, and military spouses can choose to keep the same residence as the service member. For a family whose home of record is a state with income tax, that matters for the other state's return, not the federal one. Combat zone pay can be excluded, basic allowances for housing and subsistence are not taxable, and active-duty members moving under permanent change of station orders can still deduct unreimbursed moving costs. We also report Thrift Savings Plan contributions and Roth elections correctly.
Military Retirees and Veterans
Military retired pay is taxable on the federal return, but VA disability compensation is not. When a retiree receives both, the offset between them, and any combat-related special compensation, needs care. A retiree who is later awarded a retroactive VA rating may be able to amend earlier returns for a refund. Texas also exempts the full value of a homestead for veterans rated 100 percent disabled or unemployable, and offers smaller exemptions for lower ratings.
Civilian and Contractor Employees
Civil service employees at the bases and BAMC have Federal Employees Retirement System benefits, and contractor employees often move between companies as contracts change hands. Lump-sum leave payouts, relocation benefits and the timing of TSP rollovers all affect the return in the year of a job change.
Royalty Owners in the Eagle Ford
Many San Antonio families own mineral rights in Karnes, Atascosa, Wilson or other Eagle Ford counties, often inherited and divided among siblings. Royalty income is reported on Schedule E, usually from Form 1099-MISC, and percentage depletion can reduce it. Severance tax withheld by the operator is shown on the statement, and the county property tax on mineral interests is deductible. Inherited minerals receive a basis equal to their value at death, which matters if they are later sold.
Hill Country Rentals and Retirement
Investors own rentals near the bases and the medical centre, and families keep cabins and weekend homes toward Boerne, Bandera and the Guadalupe River. Rentals of fewer than 30 days owe state and local hotel tax, and a home used both personally and as a rental has its expenses divided by days. Retirees drawn by the climate and the absence of state income tax should look at how Social Security, pensions and required minimum distributions fit together on the federal return.
What to Send
- W-2s, LES year-end statements and 1099-R forms for retired pay.
- VA award letters if the rating changed.
- Royalty statements and Forms 1099-MISC.
- Rental income and expenses.
- Property tax statements and last year's return.
San Antonio Personal Tax Preparation Questions
Is military retired pay taxable?
Yes, on the federal return. VA disability compensation is not, and Texas has no state income tax on either.
Can a military spouse in San Antonio keep another state as home?
Yes. Military spouses may elect the same state of legal residence as the service member.
Can I still deduct moving costs?
Active-duty members moving under permanent change of station orders can deduct unreimbursed moving expenses.
How are inherited Eagle Ford royalties taxed?
As royalty income on Schedule E, with depletion available. The inherited interest gets a basis equal to its value at death.
Talk to BOMCAS About Personal Tax Preparation in San Antonio
Owners need their business return and books done first. A caregiver at home runs through household payroll, a weekend rental owes hotel tax, separation and inheritance decisions belong in planning, missed years in late filing, and Canadian or Mexican accounts under cross-border tax. The same subjects across the state are covered on our Texas pages for business taxes, sales tax, bookkeeping, payroll, planning, late filing and cross-border work, with a summary in the statewide overview.
Send BOMCAS a short note about your San Antonio business or household and we will come back with next steps and the documents we need for a quote. Reach us through the contact page or the form below, by phone at 780-667-5250 or at info@bomcas.ca. All San Antonio services are on the San Antonio overview. Nothing here is advice for your particular circumstances.