How to File Federal Taxes If You Live in Texas

File Federal Taxes

Living in Texas simplifies your tax filing process because the state does not have a personal income tax. However, Texas residents are still required to file federal income tax returns with the Internal Revenue Service (IRS).
This guide explains how to file federal taxes from Texas for 2025, which forms to use, how to include income earned in Texas, and what benefits apply to residents of a no-income-tax state.

Relevant Tax Codes and Forms

• IRC §6012(a): Filing requirements for individuals.
• IRC §63: Defines taxable income.
• Form 1040: U.S. Individual Income Tax Return.
• Form W-2: Wage and Tax Statement.
• Form 1099 Series: Reports interest, dividends, and self-employment income.
• Form 4868: Automatic extension of time to file.
• IRS Publication 17: Your Federal Income Tax Guide.

Step 1: Determine If You Need to File a Federal Return

According to IRC §6012(a), you must file a federal return if your gross income exceeds the standard deduction for your filing status.
For 2025, the standard deductions are expected to be similar to 2024 (subject to IRS updates):

• Single: $14,600
• Married Filing Jointly: $29,200
• Head of Household: $21,900

Even though Texas does not tax your income, you are still required to report it to the IRS for federal purposes.

Step 2: Gather Your Tax Documents

Texas employers withhold only federal taxes from your paycheck, not state income tax.
Collect the following documents before filing:

• W-2s from all employers.
• 1099 forms for interest, dividends, and self-employment income.
• 1098 forms for mortgage interest or student loan interest.
• Form 1095-A if you had health insurance through the marketplace.
• Bank statements and investment summaries.

Step 3: Complete IRS Form 1040

Residents of Texas file Form 1040 like all other U.S. residents.
Include your Texas address and Social Security number.
If you work as a contractor or freelancer, report income on Schedule C and pay self-employment tax using Schedule SE.

Example:
A Dallas resident earning $80,000 in wages and $5,000 in freelance income will file:

• Form 1040 reporting total income of $85,000.
• Schedule C for freelance activity.
• Schedule SE to calculate self-employment tax.

Step 4: Choose How to File Your Federal Return

Texas residents can file their federal returns in three ways:

1. E-file using IRS Free File at irs.gov/freefile.
2. Use tax preparation software like TurboTax, H&R Block, or TaxAct.
3. Hire a CPA or Enrolled Agent for professional assistance, especially if you have business income, multiple W-2s, or investment activity.

E-filing is the fastest and most secure way to receive your refund directly in your bank account.

Step 5: Pay Federal Taxes or Request a Refund

Even without state income tax, Texans must pay federal income and self-employment taxes.
If you had too little withheld, make payments via IRS Direct Pay or the Electronic Federal Tax Payment System (EFTPS).
If you overpaid, expect your refund within approximately 21 days for e-filed returns.

Step 6: Know Your Deadlines

For 2025 federal returns (for tax year 2024):

• Filing Deadline: April 15, 2025.
• Extension Deadline: October 15, 2025 (if Form 4868 filed).
  Texas residents follow the same federal due dates as taxpayers in other states.

Step 7: Where to Send a Paper Return (if not e-filing)

If you choose to file by mail:

• Without payment:
  Department of the Treasury
  Internal Revenue Service
  Austin, TX 73301-0002
• With payment:
  Internal Revenue Service
  P.O. Box 1303
  Charlotte, NC 28201-1303

Always use certified mail if sending physical documents.

Conclusion

Filing federal taxes in Texas is straightforward because there is no state income tax. Your only filing responsibility is with the IRS. Whether you are a salaried employee, self-employed, or retired, filing Form 1040 accurately ensures compliance and timely refunds. Texans enjoy one of the simplest tax filing experiences in the country.

Call to Action

For professional guidance on filing federal taxes while living in Texas, contact Anshul Goyal, CPA EA FCA, a U.S.-licensed Certified Public Accountant, Enrolled Agent admitted to practice before the IRS, and cross-border tax expert helping American and Indian taxpayers with IRS compliance and planning.

Disclaimer

This article is for informational purposes only and should not be considered tax or legal advice. Always consult a qualified CPA before filing your federal return.

Top 5 FAQs

1. Do Texas residents need to file a state income tax return?
   No. Texas does not have a state income tax, so only a federal return is required.
2. Which IRS form should Texans use to file taxes?
   Form 1040, the same as taxpayers in other states.
3. Does living in Texas affect your federal tax rate?
   No. Federal tax rates are uniform across all states.
4. Can I file my federal taxes electronically from Texas?
   Yes. The IRS encourages e-filing for faster processing and refunds.
5. Where should Texans mail their paper tax returns?
   To the IRS processing center in Austin, Texas, unless payment is enclosed.

About Our CPA

Anshul Goyal, CPA EA FCA is a Certified Public Accountant licensed in the United States, Enrolled Agent admitted to practice before the IRS, and cross-border tax expert assisting U.S. and Indian clients with tax compliance, R&D credits, and IRS audits.