Dallas is a great place to lead your life, with ample career opportunities and pleasant weather throughout the year. However, working professionals and entrepreneurs are especially worried about one particular season, which is the tax season.
Preparing and filing taxes can be a cumbersome task, which is best left for the professionals to take care of. You can hire a professional CPA in North Dallas, TX, and leave your tax worries for them to handle.
Taxes applicable to Dallas individuals
Depending on the nature of the work and how much you earn throughout the year, you may have to file one or multiple of the following taxes.
- Federal income tax: Dallas residents have to pay federal income tax that provides cover for facilities like Social Security and Medicare. The IRS manages federal income tax, and this can vary depending on your income, credits, and deductions.
- Property tax: The residents of Dallas City who own a house or other residential or commercial property have to pay property taxes based on the value of the property. The state uses this fund for local services like public schools, infrastructure, public transport, etc. However, the property tax may vary from one county to another in Texas.
- Sales tax: Any resident of Dallas or any other place in Texas has to pay a sales tax ranging between 6.25% and 8.25% on the purchase of most goods and services except groceries, prescription drugs, and other health-related items.
- Excise Tax: Goods like gasoline, cigarettes, and alcohol attract excise taxes. So, whenever you purchase these items in Dallas, you’ll be paying excise taxes. The funds collected from excise taxes are usually used for roads and transport infrastructure.
- Franchise tax: The individuals who are self-employed or own a business in Dallas have to pay a franchise tax. The amount of tax may vary depending on the business revenue.
- Capital gains tax: Although Texas does not have a state capital gains tax, the residents are subject to federal capital gains taxes on profit through investment, sale of real estate, or other estate.
Benefits of hiring a CPA for tax preparation
Hiring a CPA to do your taxes may seem like an additional expense, but in reality, it can save you a lot of tax money. Here’s what you get to enjoy by hiring a CPA to do your taxes.
- A CPA is well versed and aware of the tax laws and regulations as they have to undergo strict training and clear a comprehensive exam to get the certification. Therefore, their expertise is very beneficial if you are dealing with multiple income streams or a tax debt.
- Besides, hiring a CPA to do your taxes will save you a significant amount, allowing you to focus on personal and professional priorities.
- Moreover, if you are not well aware of the latest tax codes, you may make mistakes on your tax returns that could prove to be costly. Hiring a CPA will allow you to mitigate those risks.
- CPAs can identify and use tax deductions and tax credits to ensure that you only pay the taxes you actually owe. It’ll also allow you to have more money in your account without violating any tax law.
- Another benefit of hiring a CPA is that they can help you with tax audits. A CPA will represent you before the IRS and handle the case professionally so that you have a sense of security and peace of mind.
Final thoughts
While many may think that hiring a CPA is an unnecessary expense, they fail to understand that it can save them a lot of time, trouble, and money in the long run. Hiring a CPA can help you quickly get through complex finances that come along with significant life changes like marriage, divorce, buying a house, etc. Moreover, a CPA can also help you solve previous tax issues.
