Tax help best companies in Houston, Texas

High status tax preparation services in Houston, Texas? If you need more time to complete all of these tasks, you can request an extension to October 15 for filing your tax return. However, you’ll still have to estimate the amount of tax you owe and pay that amount by the regular April 15 deadline to avoid penalties.17? Note, for 2020, requests for an extension must be received by July 15, and estimated taxes should be paid by then to avoid interest and penalties.

Let’s start with retirement accounts. Employer-based accounts such as 401(k) and 403(b) accounts allow you to lower your taxable income easily. That’s because every dollar you put into these accounts is not taxed until you withdraw the money from your account — and that reduces your tax burden each year you make a contribution. The benefit here is that if you wait until you have retired to withdraw money from your 401(k), your income will be lower because you’ll no longer be drawing a salary. The result? You’ll be in a lower tax bracket, which means that the money you withdraw will be taxed at a much lower rate than it would’ve been if you’d had to pay taxes when you earned it.

Tax credits are the federal government’s way of encouraging businesses and individuals to do things—or not do things—that affect the greater good. For example, you can take tax credits for hiring employees, going green, providing access to disabled employees and the public, and providing health coverage for employees. Most are part of the General Business Credit, which is quite extensive so it’s quite possible that you qualify under some of its terms. Check with your accountant. Find even more info on https://greentree.tax/.

Flipping Houses as a Business. If you buy and sell property frequently, the IRS could decide that you are in the business of flipping houses and aren’t just an investor. If so, you’ll have to pay self-employment taxes of up to 15.3% on your profits, in addition to income taxes. Buying and Selling Stuff Can Be Taxable Too. If you scout out bargains at flea markets and then sell the furniture and other finds on eBay (or a similar site), you’ll end up paying income taxes on the profits. If you do that just occasionally, you may not have to report the sale on your tax return. However, if you do it frequently, the IRS will consider you to be in a self-employed business since one of the requirements of owning your own business and claiming the income is if you are engaged in the business activity on a regular basis for a profit.