Tax FAQ — Answers for DFW & Collin County Taxpayers | Texas ClearTax Solutions

Question 1

How much does it cost to file taxes in the DFW area?

Accepted Answer

Our flat-fee pricing starts at $150 for simple individual returns and varies based on complexity. Unlike hourly-billing firms, we quote a fixed price upfront — no surprises. DFW clients receive the same pricing as all Texas clients since we work 100% online.

Question 2

What is the deadline to file my federal tax return?

Accepted Answer

The standard federal tax deadline is April 15. If you need more time, you can file for a free 6-month extension (Form 4868), moving your deadline to October 15. An extension gives you more time to file — not more time to pay. If you owe taxes, interest and penalties accrue from April 15 regardless of the extension.

Question 3

I work remotely for a company in another state. Do I owe taxes in both states?

Accepted Answer

Generally, Texas residents who work remotely for out-of-state employers only owe Texas taxes — and Texas has no state income tax. However, some states (like New York and California) have "convenience of the employer" rules that may require you to file in that state. We handle multi-state returns and can advise you on your specific situation.

Question 4

Can I deduct my home office if I work from home in Plano, Frisco, or McKinney?

Accepted Answer

If you are self-employed (Schedule C filer), yes — you can deduct a home office that is used regularly and exclusively for business. W-2 employees cannot deduct home office expenses under current federal law (the deduction was eliminated for employees in 2018). Texas has no state income tax, so this is a federal deduction only.

Question 5

What documents do I need to file my taxes?

Accepted Answer

You will need: W-2s from all employers, 1099s (freelance, interest, dividends, retirement), Social Security numbers for yourself and dependents, last year's tax return, mortgage interest statement (Form 1098), property tax records, and receipts for deductible expenses. We provide a detailed checklist after your consultation.

Question 6

I received a large bonus or RSU vesting from my employer in Plano or Frisco. How does that affect my taxes?

Accepted Answer

Bonuses and RSU vesting are taxed as ordinary income in the year received. Your employer withholds taxes, but the withholding rate (22% flat for supplemental wages) may not match your actual marginal rate. You may owe additional taxes or be entitled to a refund depending on your total income. We help corporate employees at DFW-area companies plan for these events.

Question 7

How do I form an LLC in Texas?

Accepted Answer

To form a Texas LLC, you file a Certificate of Formation with the Texas Secretary of State (currently $300), obtain an EIN from the IRS, and set up an operating agreement. You also need to register for Texas franchise tax. We handle the entire process for you — from filing to EIN to franchise tax registration — typically within 5–7 business days.

Question 8

Should I form an LLC or S-Corp for my small business in Collin County?

Accepted Answer

Most small businesses in Collin County start as LLCs. An S-Corp election (filed on Form 2553) can save self-employment taxes once your net profit exceeds roughly $40,000–$50,000 per year, because you pay yourself a "reasonable salary" and take the rest as distributions not subject to SE tax. We analyze your specific income level and recommend the right structure.

Question 9

What is the Texas franchise tax and does my LLC have to pay it?

Accepted Answer

The Texas franchise tax (also called the "margin tax") applies to most entities doing business in Texas. LLCs with total revenue under $2.47 million (2024 threshold) file a No Tax Due report and owe nothing. Above that threshold, the rate is 0.375% for most businesses (0.75% for retail/wholesale). We prepare and file franchise tax returns for all Texas business types.

Question 10

I am a 1099 contractor or gig worker in DFW. What taxes do I owe?

Accepted Answer

As a self-employed person, you owe federal income tax plus self-employment tax (15.3% on net earnings up to the Social Security wage base, 2.9% above that). You should also make quarterly estimated tax payments (due April 15, June 15, September 15, January 15) to avoid underpayment penalties. We prepare Schedule C returns and help you maximize deductions for vehicle, home office, equipment, and other business expenses.

Question 11

What business expenses can I deduct on my Schedule C?

Accepted Answer

Common deductible business expenses include: vehicle mileage (67 cents/mile in 2024), home office, health insurance premiums, business equipment and software, professional fees, advertising, business meals (50%), travel, and retirement contributions (SEP-IRA, Solo 401k). We review every line item to ensure you claim every legitimate deduction.

Question 12

Do I need to register my business with the City of Plano, Frisco, or McKinney?

Accepted Answer

Texas does not require a general business license at the state level, but some cities and counties require local business permits. Certain industries (food service, childcare, healthcare) require state licenses. We guide you through the registration requirements specific to your business type and location in Collin County.

Question 13

I received an IRS notice. What should I do?

Accepted Answer

Do not ignore it. IRS notices have deadlines — missing them can result in additional penalties, liens, or levies. Read the notice carefully to understand what the IRS is asking. Common notices include CP2000 (proposed changes), CP501/CP503/CP504 (balance due), and Letter 531 (audit). As an IRS Enrolled Agent, we respond to IRS notices on your behalf and resolve the issue.

Question 14

Can I set up a payment plan with the IRS?

Accepted Answer

Yes. The IRS offers installment agreements for taxpayers who cannot pay in full. If you owe $50,000 or less in combined tax, penalties, and interest, you can apply online for a streamlined installment agreement. We negotiate payment plans, Offers in Compromise, and Currently Not Collectible status depending on your financial situation.

Question 15

What is an Offer in Compromise (OIC)?

Accepted Answer

An Offer in Compromise allows you to settle your IRS debt for less than the full amount owed if you cannot pay the full liability or if doing so would create financial hardship. The IRS accepts roughly 40% of OIC applications. Qualification depends on your income, expenses, asset equity, and future earning potential. We prepare and submit OIC applications for qualifying clients.

Question 16

The IRS is garnishing my wages or levying my bank account. Can you help?

Accepted Answer

Yes — this is urgent. As an IRS Enrolled Agent, we can file for a Collection Due Process (CDP) hearing, request a levy release, or negotiate an installment agreement to stop the garnishment. We have successfully released IRS levies for clients throughout Texas. Call us immediately at (469) 897-6175.

Question 17

I have unfiled tax returns from previous years. What should I do?

Accepted Answer

File them as soon as possible. The IRS can file a Substitute for Return (SFR) on your behalf — without your deductions — and assess the maximum tax. Unfiled returns also prevent you from receiving refunds you may be owed. We prepare back-year returns, negotiate penalty abatement, and help you get back into compliance.

Question 18

What is an ITIN and who needs one?

Accepted Answer

An Individual Taxpayer Identification Number (ITIN) is a 9-digit number issued by the IRS to individuals who are required to file a U.S. tax return but are not eligible for a Social Security Number. This includes non-resident aliens, foreign nationals, undocumented immigrants, and their dependents. ITINs are used for tax filing only — they do not authorize work or provide eligibility for Social Security benefits.

Question 19

What is a Certifying Acceptance Agent (CAA) and why does it matter?

Accepted Answer

A Certifying Acceptance Agent is an individual or entity authorized by the IRS to assist applicants in obtaining ITINs. The key advantage: as a CAA, we verify your identity documents (passport, national ID) in person or via video — you do NOT have to mail your original passport to the IRS. This is faster, safer, and eliminates the risk of losing your passport in the mail.

Question 20

How long does it take to get an ITIN?

Accepted Answer

When submitted with a tax return, ITIN applications typically take 7–11 weeks during non-peak periods and up to 14 weeks during tax season (January–April). As a CAA, we submit your application with certified copies of your documents, which speeds up processing compared to mailing originals.

Question 21

Do I need an ITIN to open a bank account or get a mortgage in Texas?

Accepted Answer

Many banks and credit unions accept ITINs for account opening. Some lenders also offer ITIN mortgages for non-SSN holders. Having a current, valid ITIN and a history of filing tax returns strengthens your application. We help clients throughout DFW and Texas obtain and renew ITINs for these purposes.

Question 22

My ITIN has expired. How do I renew it?

Accepted Answer

ITINs that have not been used on a federal tax return for three consecutive years expire. You renew by filing Form W-7 with a current tax return or a standalone renewal application. As a CAA, we handle ITIN renewals and can certify your documents without you mailing your passport.

Question 23

How much does bookkeeping cost for a small business in Collin County?

Accepted Answer

Our monthly bookkeeping packages start at $150/month for businesses with fewer than 50 transactions and scale based on transaction volume and complexity. We use QuickBooks Online and provide monthly P&L statements, balance sheets, and bank reconciliations. Annual packages are available at a discount.

Question 24

What is the difference between cash-basis and accrual-basis accounting?

Accepted Answer

Cash-basis accounting records income when received and expenses when paid — simpler and common for small businesses. Accrual-basis records income when earned and expenses when incurred, regardless of cash flow — required for businesses with inventory or revenue over $25 million. Most small businesses in Texas use cash-basis. We help you choose the right method and maintain consistent records.

Question 25

Do I need to run payroll if I pay myself from my LLC?

Accepted Answer

It depends on your entity type. Single-member LLC owners (taxed as sole proprietors) take owner draws — no payroll required. S-Corp owners who work in the business must pay themselves a "reasonable salary" through payroll and file quarterly 941s. We set up payroll for S-Corp owners and handle all quarterly and annual filings.

Question 26

What are the payroll tax deadlines for small businesses in Texas?

Accepted Answer

Federal payroll tax deposits are due semi-weekly or monthly depending on your deposit schedule. Form 941 (quarterly payroll tax return) is due April 30, July 31, October 31, and January 31. Form 940 (annual FUTA) is due January 31. W-2s must be distributed to employees and filed with the SSA by January 31. We handle all of these for our payroll clients.

Question 27

Does my Texas business need to collect sales tax?

Accepted Answer

If you sell taxable goods or certain services in Texas, you must register for a Texas Sales and Use Tax Permit and collect 6.25% state sales tax plus up to 2% local tax (total up to 8.25%). Services are generally not taxable in Texas, but there are exceptions (e.g., data processing, telecommunications). We help you determine your nexus and filing obligations.

Question 28

How often do I need to file Texas sales tax returns?

Accepted Answer

Filing frequency depends on your annual tax liability: monthly (over $500/month), quarterly ($500 or less/month), or annually (under $1,000/year). Returns are due on the 20th of the month following the reporting period. We prepare and file Texas sales tax returns and handle amended returns if needed.

Question 29

I sell products online. Do I owe sales tax in Texas?

Accepted Answer

Yes, if you have economic nexus in Texas — which means more than $500,000 in Texas sales in the prior 12 months. After the South Dakota v. Wayfair Supreme Court decision, remote sellers must collect and remit Texas sales tax once they exceed this threshold. We help e-commerce businesses register, collect, and file correctly.

Question 30

Do I need to come to your office?

Accepted Answer

No. We are 100% virtual. We are based in Lavon, TX (Collin County) and serve clients throughout DFW, Collin County, and all of Texas entirely online. You upload documents through our secure portal, we communicate via phone, email, or video, and we e-file your return. No commute, no waiting room.

Question 31

What is the difference between an IRS Enrolled Agent and a CPA?

Accepted Answer

An IRS Enrolled Agent (EA) is a federally licensed tax practitioner authorized by the U.S. Department of the Treasury to represent taxpayers before the IRS in all 50 states. EAs specialize exclusively in taxation. A CPA (Certified Public Accountant) is licensed by the state and can practice accounting, auditing, and tax. Both can represent you before the IRS. Our EA credential means your taxes are handled by a federally licensed specialist — not a seasonal preparer.

Question 32

Do you serve clients outside of DFW and Collin County?

Accepted Answer

Yes. We serve clients throughout all of Texas and all 50 states. Our virtual model means location is never a barrier. We have clients in Houston, Austin, San Antonio, El Paso, and across the country — including U.S. citizens living abroad.

Question 33

How do I get started?

Accepted Answer

Call or text us at (469) 897-6175, email texascleartaxsolutions@gmail.com, or book a free 15-minute consultation at calendly.com/texascleartaxsolutions. We will discuss your situation, provide a flat-fee quote, and send you a secure document upload link.

Tax Questions, Answered

Tax Preparation — Individuals

Business Taxes & LLC Formation

IRS Tax Resolution & Payment Plans

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Sales Tax & Texas Franchise Tax

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