www.Houston1040.com
281-419-7000
Licensed Tax Practitioners
Tax Preparation and IRS Representation
Practice limited to Taxation - Not a CPA or law firm
State Taxes
Texas State Income Tax
The Texas state constitution prohibits a state income tax. Texas is just one of seven states that have no individual (personal) state income tax.
Theoretically, Texas has no business income tax either, as it too is prohibited by the state constitution. Yeah, right. Instead, Texas has a so-called franchise tax, which was recently amended to become the "margin tax". If it looks like a duck, and quacks like a duck, it's a duck. We will be adding a page discussing this income-based "not an income tax" in the near future.
Out of State Tax Returns
Cooke & Company offers tax return preparation services for any out-of-state personal or individual state income tax returns that may be required. State income tax returns can actually be more confusing than the Federal income tax return. State returns typically using the amounts from specific lines of your Form 1040 then make a number of adjustments to it to determine state taxable income. Such adjustments include allocating income between states, proration of various items based on number of days lived in various states, special arrangements between bordering states where cross-border employment is common, multiple voluntary designations of contributions to social causes, sales taxes on out of state purchases, etc.
Many states have separate tax return forms for residents, non-residents, and part-year residents.
Cooke & Company may need to prepare one or more state income tax returns for you or your family members if any of the following situations apply to you:
You had the good fortune of moving into Texas during the year.
You had the misfortune of moving out of Texas but wish to continue using Cooke & Company as your tax preparer.
You have children attending college out-of-state who earned income in the other state.
