MARIELA RUIZ, CPA, PLLC

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Tag: texas law

How Does No State Income Tax Work in Texas?

May 25, 2021 / / 0 Comments

State income taxes vary by state and are basically a certain percentage of money that residents pay to the state government. This is based on how much income you make at your job. The collected state income tax is then used to fund a variety of public services as well as education, healthcare, transportation, assistance to low-income families, housing, and much more. However, there are currently nine states that have no state income tax. This includes Alaska, Tennessee, Wyoming, Florida, New Hampshire, South Dakota, Washington, Nevada, and our very own state – Texas. So what does this mean? In this month’s blog, we will discuss how no state income tax works in Texas and how public services are funded.

What Does No State Income Tax Entail?

No state income tax means a lower tax bill. This may sound appealing to many, however, don’t start planning your move just yet. Don’t assume living in a state with no income tax is cheaper and you should instead consider how exactly the state funds its public infrastructure and wide array of services.

Sources of Revenue

In order to fund its public services, Texas relies on sales, excise, and property taxes. For example, this means Texan residents tend to pay a higher sales tax when it comes to buying goods. According to The Dallas Morning News, for the fiscal year of 2019, sales tax made up about 26.6% of the state’s net revenue and an additional 19.8% came from taxes on oil production, motor vehicles, cigarettes, and natural gas. As you can see, sales and excise taxes make up almost half of the state’s net revenue, and it doesn’t stop there. Property taxes are also a major source of funding for public services. Texas’s property taxes are higher than most states and residents may see a tax burden of 8.20% of their personal income.

Conclusion

There are different sides to either having a state income tax or not at all. One way or another, there are tradeoffs to make up for the loss of revenue from no state income taxes. If you have any further questions about the different taxes that you have to pay, rely on MARIELA RUIZ, CPA, PLLC. We provide tax services and solutions to clients in Mission, TX and surrounding areas. To learn more about our services and what we do, please visit our website or call us at (956) 997-0067.

The CPA: Your Litigation Support Professional

June 29, 2020 / / 0 Comments

There are a wide variety of types of court cases that can require the additional support of a CPA. Oftentimes in civil and business litigation, courts and powerful legal teams will require a CPA to weigh in based on their expertise in finances and accounting. Follow along with this blog to learn about the types of cases they typically work on and how having a CPA on your legal team can help you get the case results you seek.

Forensic Accounting

While forensic accounting may sound like a job reserved for detectives or the secret service, it is broad term used when a certified accountant applies the theories and principles of accounting in a legal setting. A CPA hired for litigation support purposes will review bank statements, receipts, time sheets, and any other necessary financial documents involving the case.

Business and Civil Litigation

Too often complex accounting, appraising, and tax issues find their way into business litigation. A certified public accountant with litigation support experience most often work either for or against a business to prove or disprove alleged disputes. For example, forensic accounting can either make or break cases involving bankruptcy, fraud, data analysis, damage evaluations and more.

In addition to business litigation, civil litigation cases will often require the additional support and expertise of a CPA as well. Most often their role in court will be as a consultant, but there are times when they are asked to stand as an expert witness too. Civil cases that could benefit from a CPA’s support can include those involving marital settlements, taxes, valuations and more.

Conclusion

When litigation is simply unavoidable, ensure that you have a solid legal team working in your favor. A CPA working to support your case will able to provide a judge and jury with indisputable evidence and facts that less qualified individuals wouldn’t have been able to uncover. For a CPA who’s highly experienced in providing top notch litigation support and forensic accounting services, contact us today!

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