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Tag: Texas taxes

Estimated Tax Payment for 2025 – What Texans Should Know

December 2, 2025 / / 0 Comments

If you live in Texas and expect to owe income tax this year – perhaps because you have other income that doesn’t have tax automatically withheld – then quarterly estimated tax payments may apply to you. Since Texas doesn’t impose a state income tax on individuals, this pertains to your federal taxes. In this month’s blog, we’ll break down how estimated tax payments work in 2025 and why you should stay on top of them.

Who Needs to Make Estimated Payments?

You may be required to make quarterly estimated payments if:

  • You expect to owe at least $1,000 in federal income tax after subtracting withholding and credits.
  • You earn income that isn’t subject to withholding — for example: self-employment earnings, gig income, rental property income, dividends, interest, royalties, or other non-wage income.
  • Withholding and credits from other income sources are insufficient to cover your overall tax liability. Learn more here.

If that describes you, using the federal Form 1040‑ES can help you estimate what you owe. You can pay via online banking, mail, or the electronic IRS systems.

2025 Estimated Tax Payment Schedule

For most taxpayers, the 2025 payment deadlines are:

Jan 1 – Mar 31, 2025 – due date is on April 15, 2025
Apr 1 – May 31, 2025 – due date is on June 15, 2025
June 1 – Aug 31, 2025 – due date is on September 15, 2025
Sep 1 – Dec 31, 2025 – due date is on January 15, 2026

If one of these dates falls on a weekend or legal holiday, the payment is due the next business day.

Why Quarterly Payments Matter

For individuals with income that doesn’t have tax withheld — such as freelancers, contractors, landlords, or investors — quarterly estimated payments help spread the tax burden instead of facing a large bill at tax-filing time.

Additionally, regular estimated payments help avoid penalties. The federal system broadly expects either withholding + estimated payments to meet 90% of your current-year liability, or 100% of your previous year’s tax.

Related: Learn more about tax planning tips for Texas small businesses here.

What Happens If You Don’t Pay or Underpay

If you fail to make estimated payments or underpay, the federal government may impose an “underpayment penalty.” This is why it’s important to stay on top of your income projections and make payments promptly. For many Texans working freelance, contract, or gig-based jobs, quarterly payments can be a smart way to avoid tax-time surprises.

Related: Learn more about the difference between tax preparation and tax planning here.

Get Personalized Guidance and Accurate Calculations Today

Whether you’re self-employed, earning rental or investment income, or simply unsure if quarterly payments apply to you, MARIELA RUIZ, CPA, PLLC is here to help you plan with confidence. Start today by calling us (956) 997-0067 or visiting our website mruiz-cpa.com. Our team is ready to make your year-round tax planning simple, efficient, and stress-free.

Tax Planning Tips for Texas Small Businesses: What to Do Before Year-End

October 7, 2025 / / 0 Comments

When the year draws to a close, many Texas entrepreneurs find themselves scrambling to review their financials and minimize their tax liabilities. Tax planning isn’t just about filing on time. It’s also about making proactive decisions that can strengthen your business’s financial health. This month’s blog will help you prepare for year-end efficiently while identifying opportunities to save.

Understanding the Importance of Year-End Tax Planning

Effective tax planning ensures that your business doesn’t pay more than necessary while remaining compliant with state and federal tax laws. Texas small businesses, although spared from state income tax, must still manage federal obligations, payroll taxes, and local requirements. Reviewing your books early allows you to adjust income, defer expenses, and take advantage of deductions before the deadline hits.

Related: Learn more about the difference between tax preparation and tax planning here.

Smart Strategies to Optimize Your Tax Position

By implementing smart tax strategies now, you can better control how your income and expenses impact your final tax bill. Working with a certified public accountant (CPA) helps identify specific deductions and credits applicable to your industry. For example, business owners can consider accelerating certain purchases or contributions to retirement accounts. You can also review your depreciation schedules to ensure assets are accurately recorded.

Year-End Checklist for Texas Small Businesses

Before the calendar turns, make sure to review these essential tax planning tasks:

  • Reconcile accounts: Ensure all transactions are correctly categorized and your books match your bank statements.
  • Evaluate deductions: Consider expenses like equipment, mileage, and home office use that may qualify for deductions.
  • Confirm Texas franchise tax status: Determine if your business meets the “no tax due” threshold (approx. $2.47 million) or if you still need to file an information report.
  • Review payroll and 1099 forms: Verify employee and contractor information before submission.
  • Plan for estimated taxes: Make final quarterly payments to avoid underpayment penalties.
  • Consult a professional: A local CPA can provide personalized insights into Texas-specific tax benefits.

Related: learn more about tips for managing expenses as a small business owner here.

Let Us Simplify Your Year-End Tax Planning

Don’t wait until the last minute—strategic tax planning can make a significant difference in your bottom line. MARIELA RUIZ, CPA, PLLC is ready to help Texas small businesses navigate complex tax laws and prepare for success. Visit mruiz-cpa.com or call (956) 997-0067 to schedule your year-end consultation and take control of your financial future.

Understanding Resale Certificate Rejections and How to Prevent Them

August 4, 2025 / / 0 Comments

Navigating Texas taxes can be overwhelming for businesses, especially when it comes to understanding resale and exemption certificates. These documents are essential for claiming tax exemptions on qualifying purchases. However, despite their legal standing, many Texas business owners face denied certificates during audits. In this month’s blog, we will explore the most common reasons resale and exemption certificates are rejected.

What Are Resale and Exemption Certificates?

In Texas, resale certificates allow businesses to purchase items tax-free if they’re reselling them. Exemption certificates apply to specific purchases, such as those made by nonprofits or government entities. Although both are legitimate tax-saving tools under Texas Comptroller guidelines, their misuse or mismanagement often leads to issues during an audit.

Auditors primarily aim to verify compliance with tax laws, and that’s where many businesses fall short. Whether it’s incomplete documentation or incorrect usage, these small missteps can raise red flags.

Related: learn more about whether manual or automated bookkeeping is right for you here.

Common Reasons Texas Resale & Exemption Certificates Are Denied

Even well-intentioned businesses can find themselves in trouble if they don’t follow protocol. Auditors in Texas are meticulous when verifying exemption claims, and they frequently deny certificates based on these common issues:

  • Improperly filled-out certificates: Leaving out key fields like tax ID numbers or signatures makes the document invalid.
  • Wrong certificate type used: Using a resale certificate when an exemption certificate is required – or vice versa – will lead to rejection.
  • Failure to prove resale intent: If there’s no documentation or the product clearly wasn’t resold, expect the exemption to be denied.
  • Outdated certificates: Certificates must be current and updated regularly.
  • Missing backup documentation: Sales invoices, purchase orders, or proof of resale should always accompany certificates.

Related: Learn more about why a bookkeeper is a must for your small business here.

How to Protect Your Business:

Ensure certificates are complete, accurate, and obtained before audit begins. Keep detailed records—and if in doubt, seek a compliance review.

Related: learn more about the difference between tax planning and tax preparation here.

Let MARIELA RUIZ, CPA, PLLC Help You

Don’t let avoidable mistakes cost your business time and money. Our team specializes in Texas tax compliance and audit preparation. Whether you need a quick review or full-scale assistance, we’re here to help you stay ahead of the curve. Contact mruiz-cpa.com today at (956) 997-0067 to schedule a consultation and ensure your resale and exemption certificates are audit-ready.

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