Individual Tax
Form 1040 U.S. Individual Income Tax Return
Clients can schedule an in-person consultation in our Dallas office by appointment or request that we prepare your income tax return 100% online using our secure client portal.
We specialize in the preparation of personal income tax returns on IRS Form 1040 and all forty-one states that tax personal income. The following states do not tax personal income: Texas, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming.
We have extensive experience preparing personal tax returns for small business owners, real estate investors, investors with K-1 income from partnerships, S-Corps and trusts and stock traders.
We understand all forms of stock-based compensation, whether you have Incentive Stock Options (ISOs), Non-qualified Stock Options (NQSOs or NSOs) or restricted stock units (RSUs), we can help.
Most employees are not aware that the cost basis reported on Form 1099-B for RSUs requires adjustment. Taxpayers using the cost basis reported on Form 1099-B can overpay federal income taxes by tens of thousands of dollars.
If you are a US citizen or a resident alien of the United States and you live abroad, you are still taxed by the IRS on your worldwide income. However, if you earn wages as an employee or have self-employment income while working in a foreign country as an ex-patriate or expat, you may be able to exclude wages (up to $107,600 in 2020) as tax-free income.
Major New Tax Provisions
The Inflation Reduction Act was passed by Congress on August 12, 2022.
Impact on Individual Income Taxes
- Extends the limitation on pass-through business losses enacted in the 2017 Tax Cuts and Jobs Act (TCJA) for two years through 2028.
- Extends the expanded health insurance Premium Tax Credits provided in the American Rescue Plan Act (ARPA), including allowing higher-income households to qualify for the credits and boosting the subsidy for lower-income households, through the end of 2025.
Consumer Incentives
- Incentives to companies and consumers who make cleaner energy choices.
- Tax credits for residential clean energy costs including rooftop solar, heat pumps, and small wind energy systems. 30% credit through 2032—phases down after 2032.
- Electric vehicle tax credits of up to $7,500 on new EVs and $4,000 on used.
Electric Vehicle Tax Credits
The Inflation Reduction Act will allocate a $7,500 consumer income tax credit for the purchase of a new electric vehicle, as well as a $4,000 tax credit for the purchase of a used EV, in its bid for a cleaner environment. However, there are price and income caps in place. For new electric vehicles, the retail price for cars can’t exceed $55,000 in order for it to qualify for the tax credit. For SUVs, trucks, and vans, that price cap will be $80,000. The consumers eligible for these tax credits will also need to fall within a specified adjusted gross income range of $150,000, $300,000, and $225,000 in the case of single individuals, married couples, and individuals who file as the head of households, respectively.
For electric vehicle manufacturers, the final assembly of the vehicles needs to take place in North America, and key materials for batteries must be manufactured or assembled in North America. The bill is intended to make the American EV industry more competitive and reduce its reliance on China.
