In 1789, Benjamin Franklin said, “… in this world nothing can be said to be certain, except death and taxes.”
That sentiment continues to be true in 2021.
In the City of Dallas, sales tax is collected on most things you buy, except for food. The state contains 6.25%, and the city adds another 2% for a total of 8.25% sales tax.
Additionally, if you own property, you will be paying property taxes to the city with a portion used for city services. At the same time, another percentage is given to organizations like the school district and hospitals.
Every citizen has a tax liability, the total amount of tax debt owed to a taxing authority like the Internal Revenue Service (IRS). In other words, the more you own, the higher your tax liability is.
Furthermore, your tax liability is going to be something that will have an impact on your financial position for years to come.
It is a legal obligation to have your taxes filed on time each year. Once the taxes are filed, you will also need to pay your liability. As some complexities come with filing and paying taxes, working with a professional is very important.
They can help ensure that you are taking advantage of all deductions and credits, are using the correct tax forms, and have your taxes filed on time.
While you must have your taxes filed on time each year, you also need to ensure that you plan for your future. Your annual tax liability can vary based on your income, whether you sold assets, or are taking advantage of deductions and credits.
