Paying taxes every April doesn’t have to be intimidating! Use the resources on this page to familiarize yourself with different types of taxes, how the taxes affect your income, and how you can be sure to fill out the right forms at tax time.
Property Tax: Taxes to the local government based on a home’s value. Properties are assessed periodically to determine their value. Even in rented property, property taxes still get paid, but they’re usually included in the monthly rent.
Sales Tax: States and cities charge taxes on almost everything that is purchased so they can provide their own services, and that the sales tax rate can vary from state to state. In Texas, sales tax rate is 6.25%, but local taxing jurisdictions may also impose up to 2% for a total maximum combined rate of 8.25%
Income Tax: Most people in the country have money taken from each paycheck to pay income taxes so the federal government can pay for things like national defense, inspecting food, researching cures for diseases, and helping with disasters. If you work and receive your W-2 from an employer in Texas, you will only pay federal income tax. There is no state income tax in Texas.
Each person is responsible for calculating and paying his or her share of federal and state government income taxes in April. You can calculate your tax debt yourself or go through a third party to fill out the appropriate forms. The Internal Revenue Service establishes the rules, provides the proper forms, and collects and monitors tax payments.
Source: Explaining Taxes
Intro to taxes
Tax Prep Assistance
- Free Tax Prep Info
- TaxAide Locator
- BankRate Taxes
- H&R Block Income Tax Course
- Investopedia – Filing Income Taxes
Federal law requires most people to have a health insurance plan that meets minimum federal coverage standards or pay a tax penalty. Health benefit plans provided by your employer and most state or federal government health plans (Medicare, Medicaid, CHIP, TRICARE, and some veterans’ health programs) will usually satisfy the requirement.
Open Enrollment: If you don’t have access to employer- or government-sponsored health coverage, you can buy an individual plan to cover yourself, or yourself and your family, during open enrollment from November 1 to January 31 of each year. You generally may buy only individual coverage during the open-enrollment period, unless you get married or divorced, have a baby, or experience another qualifying life event.
The fee is calculated 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.
Percentage of income
- 2.5% of household income
- Maximum: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace
- $695 per adult
- $347.50 per child under 18
- Maximum: $2,085
Source: Texas Department of Insurance