What I check on every return
- Every credit you qualify for checked, including the Earned Income Credit and Child Tax Credit
- Every 1099-NEC and cash job matched to your bank deposits
- Tools, equipment and truck written off the right way
- Payments to your helpers documented, with 1099s filed when required
- Quarterly estimates set so April isn't a shock
Deductions contractors often miss
- Hand tools, power tools and equipment, often deductible in full the year you buy them
- Truck costs: 72.5 cents a mile, or actual costs if your truck is a work vehicle
- Work boots, safety gear and uniforms with your logo
- General liability or occupational accident insurance
- Pay to helpers and subcontractors (collect a W-9 before you pay them)
- City permits, trade licenses and continuing education
Houston and Texas rules that apply to you
- Texas sales tax: repair and remodeling work on commercial (nonresidential) buildings is taxable in Texas, labor included. Residential repair and remodeling is treated differently. If you do commercial jobs, you may need a free sales tax permit from the Comptroller and to charge 8.25% in Houston.
- Permits: City of Houston building permits come from the Houston Permitting Center. Fees you pay for your jobs are business expenses.
- Workers' comp: Texas doesn't require private employers to carry it, but many general contractors ask subs for it or for occupational accident coverage. Either premium is deductible.
New for 2026 returns (filed in 2027)
- 1099 forms: clients and companies now send a 1099-NEC only when they pay you $2,000 or more in 2026 (it was $600). Payment apps send a 1099-K only above $20,000 and 200 payments. All of your income is still taxable, form or no form.
- Equipment write-offs: 100% bonus depreciation is back for equipment bought after January 19, 2025, so a qualifying tool, trailer or vehicle can often be deducted in the year you buy it.
- Business equipment tax (Harris, Fort Bend and other appraisal districts): starting in 2026, Texas exempts the first $125,000 of business personal property, up from $2,500. If your equipment is worth more, the rendition is due to your appraisal district (HCAD in Harris County) by April 15. Below that, check your district's 2026 instructions, since some ask for a one-time filing to confirm the exemption.
What to bring
- All 1099-NEC and 1099-K forms
- Bank statements for the year (we match deposits to jobs)
- Receipts or card statements for tools and materials
- Mileage log or truck expenses
- Names, amounts and W-9s for anyone you paid
Common questions
A general contractor paid me cash and didn't send a 1099. Do I report it?
Yes. All work income is taxable whether or not you get a form. Reporting it also builds your Social Security record and proves your income for loans.
Should I set up an LLC or S-Corp?
An LLC alone doesn't change your federal taxes. An S-Corp can lower self-employment tax once your profit is high enough to pay yourself a reasonable salary. I run the numbers with your actual profit before you decide.
Where I work
I'm based in Houston and work with clients across Harris, Fort Bend, Montgomery and Brazoria counties, including Pasadena, Pearland, Sugar Land, Missouri City, Katy, Cypress, Spring, Humble, Baytown and The Woodlands. Meet in person in Houston or do everything online, in English, Spanish or Portuguese. I also work by video with clients in Beaumont & Port Arthur, Duncanville, DeSoto, Cedar Hill & Lancaster.
Get a flat-fee quote before I start
Book a free 15-minute call. I'll tell you what your return needs and what it costs. Fees are never a percentage of your refund.
Book a free callSee typical pricesOfficial sources: IRS: Self-Employed Tax Center ↗ · Texas Comptroller: taxable services ↗ · Fort Bend CAD: 2026 business property exemption ↗
Updated October 2026 for 2026 returns filed in 2027. General information only, not tax advice for your situation. Rules and amounts can change; your situation is confirmed when your return is prepared.
Other trades I help: