What I check on every return
- Every credit you qualify for checked, including the Earned Income Credit and Child Tax Credit
- W-2 versus 1099 income sorted, including statutory employee W-2s
- Chargebacks and clawbacks deducted in the year you paid them back
- Leads, samples and travel costs claimed when you're self-employed
- Quarterly estimates set for uneven commission income
Deductions salespeople often miss
- Commissions you had to pay back (chargebacks), deductible in the year you repay them
- Leads, CRM and dialer subscriptions, and marketing
- Mileage to appointments (72.5 cents a mile in 2026), tolls and parking
- Samples, demo products and inventory for direct sales
- License fees and required courses, like a Texas Department of Insurance agent license
- Travel, lodging and meals for out-of-town sales trips
Houston and Texas rules that apply to you
- Statutory employees: some full-time insurance and route salespeople get a W-2 with the "statutory employee" box checked. That lets you deduct your business costs on Schedule C even though tax was withheld, and many people miss it.
- Dealership and bonus pay: car salespeople are usually W-2 employees, but manufacturer bonuses (spiffs) sometimes arrive on a separate 1099. I check how each one should be reported.
- No Texas income tax: your return is federal only, but self-employment tax (15.3% for Social Security and Medicare) applies once your net self-employment income reaches $400.
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.
- Mileage: the IRS rate for 2026 is 72.5 cents per business mile, up from 70 cents. Tolls and parking for work are deductible on top of that.
What to bring
- Every W-2, 1099-NEC and 1099-MISC
- Commission statements showing advances and chargebacks
- Receipts for leads, software, samples and marketing
- Mileage log or a calendar of appointments
- Travel receipts for sales trips
Common questions
I'm a W-2 car salesperson. Can I deduct my mileage and phone?
Not on your federal return, unless your W-2 shows you as a statutory employee. Employee job expenses aren't deductible right now. Ask your dealership about reimbursement instead.
I sold solar door-to-door over the summer in another state. What do I owe?
Commissions on a 1099-NEC are self-employment income. Travel, lodging and meals while away from home for the job can be deducted. Some states may expect a nonresident return; Texas has no income tax of its own.
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 ↗ · IRS: 2026 mileage rate ↗
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.
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