6633 Green Bay Road, Suite 4, Kenosha, WI 53142

Kenosha County Income Tax Attorney

Lake Geneva income tax law attorney

Lawyer Providing Legal Help for Individual Taxpayers in Bristol and Pleasant Prairie

Taxes are a significant source of stress for many people. Even though everyone has to pay taxes, few people fully understand all the federal and state tax laws that apply to them. Because of this, many people do not take advantage of the available benefits, credits, or deductions that can help minimize their income tax obligations.

At Frozena Law LLC, we can provide the knowledge and experience you need when addressing tax issues. We can help you understand the benefits available to you and help you be prepared to face any tax-related challenges that may arise.

Income Tax Planning

For many individual taxpayers, tax planning is limited to filling out Form W-4 when starting a new job and filing their yearly tax returns. In some cases, people do not consider the deductions and credits available to them, their spouse's income, or other income they receive when completing the Form W-4, which can result in a large refund or unexpected tax bill.

If you are self-employed or have significant non-wage income, you likely make estimated tax payments. A tax professional, such as a tax attorney, can help you plan so you can more accurately determine the estimated taxes you need to pay to help avoid large refunds or underpayments when you file your return.

Some considerations for individual income tax planning include:

  • Child tax credits - Subject to income limitations, parents can typically claim a tax credit of up to $2,000 for each child. Credits may also be available for a certain percentage of the amount paid for child and dependent care, such as the cost of daycare for children during parents' work hours. If you have not already, you should explore if your employer offers a dependent care flexible spending account, which allows you to set aside money from your paycheck before taxes to pay for a variety of dependent care services.
  • Business owners - Many businesses are structured as pass-through entities in which business income is taxed as part of the owner or owners' personal income. Subject to income and other limitations, under the Tax Cuts and Jobs Act (TCJA) of 2017, 20% of pass-through qualified business income can be deducted. If a home office is used exclusively for business-related purposes, you may be able to deduct expenses such as rent, utilities, repairs, or maintenance. 
  • Charitable donations - Gifts given to charitable organizations can be deducted, including donations of cash, financial assets, and physical property. Proper charitable planning can ensure that you receive benefits when making donations and that you can continue to support the causes you believe in both during your life and after your death.
  • State and local taxes - Property taxes on real estate can be high, but taxpayers can deduct the amount of these taxes from their federal income taxes, along with other state and local sales taxes or state and local income taxes. The limit for these deductions is $10,000, or $5,000 for married couples filing separately.
  • Retirement accounts - Contributions made to traditional 401(k) accounts or IRAs can be deducted, although there are limits to the amounts that can be contributed to these accounts. Some taxpayers may also be eligible for a Saver's Credit of a certain percentage of these contributions. Contributions to Roth accounts, while not saving taxes now, may provide a tax benefit in the future.
  • Medical expenses - Qualified expenses related to medical care and treatment can be deducted if they are more than 7.5% of a taxpayer's adjusted gross income. In addition, contributions to a health savings account (HSA) are deductible, and withdrawals from these accounts are not taxable if they are used to pay for qualified medical expenses.

Contact a Racine Income Tax Lawyer

By consulting with Frozena Law LLC, you can help minimize your tax burden. When combining your tax planning with a comprehensive estate plan, you can help ensure that your and your family's financial future will be protected. Contact us today at 262-237-8668 to schedule a consultation. We provide legal help to taxpayers in Kenosha, Sturtevant, Bristol, Burlington, Pleasant Prairie, Lake Geneva, Racine, and Union Grove.

Frozena Law LLC
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