• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pridgeon & Zoss, PLLC

Just another WordPress site

  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Home / Tax Controversy / New tax law causing headaches? Three tips for employees.
  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Call
Contact
Blog

New tax law causing headaches? Three tips for employees.

President Donald Trump made due on his promise. Congress got a proposed tax law onto his desk before the end of the year. He signed it. Now taxpayers are trying to get a better idea of how the law will impact their tax returns.

A recent piece in Forbes notes that whether or not individual tax payers see a benefit or detriment to their taxes is a function of individual factors. These factors can include the deductions taken and the withholdings chosen. 

How can I better ensure a tax benefit, not a detriment, with this new tax law? As with all things in the tax world, proactive steps can save from headaches at tax time. Three specific tips that can help include a review of the following:

  • Withholdings. It is generally wise to increase tax withholdings if you expect the changes to lead to an increase in your tax obligations. This is because a failure to meet your tax obligations can result in penalties.
  • Real estate. The new law has changed the deduction that is allowed for mortgage interest. Previously set at $1 million, the deduction rate will now drop to $750,000. This includes both the primary residence and any additional pieces of real estate. It is important to take this into consideration when making decisions regarding real estate purchases.
  • Retirement. Consider increasing contributions to retirement accounts if the tax law results in a decrease in tax obligations. This can serve two purposes. In addition to setting you up for increased financial security during your sunset years it can also further decrease tax obligations as tax deductions are available for certain contributions.

Hopefully these steps will help ease your transition into the new tax rules.

What if the Internal Revenue Service (IRS) contacts my about my returns? It is important to take any contact by this agency seriously. Reach out to an experienced tax lawyer to help better ensure your interests are protected.

On Behalf of Pridgeon & Zoss, PLLC Jan 03 2018 Tax Controversy

Primary Sidebar

Do Not Delay Responding to a Tax Notice

Name(Required)

Practice Areas

Tax Disputes

  • Tax Litigation
  • Audits
  • Tax Appeals
    • Appealing a Levy Action

Business & Payroll Taxes

  • Trust Fund Assessments
  • Complying with Sales and Use Tax Laws

Self-Employed

  • No Taxes Withheld

Outstanding Balances

  • IRS Collections and Currently Not Collectible Status
  • Settlement Options
    • Offers in Compromise
    • Installment Agreements

Latest Blogs

What is the IRS dispute resolution process for businesses?

April 9, 2021

Your Self-employed Tax Obligations

July 10, 2020

Options for paying outstanding business taxes

May 11, 2020

Preparing your business for a tax audit

February 27, 2020

The IRS Looks To Crack Down On Virtual Currency Tax Compliance

January 17, 2020

Footer

Edina Tax Law Office

7301 Ohms Lane, Suite 420
Edina, MN 55439

Telephone: 952-835-8320

Fax: 952-835-0201

St. Anthony Tax Law Office:

2812 Anthony Lane S, Suite 200
St. Anthony, Minnesota 55418

Telephone: 612-455-8948

Pridgeon & Zoss, PLLC provides legal counsel for clients in Minnesota and Western Wisconsin

© 2022 Pridgeon & Zoss, PLLC. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy