FTR TAX TIP OF THE MONTH
In 2018, the Tax Cuts and Jobs Act (TCJA) became law, changing the rules for future tax filings. The act included a lot of small and large policy changes, but one of the most significant was the raising of the standard deduction. Because of it, many Americans can no longer itemize on their federal tax returns, a strategy that was once popular for maximizing tax benefits. If you itemized in years past but can’t under the new tax law, all isn’t lost — you still might qualify for an itemized deduction credit, located on Pg. 4 of the Wisconsin tax return. Because of this state option, it’s still important to keep track of your medical expenses, mortgage insurance, charitable donations, and casualty losses even though they won’t matter on your federal return. Here’s how it works: Wisconsin offers a 5% itemized deduction credit when the total of the above eligible deductions exceeds the Wisconsin standard deduction. This deduction isn’t fixed like the IRS amount. Instead, it gradually gets lower as your income gets higher. For example, say you’re married and filing jointly for 2019 and you have $60,000 of income. Your standard deduction will be $12,565. If your medical expenses (which would normally be eligible for an IRS Schedule A deduction after the 7.5% haircut) charitable donations, and mortgage interest total $20,000, then you can take $20,000 and subtract the standard deduction of $12,565 to get $7,435, which is multiplied by 5% to get a $372 credit. If you’re eligible, this credit will decrease your Wisconsin tax owed, just like the school property tax credit, married couple credit, homestead credit, and earned income credit would. This is truly a perk of living in the Badger State, as tax credits are almost always better than deductions. They reduce your tax owed dollar for dollar, where a deduction reduces your tax owed by a percentage, which depends on your tax bracket. If you’re unsure of whether you qualify for the Wisconsin itemized deduction credit or have a friend or family member facing heavy medical bills you think might qualify, Francetic Tax Resolution can help. Call me today, or pass along my phone number (262-752-6992) to your friends and family for a free consultation! DON’T OVERLOOK WISCONSIN’S ITEMIZED DEDUCTION CREDIT!
APPLE CIDER CHICKEN AND BRUSSELS SPROUTS
Inspired by Food Network
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1 lb Brussels sprouts, halved 2 gala apples, cut into wedges 1 red onion, cut into wedges
4 boneless chicken breasts 1 tsp rosemary leaves, finely chopped 2 tbsp butter, divided 2/3 cup apple cider 1 tsp apple cider vinegar
2 sprigs rosemary
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2 tbsp extra-virgin olive oil Salt and pepper to taste
1. Heat oven to 450 F. 2. On a baking sheet, toss Brussels sprouts, apples, onion, and rosemary sprigs in olive oil, salt, and pepper. 3. Roast vegetable and fruit mixture until tender, about 25–30 minutes, flipping halfway. 4. Season chicken with salt, pepper, and chopped rosemary. 5. In an ovenproof skillet, heat 1 tbsp butter. Add chicken and cook 6 minutes on one side. Flip and cook 2 more minutes. 6. Pour cider onto chicken. Roast in the oven for 12 minutes. Remove chicken from skillet and let it rest on cutting board. 7. Return skillet to stove on medium-high and simmer sauce until reduced by half. 8. Swirl remaining 1 tbsp of butter with vinegar, salt, and pepper. Slice chicken and divide among plates with roasted vegetables and serve.
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