Client Centered Lawyering in the Low Income Taxpayer Clinic

Submitted by Dakota Halford, a Rule 19-220 student attorney in the Low Income Taxpayer Clinic

I am very grateful for being a part of the Low-Income Taxpayer Clinic. My experience with the Clinic has taught me many things, but one of the most important things it taught me was that being a lawyer is more than explaining the law to your client.

The first day of clinic I thought tax would be a very simple and unemotional. I thought I would just be telling clients their tax liabilities and the steps they can take. My initial thought turned out to be very wrong for me. There is more that goes into tax than just telling clients about their liabilities.

For a lot of people, whether low-income or not, owing a lot of money in tax liabilities can be a very scary and intimidating thing to go through. This reality really hit me when I had to tell a client that they owe a large amount of money in tax liabilities. I was very nervous to tell my client because I did not want to be the person to turn their good day into a bad day or be the one to deliver bad news to the client.

After long discussions with my team and supervising attorney I realized the importance in discussing this with my client and client centered lawyering. It is in the client’s best interest to know all the information regarding their case. It is also important to take this information and give the client options on how they can move forward. The client needs to be the one making the decision in their case not me. Giving the client all the facts and options allows them to make a decision that is informed and best for them.

Knowing the importance of discussing difficult things with my clients did not always make my nerves go away. What helped me the most was using empathy. Understanding what the client may go through when hearing news like this and empathizing with them when delivering the news takes away a lot of nerves. When the client sees we care about them and want what is best for them it may also help the client trust us more and open up to us.

Client centered lawyering involves the client, it allows them to participate and make decisions in their case, it lets them set forth their goals and work towards achieving their goals. Lawyers are there to provide clients with the law, information, and overall help the client achieve their goals. After all it is the client’s life not the lawyers.

Learning about and using client centered lawyering has helped me improve my communication and client lawyer relationship with my clients. Client centered lawyering is now one of the first things I consider when I have a client.

The Rise of Federal Income Tax Brackets

Submitted by Gabrielle Peitsch, a Rule 19-220 student attorney in the Low Income Taxpayer Clinic

On Thursday, November 19, 2023, the IRS revealed inflation adjustments to over 60 tax provisions set to take effect in tax year 2024. (Note: These provisions apply to 2024 tax returns filed in April 2025). Among these, the most significant change pertains to the federal income tax brackets.

Federal income tax brackets outline various income ranges and assign specific rates to each range. Since tax on income is progressive, the more income the taxpayer earns, the greater the tax they will pay. For example, a taxpayer with taxable income of $200,000 is paying more income tax than a taxpayer with taxable income of $40,000. See below the changes in tax brackets for tax years 2023 and 2024 for Single and Married Filing Jointly.

Single Filers:

Tax Rate	2023 tax year	2024 tax year
10%	Less than $11,000	Less than $11,600
12%	$11,001 – $44,725	$11,601 – $47,150
22%	$44,726 – $95,375	$47,151 – $100,525
24%	$95,376 – $182,100	$100,526 – $191,950
32%	$182,101 – $231,250	$191,951 – $243,725
35%	$231,251 – $578,125	$243,726 – $609,350
37%	More than $578,125	More than $609,350

Married Filing Jointly:

Tax Rate	2023 tax year	2024 tax year
10%	Less than $22,000	Less than $23,200
12%	$22,001 – $89,450	$23,201 – $94,300
22%	$89,451 – $190,750	$94,301 – $201,050
24%	$190,751 – $364,200	$201,051 – $383,900
32%	$364,201 – $462,500	$383,901 – $487,450
35%	$462,501 – $693,750	$487,451 – $731,200
37%	More than $693,750	More than $731,200

This tax is also applied marginally, thus your income tax is not simply your tax rate multiplied by your taxable income. Taxpayers instead must pay income tax at each level up until the tax rate aligned with their tax bracket. For example, a single taxpayer with $100,000 of taxable income falls under 24% tax rate for 2023. This does not mean their tax is $100,000 x 24%. Rather their tax in tax year 2023 applies as follows:

10% x ($11,000 – $0) = $1,100

12% x ($44,725 – $11,000) = $4,047

22% x (95,300 – $44,725) = $11,126

So, the total tax for a single taxpayer with $100,000 of taxable income in tax year 2023 would be:

$1,100 + $4,047 + $11,126 = $16,273

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To illustrate the effect of the increased income tax brackets, the calculation for tax year 2024 is as follows:

10% x ($11,600 – $0) = $1,160

12% x ($47,150 – $11,600) = $4,266

22% x (100,525 – $47,150) = $11,742

So, the total tax for a single taxpayer with $100,000 of taxable income in tax year 2024 would be:

$1,160 + $4,266 + $11,742 = $17,168

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            The increase in the federal income tax brackets have a significant impact on taxpayers starting in tax year 2024. For a single taxpayer with $100,000 in taxable income, their federal tax due would increase $895 from tax year 2023 to 2024. While this increase is a reaction to inflation, taxpayers’ incomes are not keeping pace with the inflationary trend. In 2022, WTW, a consultancy firm specializing in employment relations, conducted a survey of 1,004 U.S. companies. They found salaries increased an average of 3.4% in 2022, while the inflation rate sat around 7.9%.[1] To apply an increase in tax that directly applies to income, taxpayers are left in a worse position. Additionally, all taxpayers will be negatively affected, as the updated brackets apply to all – from low-income families to high-earning individuals.

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[1] https://www.forbes.com/sites/johnbremen/2023/05/17/why-salary-increases-still-do-not-align-with-inflation/?sh=443a590b5d0d

Congratulations to The Bob Parsons Veterans Advocacy Clinic Director, Prof. Hugh McClean

UBalt Law Prof. Hugh McClean to Receive Veterans in Business & Law Award from The Daily Record