• A charitable gift could bring a lifetime of benefits

    • You may enjoy a wide variety of tax savings and other benefits
    • You will have the satisfaction of helping UM fulfill its mission
    • You will leave a legacy at UM for generations to come
  • Charitable Gift Annuity

    By donating cash or stock, you can receive a fixed payment from UM for the rest of your lifetime and benefit the U.
    More

  • Gifts of Real Estate

    Donating appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch or commercial property can make a great gift to the University of Miami.
    More

  • IRA Gifts

    If you are 70½ or older you may be interested in a planned gift that reduces the income and taxes from your IRA withdrawals. An IRA charitable rollover is a way you can support UM while benefiting yourself. Or at any age, designating UM as a beneficiary of your IRA can be a great way to remove highly taxed assets from your estate.
    More

  • Bequests

    By designating the University of Miami as a beneficiary in your will, trust or beneficiary designation form, you’re ensuring the future of the University.
    More


Text Resize
Print
Email
Subsribe to RSS Feed

Thursday May 24, 2018

Washington News

Washington Hotline

Time for a 'Paycheck Checkup'

In IR-2018-120, the Service urged taxpayers to use the Withholding Calculator on www.IRS.gov for a "Paycheck Checkup."

The passage of the Tax Cuts and Jobs Act (TCJA), brought many changes that will affect taxpayers. With the TCJA's higher standard deductions ($12,000 for single taxpayers and $24,000 for married couples filing jointly), many taxpayers will have lower taxable incomes in 2018.

The Withholding Calculator is an excellent way to estimate a taxpayer's appropriate withholding amounts for 2018. If an individual needs to make an adjustment, it is best to do so early in the year rather than during October or November. It would be difficult to make the change at a later date and have it reflect the correct amounts.

While many taxpayers will find their tax returns simplified due to the higher standard deductions, some taxpayers will still decide to itemize. Those who plan to itemize their deductions should consider four substantial tax law changes in 2018.
  1. State and Local Taxes (SALT) - The SALT deduction is limited to $10,000. Homeowners who live in states with substantial state income tax may have a property tax bill total over $10,000. In this case, your SALT deduction will be limited to $10,000.
  2. Home Mortgage Interest - The deduction for interest on a personal residence mortgage is generally limited to $1 million of debt for existing loans and $750,000 of debt on new loans.
  3. Miscellaneous Deductions - The TCJA repealed many deductions such as those for employee business expenses, investment expenses and tax preparation fees. Previously, most of these miscellaneous deductions were permitted if they were over 2% of adjusted gross income.
  4. Charitable Deductions - Gifts of cash are now deductible up to a limit that is 60% of adjusted gross income (the limit was 50% in prior years). Many CPAs are encouraging clients who desire to reduce taxes to increase their charitable deductions in 2018.
The IRS notes the Withholding Calculator does not request "personally-identifiable information, such as your name, Social Security Number, address or bank account numbers." When using the Withholding Calculator, an individual can estimate the proper amount of his or her 2018 withholding.

If you desire to change your withholding amounts, contact your employer and complete a new IRS Form W-4. Because the average 2017 tax year refund was $2,800, many individuals who plan to use the new higher standard deductions may choose to reduce withholding and increase monthly income.

Published May 18, 2018
Print
Email
Subsribe to RSS Feed

Previous Articles

Tax Scams Go International

IRS Highlights National Small Business Week

IRS Offers Post Tax-Filing Deadline Tips

April 19 is Tax Freedom Day

Ten Ways to Reduce Tax Return Errors

scriptsknown
How to Give
Gift Calculator
Estate Planning Guide
Advisors
E-newsletter
Heritage Society
Contact Us
Give Now
     

Let Us Know

Already included University of Miami in your estate plans? Click here to let us know.