You will receive, via the US Postal Service, an official debt letter from DFAS for recoupment of those tax dollars. Notate “W-2C Penalty Relief” at the top of the written request.ĭFAS remitted the Social Security (6.2%) and Medicare (1.45%) taxes owed on the 2018 vendor payment(s) to the IRS on your behalf. 287 or mail the request to: IRS 5045 East Butler Ave Stop AY001 Fresno, CA 93727. To request penalty relief, call the IRS toll-free 83 Ext. You may find it helpful when seeking penalty relief from the IRS. Also, here is a factual narrative describing the circumstances surrounding the issuance of your 2018 travel W-2C. IRS guidance for employees receiving a Travel 2018 W-2C can be found here. After you have filed your amended tax return(s), you may file a Relocation Income Tax Allowance (RITA) claim to recoup substantially all Federal and State tax liability associated with your relocation allowances.Amend your 2018 tax return(s) with the IRS and state and/or local revenue authorities, if applicable.If you received a 2018 W-2C reporting a payment or payments made to a vendor on your behalf for household goods shipment, follow these steps: 1, 2018. To learn more about the background behind this change, click here. The TCJA does not affect travel allowances received prior to Jan. If you have any questions or need any additional tax planning we, at Hall, Kistler & Co would be happy to help you! Give us a call at 33 or click on my name above for assistance.The Tax Cuts and Jobs Act of 2017 made most civilian permanent change of station entitlements taxable. These are just a few changes from the Tax Cuts and Jobs Act that may impact you personally in 2018. This phase-out is suspended through 2025. Phase-Out of Itemized Deductions : Itemized deductions were phased-out in 2017 for higher-income taxpayers. In 2017, these deductions were subject to 2% of the taxpayers AGI. This deduction is suspended through 2025. Tier 2 Miscellaneous Deductions : These deductions included employee business expenses, tax preparation fees, investment expenses and certain casualty losses. In 2017, this deduction was allowed to the extent each loss exceeded $100 and the sum of all losses exceeded 10% of the taxpayer’s AGI. Personal Casualty & Theft Losses : This deduction is suspended through 2025 except for casualty losses attributable to a disaster declared by the U.S. Gambling Losses : This deduction is the same as 2017 and continues to allow a deduction for gambling losses not to exceed gambling winnings. charitable contributions could decrease if this does not benefit the taxpayer’s tax situation. Due to the increase in the standard deduction, overall U.S. However, beginning in 2018, you cannot deduct charitable contributions for payments in exchange for college athletic event seating rights. In 2017, there was no cap to this deduction.Ĭharitable Contributions : You can continue to deduct charitable contributions and the amount increases from 50% to 60% of AGI. This amount can be deducted on your Schedule A but limited to $10,000. You can also deduct the amount of taxes paid for your state income taxes and sales tax. Examples: If you own your home, you can deduct the real estate taxes paid for 2018. State and Local Taxes : State and Local taxes remain deductible but are now limited to $10,000 ($5,000 MFS) annually for ANY combination of state and local property taxes or state and local income taxes or sales tax. This amount will be shown on Schedule A of your Form 1040. The expenses must be primarily to alleviate or prevent a physical or mental defect or illness, including dental and vision. This means that you must have qualified medical expenses over 7.5% of your Adjusted Gross Income for this medical expense to qualify. For 20, the threshold for deducting medical expenses reverts to 7.5% of Adjusted Gross Income. Medical: Medical itemized deduction has temporarily improved. Let’s go through each itemized deduction for 2018: That means that fewer taxpayers are likely to itemize. However, the new Tax Cuts and Jobs Act of 2017 eliminates or restricts many itemized deductions beginning in 2018 and raised the standard deduction. Traditionally approximately 30% of taxpayers have itemized deductions because their total itemized deductions were greater than the standard deduction. Since the Standard Deduction has increased to $12,000 for single filers and $24,000 for married couples, you must have itemized deductions greater than these amounts in order to file your Schedule A and itemize your tax return deductions. Tax Cuts & Jobs Act- Individual Itemized Deductions- Sandra Orcutt, EA Supervisor
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