Do you have an IRA?
Americans have long been recognized for their remarkable generosity towards charitable causes. According to the National Philanthropic Trust, in 2023 alone, Americans donated an impressive $557.16 billion. These contributions play a crucial role in supporting organizations that enhance the quality of life for everyone. It is truly inspiring to hear stories of people we know who, despite achieving success, once relied on social service organizations during challenging times. Our community and nation enjoy a thriving arts culture, which owes its existence to the benevolence of American philanthropists.
At Uhler Vertich White Advisors, the spirit of charitable giving is deeply ingrained in our team. We are curious to know if you have an IRA and currently support charitable organizations with financial gifts, or if this is something you are considering.
In 2024, clients of Uhler Vertich White Advisors have generously donated over $400,000 to various charitable organizations through their IRAs. Many of these clients have also utilized the Qualified Charitable Distribution (QCD) method to satisfy some or all their IRA’s Required Minimum Distribution (RMD).
Here are the fundamentals on how this works.
Using your IRA account, you can instruct your IRA custodian to send money directly to a charitable organization on your behalf.
With QCDs, an IRA owner or beneficiary over age 70.5 can:
• Donate up to $105,000 directly from an IRA to a charity without incurring tax on the distribution.
• Satisfy part or all your required minimum distribution (RMD) up to the QCD limit of $105,000.
• Avoid taking possession of the funds and thus avoid the associated tax implications.
• Potentially reduce taxation of other income sources, such as Social Security and the Medicare net investment income tax.
• Potentially reduce Medicare Part B and D premiums.
The QCD must be paid directly to the charity, which must be a qualified 501(c)(3) institution eligible to receive tax-deductible contributions. The charitable entity must receive the donation by December 31 to ensure tax reporting for the proper year.
If you are interested in learning more, we invite you to call Becky to schedule a time to discuss with us how QCDs can align with your financial and charitable objectives.
*Please note that changes in tax laws or regulations may occur at any time and could substantially impact your situation. Uhler Vertich White Advisors and Raymond James & Associates and Raymond James Financial Services, Inc. do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.
Important Information Regarding Hurricane Ian and Your 2022 Taxes
We understand that many of you were impacted by Hurricane Ian in 2022. We want to make you aware of a recent ruling that may affect your tax filings. The IRS has announced that certain costs related to Hurricane Ian are deductible on your 2022 federal income tax return. This includes costs for repairs, temporary housing, and other expenses directly related to the storm.
You have likely already filed your 2022 return. If you have not already claimed these types of deductions, you may be eligible to amend your 2022 tax return to claim these deductions. We recommend reviewing your tax situation with your accountant and the IRS guidelines carefully to determine your eligibility. You can find detailed information on the IRS website or by consulting a qualified tax professional. As always, we will be glad to be part of this conversation with you. Please do not hesitate to contact us if you have any questions or require assistance in discussing this topic or exploring other financial planning strategies.
At Uhler Vertich White Advisors, we take immense pride in our dedication to your financial security and success. Diligently seeking opportunities for saving income taxes has always been an important piece of the planning we do for you. No one has ever said to us they wished they’d paid more income taxes. This article serves as a guide to understanding how recently passed legislation likely affects your tax situation and, most importantly, provides you substantial tax savings.
The Approaching Tax Preparation Season and the Federal Disaster Tax Relief Act of 2023
As the 2024 tax preparation season rapidly approaches, it’s prudent to take advantage of the opportunities provided by the recently enacted Federal Disaster Tax Relief Act of 2023. Notably, this act enhances the ability to amend 2021 or 2022 income tax returns to incorporate benefits related to damages incurred from Hurricane Ian.
Increased Benefits for Casualty Losses
The act designates Hurricane Ian as a Qualified Disaster, thereby increasing the ability to deduct losses in two important ways. First, it eliminates the 10% of Adjusted Gross Income (AGI) threshold that previously applied to casualty loss deductions. Prior to this act, taxpayers could only deduct casualty losses as itemizable deductions that exceeded 10% of AGI. Second, taxpayers may deduct all losses on top of their standard deductions.
Implications of the New Rules
Consider a taxpayer who filed a 2021 or 2022 return with an AGI of $100,000. Under the old rule, only losses exceeding $10,000 were deductible, limiting deductibility to $5,000 on a loss of $15,000. The new rules allow for an additional $10,000 deduction by removing the AGI threshold which, in this case, would result in tax savings ranging from $1,500 to $2,400 for many of our clients.
Furthermore, this act allows casualty losses to be claimed in addition to the standard deduction, providing significant benefits for those who did not itemize their deductions. For instance, in 2022, the standard deduction for individuals was $12,950 and $25,900 for married couples, with additional deductions for those over age 65. Many of our clients claim the standard deduction, and thus received no tax reduction for their losses. This new rule means that the entire casualty loss is now deductible on top of the standard deduction. A married couple, able to claim an additional $20,000 deduction, may save between $3,000 to $4,800 if you are like many of our clients.
Who Can Benefit
These two changes mean that most every taxpayer, who suffered a casualty loss from Hurricane Ian, can claim additional deductions on their income tax return for either 2021 or 2022; whichever gives a greater benefit to them. The value of this additional deduction is likely substantial for many taxpayers and thus worth the time to evaluate and possibly amend a past return.
Action Steps
Taxpayers must act promptly to claim refunds, as the statute of limitations for claiming such refunds is generally three years from the return’s due date. Therefore, the deadline for claiming a refund for a casualty loss you may have claimed on a 2021 return is April 15, 2025. Given these changes, it is advisable to contact your CPA or tax preparer immediately to discuss potentially amending your 2021 or 2022 income tax return.
Our Commitment to You
Our commitment to your financial well-being is the cornerstone of everything we do. We recognize that navigating the intricate landscape of income tax regulations can be daunting and often overwhelming.
Should you have any questions, please do not hesitate to reach out – that’s what we are here for.
Welcome Back, Dawn Hamm!
We are thrilled to announce the return of Dawn Hamm to Uhler Vertich White Advisors as our Operations Director & Client Services Manager!
Dawn originally joined UVW Advisors in 2017 and quickly became a cornerstone of our operations. With over a decade of experience in the financial services industry, she ensures our office runs seamlessly while delivering exceptional client service. Her extensive knowledge of branch operations and compliance sets a high standard.
Known for her warm, professional demeanor, Dawn excels at making every client and team member feel valued. Her genuine care and attention to detail strengthen relationships and enhance the client experience. Beyond work, Dawn enjoys spending time with family, serving children in the community, and gardening. At the core of all she does is a desire to positively impact lives—whether through exceptional service, community involvement, or personal connections.
Please join us in giving Dawn Hamm a warm welcome back.
Just Married!
On November 11th, Corey and Shelli solemnly exchanged vows, marking exactly five years since their first date. The picturesque ceremony at Bow Bridge, Central Park, New York, was graced by Corey’s daughters, Elise and Celine. Under a clear blue sky with swan boats drifting in the background, their officiant, Vlad, delivered a delightful ceremony infused with humor and joy. Corey expressed that his daughters were overjoyed to see him wed Shelli and delighted to be part of the occasion. Although no honeymoon is currently planned, Corey fondly remarks that every moment with Shelli feels like a honeymoon. He eagerly anticipates the completion of their home remodel by February, hoping to carry her across the threshold soon thereafter. We may have more updates in our next newsletter.
Please join us in wishing them a lifetime of love, happiness, and wonderful memories together.
Supporting the United Way
We are thrilled to again support the United Way of Lee, Hendry, and Glades Counties for the 2024-25 campaign season. Philanthropy is an important part of our company values in addition to helping clients incorporate charitable giving in their financial plans. In our 25+ years supporting United Way’s giving campaigns we attended the campaign kickoff at the Barbara B. Mann Performing Arts Hall.
United Way brings our community together to create lasting change, and we’re proud to stand alongside them for this year’s campaign. Here’s to a powerful season of giving, partnership and making a difference!