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Author: Sandy Steinwedel

Key Takeaways from MSATP’s Live: Maryland Volunteer Lawyer Service

Posted on by Sandy Steinwedel

The MSATP Facebook Live channel is back with a brand-new feature, and last week’s episode doesn’t disappoint! Before recapping the latest show, we’d like to thank all the members, family and friends who participated in last week’s first of two Battle of Beltway baseball games. The next game will take place at Nationals Park in Washington, D.C. on June 21 at 7:05 PM. MSATP will host a social hour before the game in the Roosevelt Room. If you would like to join in the pregame festivities, give us a call at 1-800-922-9672! Tickets are $53.00 and going quick!

MARYLAND VOLUNTEER LAWYER SERVICE—VOLUNTEERS NEEDED!

Switching gears to the most recent episode, we welcomed newly inducted President, Ellen Silverstein, and Janice Shih of Maryland Volunteer Lawyer Service (MVLS) to the show. Janice is the managing attorney of the Low-Income Taxpayer Clinic (LITC), which deals with tax issues including audits, credits and refund claims between clients and the IRS or Maryland Comptroller. The LITC is funded by the IRS and has 138 offices in 49 states—including 3 in Maryland.

As tax professionals, you know the potential impact tax issues can have on your clients. The IRS can place levies on your wages, liens on property, and can levy benefits such as social security. The Maryland Comptroller is more aggressive – not only can they levy your wages and put liens on property, but they can also place holds on driver’s licenses, vehicle registration, and professional licenses (nursing, hairdressers, truckers). The MVLS LITC seeks to alleviate these issues by working with volunteers who can represent clients before the IRS – this includes tax professionals such as CPAS, EAs and attorneys. MVLS offers comprehensive tax controversy trainings for volunteers twice a year. The trainings are free, but attendees must take a client. The next live training is Tuesday, Sept 25, from 9 AM – 1 PM at the Owings Mills office located at 10461 Mill Run Circle. The instructors are Jerry Kelly and Cheri Wendt-Taczak, two private practice tax attorneys, Jim Leith, the LTA and Jay Maschas, from the MD Comptroller. While the session is available via webinar, CPAs can obtain 4 CPEs for attending live training, which provides information on common tax controversies, forms, templates and more. Volunteering for MVLS is a great way to learn new skills and interact with appreciative clients. In addition, MVLS provides malpractice insurance and mentors from our panel of experienced tax representatives who can assist with any client issues you may encounter. MVLS also offers its volunteers monthly webinars, networking events and access to its downtown office for client meetings!

MSATP is looking for members interested in this opportunity to contact MVLS and Janice Shih. We want to know about your experience and how you benefited from it. Also, for those who are interested, members can make monetary donations as well. For more information, contact Janice via email at jshih@mvlslaw.org or by phone at (443) 451-4061.

UPCOMING SEMINARS

MSATP has some great educational opportunities coming up for our members to network and advance their careers. Here’s a preview of the upcoming seminars—be sure to check out the event calendar on the MSATP website for a complete list as well as registration information and details for all of our classes.

  • June 5th:
    • LOCATION: Frederick
    • SPEAKER: Bill Leonard
    • TOPIC: Preparations of Compilations & Reviews (8 Hours)
  • June 6th:
    • LOCATION: Frederick
    • SPEAKER: Bob JenningsTOPIC: Social Security (8 Hours): We offered this course in 2016 and had over 200 attendees!
  • June 7th:
    • LOCATION: Gaithersburg
    • SPEAKER: Josh Robertson, EA and Matt Ryan, CPA
    • TOPIC: Ethics ( 2 CPE/4 CPE Respectively)
  • June 19th:
    • LOCATION: Towson
    • SPEAKER: David DeJong
    • TOPIC: Effects of 2018 Tax Act on Estate Planning


DONATION REQUESTS

In addition to the great discounts on copiers and printers, a purchase/lease from Doceo Office Solutions can support our non-profit community. This year, Doceo is introducing a new format that gives our customers the opportunity to select a non-profit of your choice who will receive a donation of $50.00 for every Toshiba/Sharp/KIP order received and $25.00 for every Lexmark order. MSATP would like to see the donations given to the two initiatives which the Society and our members are supporting:

  • Maryland Volunteer Lawyer Service, 201 North Charles Street #1400, Baltimore, MD 21201 (ProBono Tax Work)
  • Maryland Council on Economic Education, Towson University, 8000 York Road, Towson, MD 21252 (Financial Literacy)

That’s it for last week’s Facebook Live Recap!

In case you missed it, you can find the full broadcast below and at https://youtu.be/-RgqBkpyDGg.



We will NOT be having a Live this Thursday as Executive Director Sandy Steinwedel will be attending the Annual NASBA Eastern Regional Meeting in Orlando, FL. This conference brings together over 150 Accounting Associations to discuss issues facing the CPA. There will be some great opportunities to hear what is on the horizon for CPA’s like:

  • Changes to regulations monitoring CPE and other specific requirements related to tracking those credits
  • Industry advances and challenges; technology (the ever-fluid landscape!)
  • Other closely watched State Board issues

Sandy will share her observations and what the buzz on the street may be from other conference attendees and post information to the MSATP Members Group throughout the week. If you’re not already a member, NOW is the time to request to join by clicking HERE!

Key Takeaways from MSATP’s Live: Live From The Annual Convention

Posted on by Sandy Steinwedel

The MSATP Facebook Live series came at you LIVE from our Annual Convention in Ocean City, MD! Ellen Silverstein, the MSATP President-Elect, was inducted at the convention and we had the pleasure of having her on the show to discuss some of the exciting upcoming networking and educational opportunities.

In case you missed it, you can find the full broadcast below and at https://youtu.be/rdM2nbkwleU.


As Ellen noted, one of the headlining features of last week’s convention is the Tax Speaker Tax Cuts & Jobs Act Member Appreciation Seminar presented by Bob Jennings, CPA. Bob is a nationally renowned author and speaker, presenting continuing education classes to over 100,000 tax professionals over the last 20 years. Bob’s discussion covers all aspects of the Tax Cuts and Jobs Act (TCJA), which some have called the biggest tax law change in 30 years. Over 95% of the law goes into effect in 2018 and in this course, Bob has two goals: first, discuss and analyze the changes for individuals and small businesses; and second, provide dozens and dozens of planning tips the professional may utilize for their clients. Included for attendees is an Excel calculator of the 20% flow-through deduction and in-depth discussion of the new 20% flow-through deduction as well as discussion of how this new law may affect the choice of operating entity for a business. The TCJA has illustrated many concerns and this course answers practitioner questions on mortgage interest deductions; tax deduction limits for taxes; deducting meals and entertainment; what to do about employees business expenses; and how the new depreciation rules will work.

This seminar is just an example of the many great educational opportunities MSATP offers their members on a consistent basis in order for them to hone their professional skills. With the professional licensure deadlines fast approaching, keep in mind that we will be offering the required Enrolled Agents Ethics and Maryland CPA Ethics courses on June 7 in Gaithersburg, MD. For registration details concerning these events and more great networking and professional opportunities, check out the interactive MSATP calendar to stay up to date: https://www.msatp.org/event-calendar/.

MSATP has the pleasure of working with several amazing corporate sponsors. On this week’s episode, we welcomed Michael Ashley from Registered Agents Legal Services, LLC onto the show. Registered Agents offers a low cost alternative for your common corporate service needs, backed with the high level of experience and availability you should expect in an incorporation service company. Think of them when you need to have a registered agent, to incorporate a business, form a limited liability company, or for any other related incorporation needs. Registered Agents Legal Services, LLC was founded in 1999 to serve the needs of law firms and their clients who require a professional registered agent, without exorbitant registered agent fees! They provide a cost-effective alternative for your corporate filing/information retrieval needs. Since many of their clients, including tax and finance professionals, have unique requests, Registered Agents strives to add flexibility to their personable service. Registered Agents Legal Services delivers reliable and accurate service, while remaining dedicated to the highest business and ethical standards. Headquartered in corporate-friendly Delaware, Registered Agents Legal Services has direct on-line access to the Delaware Division of Corporations. Their expertise and extensive network of agents gives them immediate access to corporate information in all 50 states. For more information, please visit: http://www.inclegal.com/index.shtml.

That’s it for this edition of the MSATP Facebook Live—be sure to tune in this tomorrow! We’ll hear from Sandy and Ellen about the Maryland Volunteer Lawyers Service (MVLS), as well as from our corporate sponsors, DOCEO!

Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

Key Takeaways from MSATP’s Facebook Live: Most Useful Apps for Accounting and Tax Practices

Posted on by Sandy Steinwedel

MSATP is back with a brand-new Facebook Live Episode! Last week’s episode opened with an in-depth review of the Save4College State Contribution Program and the Maryland Community College Promise Scholarship that we announced were in works back on our April 26th show. We then had the pleasure of hearing from Michael Blair, owner of Blair & Associates, Inc., to discuss the growing trend of digital accounting platforms. Michael discussed how you can implement these new and exciting technologies into your own practice to attract new clients and make your day-to-day life more efficient. To close out the episode, we learned about one of MSATP’s great sponsors: Quest Insurance. Here’s a quick recap of last week’s major segments—be sure to tune in for the real deal!

SAVE4COLLEGE STATE CONTRIBUTION PROGRAM—DEADLINE IS GETTING CLOSE!

The Save4College State Contribution Program, managed by T Rowe Price, offers eligible taxpayers the opportunity to receive a one-time matching amount of $250 that is applicable to tuition at virtually any U.S. or international college, technical or trade school. Keep in mind that you have to complete the application by June 1, 2018. You can learn more about the program and eligibility requirements by visiting https://maryland529.com/MDMatch250.

MARYLAND COMMUNITY COLLEGE PROMISE SCHOLARSHIP—LINGERING QUESTIONS

MSATP has received questions from a few members regarding HBO16. The bill, which was signed by the Governor, establishes the Maryland Community College Promise Scholarship. The initial scholarship awards shall be provided to recipients based on the greatest demonstrated financial need.  All eligible applicants who do not receive an award will be notified and placed on a waiting list. Beginning for the 2019-2020 academic year (September 2019-June 2020) the annual scholarship award is $5,000 per recipient or actual tuition, whichever is less.

In order to be eligible for the program, applicants must meet the following criteria:

  • Be eligible for in-state tuition
  • Enroll in a vocational certificate, certificate, or an associate degree program at an in-state community college within 2 years of graduating high school or successfully completing a GED in the state
  • Earn an overall high school grade point average of at least 2.3 GPA
  • Have annual adjusted gross income of not more than $100,000 if single or residing in a single parent household or not more than $150,000 if the applicant is married or resides in a two-parent household (NOTE: Annual adjusted income = Total combined adjusted gross income of the applicant and the applicant’s parents or spouse)
  • Enroll in at least 12 credits per semester
  • Timely submit a FAFSA form for federal and any other state financial aid

MSATP has reached out to the Maryland Higher Education Commission to clarify how to apply and what tax year applicants should use to determine the adjusted gross income. We are still awaiting their feedback—so if any of your clients inquire about this opportunity, tell them it is currently a wait-and-see situation.

DIGITAL PLATFORMS—THE FUTURE OF THE PROFESSION

The digital workplace is the future—and that’s a great thing! Here’s just a few advantages of going digital:

  • Makes work more efficient and creates a more ideal work/life balance
  • Routine tasks can be automated, leaving more time for client analysis and generating more value to clientele
  • Practice is more valuable to buyers, especially millennials
  • More collaborative and provides real time service delivery for clients

Working digitally is just a different way of doing your job and managing your practice—it’s not just going “paperless” like some would have you believe. The two biggest digital players in the small business services area are QBO and XERO. Each platform has its pros and cons. The discussion is not which system is better, but rather why they are more efficient to use as opposed to the outdated desktop and manual data entry systems. Client accounting services are task-centric, but the vast majority of this work can be completed via technology and AI. Each accounting platform has an “ecosystem” of apps that will work seamlessly with the accounting application. Virtually all of these are cloud (SaaS) services. The benefits of using these apps in each Ecosystem are time saving, extra services available, custom fit for each client, integration of platforms, and costs.

Here’s a quick breakdown of everyday accounting tasks and the various digital platforms you can implement to make life easier:

  • ACCOUNTING SERVICE TECHNOLOGIES:
    • QBO/Other Cloud-Based (Xero) – By far the most advanced is QBO, it is the online standard for SMB. You can link bank checking and savings accounts, credit card accounts, and loan accounts to QBO. This enables the transactions to be downloaded as they clear the bank and makes reconciling a breeze. Where this is really handy is when clients are using multiple debit and credit cards. NO DATA ENTRY.
    • Time Tracking – eBillity & TSheets – TSheets is inside of QBO, while Ebility is a stand-alone product that syncs with QBO.
    • Bill Payment Services – Bill.com & Entryless: Easy ways to add service with virtually no time investment. Bill.com is the standard here. There is some setup time, but it works efficiently with QBO. Bill.com also has multiple levels of transaction approvals.
    • Digital Workpapers – Neat Technologies, Adobe, Hubdoc, Receipt Bank
    • Workflow Technologies – Office Tools, Hubdoc, Ledgersync
    • Expense Capture Apps – Expensify, Talk, Mile IQ, QBO SE 
    • Invoicing Apps – QBO & Invoices2go
    • Online Storage/File Sharing – OneDrive, Gdocs, Amazon, MS Azure, Dropbox, etc.
    • Integration Apps – Apps/Technology that make two different systems work together, with cloud-based software and apps.

 

  • PAYROLL SERVICES TECHNOLOGIES
    • Web Based Services – QBO FSP, ADP, IFSP, Paychex
    • Direct Deposit to Debit Card – No printing/mailing of checks.
    • Employee Links to PR System – Time entry, document collection/delivery
    • Online 1099 – Cloud based system, online delivery to IRS and recipient Track1099
    • Full Services for Tax Compliance – Very low cost, and low hassle

 

  • PRACTICE MANAGEMENT SOFTWARE
    • Contact/Document Management – Office Tools
    • Online Document Storage – MS OneDrive, Azure, Google Docs, AWS
    • Adobe Acrobat – Scanning and document manipulation
    • Microsoft Office 365 – Online versions of Word, Outlook, Excel, etc.
    • Communication/Video Conferencing – Skype for Business, GoToMeeting, Zoom
    • Client Payment Systems – QB Payments, Square, PayPal
    • Password Manager Apps – Roboform, Dashlane

WHAT DOES SOFTWARE AS A SERVICE (SaaS) REPLACE?

  • Desktop Versions – Replaces installing different versions on new computers, and admin time is reduced
  • IT Maintenance Costs – Only on desktops, no need for high-end computers
  • Server Costs – Nonexistent, may need storage space online, MS OneDrive, Google Docs, Amazon, etc.
  • Postage & Supplies Costs – Office supplies and postage have been reduced 50% from 2014 to 2017
  • Labor Costs – More efficient, talent pool not limited by location. Talent can be kept in place even if they move away from CPA office location. Everyone is on the same software; training costs go down and efficiencies increase.

Here are links to the websites for the digital platforms mentioned above where you can learn more and get started to integrate them into your practice:

QUEST INSURANCE—TRUSTED BUSINESS & PERSONAL COVERAGE

Last, but certainly not least, we closed out the show with a message from Chris Corbett of Quest Insurance. Quest Insurance has been serving accounting professionals and their clients for over 25 years providing employee benefits, business insurance and personal coverage in DC, Maryland, and Virginia. They look forward to providing you the best value for your insurance needs! For more information, get in touch with Chris via phone: (571) 367-7971 or email: chris@questinsurance.us or checkout the Quest Insurance website: www.questinsurance.us to learn more about all the great options they have to offer!

In case you missed it, you can find the full broadcast below and at https://youtu.be/oZJxYj37Utk.



Be sure to tune in on Thursday – we’ll be LIVE from the 2018 Annual Conference in Ocean City!

Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

 

Key Takeaways from MSATP’s Facebook Live: Meet Your President Elect

Posted on by Sandy Steinwedel

It’s our favorite time of the week! Another great episode of MSATP’s Facebook Live series is up and running and you’ll want to check it out ASAP to get caught up on all the latest happenings in the tax and accounting world. Here’s a quick preview of what you can expect to learn more about on last week’s show.

We had the pleasure of welcoming onto the show MSATP’s Vice President and President Elect, Ellen Silverstein to talk a little bit about her past and what she has planned during her upcoming tenure. Ellen joined MSATP in 1990 and credits her membership with helping her streamline her accounting business and giving her the flexibility to balance work with raising her children. During her time with MSATP, Ellen has been an integral component of our educational committee, where she has organized class itineraries and seminars, coordinated guest speakers and provided insight as a practicing professional as to what types of learning opportunities would be most helpful to our members. Ellen will be inducted as MSATP President on May 24th for the 2018-2019 term. Some of her plans include attracting and maintaining relationships with corporate sponsorships to add value to MSATP members, continuing and enhancing the Facebook Live channel and organizing networking events to enable our members in order to expand their practices and take their careers to the next level. Additionally, given the dynamic nature of the upcoming tax year, thanks to the impending legislatively-implemented changes, Ellen recommends attending as many CPE-related events as possible to both assist your clients and reduce your stress levels.

Next, we welcomed on Megan Roth from MileIQ (taxpros@mileiq.com) to discuss an exciting new app you can use to augment your practice and communicate to your clients that you are the consummate professional prepared to address any of their needs or concerns. Reputation is everything when it comes to growing your business, and MileIQ can help you do just that with their easy-to-use and convenient digital interface. Mile IQ is an automatic mileage tracking app for your clients. Mileage is a huge deduction and could trigger an audit if you resort to guesswork. Even small trips can add up to big savings. MileIQ utilizes cutting-edge GPS technology to quickly and accurately tabulate your client’s mileage for each and every business-related trip they take. This translates into big savings when tax season rolls around—trust us, your clients will thank you for hooking them up with MileIQ. MileIQ has been in partnership with MSATP for over two years and we look forward to maintaining our excellent relationship with them. The best part is that MileIQ is FREE for all MSATP members! Just head on over to www.mileIQ.com/taxpros today to get started today.

In case you missed it, you can find the full broadcast below and at https://youtu.be/em5THcLHwuU.


 

Tomorrow, we have Michael Blair coming on to talk about more great apps for tax and accounting professionals. We will be LIVE from our annual trust meeting on-site at Annapolis—so be sure to tune in for this exciting event as we take the show on the road!

Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

Key Takeaways from MSATP’s Facebook Live: Navigating The MSATP Website

Posted on by Sandy Steinwedel

Last week’s Facebook Live Episode featured MSATP Board Member and Chair, Barbara J. Smith, who joined us to learn the basics of navigating the MSATP website. The site has tons of useful information about you, the value of MSATP membership status and the latest efforts MSATP is making to improve your practice! Here are some common Q&A’s we’ve received about the website—read on to improve your online experience with MSATP and get the most out of your membership!

In case you missed it, you can find the full broadcast below and at https://youtu.be/JiUUC4Os4cA


FAQ #1: HOW DO I LOG ONTO THE WEBSITE?

  • STEP 1: Click the log-in button located in the upper right-hand corner
  • STEP 2: Enter your email address in the “USERNAME” box
  • STEP 3: Enter the password that you selected (NOTE: If you forgot your password, click the “forgot password” button and an email will be sent for you to reset it)


FAQ #2: WHAT MEMBERSHIP INFO CAN I ACCESS ON THE SITE?

As a MSATP member, you can view the following information on the site by clicking on your name in the green bar and selecting “View Profile:”

  • Account Information
  • Dues
  • CPE Credits & Certificates
  • Registered Events
  • Free State Accountant
  • Membership Discounts & Benefits
  • Job Opportunities
  • Buy/Sell a Practice

Non-Members will only see the following areas:

  • Account Information
  • CPE Certificates & Credits
  • Registered Events


FAQ #3: HOW DO I FIND MSATP EXPERTS IN A SPECIFIC AREA?

  • STEP #1: Place your cursor on the “About” tab
  • STEP #2: Click on “Find a Professional”
  • STEP #3: You will then be able to search our directory by subject matter expertise and/or location


FAQ #4: WHERE CAN I LEARN ABOUT THE 2018-2019 BOARD OF DIRECTORS CANDIDATES?

  • STEP #1: Place your cursor on the “About” tab
  • STEP #2: Select “Board Candidates”
  • STEP #3: You will then be able to browse through the candidate profiles for a more in-depth look at all of the current candidates


FAQ #5: HOW DO I ACCESS THE CALENDAR OF EVENTS FOR THE SOCIETY?

  • STEP #1: Place your cursor on the “Community” tab
  • STEP #2: Scroll down to “Society Calendar”
  • STEP #3: Select “Event Calendar”

We have tons of great classes and seminars coming up—be sure to check out the Event Calendar often to make sure you don’t miss out on these great events!


FAQ #6: HOW CAN I LEARN ABOUT LICENSING REQUIREMENTS?

  • STEP #1: Place your cursor on the “Education” tab
  • STEP #2: Scroll down to your specific designation to view the relevant licensing requirements


FAQ #7: HOW DO I REGISTER FOR A SEMINAR AND GET DETAILS?

  • STEP #1: Place your cursor on the “Education” tab
  • STEP #2: Scroll down to “Seminars” section

The upcoming events on this page is organized by date by default. You can change this by searching this list by a specific field of study, alphabetically by seminar title or by a specific speaker. Once you select a course you can view the following information:

  • PRICE: Including both Member and Non-Member Rates
  • SPEAKER: Information on the featured presenter
  • EVENT DESCRIPTION & OBJECTIVES: A brief overview of the presentation outline and learning goals
  • FINAL EVENT DETAILS: This section includes important information including location, accommodation details and CPE approval credits.

That’s it for last week’s Facebook Live Recap! Be sure to tune in this Thursday to Meet Your President Elect, Ellen Silverstein, CPA!

Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

Key Takeaways from MSATP’s Financial Literacy Facebook Live

Posted on by Sandy Steinwedel

On last week’s edition, we welcomed Rich Gottfried, Second Vice President of the Society and Chair of the Young Professionals Committee, to discuss the all-important topic of Financial Literacy. We then discussed how the Maryland legislature is attempting to offer college financial savings options for Maryland taxpayers. Read on for a closer look at the segments on this week’s recap!

FINANCIAL LITERACY

April is Financial Literacy Month—a very important topic that the MSATP community is actively trying to promote at levels of the education system. We have been collaborating with other agencies, including the Maryland Coalition for Financial Literacy and the Maryland Council on Economic Education, to lay a solid financial foundation for the next generation of competent, confident and financially literate adults. For more information on what financial literacy entails, check out this great resource published by the Maryland Council on Economic Education! (http://www.econed.org/2018/02/1487/)

While financial literacy is a required course offering in some Maryland public schools, it is only a mandatory graduation requirement in Baltimore City Schools and seven other county school systems.

MSATP is working with the Maryland Financial Literacy Coalition to offer our member volunteers as guest speakers that meet with teachers from elementary to high school grade levels and deliver presentations to their classes that focus on financial literacy topics the teacher and member volunteer have selected. Ann Elliot, a long-time member of the Society and a current volunteer with the MSATP Financial Literacy Team, submitted some of her thoughts after a recent visit to Eleanor Roosevelt High School: “In December, I presented at Northwestern High School in Hyattsville…I started with how I’d begun working the accounting field, how I’d begun working for myself, and how long I’d been doing it. I discussed various career opportunities, the pros and cons of accounting and tax work, including hours, sitting at a desk for long hours, multi-tasking, and working within various organizations versus working for yourself.” Ann also offered some suggestions on how the financial literacy initiative might be improved in the future: “One take away would be that I think it might be helpful to have someone available for one on one meetings, questions and discussions with students that are sincerely interested.  If during the career day programs, they allowed for some of us to be available to meet, the interested students may have an opportunity to drill down to their interests. In the classroom environment, it didn’t allow for more directed discussions without most of the class being excluded.”

MARYLAND’S NEW COLLEGE SAVING PROGRAMS

Maryland offers two great Sec 529 plans—the Maryland Prepaid College Trust and the Maryland College Investment Plan—that allow parents to save early for their children’s education while enjoying tax savings on their Maryland income tax return.

The State of Maryland and Maryland 529 are now teaming up to start a new initiative called The Save4College State Contribution Program. The plan, managed by T. Rowe Price, gives eligible taxpayers the opportunity to receive a one-time matching amount of $250. These funds can be applied to tuition at any U.S. college, technical or trade school and even international schools. To be eligible for the program, your tax client must meet the following criteria:

  • Must be a Maryland resident
  • The previous tax year’s taxable income must not exceed $112,500 as an individual or $175,000 jointly
  • Must open a Maryland College Investment Plan or have opened an account after December 31, 2016
  • Submit an application for the Save4College State Contribution Program prior to June 1, 2018 and make a minimum contribution to the investment plan between July 1 and November 1.

Here’s a closer look at the investment chart:

Maryland Taxable Income
 Individual Joint  *Minimum Contribution  State Contribution
$49,999 or less $74,999 or less $25 $250
$50,000 – $87,499 $75,000 – $124,999 $100 $250
$87,500 – $112,500 $125,000 – $175,000 $250 $250

You can apply to the program online here! (https://maryland529.com/MDMatch250)

Additionally, the MSA Scholarship Foundation offers scholarship opportunities for Maryland accounting students who are Maryland Residents. In 2017, the Foundation awarded 17 scholarships totaling $30,500. The Foundation will begin reviewing applications for the 2018-2019 Academic Year on June 15, 2018. If you know a current accounting student who might benefit, make sure you have them complete the on-line application by June 15, 2018! (www.msascholarships.org)

In case you missed it, you can find the full broadcast below and at https://www.youtube.com/watch?v=uXTBeAnhFJE&t=19s



That’s it for last week’s Facebook Live Recap! Be sure to tune in this Thursday for a presentation on Navigating the MSATP Website!

Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

Key Takeaways from MSATP’s Tax Season Wrap-Up Facebook Live

Posted on by Sandy Steinwedel

It’s time for you to check out MSATP’s latest Facebook Live Stream installment! Sandy kicks off the episode with an insightful analysis of a few impactful financial consumer bills the legislature passed during its latest session. We then had the pleasure to hear from MSATP President, William Feehley, CPA, as he reflected on an eventful tax season and provided tax professionals with some useful resources to take their practice to the next level. Donny Lala capped off our presentation by introducing the USB Payment Processing Refer a Client Program, an innovative tool to help your clients increase their profit margin. Here’s a quick recap of this week’s video—make sure to check out the video as well!

3 KEY FINANCIAL CONSUMER FINANCIAL LEGISLATION UPDATES

HB 856 / SB 647:

This bill removed the requirement that you must be at least 25 years-old to apply for Earned Income Tax Credit for Individuals Without Qualifying Children. The bill will come in effect on July 1, 2018.

HB 710 / SB 202:

Many consumers have put a freeze on their financial information due to the recent rise in security breaches. Previously, these individuals would be charged up to $5.00 to freeze their accounts and an additional $5.00 to re-open them. This bill prohibits creditors from charging these fees and permits consumers to request a freeze at any time without cause. This bill will come in effect on October 1, 2018. To place or lift a credit freeze, please contact the three major credit bureaus: www.experian.com, www.equifax.com, www.transunion.com

HB 17 / SB 69:

In 2016, Maryland required higher education institutions to send an annual letter to individuals who are receiving financial aid detailing their accrued debt. HB 17 / SB 69 expands the requirement to for-profit institutions.

REVIEWING ANOTHER EVENTFUL TAX SEASON
WITH MSATP PRESIDENT, WILLIAM FEEHLEY

Bill started off his reflections of the past tax season by pointing out the impact of the Tax Cuts and Jobs Act that was passed on December 22, 2017 and how 85-90% of his clients will benefit from the new legislation. While in Bill’s opinion, Maryland did relatively little else to assist taxpayers this session by only granting a small increase in the standard deduction and not allowing taxpayers to itemize on the Maryland returns if they opted for the standard deduction on federal, he was quick to express his gratitude that the IRS stepped in to resolve the HSA issue we covered in last week’s episode.

Bill then turned to the future—offering some useful insight and resources on how those in the tax industry can get ahead before the next tax season rolls around. For tax professionals specializing in multistate returns, Bill anticipates the Supreme Court will hear more cases concerning this issue in the near future that could impact income and sales tax matters. To make sure you’re ready to handle any changes, Bill advises developing additional checklists or implement additional staff training now, rather than waiting until November or December when it will likely be too late for these efforts to be useful to your business.

Bill reminded those that missed out on the new tax law class in January that they can attend the class in Ocean City at the upcoming annual convention. Thompson Reuters published a handy guide of the tax act and developed sample letters tax professionals can use to inform clients and potentially general additional billable hours over the summer. There will also be an all-inclusive Solo & Small Firm event in Bethany Beach this November that includes hotel, meals and entertainment—in addition to outstanding educational opportunities, a chance to get to know fellow practitioners and gain some valuable insights into how others run their practices.

ADD VALUE TO CLIENTELE WITH USB PAYMENT PROCESSING

We were excited to welcome Donny Lala of USP Payment Processing to introduce their quick and easy client referral program. USB Payment Processing has been helping accountants and tax professional grow their businesses since 1996. They can help you assist clients in identifying revenue savings that they can then invest back into their business—adding value to your tax practice and drive revenue to your clients. USB’s Refer a Client Program allows accounting and tax professionals to request a free payment processing quote in 3 easy steps:

STEP 1:

Email a minimum of 2 months of your client’s current payment processing statements to: statements@usbne.com, with the subject line: “MSATP Client Proposal Request.” Be sure to remove the name and address of the client to safeguard their privacy.

STEP 2:

Include in your email the industry type (retail, restaurant, car dealership, etc.) and tell USB how the client is currently processing (i.e., online terminal, swiped via mobile device).

STEP 3:

Allow 2-3 hours for the USB specialists to complete your client’s no-cost analysis.

Are you tech savvy? Good news—you can also apply online at: www.usbne.com/MSATP

Be sure to stay tuned for this week’s MSATP Facebook Live Episode on Thursday, April 26th at 9 AM —we’ll be taking a look at how we’re working with young professionals and promoting financial literacy. Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

Key Takeaways You Shouldn’t Miss from MSATP’s Maryland Jobs and Tax Act Video

Posted on by Sandy Steinwedel

It’s our favorite time of the week once again—the MSATP team just dropped our third Facebook Livestream episode featuring an in-depth analysis of the latest happenings in the tax and financial world!

MSATP’s latest video features a dynamic duo of industry experts. First, Phyllis Burlage returns to break down a busy 2018 legislative schedule that could have a major impact for tax professionals. Then, Jerry Lotz, from Cost Segregation Services Incorporated (CSSI), introduces the concept of cost segregation—a method of re-classifying components and improvements of commercial buildings from real property to personal property to reduce taxable income and ramp up cash flow. Here’s a closer look at what MSATP’s third episode covered—make sure to watch the video to get the full experience!


 

LEGISLATIVE UPDATE

It’s been a busy start to 2018—there were 3,127 bills introduced during the Maryland legislative session spanning from January 10th to April 9th. Here are some key takeaways from all the recent activity:

TAX RELIEF:

It looks like the majority of MSATP’s clients will be paying higher Maryland taxes in the coming year. The Maryland legislature still needs to gauge exactly how much more revenue will be generated by the tax changes before they make further changes. Based on the available information, here’s what to expect for the tax year:

  • Anyone can elect to use the Standard Deduction
  • You must itemize on the Federal return to itemize on the Maryland return
  • The Standard deduction has been increased on the Individual $250 to a maximum of $2,250 AND Head of Household and Joint $500 to a max of $4,500. That’s an estimated $40 tax break for 58% of taxpayers!

WINNING TAXPAYERS:

Several classifications of Maryland taxpayers are getting substantial tax breaks thanks to the new legislation coming down the pipeline—including small businesses and investors. Here’s a quick break-down of who stands to benefit:

  • The subtraction for Military Retirement Income is $5,000 for retirees under 55 and $10,000 for retirees over 55
  • Corrections officers may subtract up to $15,000 of their retirement income
  • The Earned Income Credit has been expanded by eliminating the 25-year-old minimum age
  • Teachers will receive a $250 subtraction for unreimbursed school expenses
  • Small Business Credit for businesses with less than 15 employees who give paid sick and safe family leave to low paid employees receive a $500 credit
  • Investors in cyber security companies now qualify for a tax credit that previously was only available to the company
  • Individuals whose statewide original cost is less than $2,500 are exempt from personal property taxes
  • For estate taxes, the Maryland Unified Credit was increased to $5,000,000
  • Exemption to register as a tax preparer will not apply to employees of exempt tax preparation practitioners if the employee signs the return as the preparer
  • General contractors may now be held responsible for wage violations of a subcontractor

HEALTH INSURANCE:

On last week’s episode, we covered the HSA conundrum when it came to male reproductive coverage and the attempted legislative “fix” for the issue. The HSA “fix” for coverage of vasectomies passed and was approved by the Governor. Another “fix”—this time for Obamacare to prevent skyrocketing premiums also saw some movement. Maryland will take the $380 million federal tax break away from insurance companies and use the money to subsidize the catastrophic claims by those with insurance thru the Maryland Marketplace.

COST SEGREGATION—STAY COMPLIANT, SAVE MONEY

The rules have changed—there’s now a way to keep your clients compliant and get more loyal customers. Sound too good to be true? With cost segregation, you can do both! Cost segregation is a method of re-classifying components and improvements of your commercial building from real property to personal property. This process allows the assets to be depreciated on five, seven, or fifteen-year schedule instead of the traditional 27.5 or 39-year depreciation schedule of real property. This means your clients’ current taxable income will be substantially reduced while their cash flow increases.

The experienced professionals at Cost Segregations Services Incorporated will conduct a complimentary property analysis and review the potential savings with you and your client. The study will be fully completed in a short 4-6 weeks and will keep your clients happy and compliant! Who exactly qualifies and benefits from this game-changing tax approach? A wide variety of businesses and individuals are eligible for major tax savings, including owners and leaseholders of residential rental, multi-family and commercial properties. Contact Cost Segregation Services Incorporated today to learn how you can save your clients a substantial amount of their hard-earned money!

Be sure to stay tuned for this week’s MSATP Facebook Live stream on Thursday, April 19th at 9 AM to hear our Board President, William M. Feehley, wrap-up the 2017 tax season! Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

3 Key Takeaways From the HSA Legislation Facebook Live Stream

Posted on by Sandy Steinwedel

 

MSATP just rolled out another Facebook Live episode that’s an absolute can’t-miss discussion covering the latest issues in tax and finance! We welcomed back Phyllis Burlage to review a new IRS tax platform, break down an important Health Savings Accounts update, and preview some upcoming legislation. Here’s a quick recap of 3 takeaways we covered in last week’s Live video.

 

1. IRS LAUNCHES NEW TAX PLATFORM

MSATP has an established, long-time partnership with the Internal Revenue Service (IRS). We’re always excited to see the IRS make improvements to streamline the process for taxpayers—and their new platform does just that! In late March 2018, the IRS implemented a new initiative called “Paycheck Checkup,” encouraging taxpayers to verify their paycheck withholding in light of the recent tax law developments. Tax professionals need to work with clients to insure they don’t incur an underpayment penalty or an increased tax bill on 2018 earnings next year. To help with this process, the IRS has a few handy tools accessible on its website, like the Withholding Calculator.

 

2. IRS INTERVENES TO CORRECT CONTRACEPTIVE EQUITY ACT OVERSIGHTS

In 2016, the Maryland General Assembly passed The Contraceptive Equity Act intending to revolutionize birth control access by expanding coverages and lowering costs for all forms of contraception by state-regulated insurance plans. Unfortunately, the new law jeopardized Health Savings Accounts in several unintended ways:

  • The Contraceptive Equity Act requires that vasectomies have no co-pay or deductible
  • The Affordable Care Act states that only “preventative care” can be fully paid by HSA Qualified High Deductible Insurance Plans
  • The IRS classifies vasectomies as “elective surgery” NOT “preventative care”

The Maryland legislature attempted to resolve the issue by amending the law to exempt HSA High Deductible Plans from the vasectomy requirement; however, the 2018 insurance contracts were already approved. Luckily, the IRS stepped in. On March 5, 2018, the IRS issued Notice 2018-12, providing transition relief for male sterilization and HSA accounts. Page 6 of the Notice clarifies that: (1) Male sterilization is NOT preventative care; (2) Male sterilization must include cost sharing payments such as deductibles/co-pays; and (3) HDHP Policies that mandate payments for male sterilization without cost sharing are NOT qualified for HSA contributions –BUT—for 2018 and 2019, the IRS will allow HSA contributions even if the HDHP policy is not qualified due to the male sterilization requirement.

The Maryland legislature must still correct the male sterilization mandate for HDHP policies, but as long as the bill is passed and signed before 2020, Maryland citizens will be able to make fully deductible, qualified HSA contributions for 2018 and 2019. You can access Notice 2018-12 on the IRS website.

 

3. UPCOMING LEGISLATION PREVIEW

This week’s episode will cover legislation that passed in the 2018 session. While it’s still unclear as to how Maryland is handling the issue of standard and/or itemized deductions in 2018, there has been significant movement and discussion on this issue. Session concluded on April 9th at midnight.

Be sure to stay tuned for this week’s MSATP Facebook Live stream on Thursday, April 12th at 9 AM as we discuss how the state of Maryland is addressing the 2018 Tax Jobs and Tax Act for Maryland Taxpayers! Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

5 Key Takeaways from the Maryland Healthy Working Families Act Facebook Live Stream

Posted on by Sandy Steinwedel

Great news! MSATP has launched our Facebook Live stream and the first installment is a must-see!

Our inaugural video featured consummate professional and former MSTAP President and CPR Committee Chair, Phyllis Burlage. Phyllis drew on her years of industry experience and thorough research to provide an insightful analysis of the newly-implemented Maryland Healthy Working Families Act. Here’s a quick and handy recap of 5 takeaways from Phyllis’ breakdown of the new legislation:

1. DOES THE ACT APPLY TO ME?

The Maryland Healthy Working Families Act applies to all employers regardless of number of employees, size or industry. This means employers must start maintaining Sick and Safe Leave accrual records as of the effective date of the bill and retain them for 3 years.

2. WHAT DOES THE ACT REQUIRE?

Every employer must have a policy that explains how the Sick and Safe Leave may be awarded and used. Employers have two options:

  • Award all 40 hours at the beginning of the year; OR
  • Employees may accrue 1 hour of leave for every 30 hours worked. Employees can only earn a maximum of 40 hours of leave per year, but any unused hours can be carried over to the next year. Employees may only accrue 64 leave hours at a given time.

The employer is required to provide each employee with a statement of used and available paid and unpaid leave with each pay period. The DLLR has provided Model Policies to help employers develop their own plan, check them out HERE.

3. WHICH EMPLOYEES DO I COUNT?

Employers whose main work location is in Maryland are required to cover employees whose primary work location is in Maryland, even if they are not state residents. If an employer has more than 14 employees, the leave must be paid. If an employer has less than 15 employees, the leave must be unpaid. The total number of employees is based on the previous year’s monthly average and encompasses all Full, Part-time, Temporary and Seasonal workers.

4. ARE THERE ANY EXEMPTIONS?

Although ALL employees count towards the monthly average, the following are exempt from coverage:

  • Employees who regularly work less than 12 hours per week;
  • Certain independent contractors;
  • Certain associate real estate brokers and salespersons;
  • Individuals younger than 18 before the beginning of the year;
  • Agricultural sector employees in certain agricultural operations as defined in §5-403 of the Courts and Judicial Proceedings Article of the Maryland Annotated Code;
  • Certain construction workers covered by a collective bargaining agreement;
  • Certain employees working on an as-needed basis in a health or human service industry; and,
  • Certain employees of a temporary services agency.

5. WHAT CAN EMPLOYEES USE THEIR LEAVE FOR?

Permissible uses for the leave include:

  • To care for or treat the employee’s mental or physical illness, injury or condition;
  • To obtain preventative medical care for the employee or the employee’s family member;
  • To care for a family member with a mental or physical illness, injury or condition;
  • For maternity or paternity leave; or
  • For an absence due to domestic violence, sexual assault, or stalking committed against the employee or the employee’s family member under certain circumstances.

Be sure to stay tuned for this week’s MSATP Facebook Live stream on Thursday, April 5th at 9 AM as we discuss HSA Legislation and the future of the program! Not a member of our private MSATP Members Facebook Group yet? Click HERE to join!

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