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 26^th 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!

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 10^th to April 9^th. 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 19^th 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!