7 Tax Tips for Energy Efficient Homes
August 13, 2010 | 
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Taking some energy saving step in your home now may lead to bigger tax savings next year. The Nonbusiness Energy Property Credit, a tax credit for making energy efficient improvements to homes was increased as part of the American Recovery and Reinvestment Act of 2009.
Here are seven things the IRS wants you to know about the Nonbusiness Energy Property Credit:
- The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 claimed for 2009 and 2010 combined.
- The credit applies to improvements such as adding insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.
- To qualify as “energy efficient” for purposes of this tax credit, products generally must meet higher standards than the standards for the credit that was available in 2007.
- Manufacturers must certify that their products meet new standards and they must provide a written statement to the taxpayer such as with the packaging of the product or in a printable format on the manufacturers’ Website.
- Qualifying improvements must be placed into service after December 31, 2008, and before January 1, 2011.
- The improvements must be made to the taxpayer’s principal residence located in the United States.
- To claim the credit, attach Form 5695, Residential Energy Credits to either the 2009 or 2010 tax return. Taxpayers must claim the credit on the tax return for the year that the improvements are made.
Homeowners who have been considering some energy efficient home improvements may find these tax credits will get them bigger tax savings next year.
Questions?
TPL/PERM Delayed in Maryland
August 10, 2010 | Subscribe to our RSS Feed
The rollout of Federal Payment Error Rate Measurement (PERM)/Third Party Liability Audit (TPL) Program has been delayed at the state level in Maryland.
As a healthcare provider in the state of Maryland, if you receive Medicaid reimbursement for Medicaid Managed Care, Fee for Service and/or the Children’s Health Insurance Program (CHIP), you have probably been notified of the forthcoming TPL/PERM audits and have been holding on to your reimbursement documentation.
Until further notice, healthcare facilities receiving these types of reimbursements will return to quarterly self-reporting of overpayments. The state of Maryland will provide guidance regarding the process for reverting to self-reporting. We will be sure to update you on this forthcoming information.
In the meantime, please contact us with any questions about your withheld documentation or the PERM/TPL Program. Facilities should be paying particular attention to the “Patient Resource Amount” as it generates a large margin of error in reporting and could open you up to penalties and fines.
When Maryland rolls out the PERM/TPL Program, healthcare providers will be subject to the proposed 4 year look back period. Consider a pre-rollout assessment of your reimbursement policy. Glass Jacobson can administer a proactive identification of overpayment areas by looking at your Medicaid Aging and Accounts Receivable to detect possible errors and help you avoid drawn out audits and debilitating penalties.
Questions?
Patrick.trotta@glassjacobson.com
Carolyn.cunningham@glassjacobson.com
Its Never Too Late
August 6, 2010 | Subscribe to our RSS Feed
Maybe you’ve just opened your first dental practice or maybe you are a seasoned veteran of the tooth wars. Either way you want to make sure that you are contributing to a retirement plan. There are a variety of retirement plans you can choose from and the “age” and profitability of your practice may help determine which one is best for you.
Let’s look at some of the available retirement plans:
- SIMPLE IRA
- Very low administrative costs due to the fact that no special tax filing needs to prepared.
- Pre-tax salary contributions. Current annual maximum is $11,500. For people over 50 years old an additional $2,500 can be contributed.
- For any employees who participate in the SIMPLE IRA the employer must contribute the lesser of the employee’s salary contribution or 3% of their salary. If an employee does not participate no contribution need be made for that person. This is a relatively inexpensive cost to the employer.
- Based on eligibility criteria the dentist cannot discriminate against who is allowed to participate in the SIMPLE IRA. This means you cannot allow your hygienist to participate while denying your dental assistant the chance to join the plan.
- Great employee benefit.
- 401(k) PLAN
- Much higher administrative costs due to the need to have an third party administrator and tax filings.
- Pre-tax salary contributions. Current annual maximum is $16,500. For people over 50 years old an additional $5,500 can be contributed.
- Can establish 401K plans with add ons such as safe harbor contributions and profit sharing to increase the contribution to a maximum of $49,000 or $54,500 for those card carrying members of AARP.
- In order for the dentist to maximize his contribution he or she must contribute for any eligible employees even if the employee does not make pre-tax salary contributions.
- Make sure you work with a third party administrator who can help maximize your contribution relative to the employees.
- Great employee benefit.
While these are by no means the only retirement plan options for a dental practice they are the most common choices. Sit down with your CPA to determine which plan is the best for you in your current situation. The most important thing to do is set up a plan even if you cannot contribute the maximum amount. The younger you are when you start your retirement plan contributions the longer the money can cook. You would be surprised how large your plan can grow with the power of compound growth. Now go get started.
Questions for Larry the Accountodontist?
larry.goldberg@glassjacobson.com
Top 10 Things Every Taxpayer Should Know About Identity Theft
August 3, 2010 | Subscribe to our RSS Feed
The IRS has issued a 10 item checklist of items a taxpayer should know about identity theft. A thief can steal a taxpayer’s personal information and then use that information to file a tax return and get a refund. Read these carefully and be wary of any scams.
- The IRS does not initiate contact with a taxpayer by e-mail.
- If you receive a scam e-mail claiming to be from the IRS, forward it to the IRS at phishing@irs.gov.
- Identity thieves get your personal information by many different means, including:
- Stealing your wallet or purse
- Posing as someone who needs information about you through a phone call or e-mail
- Looking through your trash for personal information
- Accessing information you provide to an unsecured Internet site.
- If you discover a website that claims to be the IRS but does not begin with ‘www.irs.gov’, forward that link to the IRS at phishing@irs.gov.
- To learn how to identify a secure website, visit the Federal Trade Commission at www.onguardonline.gov/tools/recognize-secure-site-using-ssl.aspx
- If your Social Security number is stolen, another individual may use it to get a job. That person’s employer may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return.
- Your identity may have been stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know. If you receive such a letter from the IRS, leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.
- If your tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed Form 14039, Identity Theft Affidavit. As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490. You should also follow FTC guidance for reporting identity theft at www.ftc.gov/idtheft.
- Show your Social Security card to your employer when you start a job or to your financial institution for tax reporting purposes. Do not routinely carry your card or other documents that display your Social Security number.
- For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft and Your Tax Records Page, which you can find by searching “Identity Theft” on the IRS.gov home page.
Questions?
GJ Creates Women-Owned Business Practice
July 30, 2010 | Subscribe to our RSS Feed
FOR IMMEDIATE RELEASE
Glass Jacobson Creates Women-Owned Business Practice
Tammy Schneider, CPA, Named as First Director of New Department
OWINGS MILLS, Md. – July 30, 2010 – Wealth management and CPA firm Glass Jacobson is pleased to announce the creation of the Women-Owned Business Practice, devoted to serving the unique needs and challenges of women-owned businesses. Tammy Schneider has been named as the department’s director.
According to a recent report from the U.S. Women’s Chamber of Commerce, the number of women-owned businesses nationally is growing, but their share of total business revenue is declining. In the Baltimore metro region, women business owners are too often without the resources they need to achieve the highest possible level of success. Glass Jacobson’s unique Women-Owned Business practice will proactively reach out to this growing population, assisting them in accomplishing their professional goals, growing their businesses and increasing revenue.
“Creating this department represents a natural evolution in Glass Jacobson’s commitment to providing full-service wealth management,” said Glass Jacobson President Ed Jacobson. “Women represent an increasingly significant portion of business owners in the Baltimore area, and we are excited to be a devoted partner in helping them achieve to their highest potential.”
Promoting Ms. Schneider, who has been with Glass Jacobson since 2007, to head the department was also a natural decision. Ms. Schneider has worked with women business owners throughout her career, becoming well-known as a premier accountant for their needs. In addition, she is a member of the National Association of Women Business Owners (NAWBO).
“Glass Jacobson recognizes and understands that there is a difference in how women approach business,” Ms. Schneider said. “I’m extremely proud to work for such a firm, and to be in a position to help women significantly grow their businesses.”
About Glass Jacobson
Founded in Baltimore in 1962 as a traditional CPA firm, Glass Jacobson has evolved into a wealth management firm to better serve its clients’ diverse, ever-growing financial needs. Today, the firm’s unique Wealth Management Model brings together the essential services of Investment Management, Advanced Planning and Relationship Management, and delivers them with unparalleled expertise and professionalism.
Serving as a personal CFO, Glass Jacobson looks beyond the numbers to get to the core of every client’s financial situation. The firm delivers a full team of in-house CPAs, investment advisors, financial planners and insurance specialists to every client. To learn more about Glass Jacobson, please see www.glassjacobson.com.
CONTACT
Jeffrey Bukowski
443-655-3774
jdbukowski@bukowskipr.com
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