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Maryland Wing - Group III

Middle East Region

Civil Air Patrol

United States Air Force Auxiliary

Representing

Anne Arundel, Calvert,

Charles, Prince Georges &

St. Mary's Counties

LENGTH OF SERVICE AWARDS PROGRAM -MARYLAND TAX CREDIT - GROUP III

General FAQ

 

What is a tax subtraction?

 

A tax subtraction reduces your Maryland adjusted gross income and therefore reduces the amount of your income that will be taxed by the State of Maryland.

 

How much is the tax subtraction worth?

 

The Honorable Louis L. Goldstein Subtraction Modification Program for Volunteer Fire, Rescue, and Emergency Medical Service Personnel is currently a $3,500 subtraction.

 

 What does “LOSAP” mean?

 

LOSAP, or Length of Service Awards Program, is a type of tax benefit meant to reward volunteer service in emergency services.  Maryland’s Louis L. Goldstein Subtraction Modification Program is an example of a LOSAP tax benefit.

 

Who is eligible for the subtraction?

 

At the end of the tax year, members are eligible for the benefit if they will file a Maryland tax return, are not paid employees of CAP, have been active in CAP for at least 36 months in the previous 10 years, and earned 50 points during the tax year.  Active membership during the tax year counts towards the 36 months.

 

I already claim this tax subtraction by volunteering with a different organization.  Do I get a $3,500 subtraction for each organization I volunteer with?

 

No, you may only claim the benefit once per year.

 

I earned 49 points as a volunteer firefighter and 49 points as a CAP member.  Can I combine the two?

 

At this time, there is no provision for combining points earned in multiple volunteer organizations.

 

Must I be a member of Maryland Wing to claim the tax benefit?

 

TBD.  MDWG intends to make the program available to any CAP member who files a Maryland tax return.

 

Must I be a senior member to claim the tax benefit?

 

No, the tax benefit eligibility does not distinguish between senior members and cadets.

 

I qualify for the tax benefit but someone claims me as their dependent.  Can that other person claim the benefit?

 

TBD

 

My spouse and I each qualify for the tax benefit but file our tax return jointly.  Can we claim the subtraction twice?

 

TBD

 

I will not be filing a Maryland tax return for this tax year.  Should I be tracking my activity?

 

If you anticipate filing a Maryland tax return in the future, track your activity now to prove 36 months of active membership in the future.

 

What documentation do I need to keep?

 

The primary piece of documentation to keep for your tax records is a complete MDF-36 approved by your unit commander and certified by the MDWG A1.  Also, keep your activity logs to prove 36 months of active membership in future years.  Beyond this, keep any documentation that confirms the activities you logged in your Excel workbook in case your unit commander challenges your log.  Examples include maintaining up-to-date records in eServices showing current ES qualifications, professional development ratings, duty positions, committee assignments, and attendance at training activities; copies of published press releases; and ensuring your name is recorded on CAPF 104s, CAPF 109s, mission sign-in sheets, and meeting sign-in sheets.

 

What is the deadline to submit my MDF-36 to Wing HQ to get certification?  When will I receive the certification so I can file my taxes?

 

You must submit your unit-approved MDF-36 to the Maryland Wing A1 NLT 31 Jan.  This allows a month for all the wing approvals to be done and returned to you NLT 28 Feb so you can get your taxes filed by 15 Apr.

 

Who submits the approved MDF-36 to Wing HQ?

 

The member is responsible for submitting the MDF-36 to MDWG HQ after the squadron commander approves it.  This does not preclude the unit from developing local procedures for sending the forms to Wing HQ in batches, but ultimately it is the member’s responsibility for ensuring it is sent.

 

 

 

 

 

Additional Resources

 

 

MD State Sales Tax Exempt Form - this document should be used by members making purchase of items for use in Civil Air Patrol to eliminate the need to pay sales tax. Do not use this form for personal purchases. It is good through September 2017.

 

Tax Exempt Status - this document indicates that Civil Air Patrol is a tax exempt corporation in good status.

 

W-9 - this document is given to vendors who require tax information to set up an account for a CAP unit.

 

 

Per CAP REGULATION 110-1: LINKS OR REFERENCES TO INDIVIDUALS OR COMPANIES DOES NOT CONSTITUTE AN ENDORSEMENT OF ANY INFORMATION, PRODUCT OR SERVICE YOU MAY RECEIVE FROM SUCH SOURCES

Maryland Wing Group III, Civil Air Patrol 2016/2017. All Rights Reserved.

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