Our goal is to deliver all tax organizers electronically for Tax Year 2024 and beyond. Delivering the organizers electronically through SafeSend will allow you to complete the organizer digitally and attach the pertinent tax documents to the specific page. This will avoid you printing your tax documents or forwarding emails for various documents received and will allow you to attach them to your organizer. If you prefer to print your organizer, fill in by hand and drop off tax documents, you will still be able to do this. Many of our clients have shifted to delivering their tax documents electronically through a secured file exchange and we want to incorporate all aspects of organizing the tax documents into one system. SafeSend allows us to combine these two functions into one efficient process.

As part of the efficiencies of delivering tax documents electronically, you will also have the ability to sign the tax signature documents electronically without the need to print them on paper. SafeSend will deliver a Client Copy, signature documents to be signed electronically, and instructions with vouchers or you’ll be able to access links to make payments electronically once the tax return is completed. We have seen an increased amount of payments being marked late when mailing them and SafeSend allows a simple process to make payments electronically for each jurisdiction.

The SafeSend process will also allow each return to be forwarded to bankers, financial advisors or attorneys upon request through your direct link emailed each year. You will have access to the tax filings for 7 years and will be able to view each return in one location. There is also an ability to pay for the preparation fee through our online payment system once the return is
delivered.

Upon receiving the organizer electronically, you will have the option to choose the delivery method for your tax return: electronically or picking up the return in the office. We will avoid
mailing tax returns near tax deadlines as the mail delivery has not always guaranteed prompt delivery. We would prefer to deliver the return electronically or be picked up in the office for all
income tax filings. SafeSend will not be available for payroll filings nor personal property tax reports. SafeSend can be used to deliver tax notices, QuickBooks files, Accounting Back-ups and other tax related documents securely to staff members. We have a link in the top right corner to send files securely.

Once tax season was completed, we said goodbye to an employee who has been with us for 5 ½ years.  Alyssa Scher left to take a job with the Huntington Community School system to be able to spend more time with her family.  We are sad to see her leave the firm but understand her decision when tax season is a long 3 ½ months with a lot of hours.  Alyssa helped prepare payroll filings, completed monthly and quarterly bookkeeping, assisted in trust, estate and gift tax returns and also completed individual and business tax returns.

This tax season we had two interns with us and we are happy to announce that we have hired one of them to work with us full time going forward.  Blake Gray, a Warren, Indiana resident, will be working with us full time upon graduation from Huntington University.  Some of you have likely already had the privilege of having conversations with him as he jumped right in assisting with the quarterly payroll filings.  He will be handling bookkeeping, payroll and fiscal year tax return preparation during the summer.  Blake did a fantastic job during tax season, and we are eager to work with him in the years to come.  Blake plans to sit for the CPA exam this summer and fall.

Sherry’s attention to detail, while keeping the broader picture in mind, has been invaluable. Her willingness to put in extra time and effort to help us meet deadlines has demonstrated a commitment to excellence that we have come to depend upon. She has helped keep all of us on track and on time. In addition to her knowledge and skill, she has been a friend to many of our clients and staff.

We know you all join us in wishing Sherry well as she starts a new chapter in her life.

In other staffing news, Kline’s CPA Group has 2 college interns with us this year.  Blake Gray is a Senior at Huntington University who resides in Warren, Indiana and Chandler Bauer is a Senior at Manchester University who resides in Huntington, Indiana.  Both are learning about and preparing personal tax returns, business tax returns, some payroll filings and assisting with other office tasks around the office.

Have you ever thought about creating a scholarship for low to middle income students to attend non-public schools? Now might be the best time to start a scholarship for a local private school. Indiana has a tax credit available to individuals and corporations for contributions to a scholarship granting organization (SGO). The Indiana tax credit is 50% of your contribution.  The only limitation is Indiana will issue $14 million dollars in credits from July 1, 2018, through June 30, 2019.  You can check the total credits claimed during the period by clicking here.  Any unused SGO credit claimed by the taxpayer in the current year can be carried forward for 9 years, but is never refundable.  You will also want to plan your other nonrefundable credits accordingly, i.e. Indiana college contribution credit, Indiana 529 Plan credit. If you have Indiana tax withheld from your sources of income, the withholding would be refunded on your Indiana tax return if you decide to make a contribution to an SGO.

Another great advantage of the SGO tax credit is you are allowed to take it in multiple years. A taxpayer can make a contribution in 2018 and as long as there are credits remaining for the SGO tax credit, another contribution could be made in early 2019. You will want to make a decision on your first contribution soon as the contribution needs to be received by the SGO before December 31, 2018, to be eligible as a tax credit on your 2018 Indiana tax return.

If you would like to set-up a scholarship for a non-public school, you will want to contact a scholarship granting organization. Listed below are the approved SGO’s for Indiana. If you have questions about the functions of the program, you will want to contact a member from the organization of your choice. If you have a question on the tax credit, please contact our office and we can assist you with your questions.

School Scholarship Tax Credit Program

Approved Scholarship Granting Organizations as of 9/22/17

Elkhart County Community Foundation

P O Box 2932

Elkhart, IN  46515

Amanda Jamison, Program Officer

(574)295-8761

mailto:amanda@InspiringGood.org

Date of Apprval:  February 2, 2015

Institute for Quality Education, Inc. (formerly Educational Choice Charitable Trust)

101 West Ohio St., Suite 700

Indianapolis, IN  46204

Mary Eaker, Program Director

(317)951-8781

mailto:maryeaker@h4ged.org

Date of Approval: January 13, 2010

School Scholarship Granting Organization of Northeast Indiana, Inc.

915 South Clinton Street

Fort Wayne, IN 46802

Marsha Jordan, Superintendent

(260)442-4611 Ext. 3316

mjordan@diocesefwsb.org

Date of Approval: March 5, 2010

Sagamore Institute Scholarships for Education Choice

2902 North Meridian Street

Indianapolis, IN 46208

Laurel Christensen, Senior Fellow and Director

(317)472-2050

laurelc@sagamoreinstitute.org

Date of Approval: March 4, 2011

The Lutheran Scholarship Granting Organization of Indiana, Inc.

1145 Barr Street

Fort Wayne, IN 46802

Jon Dize, SGO Administrator

(260)203-4509

info@lutheransgo.org

Date of Approval: October 30, 2012

LaGrange County Community Foundation, Inc.

109 E. Central, Suite #3

LaGrange, IN  46761

Jennifer Tuttle, Executive Director

(260)463-4363

mailto:jtuttle@lccf.net

Date of Approval:   August 26, 2016

Professional Athletes of Indiana

6678 Guion Road

Indianapolis, IN  46268

Jermaine Chaney, President

(317)339-9087

mailto: jchaney@chaneyfinancialgroup.com

Date of Approval: September 22, 2017

Dan Bowman, Grand Prize, 2 Hours Succession Planning ($400 Value)

Barbara Maple, Pair of Stadium Chairs

Joyce Trout, KCPA t-shirt and cap

Chris Smith, KCPA t-shirt and cap

Cheryl Gerber, RTIC tumbler

Andy Wyss, RTIC tumbler

Now that you are 70 ½ years old, and you own a traditional IRA, the IRS requires you to take or withdraw a required minimum distribution (RMD) each year for the rest of your life. The amount is calculated each year based on the value of your IRA account and it will be included in your taxable income.

For individuals who regularly contribute money to charity and now must take the RMD from their IRA, there is a tax provision that allows you to maximize the tax ramifications for both. Instead of writing a check to your charity, you can direct the trustee of your IRA to transfer funds directly to the charity of your choice.  The amount transferred will count toward the minimum amount that you were required to withdraw for the year.  The maximum amount that can be excluded from income in one year is $100,000.

The tax benefit comes from the fact that you will not have to report the withdrawal as income. Although you do not get to claim the amount as a charitable contribution, you will benefit by reducing your adjusted gross income (AGI) which can help you in other areas, such as the taxation of your social security benefits, a reduction in the net investment tax, and a reduction in state and local taxes paid.  Also, with the passage of the new tax law which doubles the standard deduction in 2018 there will be fewer people who are able to itemize deductions and hence won’t see the tax benefit of their charitable contributions.  For people who make charitable contributions by using the QCD, they will still get the benefit of the donations by the fact that they are reducing their taxable income.

For individuals who are charitable and have an RMD requirement, this is a smart strategy that makes the most sense in reducing taxes and providing funds to your favorite charity.

For the past few days, I have been participating in a National Agriculture Conference developed by the AICPA (American Institute of Certified Public Accountants). Many nationally-recognized experts have been speaking.

Kline’s CPA Group prides itself in our understanding of the agricultural industry. It has been a pleasure to be part of this national event and to strengthen our knowledge base.

As I’m sure all of my farm clients are well aware, the farm economy is in a stage where prices are low, net incomes are slim or nonexistent, there are trade uncertainties, and financing is tough. Working capital is weak and equity is being burnt up with no real end in sight.

So how can Kline’s help your operation through these tough times?  We can. . .

• Assist in preparing fair market value balance sheets and accrual income statements for you and your lending institutions. We can also assist with cash flows.
  • In many situations, we find that clients do their best to fill out their yearend balance sheets for the bank but that they may be missing pertinent information that the banker needs for an insightful analysis.
  • We also notice that not all lenders understand that just looking at a tax return will not give them an accurate picture of what an operation’s true net income is.
• Review financials in order to calculate liquidity ratios, profitability ratios, leverage ratios, etc. These ratios are extremely important to lending institutions when they are trying to compare your numbers with their internal standards.
• Compare your ratios with other operations your same size and location to identify strengths and weaknesses.
• Give input on how to utilize your strengths to improve your weaknesses. Many times, this involves working with your bank to structure things so that all parties are benefited.

A few other things to note that were covered in detail during the conference. . .

• Marketing your crop in this environment is very important! Be sure to mitigate your risk. If you don’t have anyone that you are working with on this, we can suggest some resources.
• Review your need for crop insurance to mitigate risk. Again, if you don’t have anyone that you are working with on this, we can suggest some resources.
• Don’t forget about succession planning. Make time to begin the process!! If you’ve already begun, continue. If you’ve finalized a plan, review it for applicability.
• Details about the Tax Cuts and Jobs Act. Please join us on August 14th for a review of this Act at our Customer Appreciation Day!

SCHOLARSHIP

Brian loved helping teens in this way because he saw the way their lives were impacted. YFC will be creating opportunities annually for students who cannot afford to participate in life-changing camps and trips. We will also provide funds for two graduating seniors to further their education and attend college.

LEADERSHIP

To steward our mission well we must develop the next generation of leaders. YFC will invest in high school student leaders, college interns and YFC ministry staff to continue the impact in our communities. Training and leadership development will continue to be delivered at a very high level.

MINISTRY

Brian was a visionary and always talked about growing the YFC footprint in our territory. In communities like Huntington and the surrounding area our schools and local authorities have identified several opportunities to expand our reach with at-risk teens.  We plan to invest in staff recruitment, volunteer training and will empower a team of adults to help focus on these opportunities.

Brian believed that young people needed hope and he believed the mission of YFC brought that hope to teens who were often times overlooked or simply not engaged in their community. We hope to increase that impact through a number of different initiatives that would have immediate and long lasting impact in the lives of young people in our communities. We invite you to join us in continuing the legacy of Brian Kline. For more information on how you can contribute to the Brian Kline Legacy Fund, contact Brandy Swope at Kline’s CPA (260)356-1040 or contact Roger Vezeau, Youth For Christ, (260)484-4551 or (260)224-2988.

Help us make an impact. Brian believed that young people needed the message of hope.

Youth For Christ is excited to announce the inaugural Brian Kline Golf Classic (formerly the Huntington golf outing) on the morning of Friday, June 15th at Chestnut Hills Golf Club. You are invited to be a part of this great event. The Brian Kline Golf Classic has been established to honor the life and legacy of Brian Kline.

For more information or to register you or your team, CLICK HERE. If you have questions contact Breanna Amico at mailto:bshroyer@yfcnin.org.

We look forward to seeing you on June 15th!

The limitation for the $10,000 property tax and income tax is associated with personal income taxes and property taxes paid on personal residences and second homes on Schedule A (Itemized Deductions). The Tax Cuts and Jobs Act included a provision that disallowed prepaying your 2018 state income taxes.  The IRS has also just released additional guidance regarding prepayment of property taxes.  For the property taxes to be deductible in 2017 the property taxes must have been assessed, meaning a payment to the county auditor or treasurer’s office will not be deductible unless the taxes have been billed or assessed.