Goldstien Tax Submission
Updated: 21 Jan 2023
NOTE: Send tax certification sheets and MDF 37 workbooks (after your squadron commander has endorsed) to Lt Col Chris Howell for processing: chowell@cap.gov
Goldstein Tax Subtraction
Since 2015, Maryland Wing members have been eligible to earn a tax benefit on their Maryland state taxes through The Honorable Louis L. Goldstein Subtraction Modification Program for Volunteer Fire, Rescue or Emergency Medical Service Personnel. This page contains information and documents related to that tax benefit.
Since 2015, Maryland Wing members have been eligible to earn a tax benefit on their Maryland state taxes through The Honorable Louis L. Goldstein Subtraction Modification Program for Volunteer Fire, Rescue or Emergency Medical Service Personnel. This page contains information and documents related to that tax benefit.
Chapter 546 – Income Tax – Subtraction Modification – Maryland Civil Air Patrol. Link
Review the details of this optional program by clicking here: Maryland Wing CAP Goldstein Program Guidance defining the point system, certification process, and how to use the workbook.
Goldstein Requirements
- File a Maryland tax return AND
- Serve CAP in a volunteer capacity without compensation, except nominal expenses or meals AND
- Have been active in Maryland Wing for at least 36 months in the previous 10 years; active membership is measured through achievement of 50 points on a MDF37. Active membership during the eligibility year counts towards the 36 months. This is based on the state law, which notes the 3 year membership must be in Maryland, not just in CAP in general.
(Ex: Member joined in October 2018. Would complete a MDF37 for remainder of 2018, 2019, 2020, and 2021. The member is then eligible to apply for the program in January 2022.)
- AND
- Actively serve Maryland Wing during each tax year, as measured by earning 50 points in a Maryland Wing-specific program to track CAP participation (reference MDF-37)
Goldstein Processing Flow
- Squadron Member: Submit a MDF 36 & 37 to Squadron CC; Sq/CC signs MDF36 and maintains MDF36 & 37 on file; Sq/CC forwards endorsed MDF 36 and the MDF37 to MDWG/A1
- Squadron Commanders: Submit a MDF 36 & 37 to Group CC; Group/CC signs MDF36 and maintains MDF 36 & 37 on file; Group/CC forwards endorsed MDF 36 and the MDF37 to MDWG/A1
- Group Commanders / MD-001 Staff: Submit a MDF 36 & MDF 37 directly to MDWG/A1 for validation, endorsement and certification.
- CAP member not in MDWG: Submit a MDF 36 & 37 to your commander; commander signs MDF36 and maintains MDF 36 & 37 on file; commander forwards endorsed MDF 36 and the MDF37 to MDWG/A1
MDWG/A1 must receive all requests by 31 Jan
- Returns certified MDF 36 directly to the member NLT 28 Feb for member to attach to their Maryland tax return
- Transmits master list of MDF 36-certified members who qualified to the Maryland Comptroller’s office
Goldstein Resources:
MDWG/A1: Lt Col Rory Garnice (rgarnice@cap.gov)
Frequently Asked Questions
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 Volunteer Fire, Rescue and Emergency Medical Services Personnel Subtraction Modification Program is a $6,500 subtraction for a tax year 2021 and will increased to $7,000 for tax year 2022 . The actual reduction to your taxes depends on your tax bracket.
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 all of the following are true. The member must:
- File a Maryland tax return
- Serve CAP in a volunteer capacity without compensation, except nominal expenses or meals
- Have been active in Maryland Wing for at least 36 months in the previous 10 years; active membership is measured through achievement of 50 points on a MDF37. Active membership during the eligibility year counts towards the 36 months. This is based on the state law, which notes the 3 year membership must be in Maryland, not just in CAP in general.
- Actively serve Maryland Wing during each tax year, as measured by earning 50 points in a Maryland Wing-specific program to track CAP participation
Must I be a member of Maryland Wing to claim the tax benefit?
No, but only certain non-Maryland Wing CAP members are eligible. The tax subtraction is meant to encourage volunteer service in a Maryland emergency services organization benefiting Maryland residents. The Maryland Comptroller’s office insists that, regardless of where a CAP member pays taxes, their volunteer service must be to Maryland Wing specifically in order to qualify for the subtraction, not to another wing or to a higher headquarters above Maryland Wing. With this in mind, CAP members who are NOT members of a Maryland Wing unit must satisfy at least one of the following criteria to be eligible:
- Held an official duty assignment within Maryland Wing during the calendar year as shown in eServices or on a CAPF 2a.
- Signed into a numbered mission within Maryland Wing during the calendar year (may be a training mission).
To avoid confusion, when submitting the certification paperwork to the MDWG/A1, please specify in the email why the non-MDWG member is eligible.
I am a CAP employee who also holds CAP volunteer duty positions within Maryland Wing. Can I qualify for the tax benefit?
Yes, but when you log your activity you may only log volunteer service, namely activities that are unrelated to your CAP employment and completed outside of your paid CAP work hours.
I already claim this tax subtraction by volunteering with a different organization. Can I claim the 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 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 on my behalf?
No.
My spouse and I each qualify for the tax benefit but file our tax return jointly. Can we claim the subtraction twice?
Yes. You must attach both of your certified documents to your tax return.
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 CAP membership in the future.
What documentation do I need to keep?
For your tax records, keep a copy of the completed certificate paperwork by your unit commander and certified by the MDWG A1. The Maryland Comptroller’s Office recommends taxpayers keep tax records anywhere from 3-7 years.
For your CAP records, keep copies of your certified paperwork and your Excel workbook for 10 years to prove in future years that you’ve been active for at least 36 months. Beyond this, keep any documentation that confirms the activities you logged on your workbook in case your unit commander (or other state authority) 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; keeping 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 certification paperwork to Wing HQ to get certification? When will I receive the certification so I can file my taxes?
You must submit your unit-approved certification paperwork 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 certification paperwork to Wing HQ?
The member is responsible for submitting the certification form to MDWG HQ after the squadron commander approves it. This does not preclude the unit from developing local procedures for sending the certification requests to Wing HQ in batches, but ultimately it is the member’s responsibility to ensure it is sent.
Does the group commander need to approve the certification?
Once a member of a squadron or flight has unit commander approval on their certification, the certificate can bypass the group level and be submitted directly to wing headquarters.
I need to file my Maryland state tax return before 28 Feb. Can I get my certification back from wing headquarters sooner?
If you need your certificate from wing headquarters before 28 Feb, let the MDWG/A1 know when you need it back by. Requests to expedite processing will be handled on an individual basis.
Are there any other tax benefits of CAP membership?
Yes. Because CAP is a 501(c)(3) non-profit organization, certain contributions may be tax deductible on federal and state income tax returns. Examples of what might be tax deductible include:
- Donations to CAP
- Membership dues
- Cost of uniforms, cost of upkeep for uniforms
- Mileage, travel expenses for overnight trips, and cost of flying CAP aircraft, provided that it is not reimbursed
For additional information, please refer to the following resource and your tax professional:
IRS Publication 526 – Charitable Donations
Earning Points FAQ
Can I count ES training that doesn’t have a mission number?
Yes, you can count time spent at ES activities that don’t have mission numbers, for example ground sorties, base staff activities, and classroom training. For classroom training, both the students and instructors can count the time.
Why are some ES mission symbols worth more points?
The mission symbols selected for extra points represent the core emergency services missions performed by CAP that this tax benefit is meant to reward.
Can I count my travel time to/from CAP activities?
The only travel time that is expressly allowed is time spent on inbound and outbound air and ground sorties to ES missions, which can be counted in the ES category. Other travel time might be eligible for points as a collateral duty if the travel time is itself volunteer service and does not overlap with another category, for example transporting people or equipment to a CAP activity that the member will not participate in.
Separate from this tax subtraction, unreimbursed mileage and travel expenses incurred in service to CAP may be tax deductible on a member’s federal and state tax returns. Please see IRS Publication 526 for further information.
Do I get credit for CAP flying?
Crew members (e.g., pilot, observer, scanners) earn 1 point per Hobbs hour, more for certain mission symbols. Trainees, as reflected in eServices, count as crew members. Passengers who are not qualified to serve as crew members may earn points if performing some CAP duty, for example if the flight is an inbound or outbound sortie for a CAP activity.
Can I count online courses like Cadet Protection, Officer Basic Course, or specialty track tests as Professional Development activities?
Courses counted for Professional Development credit should be of equivalent scope and effort as a course like SLS or CLC. An online course such as Officer Basic Course or completing the Yeager Award does therefore count, whereas a course like Cadet Protection, Intro to CAP Safety, or a short test for a specialty track rating does not.
How many duty positions and committee assignments can I count?
You may count up to 1 duty position and 1 committee assignment for points.
I have not spent a full year in my duty assignment or committee appointment. Can I count a duty assignment or committee to which I was appointed during the tax year?
No, duty assignments and committees can only be counted on the anniversary dates of the appointment in eServices. In the event that a member switches positions before the anniversary date of the outgoing assignment, the unit commander may approve credit of the points for one of the positions.
Do I get credit for attending regular squadron meetings?
Yes, you get credit for attending any scheduled meetings. This can include video and teleconference events as well.
At our squadron meeting, we conducted ES training or another activity that can be counted elsewhere. Can I double-count it?
No, time spent at a scheduled unit meeting can either be counted towards meeting attendance or another category, but not both. ES qualifications, specialty track advancements, and radio net check-ins completed during unit meetings are not considered part of the meeting and may be counted in addition to the meeting. For example, if your squadron’s weekly meeting is devoted to ground team training and you renew your GTL during the meeting, then you earned 5 points for renewing your GTL plus you can count the time as either a squadron meeting or ES training.
What does Collateral Duty mean? What activities qualify for this?
This category is a catchall for time spent supporting CAP in capacities not covered by the other categories. Examples include participation outside of scheduled meetings in the non-ES activities of your unit or time spent repairing or improving CAP assets or real estate. Collateral duty does not include time spent performing ES duties, professional development activities, or activities and duties covered in other categories.
