March 2005 | Vol. 6, No. 2
© 2005 American Massage Therapy Association®
All rights reserved.
Hello, e-touch reader!
It’s tax time again. As massage therapists, many of you are responsible for keeping your own tax records. This month’s article, “Cut Your 2005 Income Tax Bill Now,” offers some tips to keep you organized this year, so tax season can be less stressful next year.
Also in this issue, brush up on your advertising skills. This month's marketing column, "The Importance Of Targeted Advertising," discusses the how vital it is to target your advertising so that you can get the most from it.
Check out AMTA's revamped
Web site! While you’re there, brush up on AMTA's key benefits: Professional Credibility, Continuing Education and Information Resources.Enjoy the issue!
~The Editors
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By William J. Lynott
Most of people are responsible for maintaining their own tax records. But if you’re like many busy professionals, you don’t pay much attention to income taxes until the filing deadline looms.
“That can be a costly mistake,” says CPA Tom Normoyle, Huntingdon Valley, Pennsylvania. “One of the most effective ways to pare your taxes to the legal minimum is to make tax planning a year-long effort.”
It’s only natural for you to devote most of your time to developing income and reducing expenses to enhance your income, but it’s important to remember the effect that taxes have on those before-tax dollars. Here are some easy tax-planning tips that will help you to maximize your after-tax dollars in 2005 and beyond.
Organize Your Records Now. Organizing your records early in the year is an important part of tax reduction planning. “If you scramble at tax time looking for receipts and other records to pass along to your accountant, you’re probably missing out on some healthy deductions,” says Normoyle.
So start out early this year by setting up folders for expense and income records and file them as they accumulate. You’ll make your accountant’s job easier next tax return. And an easier job for your accountant means a savings on your tax preparation bill.
Look For Deductions That You May Have Missed In 2004. “Many taxpayers miss out on important deductions by waiting until the last minute,” says CPA Paul Rich, New York City. “Among tax benefits easy to overlook are deductions for Travel, meals and entertainment. Most business people do not keep adequate documentation for these expenses. As a result, they lose out on deductions that could provide significant tax relief.”
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Getty Images To lower this year's tax bill, consider buying a big purchase, such as a new massage table. A provision in the tax law allows for you to deduct the full amount of this purchase, up to a maximum of $105,000. |
Review the Structure of Your Practice. “If you’re operating as a sole proprietor, talk to your tax adviser about the possibility of incorporating,” says Rob Seltzer, CPA, Beverly Hills, California. “While incorporation isn’t necessarily the best form of business for everyone, it does bring tax and other advantages.
Take Advantage Of Section 179. This provision of the tax law allows you to deduct the full cost of capital assets in the year of purchase up to a maximum of $105,000 for 2005. Consider making that big capital purchase you’ve been planning, such as a massage table, before year-end in order to lower this year’s tax bill. Purchases made right up to December 31 will be eligible for the 2005 tax deduction.
Combine Pleasure Trips With Some Business. If you’re planning any pleasure trips this year, consider adding in a little business. Can you visit a similar practice in your destination city to discuss massage practice techniques with the owner?
If more than half of your time will be devoted to business, you may deduct transportation costs as well as all directly business-related expenses.
Maximize Your Tax-Deferred Retirement Account Early. Make the maximum allowable deposits into your 401(k) or IRA account as early in the year as possible.
“That way, you won't have to come up with a huge lump sum at the end of the year,” says Seltzer, “and you add valuable months to the tax-deferred compounding of your investment.”
Will You Make Charitable Contributions In 2005? If you plan to make charitable contributions this year, consider donating long-term appreciated securities instead of cash. You’ll receive a full fair market value deduction and pay no capital gains tax on the securities.
Or, sell depreciated securities for the tax loss and give the cash to charity.
Balance Investment Gains and Losses. Keep a close eye on your personal investments during the year. By selling appreciated assets and liquidating under-performing investments, you may match gains and losses to minimize your personal income taxes.
If you have sufficient losses to offset your gains, you may deduct the losses on sales completed by December 31. Note, however, that the amount of capital losses that you can use to offset ordinary income is limited to $3,000.
If your net loss totals more than $3,000, don't worry. You can carry forward the losses over $3,000 every year until you use them up.
Saving for college? If you’re facing college tuition expenses in the years ahead, a 529 College Savings Plan can help to build your college fund and save on taxes while you’re doing it.
Offered by 49 states and the District of Columbia, 529 plans allow you to contribute as much as $250,000 to pay for your children’s college. Contributions compound tax-free and withdrawals are tax-free, as long as they are spent for higher education. There is no deduction on federal taxes for your contributions, but more than half the states offer a deduction on state income taxes.
Keeping your income tax bill to the legal minimum requires a little planning and effort on your part, but the time you spend chipping away at your taxes may be among the most profitable investments you’ll make this year
~ William J. Lynott is a former management consultant and corporate executive who writes on business and financial topics for a variety of consumer and trade publications. His latest book, Money: How to Make the Most of What You've Got, is available in stores. He can be contacted via E-mail at lynott@verizon.net or through his Web site: www.blynott.com.
Self-employed persons who do not file a return will not receive credits toward Social Security retirement or disability benefits.
Source: Internal Revenue Service
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TO LAUNCH VOLUNTEER CENTER
AMTA plans to launch the new Volunteer Center on its Web site in March. The center will better serve AMTA members looking for volunteer opportunities by including a volunteer database, which will allow members to fill out an online application for volunteering and to search available volunteer opportunities at the chapter and national levels. The database will enable AMTA to better match volunteers with their stated interests, experience and available time commitments.
AMTA is unique in that volunteers are an important part of the association's culture. The association encourages all members to volunteer in some way in order to experience the full benefits of AMTA membership. Volunteering provides opportunities for personal and professional growth, networking opportunities, a chance to have an impact on your profession and, most importantly, fun. Watch for an E-mail soon notifying you of the Volunteer Center’s debut. If you have any questions, please contact Monica Love, volunteer development program manager, at mlove@amtamassage.org or 847-905-1415.
TAKE THE E-TOUCH READER SURVEY!
We want to hear from you!
Click here to take the e-touch reader survey by March 31.Thanks for your input!
SPECIAL WEB SITE DEVELOPMENT OFFER ENDS MARCH 15, 2005!
Order before March 15, 2005 and receive one free month of hosting for your Web site—a $24.95 value.
Promote your practice and services to potential clients 24-hours a day, seven days a week with your own custom Web site. AMTA members can view sites that were designed for fellow AMTA members, or take a tour of the AMTA Members Online Design Center.
Just click here to order your Web site today, or call Members Online at 800-563-6771.
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Here are just a few Web facts that will make it hard for you to resist this fantastic offer!
- More than 100 Million Americans consult the Internet for health information.
- 80 percent say they trust the information on their practitioner’s Web site.
- 70 percent say the information they find influences their treatment decisions.
- 63 percent would switch to a practitioner with a Web site that offered credible content, online scheduling or secure communication.
- 20 percent of all Internet traffic is related to health-care.
MONTHLY MARKETING TIP: THE IMPORTANCE OF TARGETED ADVERTISING
By Amy Roberts
As massage therapists, many of you may advertise your qualifications in order to attract potential clients to your business. You believe that just mentioning your credentials and qualifications will get clients through the door.
But this method usually doesn’t generate much business. In most cases there is no questioning as to why this strategy did not work—there is just resignation. There’s not a lot of reflection on what went wrong, and, therefore, no development of better ideas.
I’ve heard therapists say that advertising doesn’t work. It would be unfortunate to go through an entire massage therapy career without recognizing the benefits of it though; it’s such an important part of a practice’s success. Advertising is a major part of what brings clients to a business.
So why doesn’t advertising your qualifications work very well?
For starters, how do you know if the people you are targeting as potential clients actually understand the modality you are advertising? For example, a therapist I was coaching for three months advertised "lymphatic drainage." He knew what lymphatic drainage was, and obviously, I know what it is. But we realized most potential clients wouldn’t understand what the term meant. Then I asked him the inevitable question: “How are your potential clients going to understand what a technical massage-industry term is?” He gave me a blank look.
Let’s look at the term for a minute. Lymphatic drainage is well-understood in our profession. But it doesn’t mean a lot to clients who don’t know the first thing about the human body or how it works. So why talk in these terms to them?
In order to create success in your advertising, you need to get more specific. You can’t advertise lymphatic drainage if your potential clients do not know what the modality means. It seems obvious but many people forget to actually think laterally and logically when it comes to advertising.
So where do you start?
First, you must use targeted words that potential clients understand. My friend realized he wanted to market lymphatic drainage to clients who were looking for stress relief. So we changed the ad to read “massage for stress relief.” Then we listed and described several stress-related ailments, including muscle tension in the neck and shoulders, anxiety, aching back and feeling uptight. He also noted that alleviating some of these issues can promote deeper sleep so that more energy would be had during the day to manage the high stress.
He had a great response to this ad, and was booked solid for weeks. He never used the term “lymphatic drainage” in his advertising again!
Your qualifications are extremely important, and you must never practice on anyone without them. You can mention your qualifications in your advertising, but don’t use them as the “hook” to get people interested in your practice. Instead, use the words and images that your potential clients relate to.
You can quickly create successful advertising just by following this simple rule, and be on your way to a full appointment book in no time!
~Amy Roberts is a massage therapist living in Melbourne, Australia. She now coaches and writes about business for massage therapists in countries around the world. She is reachable by E-mail at: massagesuccess@pacific.net.au. She will answer all E-mails personally. Visit her Web site at www.massagetherapysuccess.com.
CLICK `N PICK: WHAT INFORMATION DO YOU PUT IN YOUR ADVERTISEMENTS?
Spend a few moments answering the March poll question at the link below. It’s quick, and it’s easy! See the results in the next issue of e-touch.
Last Month's Results
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REMINDER: CERTIFICATION REQUIREMENTS FOR TRADEMARKED MODALITIES MUST BE KEPT CURRENT?
Members practicing a trademarked modality (Trager®, Feldenkrais Method® and Rolfing®) you must meet the certification requirements of the registered mark owner in order to represent yourself as practicing the modality. AMTA reserves the right to modify your AMTA’s Find a Massage Therapist® record by deleting this modality if you are not legally authorized to practice it.
The Federation of Therapeutic Massage, Bodywork and Somatic Practice Organization members will be conducting their annual audit, and will inform you and/or AMTA to cease and desist listing a trademarked modality for which you have no certification.
Thank you for your understanding and continuing compliance with the AMTA Code of Ethics.
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Building a Brighter Future for Massage Therapy |
Click here to read about the grant given to the from the National Center for Complementary and Alternative Medicine!
New Look For Massage Therapy Foundation Web Site
The Massage Therapy Foundation is pleased to announce a new look for its Web site!
This newly revamped site offers easier navigation for visitors, and detailed information about the Foundation’s programs including how to apply for a community service or research grant, upcoming events and conferences of interest, recent news, and the Massage Therapy Research Database—an extensive online database of research citations related to massage therapy. There also are useful links for the public, researchers, health care providers, students and educators. Click here to visit the new Web site today!
The Massage Therapy Foundation is a 501(c) (3) tax-exempt, public charity that promotes research, community service and education in the field of therapeutic massage and bodywork. For more information on the foundation, please visit www.massagetherapyfoundation.org
SAVE THE DATE!
Attend the first massage therapy research conference in the
United States.
“Highlighting Massage Therapy In CAM Research"
Sheraton Old Town, Albuquerque, New Mexico
September 25-27, 2005
Click here to view more information
Do your arms, wrists and hands hurt from using the computer?
When you've been overusing your computer and find that your wrist, arm and hand are hurting, try this massage technique. Gently lift and squeeze the muscle of your forearm from just below the elbow working down towards the wrist and back up several times. This will bring fresh circulation to the area and may help prevent repetitive use syndrome.
Trudy Lacour
AMTA Professional Member
New Orleans, Louisiana
For a different massage tip each week, visit AMTA’s Massage Room.
LEARN 'N EARN CALENDAR OF EVENTS
Check out the new look of AMTA’s continuing education/events calendar. It's bigger, better and now easier to search, with weekly, monthly and yearly calendar views.
Individual presenters, AMTA Chapters and schools can now list their continuing education events with ease. There is no charge for posting an event. Learn 'n Earn is presented as a public service to the massage therapy profession by AMTA.
Look for all the events typically listed in e-touch’s Calendar of Events in the revised Learn ‘n Earn calendar!
Share your valuable knowledge with others! If you have written, or would like to write, an article on a specific topic dealing with your area of massage expertise, send an E-mail to: etouch@amtamassage.org. Articles should be an original work. The editors of e-touch reserve the right to edit articles for space and for appropriateness to AMTA members, nonmembers and consumers. Please follow the Writer’s Guidelines for submission posted on the AMTA Web site.
If you would like to reprint any of the e-touch issues or articles for handout or promotion of your practice, you need to first obtain copyright permission.
Your ad can appear in e-touch for a month, two months, a year or more. Would you like to reach massage therapists and consumers interested in massage and massage-related products and services? Contact Christina Rompon at: 847-905-1413, or by E-mail at: adsales@amtamassage.org.
Are you looking for other advertising opportunities to reach massage therapists and educators? Visit our Web site and review our entire online media kit, with rates and specifications for everything from exhibits to banner ads.
Click here: www.amtamassage.org/member/addrchange.html.
LEGAL NOTICE: Articles submitted by individual authors are copyrighted by those authors and reprinted with their permission. Views expressed in these articles are not necessarily the views of the American Massage Therapy Association®, and should in no way be construed as an endorsement. They are for informational purposes only.
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