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Alabama Tax Law Questions & Answers
1 Answer | Asked in Divorce and Tax Law for Alabama on
Q: My ex and I divorce was finalled on 03/13/2024 and she is refusing to share how she filed on her taxes.

I understand that this year we would file Married and Filing separately even though we were married at the end of 2023. She filed single and separate and claimed both kids. I was under the impression that she was at the very lease suppose to file married and separate.

James L. Arrasmith
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answered on Apr 15, 2024

I'm sorry to hear about your divorce and the difficulties you're facing regarding your tax filing. It's understandable that you have concerns about how your ex-spouse has filed her taxes. Based on the information you provided, here are a few important points to consider:

1....
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1 Answer | Asked in Tax Law for Alabama on
Q: I received stock at the disullution of a trust. Do I get any step up in basis? Do I pay taxes on the full amount at sell

Upon the death of the trustee I received stock shares in a privately owned corporation. Do I get a step up in basis for stock valuation?

The other stock was that was owned outright by my father was designated to go into a new trust. Does the trust get a step up on basis for stock valuation?... View More

James L. Arrasmith
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answered on Apr 11, 2024

When you receive stock from a trust, the tax implications can vary depending on the specific circumstances. Here's a general overview, but please note that it's always best to consult with a tax professional for personalized advice.

1. Step-up in basis for inherited stock outside...
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1 Answer | Asked in Immigration Law, Tax Law and Business Law for Alabama on
Q: My court proceedings was dismissed. The judge closed my asylum because I have TPS. Can I reapply for asylum with USCIS?

I want to make it will be a good idea to do so please

James L. Arrasmith
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answered on Mar 10, 2024

Based on the information you provided, it seems that your asylum case was dismissed by the immigration judge because you currently have Temporary Protected Status (TPS). To determine whether reapplying for asylum with USCIS is a good idea, consider the following:

1. TPS is a temporary...
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1 Answer | Asked in Employment Law, Tax Law and Business Law for Alabama on
Q: Is double dipping into my gross wages after statutory deductions legal ,the jail justifies14-8-37

I was on work release in limestone co.,after my statutory deductions have been made the jail took 25percent against my original gross wages that do not exist and they didn't receive a check for from my net pay that they did,here's the discrepancy if I get paid by w2 & another... View More

James L. Arrasmith
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answered on Mar 8, 2024

The situation you've described raises important questions about how deductions from wages are handled for individuals on work release, especially in the context of how gross and net pay are treated. If deductions are made from your gross wages after statutory deductions (like taxes) have... View More

1 Answer | Asked in Tax Law for Alabama on
Q: Is the Accrued Market Discount of a matured US Treasury Note exempt from Alabama income tax?
James L. Arrasmith
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answered on Feb 28, 2024

Interest income from US Treasury securities, including notes, bonds, and bills, is generally exempt from state and local taxes. This means that if you're holding a US Treasury Note, the interest you earn from it is not subject to Alabama state income tax. However, the accrued market discount... View More

1 Answer | Asked in Tax Law, Social Security and Public Benefits for Alabama on
Q: Even though I'm on Medicaid am I susceptible to Alabama state tax garnish
James L. Arrasmith
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answered on Feb 22, 2024

Being on Medicaid indicates that you are receiving assistance based on financial need, health status, or both. However, your status as a Medicaid recipient does not automatically exempt you from state tax obligations or potential garnishment actions in Alabama. If you owe state taxes, the Alabama... View More

1 Answer | Asked in Tax Law for Alabama on
Q: Hi received a 1099c while paycheck is being garnished for same debt…am I obligated to pay the taxes on this income
James L. Arrasmith
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answered on Jan 31, 2024

If you've received a 1099-C for a debt that's also being garnished from your paycheck, you may not necessarily be obligated to pay taxes on this income. The issuance of a 1099-C indicates that your creditor has forgiven or canceled a portion of your debt, and the IRS generally considers... View More

1 Answer | Asked in Estate Planning and Tax Law for Alabama on
Q: Can an administrator deposit a personal check (funds) made out to the estate of funds are needed? Such as $500?

Can an executor deposit funds into an estate account with no expectation of payment in return, giving all to the beneficiary, if there was an error ?

James L. Arrasmith
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answered on Jan 29, 2024

In the United States, an administrator or executor of an estate has certain fiduciary responsibilities to manage the estate's assets for the benefit of the beneficiaries. If there is a temporary need for funds within the estate, the administrator may deposit their own personal funds into the... View More

1 Answer | Asked in Tax Law for Alabama on
Q: Do you have to pay property taxes on a house that is paid for completely, whether you live there or not?

If someone does not live on a property, but they are exempt from property taxes because of their age, do they still have to pay taxes on the property once they leave? They are not planning to sell the property. It may stay vacant or tenants may live there, but they do not plan to sell it.

James L. Arrasmith
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answered on Jan 22, 2024

In Alabama, property taxes are typically due on all properties, regardless of whether they are fully paid off or whether the owner lives in them. However, there are certain exemptions based on age, disability, and income level that can reduce or eliminate the property tax liability for eligible... View More

2 Answers | Asked in Tax Law for Alabama on
Q: Is it illegal to not report rental income and not report any taxes ?

If someone says a place of residence is their primary residence but is not, and they are exempt from paying taxes on the property because of their age, is it illegal to have tenants on said property , take cash for rent, and not report it to the IRS. ? Is there anyway that this is legal? Does it... View More

T. Augustus Claus
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answered on Jan 18, 2024

It is illegal to not report rental income and taxes to the IRS. Regardless of someone's age or property tax exemptions, rental income must be reported as part of one's annual tax obligations. Providing false information about the primary residence and failing to report rental income may... View More

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1 Answer | Asked in Tax Law for Alabama on
Q: I have a tax question

My question is a 2 part question

I have a CD that matures on January 1st, 2025

2 questions...

1) so do I then pay taxes on the interest on April 15th of 2024, or on April 15th of 2025?

2) also I'm NOT having the Interest paid out to me, I'm keeping the... View More

James L. Arrasmith
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answered on Jan 12, 2024

For your Certificate of Deposit (CD) that matures on January 1st, 2025, the timing of tax liability on the interest it earns depends on the type of CD and the method used for tax reporting by the financial institution.

1) Generally, for most CDs, you are required to pay taxes on the...
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1 Answer | Asked in Tax Law for Alabama on
Q: My question is a 2 part question I have a CD that matures on January 1st, 2025 2 questions...

My question is a 2 part question

I have a CD that matures on January 1st, 2025

2 questions...

1) so do I then pay taxes on the interest on April 15th of 2024, or on April 15th of 2025?

2) also I'm NOT having the Interest paid out to me, I'm keeping the... View More

James L. Arrasmith
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answered on Jan 12, 2024

For your Certificate of Deposit (CD) that matures on January 1st, 2025, understanding when to pay taxes on the interest it earns is important for your tax planning.

1) Generally, you are required to pay taxes on the interest earned from a CD in the year it is accrued, not when the CD...
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1 Answer | Asked in Tax Law for Alabama on
Q: I have been staying at an extended stay hotel for six months . How do I go about getting my taxes refunded to me
James L. Arrasmith
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answered on Dec 25, 2023

In many states, guests who stay in a hotel for an extended period – typically 30 days or more – may be exempt from certain taxes, like occupancy or hotel taxes. Since you have been staying at an extended stay hotel for six months, you may qualify for such an exemption.

To start the...
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1 Answer | Asked in Tax Law and Probate for Alabama on
Q: A lien was placed on the estate for unpaid taxes of my deceased parent , what should I do?

How do I protect my family’s estate?

James L. Arrasmith
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answered on Dec 25, 2023

When dealing with a lien placed on an estate due to unpaid taxes of a deceased parent, the first step is to understand the extent of the debt. You should obtain a detailed statement of the tax owed, including any penalties and interest. This information is crucial for assessing the situation... View More

1 Answer | Asked in Tax Law, Banking and Collections for Alabama on
Q: is there any way to get a bank levy lowered? I cant pay any bills with the amount they are taking
Linda Simmons Campbell
Linda Simmons Campbell
answered on Dec 13, 2023

Possibly. We would need additional information to give you an answer. Most of us offer a free consultation and are happy to answer questions over the phone.

2 Answers | Asked in Estate Planning, Real Estate Law and Tax Law for Alabama on
Q: What tax/fees/costs are associated with inheriting a piece of property? It's less than 10 million and in AL.

My mom thinks that she has to do some weird legal workaround so that when we inherit her property we won't have to lose a ton of money on inheritance. I've researched as much as I can but she's not convinced. I've looked at AL and federal tax laws and can't find anything... View More

James Blount Griffin
James Blount Griffin
answered on Jul 4, 2023

Your mother may be worried about inheritance taxes, which are taxes on what you inherit. Fortunately, there are no federal inheritance taxes, and, just as well, there are no Alabama inheritance taxes. She will not pay taxes on what she inherits (unless, perhaps, she moves quickly to New Jersey,... View More

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1 Answer | Asked in Tax Law for Alabama on
Q: I have property tax questions

the property sold in 2020, 2021, and now for 2022. I am wondering if I have 3 years to buy it back from the earliest sale? or from the most recent sale?

James L. Arrasmith
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answered on May 7, 2023

The 3-year redemption period starts from the date of the most recent sale.

1 Answer | Asked in Tax Law for Alabama on
Q: Can a lawyer subpoena tax records from the accountant who prepares the joint returns for my estranged husband & me?

My husband & I are estranged; & filing joint tax returns while we await our final divorce hearing. Multiple times my husband & his divorce attorney have demanded I sign the final page of returns for which no tax worksheets were ever provided. Recently I discovered on my online IRS... View More

Lilia  Alcaraz
Lilia Alcaraz
answered on Jan 9, 2023

You may request your previously filed tax returns, along with all attachments by filing Form 4506, Request for Copy of Tax Return with the IRS. You may find the form here:

https://www.irs.gov/taxtopics/tc156

Also, you may request them by phone by calling the IRS at 800-908-9946....
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1 Answer | Asked in Tax Law and Real Estate Law for Alabama on
Q: I have a tax lien on a property where the landowner has died. Would I be able to take possession of the vacant property?
William Vann Burkett
William Vann Burkett
answered on Nov 21, 2022

Tax liens can be handled in various ways throughout the State of Alabama. Because I do not know the county or city that you are in I cannot tell you which set of rules that your lien follows. It is very possible that you have a right to possession after purchasing the property at a tax sale but it... View More

1 Answer | Asked in Employment Law, Immigration Law and Tax Law for Alabama on
Q: I am an international PhD student on an F1 visa, and I have a SSN, and I would like to work for Uber. Can I?
Carl Shusterman
Carl Shusterman
answered on Aug 2, 2022

No, F-1 students are not permitted to work for Uber.

Please see https://www.shusterman.com/f1-visas-students/

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