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Indiana Tax Law Questions & Answers
1 Answer | Asked in Foreclosure, Real Estate Law, Tax Law and Probate for Indiana on
Q: is there a limit on the amount of fee that can be charged to the owner of a tax sale property when claiming the surplus

by a third party/bounty hunter company?

James L. Arrasmith
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answered on Apr 18, 2024

The laws regarding tax sale property surplus funds and the fees that third-party companies can charge for assisting owners in claiming those funds vary by state and jurisdiction. Many states do have limits on the fees that can be charged, but the specifics differ.

For example:

1. In...
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1 Answer | Asked in Tax Law for Indiana on
Q: College daughter's permanent address is IN; she earned income in IL. How does she get credit for taxes paid in IL?

Although my daughter's permanent address is in IN, she lived at college and worked in IL all year. Her W-2 forms indicate IL state taxes withheld and she is filing an IL non-resident tax form. She did not earn any money in IN. Why is she being taxed by IN?

James L. Arrasmith
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answered on Apr 7, 2024

Based on the information provided, it seems your daughter's tax situation is as follows:

1. She is a permanent resident of Indiana (IN) for tax purposes.

2. She earned income in Illinois (IL) while attending college there.

3. Her W-2 forms show that Illinois state taxes...
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1 Answer | Asked in Tax Law for Indiana on
Q: Can my girlfriend's mom still claim her on her taxes even if we get married this year? Girlfriend is 23.

Girlfriend is unemployed and hasn't worked a job ever if that helps in anyway.

James L. Arrasmith
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answered on Mar 2, 2024

No, if your girlfriend gets married in 2023, her mother will no longer be able to claim her as a dependent on her tax return.

Once a person is married, they cannot be claimed as a dependent by another taxpayer, regardless of age, student status, or amount earned. The IRS rules state that a...
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1 Answer | Asked in Tax Law for Indiana on
Q: can someone on the behalf of former owner submit an application for tax deed surplus funds return to owner?

if not does it require business or a lawyer to do so

James L. Arrasmith
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answered on Feb 28, 2024

In Indiana, the process for claiming tax deed surplus funds is guided by specific legal regulations. Generally, the original owner or their legal representative has the right to submit an application for the return of surplus funds. This means that an individual, on behalf of the former owner, can... View More

1 Answer | Asked in Tax Law, Family Law, Child Custody and Child Support for Indiana on
Q: Claiming kids on taxes.

When child support was established, we also signed an agreement with the prosecutor saying that we take turns every year claiming the kids on taxes as long as I am a certain percentage caught up on my child support, and if I’m not, then I’m not able to claim them that year. So earlier in the... View More

James L. Arrasmith
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answered on Feb 25, 2024

Based on the agreement you signed with the prosecutor, you still need to meet the requirement of being caught up a certain percentage on child support in order to claim the children on taxes, even though your ex has temporarily stopped the formal child support order.

The key factors here...
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1 Answer | Asked in Tax Law for Indiana on
Q: My daughter was killed in MVA 10/3/23, granddaughter is 3, dad isnt in pic, how do I file her taxes
James L. Arrasmith
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answered on Jan 26, 2024

I'm truly sorry to hear about your loss. In terms of filing taxes for your granddaughter, there are a few key points to consider. First, if you have legally adopted your granddaughter or are her legal guardian, you may be able to claim her as a dependent on your tax return. This depends on... View More

1 Answer | Asked in Tax Law for Indiana on
Q: My student loan was forgiven in 2023 under IDR adjustment. Effective date was 2017. Will IN still tax it?

F. Student Loan Debt Discharge

Under Section 9675 of the American Rescue Plan Act of 2021, student loans discharged

between Jan. 1, 2021, and Dec. 31, 2024, inclusive, are excluded from federal gross income

under IRC § 108(f)(5). Under IC 6-3-1-3.5(a)(30), student loans... View More

James L. Arrasmith
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answered on Jan 22, 2024

Regarding your student loan forgiveness in Indiana under the IDR (Income-Driven Repayment) adjustment, it's important to understand how state tax laws apply. The American Rescue Plan Act of 2021 exempts forgiven student loans from federal income tax between January 1, 2021, and December 31,... View More

1 Answer | Asked in Family Law, Social Security and Tax Law for Indiana on
Q: For a single person on disability, would they be able to claim a child on taxes and get more than what they put in?

Going through a divorce and wondering if the amount could change for someone on disability if they claimed 1 vs 3 kids on their tax return.

How is this split best handled when custody is split evenly?

James L. Arrasmith
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answered on Jan 7, 2024

For a single person on disability, the ability to claim a child on taxes and potentially receive more in tax benefits than what they put in depends on several factors. These include their income level, the amount of Social Security Disability Income (SSDI) or Supplemental Security Income (SSI) they... View More

1 Answer | Asked in Contracts, Real Estate Law, Tax Law and Business Law for Indiana on
Q: The correct entity name to be registered with SOS Indiana

For asset protection and Tax minimisation purposes, for rental properties in Indiana that is owned by a Series LLC (ie. Example LLC - Scenario Series) formed in Texas, should the full series entity name (ie. Example LLC - Scenario Series) be registered with Secretary of State Indiana for foreign... View More

James L. Arrasmith
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answered on Jan 3, 2024

In your case, dealing with a Texas Series LLC owning rental properties in Indiana, the registration with the Indiana Secretary of State (SOS) requires careful consideration. The Series LLC structure is unique in that it allows for separate series or cells within a single LLC, each with its own... View More

1 Answer | Asked in Tax Law for Indiana on
Q: If I file taxes and pay the amount that I agreed to in 2023, file W-4 exemption for 2024, and not “file” 2024 taxes Febr

If I file taxes and pay the amount that I agreed to in 2023, file W-4 exemption for 2024, and not “file” 2024 taxes February 2025. Will there be consequences and if so what would they be . Is the IRS and federal government legally allowed to require me to pay income taxes if I claim W-4 exempt.

James L. Arrasmith
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answered on Dec 25, 2023

Claiming exemption on your W-4 form for 2024 means that no federal income tax will be withheld from your paycheck for that year. However, this does not exempt you from the legal obligation to file a tax return if your income exceeds the IRS filing threshold.

If you choose not to file your...
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1 Answer | Asked in Real Estate Law, Tax Law and Landlord - Tenant for Indiana on
Q: Do I have to report "income" on real estate payment received only to cover the mortgage from current tenants?

Father's exwife owns the property. People that live in the house pay him, not her, directly the monthly amount to cover the mortgage payment on the property and nothing more. Is this considered "rental income" and should it be reported to the IRS? If so, who's taxes should it... View More

James L. Arrasmith
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answered on Dec 25, 2023

In this scenario, the money received from tenants to cover the mortgage is typically considered rental income and should be reported to the IRS. The key factor isn't the amount received but rather the fact that payment is made for the use of the property.

As for whose taxes it should...
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1 Answer | Asked in Contracts, Employment Law and Tax Law for Indiana on
Q: when bringing on a new hire is ADHD a disabled status?

Part of the pre application questionnaire, does the hire fall under disabled

T. Augustus Claus
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answered on Nov 2, 2023

Yes, ADHD is a disability under the Americans with Disabilities Act (ADA). The ADA defines a disability as a physical or mental impairment substantially limiting one or more major life activities.

If the hire indicates that they have a disability, you are then required to provide reasonable...
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1 Answer | Asked in Personal Injury and Tax Law for Indiana on
Q: How can I find names of attorneys in Indiana who will flie a lawsuit against an accountant (CPA)?

Accountant failed to file proper tax papers, failed to file tax papers on time, resulting in costing me tax refunds.

T. Augustus Claus
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answered on Oct 9, 2023

To find attorneys in Indiana who specialize in cases against accountants, you can start with the Indiana State Bar Association's referral service. Additionally, websites like Martindale-Hubbell and Avvo offer directories and ratings for attorneys, helping you identify those with expertise in... View More

1 Answer | Asked in Tax Law for Indiana on
Q: Tax lien sale Indiana, a property sells to bidder. Can the owner sell property during 1 year redemption period?

I am the buyer of tax lien certificate. Can original owner sell the property during one year redemption period? And pay taxes at closing.

James L. Arrasmith
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answered on Sep 14, 2023

In Indiana, the property owner generally has a one-year redemption period during which they can pay the delinquent taxes and associated costs to reclaim their property. During this period, the owner typically retains the right to sell the property, but any sale would need to address the outstanding... View More

1 Answer | Asked in Employment Law, Tax Law and Business Law for Indiana on
Q: Can volunteer bartenders working on behalf of a 501c3 accept tips from customers?

I work as a bar manager (as a paid employee) for a nonprofit 501c3 organization that hosts a theatre festival every summer. During the festival we have a handful of volunteer bartenders. We have run into an issue where the jars put out in the past have always been claimed by the organization as... View More

Matthew Morris
Matthew Morris
answered on Jul 3, 2023

You have an interesting question, and a full answer would require looking at individualized details of your organization and the people who are both working and volunteering for it. But here are some things that you might consider.

As you point out, the general rule is that tips left for an...
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1 Answer | Asked in Divorce and Tax Law for Indiana on
Q: my 20 year old son lives at my house full time, can I claim him on my taxes? What if is his mother also claims him?

when my ex-wife and I got divorced many years ago, we had joint custody and alternated years claiming him on our taxes. Now that he is older, he never stays at her house. I ask her if I could claim him again this year because he always stays and she says no. What happens if I claim him and... View More

James L. Arrasmith
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answered on Mar 4, 2023

If your son lives with you full time and you provide over half of his support, you may be able to claim him as a dependent on your tax return. However, if your ex-wife also claims him, the IRS will likely flag the returns and investigate the situation.

If you and your ex-wife cannot come to...
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1 Answer | Asked in Family Law, Tax Law, Civil Rights and Federal Crimes for Indiana on
Q: What's first step to prove that someone has power of attorney over me

I'm in fear for my life

Carli Jo Aelker
Carli Jo Aelker
answered on Nov 7, 2022

If you are wondering about the IRS, you can look online for third party authorizations on your IRS online portal or you can call and directly speak to a rep. via 1-800-829-1040.

1 Answer | Asked in Bankruptcy and Tax Law for Indiana on
Q: I just got my tax refund. I live in Indiana and am currently in bankruptcy. I spent some of the money.

I didn't show my trustee first. Will I be in trouble

Timothy Denison
Timothy Denison
answered on Feb 19, 2022

You should consult your bankruptcy attorney regarding the Indiana protocol for handling tax refunds

2 Answers | Asked in Tax Law, Business Formation, Business Law and Trademark for Indiana on
Q: Does an online apparel brand, w booth at local fairs need to register as a retail merchant? Or just add sales tax?

It will be sourced through print on demand, so I will not personally be fulfilling the orders, except at the occasional booth set up at a local fair/farmers market. The sales goal is greater than the threshold for collecting tax. It is a sole proprietorship. A trademark application will be... View More

Michael Ray Smith
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Michael Ray Smith
answered on Feb 2, 2022

Kudos for thinking about sales tax.

The business (whether a sole proprietor, LLC, corporation, however the business is organized and operated) needs to obtain a Registered Retail Merchant's Certificate to collect and remit sales tax. You will first need a tax ID for the business. If...
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1 Answer | Asked in Tax Law for Indiana on
Q: Who claims child for 2021 tax season?

Divorce final in May 2021. Decree states that the petitioner can claim in 2021 and odd years. Respondent can claim in 2022 and even years. My ex husband is fighting me on this even though I’ve tried explaining that I claim this year.

Linda Simmons Campbell
Linda Simmons Campbell
answered on Jan 22, 2022

The tax year is the year the taxes are due for and not the year they are filed in. So if the mother is awarded the odd years then they would be 2021, 2023, 2025 etc. In other words in 2022 you file for 2021 which is an odd year. You may have to get the lawyers or courts involved again if there... View More

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