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Maryland Tax Law Questions & Answers
1 Answer | Asked in Tax Law, Business Law and White Collar Crime for Maryland on
Q: Can I rectify an unintentional fraudulent mistake on past tax returns?

I moved out of the US and file my own taxes and just realized I've been filing my taxes incorrectly the past couple of years and fear that if the IRS finds out, I'll be charged with a felony. I thought I had to file based on where I practice business (I still work remotely for US clients) and not... Read more »

Mark Oakley
Mark Oakley answered on Feb 28, 2018

Criminal or civil fraud requires knowledge of the fraud and intentional conduct to perpetrate the fraud, so honest mistake is a complete defense. Stop worrying. Hire a CPA to review your past returns and file any corrected or amended returns for the affected years, as necessary. Any penalties or... Read more »

2 Answers | Asked in Tax Law and Probate for Maryland on
Q: Is the sale of an after death inheritance homeTaxable to the siblings that benefited from the gift?

2006, Maryland, mother died, left home to 2 daughters, paid in full owner, now they want to sell in 2018. Not sure how this $ will be taxed

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Feb 27, 2018

There are at least 5 different taxes that can come into play when someone dies and transfers property. These include inheritance tax, estate/gift tax, income taxes and transfer/recordation taxes.

In Maryland, property going to a child does not have state inheritance tax. State and...
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1 Answer | Asked in Tax Law and Real Estate Law for Maryland on
Q: I received cash for keys last year. I got a 1099 from lender w/a chk in box 3. Do I have to claim this on my taxes?

I filed for bankruptcy in 2009. Last year BofA worked out cash for keys so I could move out of the house. This year I received a 1099 with a check mark in box 3. Do I have to claim this on my taxes? Are there any precedents that homeowners do not have to claim this as income?

Richard Sternberg
Richard Sternberg answered on Feb 23, 2018

Income is "Income from any source." If the income could be a settlement for a foreclosure, you might treat it was a return of equity. Consult your tax advisor. But, if this was the normal cash for keys, and you were a tenant, it is income.

1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: How long after 2017-2018 unpaid taxes due can your lien be auctioned My taxes are due 3/1/18. Not sure what to do.
Richard Sternberg
Richard Sternberg answered on Feb 17, 2018

Get a tax lawyer, and not one of those shady, dishonest fix-your-debt thieves who advertise on TV, and work out a payment plan with the IRS. The IRS tiger turns into a pussycat when you work out a plan for paying off back taxes. They will often eliminate crippling penalties and just leave the... Read more »

1 Answer | Asked in Consumer Law and Tax Law for Maryland on
Q: I have past due federal student loans and past due IRS taxes. What is the maximum garnishment total % from my SSN check?

I have read both student loans and IRS taxes can garnish up to 15%. With both debts does that mean they can deduct 30% total?

Mark Oakley
Mark Oakley answered on Feb 17, 2018

No more than 15% of social security income may be garnished at a time from all creditors who are legally allowed to garnish such income. So, that’s the limit. Both past due federal taxes and federal student loans can be collected in this way. Both debts are possible to be discharged in... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: Can I claim siblings on tax return...?

I received approval from MD state for Kinship care authorization after losing both our parents. Given that the surviving parent also passed at the beginning of May of the tax year, and I ended up caring for my minor siblings for greater than 50% of the tax year (with documented proof and receipts),... Read more »

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Feb 6, 2018

I am sorry to hear of your loss.

Most estates do not need to file an estate tax return. An estate tax return is different than an individual tax return. The person who died does typically have a final 1040 income tax return filed in the year they died (which may or may not have...
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1 Answer | Asked in Tax Law for Maryland on
Q: If I worked a total of 3 jobs in 2017 Can I only input 1 W2 then file an amended return after I receive the return?

I worked at a total of 3 jobs in 2017 at one job I filed exempt from withholding and when I enter only the information of the W-2 where I claimed exempt from withholding it says I will get a return, but when I enter all 3 jobs it says I owe money. My question is Can I legally only enter the W-2... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Feb 2, 2018

If you intentionally file an incorrect return you are committing tax fraud.

1 Answer | Asked in Tax Law for Maryland on
Q: Maryland Income Tax Law regarding Social Security income. I understand that any amount received over $44,000 is taxable

85% of the excess amount is taxable income. I received a large back pay amount from my disability case.

I usually file my taxes married filing jointly using turbo tax.With my SS and my spouses SS benefits our income amount is over 100K for 2017.

Should I file married filing... Read more »

Linda Simmons Campbell
Linda Simmons Campbell answered on Jan 31, 2018

I would have an accountant prepare your returns for this tax year. They can determine the best way to file your taxes. If you end up owing taxes that you cannot pay, filing separately would make you solely responsible and your wife would not have to worry about the IRS coming after her for your... Read more »

1 Answer | Asked in Immigration Law and Tax Law for Maryland on
Q: I moved here from Canada on a visa, can the US take money from my paycheck? Besides regular Fed/State taxes?

How and why are they allowed to take more money? Each day I should make $280, with them taking out extra I only bring home $104 per day. That's alot of money to take. How can I support my family with them taking so much. I have a degree and it's basically for nothing now.

Hector E. Quiroga
Hector E. Quiroga answered on Jan 25, 2018

Your best bet would be to contact a tax professional to see what exactly is being taken out of your paycheck. Just because you are here on a visa should have no bearing on what is taken out.

1 Answer | Asked in Family Law, Tax Law and Child Custody for Maryland on
Q: My 13yr old son lived with me from 11/16-7/17 (court ordered) Can I claim him on my taxes this year? His mom refuses to

allow me too. She says she is the custodial parent, but at the time, I was. He went to school while living with me as well. I'm in MD.

Linda Simmons Campbell
Linda Simmons Campbell answered on Jan 24, 2018

If there is not an agreement in place then generally the parent that has the child for more than 6 months can claim the child.

1 Answer | Asked in Tax Law for Maryland on
Q: If an EU citizen works for an EU company - paid to their EU bank - while living in the US, do they have to pay US taxes?

I'm a US citizen, but my wife is from the EU. We are moving back to the US, but she wants to keep her job from an EU company and work for them from home in the US. Does she have to pay US taxes? The money is going from a foreign company to a foreign bank, in €, and to a foreign citizen. Nothing... Read more »

Michelle D. Wynn
Michelle D. Wynn answered on Jan 9, 2018

If your wife is going to be in the US for enough of the year that she is treated as a US tax resident (which can be based solely on time spent in the country rather than citizenship) then she would need to declare her EU income on a US tax return. In addition, she would be subject to US income tax... Read more »

2 Answers | Asked in Real Estate Law and Tax Law for Maryland on
Q: Real Estate Tax Question

Mother in law wants to sell us a home, the cost of the home would be $50K, she has owned the home for 27 years and has used the home as a rental for about 20 years. She owes $21K on the mortgage, if we get a mortgage against the home for $50K, would she have to pay taxes on the $29K she will get... Read more »

Richard Sternberg
Richard Sternberg answered on Jan 5, 2018

You should consult a tax advisor and not a lawyer for this question, but the answer you will probably get is that: "If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint... Read more »

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1 Answer | Asked in Tax Law, Business Formation and Business Law for Maryland on
Q: I'm starting a small business. Should I pay my business taxes using a business ID number or through my personal SS#? TY
Cedulie Renee Laumann
Cedulie Renee Laumann answered on Dec 29, 2017

It depends on the nature of the business and what type of "business taxes."

A sole proprietor who files on a Schedule C and has no employees may elect to use their own social security number for their estimated tax payments, but most small businesses would benefit from forming an entity and...
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1 Answer | Asked in Real Estate Law and Tax Law for Maryland on
Q: I am donating a house to a non-profit organization. What documents do I need for the IRS besides Form 8283?

And is the full appraised value tax deductible?

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Nov 21, 2017

A donor may need to get a qualified appraisal of the property. The instructions to Form 8283 give more details. Determining entitlement to a deduction in a particular case will be quite fact-specific and is best raised with your accountant or tax professional.

1 Answer | Asked in Estate Planning, Elder Law and Tax Law for Maryland on
Q: My mom wants to sign over her house to me & then she will come to live with me. Will I have to pay capital gains

My objective, is to NOT have her go into a nursing home if it comes to that point, but to have a day nurse come into my home.

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Nov 1, 2017

Capital gain is calculated and paid when a home is sold for profit, not when it is transferred without consideration. To figure out your potential capital gains liability you would need to talk to an accountant or tax professional and know the basis in the property and the anticipated future sale... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: Does lawyer get back more or less money from filed taxes, if?

For several months lawyer didn't give me back my retainer until after lawyer filed taxes.

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Sep 28, 2017

Monies in escrow should have absolutely no bearing on an attorney's tax liability. A retainer should be held in a lawyer's escrow account and not be withdrawn until earned. Once money is earned, it becomes income subject to tax. Any unearned portion should be refunded when the attorney/client... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: I'm starting a small delivery business, drivers will be independent contractors, what tax forms should I file under?
Cedulie Renee Laumann
Cedulie Renee Laumann answered on Sep 28, 2017

First, businesses should be very sure that any independent contractors are truly independent. This is an area where the IRS seeks verification that the independent contractors are not mis-classified employees. If they are correctly classified, then they would receive a 1099 at the end of the tax... Read more »

1 Answer | Asked in Tax Law for Maryland on
Q: Can I write checks from my mothers and my bank account for 2 siblings to get a 1/3 after her death and who pays tax?

My mother passed away last week. There is a bank account with about $150,000 that is in my mothers name and my name. Can I write checks to my 2 siblings for 1/3 of that amount and will they/we have to pay any tax?

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Sep 28, 2017

Generally speaking, how a bank account will be disbursed will depend on how the account was titled. If, for instance, an account is titled as tenants in common, then a portion (typically 1/2) will need to go through an estate while the remaining portion would not. On the other hand, bank accounts... Read more »

1 Answer | Asked in Estate Planning, Family Law, Tax Law and Real Estate Law for Maryland on
Q: if an adult child has been living in dead fathers home and never changed over title and now its up for tax sale

as one of the grandkids what can i do if i want to pay off debt? more importantly would the city leave the house in my grandfathers name even knowing hes deceased. i dont want to put so much money into the property and it not be mine or for my uncle to than make an issue or try to claim it

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Sep 18, 2017

The city (or county) does not change title, so unless the family opened up an estate the title would remain in the deceased person's name.

Anybody can redeem the property before the tax sale foreclosure case awards judgment to the tax sale purchaser. As you point out, however, paying...
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1 Answer | Asked in Tax Law for Maryland on
Q: If I received approx. $52,000 from the sale of a house that I lived in for 8 years, do I have to claim it on my tax ret?

I read on the Internet that you do not have to claim the money if you live in the house for at least two years and that you don't have to pay capital gains taxes on as much as $250,000 for a single sale or up to $500,000 for a couple as long as the home was your primary residence and you lived... Read more »

Cedulie Renee Laumann
Cedulie Renee Laumann answered on Sep 18, 2017

Your question asks about capital gains. Generally speaking, under IRS rules, if you live in a home as your principal residence for 2 of the 5 years before you sold it, the first $250,000 of gain may be excluded from income. The IRS' website has a detailed publication on the topic of capital gains... Read more »

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