Oklahoma Tax Law Questions & Answers
Q: Mom died last year the deed was quit claimed to my sister to sell and split 3 ways shouldn't this be an inheritance
Doak Willis' answer
The fair market value is determined by an appraisal or by relying upon a Realtor you can trust to set the price to ask when selling the house. When the proceeds of the property are split between the heirs, they will each pay tax on their amount they received. Since there was no probate no estate taxes would be due and unless the estate was huge, no estate taxes would be due anyway. If the property was quit claimed prior to death, it would not be an inheritance.
The fair market value is determined by an appraisal or by relying upon a Realtor you can trust to set the price to ask when selling the house. When the proceeds of the property are split between the heirs, they will each pay tax on their amount they received. Since there was no probate no estate taxes would be due and unless the estate was huge, no estate taxes would be due anyway. If the property was quit claimed prior to death, it would not be an inheritance.
Q: I pay at least 98% support for grandson n daughter. Can I claim my grandson on income tax?
Reece B. Morrel Jr's answer
According to the IRS, you can claim someone as a dependent if you provide for more than half of their support. But, this rule can be modified if there is a divorce decree or some other governing document.
Assuming that you meet the requirements, I should warn you that it gets more complicated the 2018 tax year. We no longer keep track of how many personal exemptions we get for each person (i.e. the taxpayer, spouse, and dependents). This got changed in December 2017.
But, it is...
According to the IRS, you can claim someone as a dependent if you provide for more than half of their support. But, this rule can be modified if there is a divorce decree or some other governing document.
Assuming that you meet the requirements, I should warn you that it gets more complicated the 2018 tax year. We no longer keep track of how many personal exemptions we get for each person (i.e. the taxpayer, spouse, and dependents). This got changed in December 2017.
But, it is...
Q: If I live in TX and telecommute for a company in OK as a 1099 contractor, am I responsible for OK income tax?
Reece B. Morrel Jr's answer
Congratulations, you have landed on a real "hot-button" topic - especially when Oklahoma is suffering from a budget crisis.
To be honest, I really need more facts to be able to advise you properly.
But let me give you something to consider. The statute-of-limitations starts to run when the tax return is filed. If a return is never filed, the statute-of-limitations never starts. So, if no return has been filed then the state of Oklahoma can assess tax, interest, penalties...
Congratulations, you have landed on a real "hot-button" topic - especially when Oklahoma is suffering from a budget crisis.
To be honest, I really need more facts to be able to advise you properly.
But let me give you something to consider. The statute-of-limitations starts to run when the tax return is filed. If a return is never filed, the statute-of-limitations never starts. So, if no return has been filed then the state of Oklahoma can assess tax, interest, penalties...
Q: My wife has a tax question. Per her divorce decree her and her ex are supposed to alternate years claiming their son.
Reece B. Morrel Jr's answer
I have worked on several of these cases in the past. Usually, the Judges do a fairly good job of making their instructions clear. If not, the Judge gets to see the case again. Not something they are anxious to do.
If it is not clear, I would have your wife's lawyer contact the ex-husband's lawyer to 1.) clarify or 2.) agree to a schedule. If the ex-husband fails to cooperate and insists on claiming the son every year, then it may be worthwhile to have a conversation with your wife's...
I have worked on several of these cases in the past. Usually, the Judges do a fairly good job of making their instructions clear. If not, the Judge gets to see the case again. Not something they are anxious to do.
If it is not clear, I would have your wife's lawyer contact the ex-husband's lawyer to 1.) clarify or 2.) agree to a schedule. If the ex-husband fails to cooperate and insists on claiming the son every year, then it may be worthwhile to have a conversation with your wife's...
Q: Company makes us file as independent contractor but we’re employees. Is there an anonymous way to report them?
1 Answer
| Asked
in
Employment Law, Tax Law and Business Law
for
Oklahoma
on
Answered on Aug 20, 2018
Answered on Aug 20, 2018
Reece B. Morrel Jr's answer
Welcome to the murky waters of employee vs. independent contractor.
Part of the problem is that you have several agencies - both federal and state - with overlapping jurisdiction.
In Oklahoma, you have the IRS, the OTC and the OESC just to name a few.
Not only that, but a decision by the IRS is not binding on the OTC and OESC, and vice versa. In other words, there is not a central agency that gets to make the decision, and make the decision binding on everyone else....
Welcome to the murky waters of employee vs. independent contractor.
Part of the problem is that you have several agencies - both federal and state - with overlapping jurisdiction.
In Oklahoma, you have the IRS, the OTC and the OESC just to name a few.
Not only that, but a decision by the IRS is not binding on the OTC and OESC, and vice versa. In other words, there is not a central agency that gets to make the decision, and make the decision binding on everyone else....
Q: I live in Oklahoma and am trying to give someone power of attorney for me. How can I do this?
Richard Winblad's answer
Be very careful. I have lots of folks who walk in with an online power of attorney. I estimate that about 20% have serious errors. These may be drafting, witnessing, signing, and creating unworkable situations. Most attorneys will provide service on a flat fee basis or may provide you with the documents and instructions.
What about advanced healthcare directives?
Things can be done to avoid probate even without a will or a trust.
Be very careful. I have lots of folks who walk in with an online power of attorney. I estimate that about 20% have serious errors. These may be drafting, witnessing, signing, and creating unworkable situations. Most attorneys will provide service on a flat fee basis or may provide you with the documents and instructions.
What about advanced healthcare directives?
Things can be done to avoid probate even without a will or a trust.
Q: How were medical deductions changed with the most recent tax laws?
Eric Steven Day's answer
Qualified medical expenses that are part of the deduction will remain the same under the new law. For 2018, you will be able to deduct expenses exceeding 7.5% of your AGI. Therefore, if your AGI is $100,000 you will be able to deduct all medical expenses that exceed $7,500. Anything under that amount will be non deductible. In 2019, that number will increase to 10%.
Qualified medical expenses that are part of the deduction will remain the same under the new law. For 2018, you will be able to deduct expenses exceeding 7.5% of your AGI. Therefore, if your AGI is $100,000 you will be able to deduct all medical expenses that exceed $7,500. Anything under that amount will be non deductible. In 2019, that number will increase to 10%.
Q: IS THERE A TAX LAW THAT TAKES HALF OF THE 25,000 RT OFF THE TOP THAT I HAD BEEN AWARDED BECAUSE OF AN ACCIDENT THE PERSO
1 Answer
| Asked
in
Tax Law, Contracts, DUI / DWI and Personal Injury
for
Oklahoma
on
Answered on Jun 25, 2018
Answered on Jun 25, 2018
Reece B. Morrel Jr's answer
With the limited facts you have given, it is hard to determine what is going on - but, I am suspicious.
First of all, it is common to have taxes "withheld" in a variety of transactions. These can include withdrawals from retirement accounts, winnings from slot machines, etc. And as an example, it is common for retirement withdrawals to include Federal withholding of approximately 30% and State withholding to be around 10% - which is less than the 50% you described.
Secondly,...
With the limited facts you have given, it is hard to determine what is going on - but, I am suspicious.
First of all, it is common to have taxes "withheld" in a variety of transactions. These can include withdrawals from retirement accounts, winnings from slot machines, etc. And as an example, it is common for retirement withdrawals to include Federal withholding of approximately 30% and State withholding to be around 10% - which is less than the 50% you described.
Secondly,...
Q: My divorce lawyer told me the adultry law had been repealed in the state of Oklahoma so is this accurate?
1 Answer
| Asked
in
Banking, Civil Litigation, Divorce and Tax Law
for
Oklahoma
on
Answered on Mar 9, 2018
Answered on Mar 9, 2018
Gary Johnston Dean's answer
Sorry, but adultery is still a felony in Oklahoma, punishable by up to a $500 fine and/or 5 years. See 21 OK Statutes § 871. Most District Attorneys are not interested in prosecuting these cases however. They're already overloaded with more serious crimes.
You should see your lawyer about the taxes. Was the refund addressed in your decree? You can also contact IRS about not signing the check, or the bank where deposited if you know what account it went into. I think that you're...
Sorry, but adultery is still a felony in Oklahoma, punishable by up to a $500 fine and/or 5 years. See 21 OK Statutes § 871. Most District Attorneys are not interested in prosecuting these cases however. They're already overloaded with more serious crimes.
You should see your lawyer about the taxes. Was the refund addressed in your decree? You can also contact IRS about not signing the check, or the bank where deposited if you know what account it went into. I think that you're...
Q: In the state of Oklahoma, how many cars can I sell as a private seller before I need to have a business license?
Richard Winblad's answer
This might help:
Oklahoma Statutes
Title 47. Motor Vehicles Chapter 62A - Used Motor Vehicle and Parts Dealers
Section 581 - Definitions
19. a. "Used motor vehicle dealer" means any person who, for a commission or with intent to make a profit or gain of money or other thing of value, sells, brokers, exchanges, rents with option to purchase, or offers or attempts to negotiate a sale or exchange of an interest in used motor vehicles, or who is engaged wholly or in...
This might help:
Oklahoma Statutes
Title 47. Motor Vehicles Chapter 62A - Used Motor Vehicle and Parts Dealers
Section 581 - Definitions
19. a. "Used motor vehicle dealer" means any person who, for a commission or with intent to make a profit or gain of money or other thing of value, sells, brokers, exchanges, rents with option to purchase, or offers or attempts to negotiate a sale or exchange of an interest in used motor vehicles, or who is engaged wholly or in...
Q: I inherited 40,000.00 in a life insurance policy... do I have to pay taxes on it?
Linda Simmons Campbell's answer
Generally if you are the beneficiary of a life insurance poicy the funds are nontaxable. You do need to pay taxes on any interest that you receive.
Generally if you are the beneficiary of a life insurance poicy the funds are nontaxable. You do need to pay taxes on any interest that you receive.
Q: My ex has been claiming my son on taxes but he is no longer paying child support and he is 19. Can I claim him now?
Gary Johnston Dean's answer
Yes, you should, if you contribute over 50% of his support. But in an abundance of caution, check with a tax professional
Please visit my website www.garyjdean.com and Subscribe for updates on Oklahoma Law.
Yes, you should, if you contribute over 50% of his support. But in an abundance of caution, check with a tax professional
Please visit my website www.garyjdean.com and Subscribe for updates on Oklahoma Law.
Q: I have a $105000 federal tax lien on my credit report that is non collectible , how can I go about getting this removed
Michelle D. Wynn's answer
It depends on why you are saying the lien is non-collectible. If it is past the statute of limitations for collection, the lien will usually have expired and it will remain on your credit report as a historical bad debt item until it ages off. If you are referring to the more likely reason, that you have had your tax debt placed into "Currently Not Collectible" status, then the lien is still a valid federal tax lien (you still owe the money) and will remain on your credit report as a debt even...
It depends on why you are saying the lien is non-collectible. If it is past the statute of limitations for collection, the lien will usually have expired and it will remain on your credit report as a historical bad debt item until it ages off. If you are referring to the more likely reason, that you have had your tax debt placed into "Currently Not Collectible" status, then the lien is still a valid federal tax lien (you still owe the money) and will remain on your credit report as a debt even...
Q: I have paid for years of delinquent taxes on property can I get the property
Richard Winblad's answer
That depends. You might have a claim for adverse possession if you have occupied it for 15 years. Paying taxes, in itself, does not bestow title upon you. I'm guessing that the property belonged to a family member. You may need to file probate to clear the title.
That depends. You might have a claim for adverse possession if you have occupied it for 15 years. Paying taxes, in itself, does not bestow title upon you. I'm guessing that the property belonged to a family member. You may need to file probate to clear the title.
Q: Claiming another child on my taxes will Dhs take the money I get for him/her for back child support for my other kids?
Gary Johnston Dean's answer
Claiming an additional child will lower your taxes, and create greater refund, helping get more back support paid.
Not claiming means you pay more taxes. Best bet is to claim the child. Good Luck!
Please visit my website at https://GaryJDean.com, and Subscribe on Home Page, to get law updates. Thanks
Claiming an additional child will lower your taxes, and create greater refund, helping get more back support paid.
Not claiming means you pay more taxes. Best bet is to claim the child. Good Luck!
Please visit my website at https://GaryJDean.com, and Subscribe on Home Page, to get law updates. Thanks
Q: How much power does a state have to regulate and tax and/or collect revenue from Tribal Casino's?
Robert Donald Gifford II's answer
The general rule is none, however each tribe enters into a "compact" with the state and the details of that compact govern any monies paid to state coffers.
The general rule is none, however each tribe enters into a "compact" with the state and the details of that compact govern any monies paid to state coffers.
Q: Where can i find irs rules/laws concerning employee pre tax purchasing of vacation time to be used during the year
Howard Berkson's answer
You can always check the IRS website at http://www.irs.gov However, it can be difficult to navigate the complex rules or find the right document without guidance. You should consult with a certified public accountant (CPA) or an attorney who practices tax law.
You can always check the IRS website at http://www.irs.gov However, it can be difficult to navigate the complex rules or find the right document without guidance. You should consult with a certified public accountant (CPA) or an attorney who practices tax law.
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