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Pennsylvania Tax Law Questions & Answers

3 Answers | Asked in Tax Law for Pennsylvania on

Q: Residence outside US , neither taxes paid nor pension collected, senior with handicap Can i return without arrest?

Can i reclaim pension and find pro bono help? I am 76 , alone, and have no earnings, I left in 2007

Bruce Alexander Minnick answered on May 31, 2019

Assuming everything you say will stand the bright lights of the IRS/FBI/Treasury background checks, you do not sound like a candidate for a suite at the Grey Bar Hotel. However, you may still have to deal with paying some hefty portion of the total amount of taxes, penalties and interest accrued... Read more »

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1 Answer | Asked in Tax Law for Pennsylvania on

Q: Can a hearing officer in PA for support give a child tax credit when irs laws say I am the custodian parent.

Can a hearing officer in PA give a child tax credit to the noncustody person that makes less than I and our settlement agreement says that i get both tax credits and make me sign the 8222 form.

Bruce Alexander Minnick answered on May 4, 2019

Regardless of who earns what, and regardless of what the settlement agreement says, the IRS gets to determine who is entitled to the child tax credit. So if the hearing officer in PA is affiliated with the IRS, the answer is yes.

1 Answer | Asked in International Law and Tax Law for Pennsylvania on

Q: I live in PA and getting 22k international cash inheritance (London). Do I need pay inheritance tax? Declare with IRS?

I was contacted by the Ward Gethin Archer law firm in London England that I received a 22k inheritance from a distant family member. Turns out its legit as my uncle and two cousins opened a new bank account and threw a few hundred in and each received the same amount of money evenly. They gave... Read more »

Bruce Alexander Minnick answered on Apr 15, 2019

As they say at the opera, "It ain't over until it is over." They also say "If it sounds too good to be true, it probably isn't."

So, rather than worry about whether or not to "declare with the IRS" right now, and rather than worry about whether you will have to "pay inheritance tax" you...
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1 Answer | Asked in Divorce and Tax Law for Pennsylvania on

Q: Is my alimony taxable in PA on my 2018 tax return. Thank you

Kathryn Hilbush answered on Mar 23, 2019

It is for your 2018 return and may not be in 2019 as well. Consult with an accountant or attorney familiar with the tax law changes and have him/her review the agreement/order awarding alimony.

2 Answers | Asked in Family Law and Tax Law for Pennsylvania on

Q: I pay child support and mortgage support in PA. How much can I itemize on taxes of the marital home?

She currently resides in the home and I pay child support and mortgage support. How much can I take of the marital home deductions since it’s in my name also? Doesn’t the child support cover housing expense too.

D. Mathew Blackburn answered on Mar 19, 2019

Child support is not deductible regardless of what its spent on.

I've never heard of mortgage support before, but there's no deduction for it.

If you mean that you pay the mortgage directly to the bank then you can deduct the interest for the amount you pay on Sch A. It's a good...
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1 Answer | Asked in Tax Law for Pennsylvania on

Q: I had over 10K dollars in discharged credit card debt this year? Is that counted as income that is taxed in PA?

I settled all my credit card debt by reaching agreements with the credit card companies. I settled my debt for about 50 percent. I paid off the balances that were not discharged. Is the discharged debt taxed as income?

D. Mathew Blackburn answered on Feb 27, 2019

Yes, discharged debt is reported on Form 1099-C and is taxable to the recipient. There is an exemption for insolvency but you'd have to run the worksheets from IRS.gov.

1 Answer | Asked in Collections and Tax Law for Pennsylvania on

Q: Need him to collect the IRS refund for Deceased husband.

Hello, My sister is a senior citizen. she has been trying to collect her deceased husbands IRS refund check for tax year 2017 since it was filed in 2018. She has contacted the IRS on numerous occasions and has been given several different instructions on how to get this accomplished. she has... Read more »

Linda Simmons Campbell answered on Feb 20, 2019

I suggest that she call the Taxpayer Advocate in her area. She can look up the number at the following link

https://www.irs.gov/advocate/local-taxpayer-advocate

They will help her submit the correct paperwork. If that does not work she can try a low income taxpayer clinic in her...
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1 Answer | Asked in Tax Law for Pennsylvania on

Q: My employer paid me under the table for 3 years. I left on bad terms this past year and he sent me a 1099. What to do?

I worked 3.5 years there. I was on payroll for the first half year and resigned. He hired me back under the table. There is a seperation of employment form in my employee folder from 2015 stating I no longer worked there and am not eligible for rehire. I was sent a 1099 for 2018 only, not 2017 or... Read more »

D. Mathew Blackburn answered on Feb 12, 2019

First, don't publicly post to a forum how you're committing tax evasion and tax fraud.

Second, pull together all your expenses related to the job and fill out a Schedule C for 2018.

1 Answer | Asked in Tax Law for Pennsylvania on

Q: Is using legal malpractice settlement money to pay off bank to save our home taxable?

Attorney’s poor advice and direction put us in a situation that we will lose our home plus need to pay another bank additional money. So is the total amount of our settlement taxable or only a portion? If only a portion what part?

Peter N. Munsing answered on Feb 4, 2019

Generally, malpractice settlements are not taxable.

1 Answer | Asked in Bankruptcy, Tax Law, Collections and Gov & Administrative Law for Pennsylvania on

Q: PA-What's the Tax Penalty % for "Early W/Draw" of a Pension Plan? Also with "E W/D" can the IRS claim $ owed 4 yrs prior

My husband is currently disabled and we have had no income now for months. Until he can get any kind of help we have to pay to get our prior taxes done for his corporation (he no longer has - due to not being able to walk anymore); before we can do our personal taxes.

The only way to... Read more »

Timothy Denison answered on Jan 30, 2019

The penalty varies from plan to plan. You can check with the plan administrator to determine exact amount. It is unlikely that the IRS is even aware of the pension plan, do very doubtful that they will be able to seize money.

1 Answer | Asked in Tax Law for Pennsylvania on

Q: If ex wife doesn’t work and gets remarried can she still claim child on her spouses tax return .

She gets to claim child on odd years and I still pay child support to her

Cary B. Hall answered on Jan 25, 2019

Your ex-wife's employment (or lack of it) and/or remarriage isn't relevant. What matters is any agreement about who gets to claim the kid for tax purposes. If there's no agreement, then the parent with primary physical custody gets to claim the child. If there *is* an agreement, then you follow... Read more »

1 Answer | Asked in Tax Law and Child Support for Pennsylvania on

Q: I thought I already asked this. Sorry if it's a repeat. Is there a way to hold someone accountable to file their taxes?

My ex has not filed his taxes the last few years. I am assuming it is because he has child support arrears he knows will be collected from it. He has worked- several different jobs (I'm usually notified of wage attachments and terminations) so he has enough income to file.

Kathryn Hilbush answered on Jan 4, 2019

If he's not current on his support obligation, you should definitely take him back to court for failure to comply/contempt. If he's paying his support every month, and he's also paying at least an additional 10% of the order to reduce the arrears, it may be more difficult to get any where in court... Read more »

1 Answer | Asked in Real Estate Law and Tax Law for Pennsylvania on

Q: Can and how and for what reason can a decree be overturned after 4months if the decree was not against me but someone

If there was a decree entered for a debt against someone can that decree stand if I'm the new owner of said property because decree is against previous owner

Elizabeth Tarasi answered on Dec 19, 2018

The judgment against the company will stand.

1 Answer | Asked in Tax Law for Pennsylvania on

Q: I left a company in Indiana in 1984 with 8 years of service and moved to PA. I qualified for their pension plan.

Two years ago, they offered me the choice to start receiving reduced monthly pension payments earlier, which I accepted. I was almost 60 at that time. I am still working for a different company. Are those pension payment taxable for Pennsylvania? My tax return program did not flag this, but I am... Read more »

Peter N. Munsing answered on Oct 28, 2018

You need to speak with a tax attorney who handles Pennsylvania issues. I can recommend Kelly Erb. Tell her I gave you her name. You will have to pay for the consult. A good Pennsylvania CPA would be another thought.

3 Answers | Asked in Tax Law and Insurance Bad Faith for Pennsylvania on

Q: Accident in NC, from PA. The accident was both parties fault. My 3 WEEK SUV totaled. Does insurance pay Taxes on new car

27 Pennsylvania Bulletin 306131; Pa. Code § 62.3 (E)(4) states “A total loss is settled based upon the pre-loss fair market value of the damaged vehicle plus the state sales tax on the cost of a replacement vehicle.” My brand new 2018 Honda CR-V 1,800 miles 3 week old was totaled. Insurance... Read more »

Elizabeth Tarasi answered on Sep 9, 2018

Yes they should. Ask them to pay taxes and transfer associated charges. If the car was financed the lien holder will be paid directly.

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1 Answer | Asked in Tax Law for Pennsylvania on

Q: I work in PA and my employer who is out of state failed to withhold and pay local taxes for all of 2017. Are the liable?

Even with PA tax act 32?

Frank Huerta Jr answered on Aug 7, 2018

Unfortunately you are liable for your tax liability if there was not enough withholding. The government holds the taxpayer responsible to review their checks for the proper withholding amount. It would be a different story if they took your withholding and did not forward it to the government, in... Read more »

1 Answer | Asked in Tax Law for Pennsylvania on

Q: If I'm disabled and have back property taxes is there any way to stop them from selling it so I don't lose my home.

Peter N. Munsing answered on Aug 1, 2018

Generally if you agree to a lien for the amount they may withold. Most entities have regulations allowing you to ask for an exception. You may have some protection as a disabled person--call your state representative; also call the county disability rights advocate.

1 Answer | Asked in Tax Law and Collections for Pennsylvania on

Q: Student Loan Question

My wife had a student loan through HSBC, cosigned by her grandmother (now deceased). At some point this loan was sold to a lawyers office. Said lawyers office claims that HSBC owns the loan and HSBC claims the lawyers do. Are we legally liable for this debt since we don't know who owns it?

Peter N. Munsing answered on Jul 25, 2018

Your wife is obligated to the holder in due course of the note. You want to make sure you keep a log with date, time, identity of the person you speak with, and generally conduct things via snail mail. Yes hard copy and stamps. You save a copy of everything you get.

You get something from...
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1 Answer | Asked in Tax Law for Pennsylvania on

Q: My mother in-law and father in-law have delinquent property taxes due now. Do we have any options.

He was self employed, so they have very little income

Linda Simmons Campbell answered on Jul 19, 2018

They can try to work out a payment arrangement with their town. If the taxes are more than a year old and no liens have been filed, they may be able to declare bankruptcy. If the town has already filed liens then the liens will stay even if they declare bankruptcy and a payment arrangement will... Read more »

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