Pennsylvania Tax Law Questions & Answers

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

1 Answer | Asked in Family Law and Tax Law for Pennsylvania on
Answered on Mar 19, 2019
D. Mathew Blackburn's answer
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 idea to discuss this with the other individuals on the mortgage who make payments so you don't over or under deduct the applicable amount.

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

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Feb 27, 2019
D. Mathew Blackburn's answer
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.

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

1 Answer | Asked in Collections and Tax Law for Pennsylvania on
Answered on Feb 20, 2019
Linda Simmons Campbell's answer
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 area but the taxpayer advocate will probably be quicker.

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?

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Feb 12, 2019
D. Mathew Blackburn's answer
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.

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

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Feb 4, 2019
Peter N. Munsing's answer
Generally, malpractice settlements are not taxable.

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

1 Answer | Asked in Bankruptcy, Tax Law, Collections and Gov & Administrative Law for Pennsylvania on
Answered on Jan 30, 2019
Timothy Denison's answer
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.

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

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Jan 25, 2019
Cary B. Hall's answer
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 that.

Best of luck to you.

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?

1 Answer | Asked in Tax Law and Child Support for Pennsylvania on
Answered on Jan 4, 2019
Kathryn Hilbush's answer
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 but I say talk to your Domestic Relations Office to see if they's assist you. In some counties, they'll freeze bank accounts if the arrears are high enough, even with the additional 10% being paid...

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

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Oct 28, 2018
Peter N. Munsing's answer
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.

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

3 Answers | Asked in Tax Law and Insurance Bad Faith for Pennsylvania on
Answered on Sep 9, 2018
Elizabeth Tarasi's answer
Yes they should. Ask them to pay taxes and transfer associated charges. If the car was financed the lien holder will be paid directly.

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?

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Aug 7, 2018
Frank Huerta Jr's answer
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 that case you would sue your employer.

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.

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Aug 1, 2018
Peter N. Munsing's answer
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.

Q: Student Loan Question

1 Answer | Asked in Tax Law and Collections for Pennsylvania on
Answered on Jul 25, 2018
Peter N. Munsing's answer
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 them, you save the envelope.

You send it you make a copy.

1. Whoever asks you for money--and you may run into "debt servicers " like AES or National Collegiate Trust--very often has...

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

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Jul 19, 2018
Linda Simmons Campbell's answer
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 be their only option.

Q: A friend's daughter passed and I would like to set up a fund, using interest annually to donate in her name.

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Jun 24, 2018
Peter N. Munsing's answer
Generally no, but it has to be clear who the fund is for and it really makes sense for a non-profit tax attorney to look at that and advise you.

Q: My mom died 6 and my sister lived with her. She had a reverse mortgage. I am estrange. Will I be made to pay her debts.

2 Answers | Asked in Real Estate Law and Tax Law for Pennsylvania on
Answered on Jun 24, 2018
Elizabeth Tarasi's answer
Generally no unless you signed an agreement to pay her mortgage or debts.

Q: My husband and I bought a large tract of land in PA. It encompasses 2 buildable parcels.

1 Answer | Asked in Real Estate Law and Tax Law for Pennsylvania on
Answered on Jun 18, 2018
Elizabeth Tarasi's answer
You can transfer the parcels to your son.

Q: Woman sells property, paid taxes, wishes to divide proceeds, do children owe tax on that

1 Answer | Asked in Tax Law for Pennsylvania on
Answered on Jun 9, 2018
Eric Steven Day's answer
If she is simply gifting the proceeds to the children they would not have to pay tax on the proceeds. If her name was on the deed and she paid the taxes associated with the sale, she can distribute when she feels. She may however have to file another tax return if the gifted amount is more than $14,000 each child.

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