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Pennsylvania Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Pennsylvania on
Q: Do I have to pay PA state tax on a lump sum life insurance pay out?
Peter N. Munsing
Peter N. Munsing answered on Feb 12, 2020

Generally no.

2 Answers | Asked in Tax Law for Pennsylvania on
Q: Hello Could you please let me know on debt forgiveness as reates to the irs.

Original debt forgiveness was 10000.Paid a third party debt collector 3000.So does that reduce the debt forgiveness in the irs view to 7000? As income

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Feb 10, 2020

As a general rule, all debt forgive is taxable income.

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1 Answer | Asked in Tax Law for Pennsylvania on
Q: I paid for child care and they refuse to give me the papers I need to file this on my tax return. How can they do this?

How can I get this from Punkin Patch Childcare?

Andrew M Steiger
Andrew M Steiger answered on Feb 4, 2020

Don’t let the companies failure deter you. Present them with a W-10 and ask for that info. If the company refuses, file a claim for the credit with the info that you have and attach an explanation to your return to document your request for the missing info. The IRS may deny the credit at... Read more »

1 Answer | Asked in Estate Planning and Tax Law for Pennsylvania on
Q: My mother died in PA with no assets in PA. Her estate is in a trust in Virginia. Does PA inheritance tax apply?

(i) Her permanent address was in PA for the last three years. (ii) Assets were bank account, stocks, and bonds. No real estate. (iii) Revocable trust domiciled in Virginia.

Michael Cherewka
Michael Cherewka answered on Jan 29, 2020

This question has too many unknowns at this point to answer in this short space. The three biggest questions are: (i) in what state was mom domiciled (her intended permanent residence) at the time of her death (just because she died in PA does not necessarily mean she was a resident here); and... Read more »

3 Answers | Asked in Real Estate Law and Tax Law for Pennsylvania on
Q: My deceased husband inherited property in Green County, PA. I think I am the heir. Would I be liable for any debts?

I do not how to proceed. The property is 300+ acres.

Elizabeth Tarasi
Elizabeth Tarasi answered on Jan 17, 2020

You could be. I need to know more about the matter. Please feel free to call me 412-391-7135 or email me emt@tarasilaw.com

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2 Answers | Asked in Real Estate Law and Tax Law for Pennsylvania on
Q: My grandfather and I have jointly owned a property in PA for the last 2 year he just passed away will I owe taxes..

My grandfather and I have jointly owned a property in PA for the last 2 years. He passed away this year and the

property transferred solely in my name. Is there any kind of tax I will have to pay when I sell it. The land was purchased for 18k and we rebuilt the property form the ground up.... Read more »

Elizabeth Tarasi
Elizabeth Tarasi answered on Dec 27, 2019

You might be subject to a capital gains tax. I would consult with an accountant.

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1 Answer | Asked in Tax Law for Pennsylvania on
Q: My house was auctioned by the state for property taxes . Do I get the amount over what was owed?
Bruce Alexander Minnick
Bruce Alexander Minnick answered on Oct 16, 2019

No. You lost it when the person who bid the highest at the auction. You could (should) have bid on it yourself.

2 Answers | Asked in Tax Law for Pennsylvania on
Q: I got a 10 day notice for public tax sale dated 8/19/19 I dident see it till now which is 9/6/19 what can I do.

we were going to pay the 450 that we owed for 2017 but I lost my job is there any way I can get back on a payment plan or do I have to sell my car?hopfully by the 12th at 4pm.thanks none helped me but my house is safe a buddy sent me money so it didn't go up for auction.

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Sep 11, 2019

You may be able to "get back on a payment plan" but not by asking lawyers here on Justia. Call the organization that conducted the tax sale.

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1 Answer | Asked in Tax Law for Pennsylvania on
Q: Do I need to pay taxes on a $265 settlement from the results a AP&G class action suit?

The check is made out to my now closed LLC.

D. Mathew Blackburn
D. Mathew Blackburn answered on Aug 13, 2019

You'll have to review the settlement documents to see what the settlement was for. Some items are taxed and some are not.

3 Answers | Asked in Land Use & Zoning, Real Estate Law and Tax Law for Pennsylvania on
Q: My grandmother died and left her land to her children they have not paid land tax for 5 years do I have rights if I pay

The land was willed to her children who are not paying the land is still in my grandmothers name

Elizabeth Tarasi
Elizabeth Tarasi answered on Aug 12, 2019

No. If you are not one of her children you do not have any rights.

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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
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
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
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
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
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
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
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
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
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
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.

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