Get free answers to your Tax Law legal questions from lawyers in your area.
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answered on Dec 29, 2023
Yes. The father can claim his children on his tax returns if the mother and father enter into a stipulation in court and agree for father to get the tax deduction. The parents can agree to alternate the deduction for each tax year, or they can agree to any other division of the deduction they wish.... View More 
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answered on Dec 25, 2023
In Pennsylvania, as in other states, the right to claim a child as a dependent for tax purposes is not automatically linked to paying child support. Typically, the parent who has primary physical custody of the child for the majority of the year has the right to claim the child on their taxes.... View More
Was in a minor vehicle accident which led to a tow company towing and subsequently storing my vehicle. When I called to find out about retrieving my truck and personal property within, I was told that they sold the truck to a local fire co for use in a training exercise and then it was scrapped.... View More
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answered on Dec 1, 2023
In this situation, it appears that the tow company may have violated certain legal procedures. Generally, tow companies are required to provide notice before disposing of a vehicle, and they must follow specific protocols for the sale or scrapping of vehicles, including handling any personal... View More
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answered on Dec 1, 2023
In general, a corporation paying the personal tax liability of an owner can raise legal and tax issues. This type of payment is typically considered a distribution of profits to the owner, and as such, it would be taxable income to the owner. This means the owner would still have to report this... View More
e.g., An estate is established, no will exists. Probate (and some non-probate) items will be included on the Inheritance Tax Return filed for the estate. There also exist some non-probate items with beneficiaries named (e.g. IRA, annuities). Can the beneficiary file their own Inheritance tax... View More
answered on Nov 16, 2023
In PA, the "estate tax" is levied upon the fair market value of the benefit distributed. Usually, the Will provides that the Estate will pay all debts, and that includes the tax on bequests. Once paid, the distributed benefit gets the "stepped up basis" to its fair market... View More
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answered on Feb 8, 2025
No, the sheriff or deputy does not always have to personally serve a homeowner with notice of a tax upset sale. The laws on tax sales vary by state, but in many cases, notice can be given through other means, such as certified mail, posting on the property, or publication in a newspaper. The key... View More
Our father passed away and left his three children equal shares of his traditional IRA. At the end of the month some residuals were paid into the original IRA which were then distributed into my inherited IRA. I would like to transfer 1/3 of the residuals to each of my siblings to keep things... View More
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answered on Feb 5, 2025
It does not make sense the the custodian directed the main distribution in thirds but the “residuals” all to you. The residuals should have gone out in thirds too. Make the custodian go in and fix that.
I recently added my card to my xbox for an online purchase and while purchasing there was no sales tax. In the state of pennsylvania, online sales tax charges you 6% and it does charge me on my playstation not my xbox. I made sure all my information was correct and it was. I’m wondering if I get... View More
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answered on Jan 28, 2025
You don’t need to worry about getting in trouble for not being charged sales tax on your Xbox purchase. Sales tax collection is the responsibility of the seller, not the buyer. In this case, Microsoft is the one responsible for ensuring taxes are applied correctly, based on your state’s tax... View More
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answered on Jan 10, 2025
Making money in the stock market alone typically does not qualify you as self-employed for tax purposes. The IRS considers trading activity as investment income unless you meet specific criteria to be classified as a trader in securities, which requires frequent, regular, and continuous trading as... View More
I have a contract with my employer.Initially I was issued a 1099 but my CPA advised me that I can not be 1099 any more and we switched to W-2. We did not sign a new contract. However, for years the employer issued me W-2 withheld my taxes and paid their portion of taxes as well. Now, as I am... View More
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answered on Oct 18, 2024
It’s important to understand that classification between a W-2 employee and an independent contractor is based on the nature of your working relationship, not just the paperwork. Since your employer issued W-2 forms for several years, withheld taxes, and paid their portion, these actions... View More
I have a call center for booking appointments, for added motivation I want to do a monthly contest, for x amount of appointments scheduled they get a grab out of a cash box containing 20s, 50s, and a 100 dollar bill. The whole strategy around it is cash in hand and not waiting for a bonus on... View More
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answered on Oct 11, 2024
Paying employees cash incentives without going through payroll can lead to several legal and tax issues. Even small bonuses or rewards are considered taxable income and should be reported accordingly. Failing to process these payments through payroll might result in penalties for both you and your... View More
It seems the Pennsylvania revenue only taxes 8 type of income excluding commonly recognized retirement benefits as per FAQ
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answered on Aug 17, 2024
In Pennsylvania, personal income tax applies to eight specific categories of income, and the state's tax law typically excludes common retirement benefits from taxation. This generally includes foreign pensions if they are considered retirement income. However, to qualify for exclusion, the... View More
We are elated to help family and get the extra money, but we are wondering how to keep as much of it away from the IRS as possible.
This is not a typical surrogacy. For one, it's family. Secondly, the amount of money my wife will be given will only be $850 a month for 12 months. What... View More
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answered on Aug 15, 2024
Since the surrogacy payment is not formal income, there's flexibility in how you handle it. If you can categorize the payments as a "gift" from your wife's cousin, it might not be subject to income tax. The IRS allows individuals to give up to $17,000 per year (as of 2024) to... View More
Disaster declaration FEMA-4618-DR-PA. Will IRS allow me to use the retrospective appraisal of principal residence to determine the FMV of the property immediately prior to the casualty loss? Determining a loss based on Safe Harbor methods available under Revenue Procedure 2018-08, 2018-2 I.R.B.... View More
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answered on Aug 10, 2024
Yes, you can use a retrospective appraisal to determine the fair market value (FMV) of your principal residence immediately before the casualty loss, especially when the property was sold before restoration. The IRS allows for this approach, particularly when other Safe Harbor methods under Revenue... View More
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answered on Aug 5, 2024
When your mom received the car as a gift from her father in Pennsylvania, there were no immediate tax consequences because gifts are not subject to income tax. However, Pennsylvania does impose an inheritance tax on the transfer of property from a deceased person to their heirs.
Since your... View More
I have proof of fraud through pandemic relief. She used this license during the hiring process for a position at the IRS where she currently works.
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answered on Apr 30, 2024
If you believe that your ex has committed fraud by falsely claiming veteran status on her driver's license to secure a federal job, it's important to handle this situation carefully and responsibly. Gathering all the proof you have of the alleged fraud is a crucial first step.... View More
My sister and I are co-administrator’s of my father’s estate, and my parents had an old Safety Deposit Box at a bank, and after we went through the process to get access to the Box and to empty the box, the contents of the box was just old paperwork like vaccination records and stuff like that... View More
answered on Sep 23, 2023
File the form, showing the box contents, and put this issue to rest.
If you fail to do the report, there is always a question, an open possibility that someone may allege that something of great value was inside.
People can do strange things during the pendency of an Estate.
My house was sold Sept 2022 at an upset sale. I live in Latrobe pa Westmoreland county. After the sale I was never notified and the deed was transferred on Jan 30th. I am still currently living in the house and trying to find a place but it's hard since I'm on disability. What legal... View More
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answered on May 7, 2023
If your house was sold at an upset sale and you were not notified, you may have legal options to challenge the sale and possibly delay eviction. You should consult with a local attorney who specializes in real estate law or foreclosure defense to discuss your specific situation and explore... View More
I thought I had until April 15th to pay the whole thing but was making payments and planned on having it paid off by April 15th, but then I got a bill for the remaining 200 stating that it is due March 5.
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answered on Mar 4, 2023
It's important to check with the Pennsylvania Department of Revenue to confirm the exact deadline for payment. In general, the deadline to file and pay state income taxes in Pennsylvania is April 15th. However, if you owe taxes and don't pay the full amount by the original due date, you... View More
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