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Pennsylvania Tax Law Questions & Answers
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... View 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... View 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.

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
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,... View 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
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... View More

1 Answer | Asked in Real Estate Law, Tax Law and Business Law for Pennsylvania on
Q: If there was a decree entered for a debt against someone can that decree stand if I'm the new owner of said property
Elizabeth Tarasi
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answered on Dec 19, 2018

Yes

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
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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... View More

Peter N. Munsing
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... View More

Peter N. Munsing
Peter N. Munsing
answered on Sep 11, 2018

I'll double check that but generally they pay the taxes on the value of the damaged car.

Next question is their damage value. You need to look at your contract --if the insurance says market value was 27 and you purchased for 32 something odd there. Or does the 32 include the tax? If...
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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
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... View 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
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
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
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... View More

1 Answer | Asked in Tax Law for Pennsylvania on
Q: A friend's daughter passed and I would like to set up a fund, using interest annually to donate in her name.

Donations would go to a local rod & gun club to help sponsor a fishing derby. Would there be tax implications of the interest gained if it's 100% donated?

Peter N. Munsing
Peter N. Munsing
answered on Jun 24, 2018

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.

2 Answers | Asked in Real Estate Law and Tax Law for Pennsylvania on
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.

My sisters is on Medicaid and with small SSI-D benifit. My sister thinks she can stay in house also. My mom died 6 months ago and mortgage co wants her out or start paying. I am worried about taxes, creditors etc coming after me.

Elizabeth Tarasi
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answered on Jun 24, 2018

Generally no unless you signed an agreement to pay her mortgage or debts.

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1 Answer | Asked in Real Estate Law and Tax Law for Pennsylvania on
Q: My husband and I bought a large tract of land in PA. It encompasses 2 buildable parcels.

Can we "give/gift" one of the parcels to my child to build a home? It is currently deeded in mine and my husband's name.

Elizabeth Tarasi
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answered on Jun 18, 2018

You can transfer the parcels to your son.

1 Answer | Asked in Tax Law for Pennsylvania on
Q: Woman sells property, paid taxes, wishes to divide proceeds, do children owe tax on that
Eric  Day
Eric Day
answered on Jun 9, 2018

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... View More

1 Answer | Asked in Tax Law for Pennsylvania on
Q: Is it true that there is no federal tax on the sale of a personal residence lived in for more than 2 years?

Furthermore, what is the tax burden for the sale of a personal residence in PA?

Frank Huerta Jr
Frank Huerta Jr
answered on Apr 15, 2018

The Internal Revenue Code allows a 250000 exclusion (500000 for married filing jointly) of gain from the sale of your primary residence if you lived there for at least 2 of the 5 years prior to selling it.

State tax entities may vary the amount of the exclusion.

1 Answer | Asked in Tax Law for Pennsylvania on
Q: my question is I went to file my taxes and found out someone had claimed me as a dependent and don’t know what to do
Linda Simmons Campbell
Linda Simmons Campbell
answered on Apr 15, 2018

If the person that claimed you had the right to take you as a dependent as either a qualifying child or relative then there is nothing you can do. They do not need your permission to claim you. If you believe that someone claimed you that did not have the right to claim you, then you can file a... View More

1 Answer | Asked in Tax Law and Divorce for Pennsylvania on
Q: Can my ex claim property taxes?

Hi, I live in Pennsylvania and my ex-wife and I were divorced as of 12/27/2017. Therefore, I filed my 2017 taxes with the status of Single. We purchased a house in 2013 and got married soon after. We sold the house in June 2017 and split the profit since PA law required it. However, the house was... View More

Kathryn Hilbush
Kathryn Hilbush
answered on Apr 10, 2018

This issue should have been dealt within your settlement agreement. As it appears not to have been, there's no good way to resolve it unless you can agree on how to divide the taxes between you. Frequently people agree to divide them equally if both were employed during the year while they... View More

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