James Lange’s Answers

James Lange

Pittsburgh Tax Lawyer.

Contributor Level 4
  1. Can I receive a tax return

    Answered over 1 year ago.

    1. Paula Brown Sinclair
    2. James Lange
    3. Ingrid Arnalda Morfa
    3 lawyer answers

    The previous answers mentioned the Earned Income Credit (refundable) and the Child Tax Credit (generally nonrefundable, but with a refundable portion in some circumstances). Here, “refundable” means that you can get back as a refund more than any tax you owed, so if you owed none, you are getting a payment from the government. “Nonrefundable” means that the credit can only reduce tax that you owed. I'm not an expert in these credits but it appears that the refundable part of the Child Tax...

    3 lawyers agreed with this answer

  2. My husband did his taxes 2 months ago, I told him not to claim me, but he did anyway. Hes on a H1V, does that mean anything?

    Answered over 1 year ago.

    1. James Lange
    2. Stuart Mitchell Roseman
    2 lawyer answers

    From a tax compliance standpoint, your husband’s visa type is only significant in that it shows that he is allowed to work in the US. Whether he would be required to file as a nonresident alien, resident alien or dual status alien would depend on details you haven’t provided. If he filed as a nonresident alien or dual status alien, he would have to file as “married, filing separately”. He would still have to report your name and social security number, but your signature wouldn’t be needed....

    3 lawyers agreed with this answer

  3. Inherited IRA? Who owns the proceeds from IRA, owner assets, the Estate, or the Beneficiary? A question of timing.

    Answered over 1 year ago.

    1. James Lange
    2. Pierson W. Backes
    3. Matthew Erik Johnson
    3 lawyer answers

    As already mentioned, an initial step is to consider the terms of the agreement under which the IRA was established, both for the method utilized to make the change (fax) and the point at which the change became effective. If, under the terms of the agreement, the change was effective before death, the proceeds are an asset of the estate, in the form of a receivable on the date of death and in the form of cash when they were later paid. Both the decedent and the estate are cash basis tax...

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  4. Is there such a thing as an estate account, under an individuals name,on behalf of the estate?

    Answered over 1 year ago.

    1. John B. Whalen Jr.
    2. Steven M Zelinger
    3. James Lange
    3 lawyer answers

    An IRA on which you were named as the beneficiary on the beneficiary designation form completed by the IRA owner is not a probate asset; that is, it doesn’t pass through the IRA owner’s estate, it passes directly to you (although its value is subject to PA Inheritance Tax). You, as the beneficiary, then had certain options, one of which was to withdraw the money in the account (and pay the income tax on it, if it was a traditional IRA, as it presumably was, since you mention having been taxed...

    2 lawyers agreed with this answer

  5. Wrong 1099 misc refusal to reissue

    Answered over 1 year ago.

    1. James Lange
    2. Travis Wayne Story
    2 lawyer answers

    As long as you provided all of the necessary information to the employer, and you report all of your income on your income tax returns, you don't have a problem. The recipient of the erroneous 1099 misc has the problem. Because the IRS matches information submitted to them by employers with information reported on tax returns, if the recipient doesn't report the income, eventually he or she will get a notice. That person should contact the employer to request the issuance of a corrected 1099...

    1 lawyer agreed with this answer

  6. I just learned that my wife and I owe approx $7000 federal income tax. Someone told me that there might even be a penalty. Is th

    Answered over 1 year ago.

    1. James Lange
    2. Colleen Mary Henes
    2 lawyer answers

    There are several penalties that could be imposed: the first to come to mind are a late payment penalty, a penalty for underpayment of estimated tax, and an accuracy related penalty for substantial understatement of tax. You can expect interest to also be charged for late payment. There could also be a penalty on the IRA distribution if it was "early", without an exception. Some penalties can be negotiated down/away. Others can't. I agree with the other attorney who responded that you...

    1 lawyer agreed with this answer

  7. My brother died and left his insurance policy to his daughter who is a minor. Never married her mother. Difficult breakup.

    Answered over 1 year ago.

    1. James Lange
    2. Ruth Elaine McMahon
    3. James P. Frederick
    3 lawyer answers

    Because the named beneficiary is a minor, the terms of the life insurance policy should be reviewed to determine to whom distribution will be made. For instance, the policy may require distribution to be made to a custodian under a state Uniform Transfers (or Gifts) to Minors Act. The holder of the insurance proceeds is unlikely to have the discretion to use them as you would like.

    1 lawyer agreed with this answer

  8. Do I need to pay inheritance tax on a property owned by my father and I if he passes away?

    Answered over 1 year ago.

    1. John B. Whalen Jr.
    2. Michael T Millar
    3. James Lange
    4. Matthew Erik Johnson
    4 lawyer answers

    Yes, PA Inheritance Tax will be due on the share which he owned that is passing to you. This is so, whether you purchase the property as joint tenants with right of survivorship (that is, each of you owns an undivided interest in the whole property, and when one of you passes away, the other automatically becomes the sole owner of the whole property) or tenants in common (each of you owns a fractional interest, the distribution of which will be governed by the Will when one of you passes away)....

    1 lawyer agreed with this answer

  9. SEP IRA Contributions Allocation

    Answered over 1 year ago.

    1. James Lange
    2. James J. Ruggiero Jr.
    3. Matthew Erik Johnson
    3 lawyer answers

    Your question has several facets. I too think that you need professional assistance to help you sort this out. I would suggest a CPA or tax attorney because this is an Internal Revenue Code dominated area. You need to clarify the nature of your business and how you are reporting for it for income tax purposes. You say that both spouses are owners. Consider whether you are reporting for the business correctly. It may be reportable as a partnership or as a qualified joint venture. It is...

  10. My husband and I have been separated for about 6 mo . And getting divorced . Does he have to give me half of our tax return ?

    Answered over 1 year ago.

    1. Randi Joy Silverman
    2. Stewart C Crawford Jr.
    3. James Lange
    4. Linda Simmons Campbell
    4 lawyer answers

    I think what you may mean is, you are expecting that when your 2012 tax return is filed, there will be a refund, and you are asking if half of it is yours. Even if it is, I think you will have difficulty getting control of it. As you describe your situation, he has all of the power. If he files the return electronically and has the refund deposited directly into a bank account of his choosing, there won't even be a refund check to be endorsed. I think the best approach is to follow the...