Best Tax Lawyers Erie, PA

Erie, PA Tax FAQs

• Where does the Tax Court hold trial sessions closest to Erie, Pennsylvania?

  The trial court in Pittsburgh is the closest to Erie. It is in Room 1108, Moorhead Federal Building, 1000 Liberty Avenue (15222).

• Where is the low-income taxpayer clinic that is closest to Erie, Pennsylvania?

  Southwestern PA Legal Services serves low-income taxpayers in Erie and is found at 10 West Cherry Avenue, Washington, PA 15301. The phone and fax numbers are 1-800-846-0871 and 724-250-1078, respectively.

• What is better for reducing income taxes in Erie: itemized deductions or the standard deduction?

  For reducing income taxes in Erie, it is preferable to use itemized deductions if the overall value of one's deductibles outweighs the standard deduction. Expenses that qualify for itemized deductions include charitable donations, real estate mortgage interest, dental and medical expenses, and state and local taxes. However, the deductions are subject to legal limitations. For example, there is a $10,000 cap on itemized deduction for state and local taxes.

• In Erie, is the income from dividends subject to ordinary income tax?

  In Erie, whether dividends are liable to an income tax depends on the type of dividends. Income from qualifying dividends is subject to income tax but not the ordinary income tax. The revenue sums are paid using the same rate as that for income from capital gains. For ordinary dividends, the rate applied is that for the regular income tax.

• If religious organizations are exempt from paying income taxes, can you just establish your own church to minimize tax dues in Erie?

  The law applicable in Erie may protect religious organizations from taxation, but it does not allow for the establishment of false religions that have no real creed or place of worship. This law considers this a fraudulent course of action that counts as tax evasion. Criminal prosecution is a possibility.

• What is the difference between tax evasion and avoidance in Erie?

  In Erie, tax avoidance is the legal act of minimizing taxes using the provisions and loopholes in the law, like when a taxpayer uses exclusions from income and exemptions to reduce the amount owed to the government. Tax evasion is illegal and involves the willful and fraudulent intent to pay less than the law intends, such as when a person fails to file a return or submits one with false entries.

• Why is it advantageous tax-wise in Erie to give away gifts while alive instead of distributing everything by will?

  It is advantageous in Erie tax-wise to use gifts instead of inheritances because the former has more generous provisions. There are generally more exemptions for gifts and donations in the form of annual and lifetime limits than inheritances. The law encourages testators to exercise generosity while alive instead of waiting for death.