Don't forget to consider state taxes too! Federal treatment is one thing, but states can be weird about divorce settlements.

I just want to echo what others have said about getting the wording right in your divorce decree - this is absolutely critical! I went through a similar situation two years ago where my ex withdrew from his 401(k) to pay me as part of our settlement. The key thing that saved me from tax headaches was having our lawyer include very specific language that this was "an equalization of marital property" and not spousal support. We also had to include a statement that the withdrawal and any associated taxes/penalties were solely my ex-husband's responsibility. One thing I'd add that I learned the hard way - make sure you get a copy of the 1099-R that your ex will receive from his IRA custodian showing the withdrawal. You don't need to report it on your taxes, but having that documentation helps if the IRS ever questions where the settlement money came from. My tax preparer said it's good to keep with your divorce papers as backup documentation. Also, since you're in Texas (lucky you with no state income tax!), you shouldn't have any state-level complications, but definitely confirm this with your divorce attorney. The federal treatment should be straightforward - no taxes for you as long as it's properly documented as property division.

Has anyone else noticed that churches are seeing lower donations because of the standard deduction changes? Our pastor mentioned that giving is down about 15% since the tax law changed, and he thinks it's because fewer people itemize now.

You're absolutely right that the higher standard deduction has changed the donation game significantly! I went through the exact same realization a couple years ago. The policy does seem to discourage smaller charitable giving, which is unfortunate. One thing I discovered is that even if you're not getting tax benefits from donations, keeping some basic records can still be worthwhile. If your financial situation changes (job loss, major medical expenses, etc.), you might find yourself in a position where itemizing makes sense again. Also, some states have different rules than federal - my state still gives charitable deduction benefits even when I take the federal standard deduction. The bunching strategy mentioned earlier really works though. I now alternate years - donate $8,000-10,000 every other year instead of $4,000-5,000 annually. Combined with my mortgage interest and property taxes, I can itemize in those heavy donation years and save real money. It requires a bit more planning but the tax savings make it worth it.

As someone who's dealt with high property taxes for years, I appreciate everyone sharing legitimate alternatives here. The church scheme definitely sounds too risky after reading all these responses from tax professionals. I'm curious about the agricultural exemption @Sofia Torres mentioned - do you know what the minimum acreage requirements typically are? I have about 2 acres and have been thinking about starting a small farm operation, but wasn't sure if that would be enough to qualify for ag status. Also really interested in the energy efficiency tax breaks @Dylan Wright mentioned. Are those federal programs or do they vary by state/locality? My house is older and could definitely use some energy upgrades, so if I could get tax benefits while improving efficiency, that sounds like a win-win approach compared to questionable schemes.

CPA here with 15+ years experience in tax planning. I want to emphasize what others have said - the church scheme you're describing would almost certainly be classified as tax evasion, not tax avoidance. The IRS has very specific "hobby loss" and "economic substance" tests that would easily catch this arrangement. However, I'm seeing some great legitimate suggestions in this thread. One strategy not mentioned yet is looking into conservation easements if you have significant land. If you can permanently protect part of your property from development (wetlands, forests, farmland), you may qualify for substantial tax deductions while still living on and using the property. Also, many homeowners don't realize they can request an informal review of their property assessment before filing a formal appeal. I've helped clients save thousands just by pointing out assessment errors like incorrect square footage, outdated comparable sales, or failure to account for property damage/depreciation. The key is working within the system rather than trying to game it. The potential savings from legitimate strategies, while maybe not as dramatic as your church idea, come without the risk of penalties, interest, and possible criminal charges.

I went through this exact scenario during the 2020 tax year with the pandemic unemployment. The key factor is determining which tax year the unemployment compensation was received. When I filed my amended return (Form 1040-X), I had to include Schedule 1 (Additional Income and Adjustments to Income) where unemployment is reported on Line 7. The process took approximately 20 weeks for the IRS to process my amended return, and I received an additional tax bill of $1,842 due to the unemployment income plus a small penalty for underpayment.

Just to clarify the timeline for everyone who might be confused - unemployment compensation follows a simple rule: report it in the tax year you actually received the payments, not when you filed your return. So if you got unemployment anytime from January 1, 2023 through December 31, 2023, it belongs on your 2023 tax return (even if you file that return in 2024). If you already filed your 2023 return without including 2023 unemployment benefits, you'll need to file Form 1040-X to amend. But if your unemployment started in 2024, you're all set - just include it on next year's return. The 1099-G form you receive will show exactly which year the benefits were paid, so that's your definitive guide.

Has anyone tried using the "V" codes to modify a TXF file directly? I'm trying to fix a few transactions without reconverting the entire file. Which text editor works best for editing TXF files without corrupting the format?

Great thread! I've been dealing with this exact issue. One thing I want to add for anyone using these CSV to TXF converters - make sure to check if your brokerage provides a "tax export" option that might already be in a format closer to what TurboTax expects. I spent hours trying to convert my Schwab CSV exports until I realized they have a dedicated tax document export that includes all the proper cost basis adjustments and wash sale calculations already built in. It's usually under the "Tax Center" or "Tax Documents" section of your account. Also, if you're dealing with RSUs or ESPP transactions, those often need special handling in the TXF format that basic converters might not account for. The V-codes for these are different from regular stock transactions and need to reference your W-2 data properly.