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.

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.

Experienced tax pro here with a detailed breakdown. The 971 code is just one piece of the puzzle. You really need to look at the whole transcript to understand whats happening. Common reasons for 971: - Identity verification needed - Income verification - Dependent verification - Math error corrections - General processing delays Honestly, the best way to know exactly what's happening is to use taxr.ai - it analyzes your whole transcript and gives you a clear timeline. Saves everyone time instead of guessing. I recommend it to all my clients now.

Same thing happened to me last month! Got the 971 code and was panicking thinking something was wrong. Turns out it was just a simple verification letter asking me to confirm my identity online. Took like 5 minutes to complete and then my refund processed within 3 weeks. Don't stress too much - the majority of 971 notices are routine stuff, not anything serious. Just keep checking your mail and transcript regularly!

ugh the IRS is such a mess this year. my return has been stuck since january smh

I've been dealing with IRS transcripts for years and these codes are actually pretty routine. The 570 just means they're taking a closer look at something on your return - could be as simple as verifying your identity or checking if your withholdings match what employers reported. The 971 notice will tell you exactly what they need. In most cases, you don't need to do anything unless the notice specifically asks for documentation. Try not to stress too much, the majority of these holds get released automatically once their systems finish cross-checking everything.