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1. Allocating the income while married is mandatory from Jan until date of divorce or legal separation- depending on state law. 2. No, the IRS follows property law, not specific wording of a divorce decree - unless it changes the income from community to separate. The buy-out does not change wages earned earlier in the year that were community income. If the decree is silent on tax allocation, it is default 50/50. 3. The withholding tax follows the income. You must also split the withholding 50/50. 4. The IRS  notification: Mail a physical letter to the address on your current return. It typically takes 6-18 months but could be longer before the IRS notices the mismatch and sends you a letter. The letter will show what the IRS has vs what you reported along with a proposed amount due. Mark that you disagree with the proposed changes Write a brief, easy to read - 5th grade level, letter explaining the discrepancy was caused by divorce in a community property state Include copies of:  form 8958, w2 These can usually be uploaded and always have fax and mail options. If you and your ex have matching form 8958, the IRS should process without an issue. Best wishes   References: Tax Tips for Community Property States Allocating Amounts on Form 8958

 Yes, there looks like there is an issue because if these were long-term rates, the tax rate should have been 20% on $28.797.  Here are some possible reasons why you were taxed more.   Short-Term vs. Long-Term: Double-check that these are truly coded as "Long-Term" in the software. If TurboTax treats them as Short-Term, they are taxed at ordinary income rates, which hit 37% once you cross  $15,650. $28k of ordinary trust income would easily generate an $8k+ tax bill.  Check each entry to ensure that they are all reported as long-term. 28% Rate Gain Assets: If the trust sold "collectibles" (like coins, art, or certain stamps) or Section 1202 qualified small business stock, the IRS taxes those gains at a flat 28%, regardless of the trust brackets. Alternative Minimum Tax (AMT): Check Schedule I. If the trust has certain adjustments or "tax preference items," it might be triggering the AMT. State Taxes: Ensure the $8,248 isn't combining your Federal and State balances.        

PA does not tax retirement income.  Are you sure you entered your 1099R in the right part of your federal software?  Information flows from the federal return to the state returns.   To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.  

Thank you very much David for taking time to elaborate and ask questions.   I do not take a wage.  In 2025 I was paid for some work late in the year and for my branding (company able to leverage my name and reputation).  The portion paid for work was taken as a commission from my S-Corp rather than a regular wage since I do not do regular work.  It was more than substantial enough to pay for the time I spent doing work.   I would prefer not to sell the stock that I'm granted as RSUs that vest and are tradable upon grant at this juncture.  In recent past years, I was paid a small number of RSUs totally for branding - I did no work.  So, I simply transferred all the shares to my personal account.    This year I had a small amount of work and was paid more for that late in the year - one time deal.  From my personal cash, I paid both sides of FICA and estimated income taxes.  I've always played by the rules in that I pay my taxes, but here, even though I'm paying the correct amounts I'm confused by the process.

Hi MarilynG1, would what you described uploading Form 8949 work with the desktop version? Is this acceptable to the IRS? I already bought it because I read somewhere that the desktop version is the way to go and prepped my taxes with only my crypto outstanding...if not, is this in the works and will be completed by April 15? thanks

When you view your TurboTax fees, what does it say for the $27? - https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-review-my-fees-in-turbotax-online/01/26353?search-action-id=597882060747&search-result-uid=26353   How to remove pay with refund $40 fee - https://ttlc.intuit.com/community/downgrading/help/how-do-i-remove-pay-with-my-refund-fees-in-turbotax-online-and-change-my-payment-method/01/25880?search-action-id=597882060747&search-result-uid=25880

  You have to access your own account and/or  print it for yourself using exactly the same account and user ID that you used when you prepared the return.    https://myturbotax.intuit.com/   Start a 2025 return online and enter some personal information  so that the menu on the left opens up and lets you access your past year returns.   https://ttlc.intuit.com/community/prior-year-return/help/how-do-i-access-my-prior-year-return/01/27010     https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m5y4ch1y   Many people have multiple TT accounts and forget how to access them.  Log out of the account you are in now.     https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx Account Recovery   https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx   Or did you use the desktop version of TurboTax?  If so, the files are on your own hard drive or any backup device you used like a flash drive.     https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/find-last-year-tax-data-file-tax-file-computer/L0XJvPaJr_US_en_US   https://ttlc.intuit.com/turbotax-support/en-us/help-article/data-systems/find-tax-data-file-mac/L4VNGm33S_US_en_US?uid=m6guhab0   You can get a free transcript from the IRS or for a fee of $30, an actual copy of your tax return. https://www.irs.gov/individuals/get-transcript https://www.irs.gov/pub/irs-pdf/f4506.pdf       SAVE YOUR TAX RETURNS ! EVERY year before mid-October you should save a copy of your tax return as a pdf and print a copy of it for your records.  That way you will not be searching online frantically when you need it for a lender, FAFSA forms, your next tax return, etc.    https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m6guj526   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m78eb8pc In order to transfer a past year return to the new return you need the tax file   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-turbotax-online-return-tax-data-file/L4xwOG3LF_US_en_US?uid=m6guk3xl   NOTE:  TurboTax and the IRS save returns for seven years.  Returns older than seven years are purged.      

To clarify, If I dont itemize in 2025, it looks like you are saying that taxes and interest are lost for 2025. Or you saying taxes and interest can be carried forward to 2026 as expenses or added to basis?

Federal and state refunds come from completely separate entities,  There is no rule as to which one will come first or how much time there will be between their arrivals.  Some states process returns quickly and some are very slow.   STATE RETURN Make sure your state return was accepted:  https://turbotax.intuit.com/tax-tools/efile-status-lookup/   To track your state refund:       ttps://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/track-state-refund/L3jgO8PGs_US_en_US?uid=lt447ebr https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/contact-state-department-revenue/L9qVToi02_US_en_US?uid=m6e06um0

  The “senior deduction” is added automatically by the software based on the date of birth and filing status you entered into MY INFO.  You do not need to take any extra steps to enter it. (And…the new senior deduction has nothing to do with whether you are getting Social Security)   The deduction is not on the same line as your standard deduction.  It is shown separately.on line 13b.     2025 STANDARD DEDUCTION AMOUNTS SINGLE $15,750  (65 or older/legally blind + $2000) MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600) MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600) HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)     For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.   (The deduction phases out completely at $175.000 Single or HOH, or $250,000 joint)   The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbo Tax automatically includes it. IRS Schedule 1-A https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf   Need to see it? https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-return-filing/L77WCkvnu_US_en_US?uid=m681fkhr   If you are not getting the senior deduction it is because Your date of birth in MY INFO shows that you were not 65 by the end of 2025 Your income is too high You are filing married filing separately