Another thing to consider - if you're expecting a large refund, you might want to call NJ unemployment BEFORE filing and ask them to put a hold on the offset while you're actively making payments. Some people have had luck getting them to agree to this in writing, especially if you've been consistent with your payment plan. Won't hurt to try!

Just went through this exact situation last month! Even though I had a payment plan and was current on all payments, NJ still grabbed my entire state refund ($1,847). The frustrating part is that the payment plan doesn't automatically protect you from offsets - they're two separate processes. I called after it happened and they basically said the offset system runs automatically and doesn't check for active payment plans. Definitely call them BEFORE filing like others suggested - I wish I had known to do that!

Has anyone used TurboTax for this kind of situation? I have a similar issue with RSUs vesting after leaving the US and I'm wondering if regular tax software can handle it or if I need to hire a specialist.

I went through this exact situation last year! As a former F1 visa holder now living in Canada, I can confirm that you typically don't need to pay Social Security and Medicare taxes on stock vestings that occur after you've left the US. The key points for your situation: 1. You'll need to file Form 1040-NR as a non-resident alien 2. Report the stock vesting income, but FICA taxes generally don't apply since you're no longer providing services in the US 3. Definitely look into the US-Canada tax treaty provisions - you may be able to claim treaty benefits to reduce your US tax burden 4. On your Canadian return, you'll report this as foreign income and can likely claim a foreign tax credit for any US taxes paid The stock vesting is considered compensation for work you performed while in the US, but since you had the F1 FICA exemption when you earned it, that exemption typically carries forward. Just make sure you're properly documenting your non-resident status and the dates when you left the US. I'd recommend keeping detailed records of when you left the US, your visa status history, and all stock vesting documents. This will be helpful if you ever need to explain your tax position to either the IRS or CRA.

Pro tip: Call your brokerage and ask for the Dec 31 value over the phone. They can tell you even if the 5498 hasn't been issued yet. I did this with Vanguard last year for exactly the same situation and they gave me the info in 2 minutes!

Just wanted to add another perspective here - if you're still having trouble getting through to your brokerage, you can also try logging into your online account and looking for a "Tax Documents" or "Year-End Statements" section. Most major brokerages (Fidelity, Schwab, Vanguard, etc.) will have your December 31st account balance available in your year-end statement, even if the official Form 5498 hasn't been mailed yet. I had a similar conversion situation last year and found my Dec 31st Traditional IRA balance right on my online statement summary. Since you converted in December, the balance should be pretty straightforward - either $0 if you converted everything, or whatever small amount remained after the conversion. This saved me from having to wait on hold or file an extension.

This discussion has been incredibly comprehensive! As someone who's been lurking and learning from everyone's experiences, I wanted to add one more angle that might be relevant - retirement account contributions and how they interact with both FAFSA and tax filing status. When you file separately, you lose the ability to contribute to a Roth IRA if your individual income exceeds $10,000 (which sounds like it would affect the higher earner in most cases discussed here). But here's something interesting - traditional IRA contributions can actually help reduce your FAFSA income calculation while also potentially reducing your tax liability. If you're filing separately and can still contribute to a traditional IRA (or increase 401k contributions), those pre-tax contributions reduce your Adjusted Gross Income, which is what FAFSA uses for its calculations. So you might be able to optimize both your tax situation AND financial aid eligibility simultaneously. Also, for those who mentioned using various online tools and calculators - I'd recommend double-checking any major decisions with a fee-only financial planner who specializes in college planning. The interaction between taxes, financial aid, and long-term financial planning is complex enough that the cost of professional advice often pays for itself in avoided mistakes. The real-world experiences shared here have been invaluable - thank you all for being so transparent about the actual numbers and outcomes you experienced!

Great question about 529 contributions! Unfortunately, 529 contributions don't reduce your income for FAFSA purposes the way traditional IRA or 401k contributions do. The FAFSA treats 529 contributions as money you chose to save rather than money that reduces your available income. However, there are some strategic considerations with 529s and FAFSA: 1. **Ownership matters**: If the 529 is owned by the parent, only about 5.64% of the account value counts against financial aid eligibility. But if it's owned by the student, it counts as a student asset at 20%. 2. **Distribution timing**: When you take distributions from a 529, they don't count as income on the following year's FAFSA if used for qualified education expenses. So the timing of when you use 529 funds can be strategically planned. 3. **Grandparent-owned 529s**: These don't count as assets on FAFSA, but distributions DO count as untaxed income to the student, which can significantly impact aid eligibility. Some families transfer grandparent-owned 529s to parent ownership to avoid this issue. If you're considering the married filing separately strategy, you might also want to look at temporarily reducing 529 contributions during the base years that FAFSA considers, and instead maximizing traditional retirement contributions that actually do reduce your calculated income. The interplay between all these strategies really reinforces everyone's point about getting comprehensive professional advice!

This thread has been incredibly helpful in confirming what felt wrong about my tax preparer's request. As a newcomer to this community, I really appreciate everyone sharing their professional insights and personal experiences. What strikes me most is how consistently everyone - from CPAs to cybersecurity professionals to longtime tax filers - agrees that this is NOT a legitimate IRS requirement. The fact that tax software doesn't require these documents, and that other preparers are handling verification through much simpler methods, really drives home that my preparer is way out of line. I've decided I'm going to have one final conversation with him where I'll ask for the specific IRS publication he's referencing. If he can't provide it (which seems likely based on everyone's input), I'll be finding a new preparer for next year. Eight years of working together doesn't justify compromising my family's identity security. For anyone else facing similar situations - trust your instincts. If something feels excessive and you can't find any official documentation supporting it, there's probably a good reason for that. This community has shown me that legitimate tax professionals understand the difference between proper verification and unnecessary document hoarding. Thanks again to everyone who took the time to share their expertise. You've saved me from a potentially dangerous mistake!

As someone new to this community, I want to thank everyone for this incredibly informative discussion. I'm actually dealing with a very similar situation right now - my tax preparer of several years suddenly started asking for way more documentation than usual, including wanting copies of my children's school records and medical insurance cards "for IRS compliance." Reading through all these responses from tax professionals and security experts has confirmed my suspicions that this isn't legitimate. The point about tax software not requiring these documents really sealed it for me - if TurboTax and other major platforms can handle dependent verification without me uploading birth certificates and utility bills, then individual preparers shouldn't need them either. What's particularly concerning is how many people are reporting similar experiences with their long-time preparers. It makes me wonder if there's some kind of misinformation spreading through the tax preparation industry, or if some preparers are just getting overly paranoid about audits and penalties. The cybersecurity risks everyone mentioned are terrifying when you think about it. These small offices keeping filing cabinets full of families' most sensitive documents is like creating identity theft treasure chests. Even with the best intentions, one break-in or data breach could ruin dozens of lives. I'm definitely going to confront my preparer about this and ask for specific IRS documentation. If they can't provide it, I'll be shopping for someone new. Thanks for helping me trust my instincts on this!