One thing to watch out for - the filing requirements can also be triggered if your child has earned income plus unearned income that together exceed the standard deduction (around $14,600 for 2025). My teenager had a summer job AND investment income, and even though neither would require filing on their own, the combination did. The tax software I was using completely missed this!

Great question! Yes, the filing thresholds do change annually based on inflation adjustments. For 2025, the unearned income threshold for dependents is $2,300, so you're absolutely right that your kids likely don't need to file this year. Looking at your numbers: $190 (ordinary dividends) + $1,850 (capital gains distributions) = $2,040 total unearned income per child. Since this is under the $2,300 threshold, no Form 8615 filing should be required. Just double-check that the $190 in ordinary dividends already includes the qualified dividends (it usually does on most brokerage statements), so you don't want to add the $165 qualified dividends on top of that. Also keep good records of any reinvested distributions for future cost basis calculations, even if you're not filing now. The IRS publishes these updated thresholds each year in Publication 929 if you want to bookmark it for future reference!

I went through almost the exact same situation when I moved to Berlin in 2022! The €3800 quote is definitely excessive - I ended up paying around €800 total for both countries by finding the right professionals. Here's what I learned: First, check if you're actually considered a German tax resident for 2023 since you moved mid-year. The 183-day rule could work in your favor. Second, the US-Germany tax treaty is your friend - it prevents true double taxation, but you need to understand which country has primary taxation rights for each income type. For your US employment income from Jan-June 2023, that's clearly US-sourced and will be taxed primarily by the US. Your German employment income from Nov-Dec will be taxed primarily by Germany. The rental income is where it gets tricky - since the property is in the US, the US has primary taxation rights, but Germany will want to tax it as part of your worldwide income if you're a resident. My advice: Use one of the AI tax tools mentioned above to get a baseline understanding of your situation, then find a US expat tax specialist (not a general firm) for around $400-500, and a German Steuerberater for €400-600. The key is finding people who already know the treaty well rather than paying someone to learn it on your dime. Also consider that this complexity is mainly for your 2023 transition year - future years should be more straightforward once you establish clear residency patterns.

As someone who dealt with a similar Germany-US tax situation, I'd strongly recommend getting clarity on your 2023 German tax residency status first - this could save you significant complexity and money. Since you moved to Germany in July 2023, you may not meet the 183-day requirement for German tax residency in 2023, which would mean Germany would only tax your German-sourced income (your Nov-Dec employment) rather than your worldwide income including the US rental property. For your US filing, you'll definitely need to report everything - your Jan-June US employment income and the rental income starting in August. The rental income will be taxed primarily by the US since that's where the property is located. If you do end up being a German tax resident for 2023, you'll report the rental income in Germany too, but you can claim a foreign tax credit for the US taxes paid to avoid double taxation thanks to the treaty. Before spending €3800, I'd suggest: 1) Determine your German residency status for 2023, 2) Try one of the AI tax tools mentioned above to understand your specific situation, 3) Then find specialists who already know the US-Germany treaty well rather than paying generalists to learn it. You should be able to handle both countries for under €1000 total if you find the right help. The good news is that 2024 and beyond should be much more straightforward once you're clearly established as a German resident with predictable income patterns in both countries.

I worked for the IRS for 7 years and can confirm that we do already know most of what should be on your return. But here's what most people don't realize: the IRS is SEVERELY underfunded and outdated technology-wise. The systems that hold your W-2 and 1099 info are completely separate from the systems that process returns. They literally don't talk to each other until AFTER you file, when a matching program runs to flag discrepancies. The IRS is still using computer systems from the 1960s for some core functions. I'm not exaggerating - actual 60-year-old COBOL programming. Congress has repeatedly cut IRS technology modernization funding. So yes, in theory, pre-filled returns would make sense. But the current infrastructure literally can't support it without a massive overhaul that politicians refuse to fund.

This whole thread really validates what I've been thinking for years! As someone who runs a small business and deals with quarterly estimated payments, I'm constantly frustrated by the disconnect between what the IRS knows and what they make me report. What really gets me is that they'll send you a notice months later if something doesn't match their records, but they won't just tell you upfront what they have on file. I've had situations where a client issued a corrected 1099 to the IRS but never sent me the updated copy, leading to discrepancies that took forever to resolve. The former IRS employee's point about the outdated technology explains so much. It's mind-boggling that we're still using 1960s systems to manage the revenue collection for the world's largest economy. No wonder everything feels so backwards and inefficient. I really hope the recent funding increases actually lead to meaningful modernization rather than just hiring more people to work with the same broken systems.

Just wanted to add another perspective on the healthcare aspect since that's your main motivation for the residency change. Before you switch your residency, you might want to check if your Wisconsin health insurance has any emergency coverage or temporary coverage options for students studying out of state. Some plans have provisions for students that aren't immediately obvious. Also, many colleges have their own health insurance plans that might be cheaper than getting individual Florida coverage, and these student health plans often have good coverage both on-campus and in the local area. It's worth comparing costs and coverage before making the residency switch. But to echo what everyone else has said - your mom shouldn't worry about the tax implications. The IRS doesn't care which state you call home for dependency purposes. As long as you meet the age, student status, and support requirements, you're still her dependent federally.

Just to add one more thing that might be helpful - if you do decide to change your residency to Florida, make sure you understand what actions actually establish residency for tax purposes versus just getting a driver's license. Different states have different requirements. For Florida, you typically need to do things like register to vote, get a Florida driver's license, register your car, and spend more than 183 days in the state. But the key thing is that you need to show intent to make Florida your permanent home, not just a temporary college residence. Some students think changing their driver's license is enough, but that's not always the case. You might want to document your intent clearly - like opening a Florida bank account, changing your voter registration, etc. This becomes important if either state ever questions your residency status for tax purposes. But again, none of this affects whether your mom can claim you as a dependent on federal taxes. That's purely based on the support and relationship tests, not where you live.

Has anyone tried getting the 1095-A information directly from the health insurance company rather than from parents? When I had a similar issue, I called the insurance provider and explained my situation. They were able to verify my identity and send me the coverage details I needed for my portion of the plan.

I went through this exact same situation last year with my parents' Marketplace plan. The frustrating thing is that you absolutely DO need the 1095-A information to file correctly, but your dad's CPA might be worried about Premium Tax Credit complications. Here's what worked for me: I contacted the IRS Taxpayer Advocate Service (it's free). They helped me understand that I needed specific information from the 1095-A - like the monthly premium amounts and coverage dates - but I didn't necessarily need the physical form. They even provided me with a letter explaining the legal requirement that I could show my parents. The key insight was that even though you don't pay for the insurance, the IRS needs to verify your coverage to ensure you're not incorrectly claiming exemptions or credits elsewhere on your return. Your dad's concern about the CPA's advice might be valid from his perspective, but it doesn't change your legal obligation to report the coverage. One compromise that worked for us: my parent agreed to sit with me while I filled out the relevant tax software sections, reading the information directly from their form without giving me a copy. This satisfied both the legal requirement and their CPA's concerns about document sharing.