I just did this last week for my three kids! The IRS.gov process is pretty straightforward now compared to previous years. I followed the guide on https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin and was able to get PINs for all three children in about an hour total. The verification part took the longest. Make sure you have your ID and their social security cards handy before you start.

I just went through this process for my two kids last month and wanted to share a few tips that made it smoother: 1. Do the ID.me verification during off-peak hours (like mid-morning weekdays) - it's much faster 2. Have both your driver's license AND a utility bill ready - the system sometimes asks for additional verification 3. Write down the PINs immediately and store them securely - you'll need them when filing next year's taxes One thing I wish I'd known earlier: if you use tax software like TurboTax or H&R Block, make sure it supports IP PINs before you start filing. Most do now, but it's worth double-checking. The peace of mind is totally worth the 30 minutes it takes per child!

Has anyone mentioned the implications for property taxes and homestead exemptions? If you own property in both states, you typically can only claim primary residence benefits in one state. Could affect property tax bills significantly.

This is such a complex situation! I went through something similar when my spouse and I had jobs in different states. One thing that really helped us was keeping detailed records of everything - days spent in each state, where we voted, which state our driver's licenses were in, etc. The employment situation with your wife potentially switching from salary to contract work is interesting - that could actually impact the tax analysis significantly since contract income is treated differently than W-2 income for state tax purposes. You might want to run the numbers both ways (her staying salaried in NJ vs. becoming a contractor) to see which scenario is more tax-advantageous overall. Also, don't forget about things like voter registration and car registration - these can be factors that states use to determine your "true" domicile if there's ever a question. Make sure whatever you choose is consistent across all your official documents.

Has anyone used both TurboTax and TaxAct for state filing? That's where I got hit with extra fees last year and wondering if one's better than the other for California taxes specifically.

I switched from TurboTax to TaxAct two years ago and haven't looked back! The price difference is huge - I was paying almost $120 for TurboTax Deluxe + state filing, but TaxAct Premium + state was only around $65 for the same features. The interface took a little getting used to since it's more straightforward and less "chatty" than TurboTax, but honestly I prefer that now. No constant pop-ups trying to sell me audit protection or other add-ons. TaxAct just gets straight to business. One thing to note - if you're used to TurboTax's extensive import options from banks and brokerages, TaxAct has fewer direct connections, so you might need to manually enter some info. But for the money saved, it's worth the extra 10-15 minutes of typing. Security-wise, both are equally safe. TaxAct uses the same encryption standards and has been around since 1998, so they're definitely legitimate. I've never had any issues with my data or refunds being processed correctly.

There's a specific line on your paycheck labeled "FICA-Social Security" that is 6.2% of your income which funds both retirement and disability insurance. So when people say "my taxes are paying for disability" it's actually an insurance program we all contribute to, just like we all pay into car insurance pools but only some of us will ever need to file a claim!

This is such an important topic that more people need to understand! I work in federal budget analysis and can confirm what others have said - the vast majority of disability benefits come from dedicated payroll taxes, not general revenue. What really opened my eyes was learning that Social Security Disability has one of the most stringent eligibility requirements of any federal program. The medical review process is incredibly thorough - they require objective medical evidence from multiple sources, and the definition of "disability" is much stricter than most people realize. You have to be unable to perform ANY substantial gainful activity, not just your previous job. Your uncle's concerns are understandable but based on misconceptions. The fraud rate in SSDI is actually less than 1% according to SSA's own audits. Most people who receive disability benefits worked for years or decades paying into the system before becoming unable to work due to serious medical conditions.

Quick tip from someone who's been there: keep VERY detailed records of how you allocate your scholarships/grants between qualified expenses and living expenses! If you're ever audited, the IRS will want to see your methodology. I created a simple spreadsheet showing: 1. Total qualified expenses: tuition and required fees 2. Total scholarships/grants received 3. How much scholarship was allocated to qualified expenses 4. How much scholarship was allocated to living expenses (and thus taxable) 5. Resulting qualified expenses eligible for AOTC Also saved all my bursar statements, financial aid award letters, and housing receipts.

This is such a helpful thread! I'm in a similar situation and really appreciate everyone sharing their experiences. One thing I want to add for anyone else reading this: make sure to check if your state has any additional education tax benefits that might be affected by how you allocate your scholarships and grants. Some states have their own education credits or deductions that work differently from the federal AOTC. Also, if you're considering the strategy of making some of your Pell Grant taxable to maximize AOTC, remember to factor in whether you'll owe estimated taxes. As a dependent, you might not have had much tax liability before, but adding taxable scholarship income could put you over the threshold where you need to make quarterly payments. The coordination between you and your parents' returns is crucial - I'd definitely recommend working with a tax professional if the numbers are significant, especially the first time you do this optimization. The potential savings are real, but so is the complexity!