Thanks for mentioning this! I just checked my December paystub and you're right - it does show up there in a separate category called "Relo-MIDP" with the tax withholding. That's really helpful to know it should be on my W-2. Did you need to do anything special when filing your taxes, or did the tax software handle it automatically since it was part of your W-2 income?

Since it was included in Box 1 of my W-2, I didn't need to do anything special when filing. The tax software handled it automatically as regular income. The only thing I made sure to do was keep documentation from my relocation company that explained the payment, just in case I ever got audited. The one thing to double-check is that the withholding amounts match up with what was actually withheld from your MIDP payment. Sometimes companies withhold at a higher supplemental rate for these kinds of payments.

That's a good point about grossing up! My company did that for some relocation expenses but not others. It's definitely worth asking about.

My daughter just has her job income from working at the campus bookstore, no investments or anything fancy. But I'm curious - what counts as "unearned income" exactly? And does scholarship money factor into any of this tax stuff? She got a partial scholarship last year.

Unearned income includes things like interest, dividends, capital gains, rents, royalties, etc. - basically money received from sources other than working a job. It's passive income rather than earned income. As for scholarships, they're generally tax-free if used for qualified education expenses like tuition, fees, books, and required supplies. However, any scholarship money used for room and board, or other non-qualified expenses would be considered taxable income. But this would be considered earned income, not unearned income, so it wouldn't trigger the kiddie tax rules. It would just be added to her regular taxable income.

The federal rules for standard deduction for dependents are the same regardless of what state they're in. But for state taxes, it gets complicated. Some states may require your son to file a return as a part-year resident or non-resident of that state if he earned money there. Most states follow similar dependent rules as federal but there are exceptions. Check both your home state and his college state rules.

H&R Block absolutely does NOT offer free filing for self-employment anymore. I tried them this season and ended up with a $134 bill at the end - more expensive than TaxAct! They don't tell you about the fees until you've already spent hours entering all your information. Total waste of time.

That's actually not true - the threshold is $400 in net earnings, not $1,000. If you make more than $400 profit from self-employment, you are required to file Schedule C and pay self-employment tax. This is a common misconception.

I've never heard of an IP PIN before. Will this solve my current filing problems too or just prevent future issues? And does it expire each year or do I keep the same one?

An IP PIN won't solve your current filing issues, but it will prevent this from happening again in the future. You'll receive a new IP PIN each year - the IRS sends it by mail in December or January before the tax season starts, or you can retrieve it online through your IRS online account. For your current situation, you'll still need to follow the advice about paper filing and submitting the Identity Theft Affidavit (Form 14039). Once the IRS processes that form, they'll automatically enroll you in the IP PIN program. If you don't want to wait, you can proactively enroll through the IRS website's "Get an IP PIN" tool.

This!! I had my taxes filed fraudulently and 6 months later someone tried to get a car loan in my name. Freezing your credit at all 3 bureaus is FREE and you can temporarily lift it whenever you need to apply for something legitimate.

Wait, does that mean if I'm getting 1099s as an extra I'm being misclassified? I've been paying self-employment taxes for years but the production companies totally control everything about my work!

You might indeed be misclassified. The IRS uses a control test - if the company controls what you do and how you do it, you should generally be classified as an employee (W-2), not an independent contractor (1099). For film extras, since the production tells you exactly when to show up, what to wear, where to stand, when to move, etc., you typically meet the definition of an employee. Some production companies misclassify extras as independent contractors to save on payroll taxes, but this isn't usually correct under IRS guidelines. If you believe you're misclassified, you can file Form SS-8 with the IRS for a determination, though be aware this might create tension with companies that hire you.

Wow thank you!!! I just checked my W-2 and there's almost $500 in box 2! I had no idea I might get that back. I'm definitely filing now!

You can still claim refunds for up to 3 years after the filing deadline! If your mistake was within the last 3 years, you can still file for those years and get your money.