I don't think that education exception applies to student LOANS though, right? I thought it only applies when paying tuition directly to the school for current education expenses, not for paying off existing loans after graduation.

I'm not sure a 1031 exchange would work in my situation. Don't those only apply when you're selling one investment property and buying another? I'm not selling my home, just temporarily renting it out. And I'm not buying the hotel, just staying there temporarily.

You're absolutely right, and I apologize for the confusion. A 1031 exchange wouldn't apply in your situation since you're not selling property. It requires a sale of one investment property and purchase of another "like-kind" property. What might be more applicable in your case is to carefully track all legitimate rental expenses to offset as much of the income as possible - property tax portions, insurance, maintenance, depreciation during the rental period, etc. Those are definitely deductible against your rental income.

Careful with that approach. The IRS can recharacterize arrangements if they appear to be structured mainly to avoid taxes. If the market rate is $2,000 but you charge $1,000 and call the rest a "gift," that could potentially raise flags.

Can you explain more about the domicile test? I thought just having an apartment in the new state would be enough to establish residency on the day I moved in. Are there other requirements?

Good question about domicile! Having an apartment alone might not be enough in some states. Domicile is about your intent to make the state your permanent home, not just physical presence. States look at various factors to determine domicile: where you're registered to vote, your driver's license state, where your vehicles are registered, location of bank accounts, where you have professional licenses, community involvement, and even where your family lives if you're splitting time. Some states have specific forms or tests to determine when your domicile officially changed.

You can usually request a private letter ruling from the state tax department, but they often charge a fee (sometimes hundreds of dollars) and it can take months to get. Probably not worth it unless you're talking about a lot of money at stake.

Thanks for the info. Definitely not worth hundreds of dollars since I'm only talking about maybe $2000 in state taxes total. Guess I'll just have to do my best with the reciprocity rules and keep good documentation.

Quick question - how does this work for someone who has two teaching jobs? I teach at two different districts (one main job, one evening adult ed) and I'm worried they're not withholding enough from either job. Should I adjust my W-4s?

With two teaching jobs, you're right to be concerned. Each employer's payroll system only "knows" about the income they're paying you, not your total income from all sources. So both systems are calculating withholding as if that's your only income, which almost always results in underwithholding. You should definitely complete a new W-4 for both positions. On Step 2 of the W-4, check box (c) for multiple jobs, or use the worksheet to calculate a more precise additional withholding amount. You might also want to specify an additional dollar amount to withhold on line 4(c) to make up for the potential shortfall.

OMG YES. My district's payroll department is a disaster. I got a promotion last year and they somehow lost my W-4 in the process. Went 3 months with them withholding as if I was single with zero dependents (I'm married with 2 kids). My checks were tiny and it took forever to fix!

Did you try negotiating at all? I'm wondering if there's any flexibility with their prices or if it's just take it or leave it once they tell you the final amount.

I actually did try to negotiate this year! When they told me the price jumped to $389, I mentioned I was considering trying a cheaper option like TaxSlayer. The manager came over and offered me a "returning customer discount" that brought it down to $329. So there is some flexibility, but you have to speak up. The other thing I've learned is that prices can vary between different H&R Block locations, even in the same city. The office in the wealthier part of town charges more than the one in the shopping center near me. Might be worth calling a few different locations for quotes.

I used TurboTax this year for a somewhat complex return (W2, 1099-B with stock sales, rental property). Their premier version was about $119 plus $49 for state filing. BUT they charged me an extra $59 for the Schedule E for rental property and another $39 for "expert review" of my stock sales. So I ended up paying around $270 all in. Still cheaper than H&R Block quoted me ($499), but not as cheap as their advertisements suggest. Their interface is pretty good though, walks you through everything step by step. Just be aware of the add-on fees.