How should I give itunes autonomy to my children now that they are in high school and have used my Mac and my itunes account to buy music for years, including all gift cards given to them. They now both have their own computers.

When my children were younger, and needed more help and oversight, I had them purchase songs with my permission, often with gift cards that they had been given on various occaisions. Now, however, they both have laptops, they would like to split out "their" music and books, sync their Itouches to their own system, and I would love to have 9000 less Taylor Swift songs stored on my hard drive. Also, it seems that I can't set up independent Itunes accounts for them without a credit card, however they both get gift cards several times a year. A suggestion for this? It must happen to a lot of families. Thanks.

Unfortunately you cannot split (nor merge) items purchased with an AppleID.  I am not clear on what you will have to do to allow them continued access to their music on your account.  Apple no longer has DRM protection in its music but then I also hear people have all kinds of authorization issues when trying to synch so it sounds like they still keep restrictions on what you can do with the music when trying to move it about.  I'll let somebody more experienced with syncing answer this part.  You may have to authorize their computers and devices to your AppleID to allow them all functionality with the music.
Ideally you would have set them up with their own AppleIDs years ago but...
Creating an iTunes Store, App Store, iBookstore, and Mac App Store account without a credit card - http://support.apple.com/kb/HT2534 - only works for new accounts!

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