As someone who's completely new to this whole process, I can't tell you how relieved I am to find this thread! I filed on January 26th and just noticed my status changed from "still being processed" to "being processed" this morning. I've been checking WMR obsessively (probably 5+ times a day) because this is my first time dealing with identity verification and I had no idea what to expect. I completed the ID.me verification about 12 days ago and have been in complete limbo since then. Reading all these responses from people who've been through the exact same situation is giving me so much peace of mind. I had no clue about checking transcripts or understanding the difference between these status messages. Thank you everyone for sharing your experiences and timelines - it's making this stressful waiting period so much more bearable knowing I'm not alone in this!

Welcome to everyone who's new here! As someone who's been through this exact situation multiple times, I can confirm that the status change from "still being processed" to "being processed" is definitely a positive step forward. I filed on January 21st this year and just got my refund deposited yesterday, so I wanted to share what I learned from tracking the process closely. After completing ID verification (which took me about 10 days), I saw this same status change and then got my deposit date exactly 9 days later. The key thing I discovered is that your transcript will update before WMR shows any changes - usually on Wednesday or Thursday nights like others mentioned. For anyone feeling anxious about the timeline, just know that once you clear ID verification and see this status change, you're essentially in the final stretch of normal processing. The IRS systems are definitely slower this year, but they are working through the backlog steadily. Hang in there - you're almost at the finish line!

One thing to check - are you sure the money is actually a scholarship and not a tuition reduction? Sometimes schools call it a "scholarship" but it's technically a reduction in tuition, which has different tax implications. Look at the 1098-T box 5 (scholarships/grants) vs. box 2 (amounts billed for qualified tuition). If it's truly a scholarship and is less than or equal to qualified expenses (tuition, required fees, books for required courses), then it's tax-free. If the scholarship exceeds qualified expenses, only the excess is taxable. My kid got a "presidential scholarship" that confused us at first - turned out it was actually a tuition discount, not true scholarship money changing hands, which affected how we reported it.

I'm dealing with this exact same issue! My son received a merit scholarship that covers his full tuition, and TurboTax initially flagged it as taxable income too. After digging into it more, I realized the problem was in how I was entering the information. The key is making sure you're allocating the scholarship correctly in the education section of TurboTax. When you enter scholarship information, there should be a place where you can specify exactly what qualified expenses it covers. Since your daughter's scholarship is being applied directly to tuition by the university, that's a qualified education expense and shouldn't be taxed. Double-check your 1098-T form from the university - Box 5 should show the scholarship amount, and Box 1 or 2 should show the qualified tuition expenses. As long as the scholarship amount doesn't exceed the qualified expenses, it should be tax-free. I had to go back and correct my entries in TurboTax by specifically indicating that 100% of the scholarship went toward qualified tuition expenses. Once I did that, the tax calculation was removed. Don't file until you get this sorted out - you shouldn't have to pay taxes on money that's legitimately going toward tuition!

I'm a little confused about all this - if you're just selling your own stuff on eBay shouldn't this be considered just selling personal items? I thought you only need to report as business income if you're buying stuff to resell for profit?

I ran into this exact same issue last year! The ending inventory field is confusing when you're just a casual seller. I ended up putting $0 since I wasn't maintaining any actual "inventory" - just selling random personal items as I found them around the house. What really helped me was keeping it simple: if you don't have items specifically purchased for resale sitting around at year-end, then zero is accurate. The IRS understands that casual sellers don't operate like traditional businesses with warehouses full of inventory. One tip for next year - consider whether you even need to file Schedule C at all. If you're selling personal items at a loss (which is common when decluttering), you might be able to report it differently. But if you got a 1099-K, you'll want to address it somewhere on your return to avoid mismatch notices.

One thing I wish someone had told me before making the S-Corp switch - make sure you set up proper payroll from day one. The IRS expects you to pay yourself a reasonable salary through actual payroll (with W-2s, quarterly payroll taxes, etc.), not just estimate it at year-end. I made the mistake of trying to handle this myself initially and ended up with penalties for late payroll tax deposits. Consider using a payroll service like Gusto or ADP - it's usually worth the monthly cost to avoid compliance headaches. They'll handle all the quarterly filings, W-2s, and tax deposits automatically. Plus having proper payroll records makes it much easier to justify your salary vs distribution split if the IRS ever questions it. Also, don't forget about state requirements - some states have additional S-Corp taxes or filing requirements beyond the federal ones. Make sure you research what your state requires before making the election.

Another important consideration for S-Corp owners is the home office deduction - it works differently than when you were a sole proprietor. As an S-Corp, you can't just take the home office deduction directly on your personal return like you did with Schedule C. Instead, you have a couple of options: 1. Have the S-Corp pay you rent for the home office space (you'd report this as rental income on your personal return, but can deduct related expenses) 2. Set up an accountable plan where the S-Corp reimburses you for home office expenses The accountable plan route is usually simpler. You calculate your home office expenses (percentage of mortgage interest, utilities, insurance, etc.), submit an expense report to your S-Corp, and the corporation reimburses you. This reimbursement isn't taxable income to you, and the S-Corp gets to deduct it as a business expense. Just make sure to document everything properly - keep records of the square footage calculation, utility bills, and formal expense reports. The IRS is pretty strict about home office deductions, especially for S-Corps, so good documentation is essential. Also consider timing your S-Corp election carefully. If you're doing this for 2025, you generally need to make the election by March 15, 2025 (2 months and 15 days after January 1st) for it to be effective for the entire tax year.

Does anyone know if doing this larger withholding instead of quarterlies could trigger any red flags with the IRS? I'm paranoid about audits.

This is exactly what I do! I have a W-2 job making about $75k and do freelance graphic design on the side. Instead of dealing with quarterly payments, I just calculated my expected self-employment tax and income tax on the side income and divided it by my remaining pay periods. Then I put that extra amount on line 4(c) of my W-4. The math is pretty straightforward once you get the hang of it. For your $15k profit, you're looking at roughly $2,118 in self-employment tax (15.3% × $15k × 0.9235) plus income tax at your marginal rate. Since you're making $82k, you're likely in the 22% bracket, so that's another $3,300 in income tax on your side income. One tip: I always round up slightly when calculating my extra withholding. I'd rather get a small refund than owe money at tax time. The peace of mind is totally worth it, and you avoid any potential underpayment penalties.