2 Has anyone actually gone through an audit with this kind of situation? I'm nervous about using Schedule C for what's not really a business transaction. Would the IRS flag this as suspicious?

I went through something very similar last year with a PayPal reimbursement for supplies I bought for a volunteer event. The advice about using Schedule C is spot on - even though it feels weird to file business forms for a one-time reimbursement, it's the proper way to handle it when you receive a 1099-K. One thing I'd add is to be very clear in the business description field on Schedule C. I wrote something like "One-time reimbursement for materials purchased" to make it obvious this wasn't an ongoing business activity. Also, keep digital copies of both your receipt and the PayPal transaction details - I scanned everything and saved it in a dedicated tax folder. The whole process was much less scary than I thought it would be. FreeTaxUSA walked me through the Schedule C steps pretty smoothly once I understood what I was doing. Just remember: report the 1099-K amount as income, then report the exact same amount as your material expense. Net result = $0 taxable income from this transaction.

Check your account transcript not just WMR. Sometimes transcript updates b4 WMR does

Same here with cycle 03! From what I've experienced, the transcript usually updates first (around midnight-3am EST on Thursdays) then WMR catches up later in the morning. I'd recommend setting up IRS account access if you haven't already - way more reliable than constantly refreshing WMR. The waiting game is brutal but hang in there!

Something important that nobody has mentioned yet - make sure you're using the CURRENT W-7 form! The IRS updated the form in September 2021, and they will automatically reject applications using the old version. Also, when you're listing your reason for applying, check box "h" for "Other" and then write in "Exception 1(d) - Monetary Assets: Unclaimed Property" in the space provided. This makes it crystal clear from the start what you're applying for. In my case, I also included a cover letter explaining my situation in simple terms at the front of my application package. The cover letter referenced all the attached documents and how they supported my application under Exception 1(d). My approval came through in just 6 weeks.

This thread has been incredibly helpful! I'm dealing with a similar situation where I have unclaimed property from an old Wells Fargo account that was closed due to inactivity. The state is requiring an ITIN before they'll release the funds. Based on all the advice here, I'm planning to: 1. Use Exception 1(d) for monetary assets 2. Download the current W-7 form (Rev. September 2021) from the IRS website 3. Request a specific letter from the state treasurer that explicitly states an ITIN is required for my claim 4. Include a cover letter clearly explaining my situation One question though - for those who were successful, how long did it typically take to get the proper documentation from your state's unclaimed property office? I'm worried they might give me the runaround like they seem to do with a lot of people. Also, should I mention in my request to the state that the letter needs to be worded specifically for IRS ITIN requirements, or is it better to just ask for confirmation that an ITIN is needed without getting too technical?

Based on Pathward's Refund Advance Service Terms (Section 4.3 of their service agreement), "processing notification dates do not guarantee same-day deposit, as final transmission depends on recipient financial institution's processing protocols." I processed over 200 tax returns last year, and approximately 35% of my clients who used Chime with Refund Advantage experienced a 24-hour delay between Pathward's stated processing date and actual deposit. Another 50% saw funds appear within 48 hours, while 15% experienced delays of 3+ business days. The timing appears to be affected by processing volume and the time of day when Pathward initiates the transfer.

I'm going through this exact same situation right now! Got the same confusing message about them receiving it on a future date. Reading through everyone's experiences here is really reassuring - it sounds like this is just how their system communicates processing vs. deposit dates. I've been refreshing my Chime account way too often today, but based on what Victoria and Hassan shared about their timelines, it seems like I should expect to see the funds within 24-48 hours of their actual processing date. Thanks everyone for sharing your real experiences - this is so much more helpful than the vague official FAQs!

We filed ours Feb. 4 electronically and it's still processing. Getting really annoyed. Last year it took 4 months because "they lost it

I filed mine electronically on January 28th and just got my direct deposit yesterday! So about 4 weeks total. The MN website tracker was pretty accurate - it showed "processing" for most of the time then switched to "approved" about 3 days before the money hit my account. Hang in there, electronic filers usually get theirs within that 3-4 week window!