Navy Federal member here too! I've been waiting about the same timeframe as you. From what I've experienced in past years, Navy Fed is actually pretty good about posting IRS refunds - they usually show up as pending 1-2 days before the official deposit date, then post at midnight EST. The WMR tool has been notoriously unreliable this year from what I'm seeing in various forums. Definitely check your IRS transcript online if you haven't already - look for code 846 which shows your actual direct deposit date. That's been way more accurate than WMR for most people. Also, just a heads up that if your refund is over a few thousand dollars, you might want to give Navy Fed a quick call to let them know you're expecting a large deposit from Treasury - sometimes large unexpected deposits can trigger fraud alerts. Hang in there, it should show up soon!

Navy Federal member checking in! I'm in a similar situation - filed about 2.5 weeks ago and WMR has been stuck on "still processing" the entire time. What's been helpful for me is checking my IRS transcript online (irs.gov/individuals/get-transcript) rather than relying on WMR. Look for transaction code 846 - that shows your actual direct deposit date even when WMR hasn't updated yet. In my experience with Navy Fed over the past few years, they're pretty reliable about posting IRS refunds right at midnight EST on the scheduled date, and sometimes they'll show as pending 24-48 hours beforehand. The IRS has been slower than usual this season, but once your refund gets approved and scheduled, Navy Fed typically handles their end smoothly. Keep checking that transcript - it's been way more accurate than WMR for most people this year!

Just wanted to add something important that I learned the hard way - even if you're selling personal items at a loss, you still need to keep good records to prove that to the IRS if they ever ask. I got a letter from them last year questioning some of my eBay sales because they had records from PayPal but I couldn't document my original purchase prices. Now I take photos of receipts when I buy anything valuable, even personal stuff, and store them in a folder on my phone labeled "Tax Records." For older items where I don't have receipts, I research what similar items sold for during the time period I bought them and keep screenshots as documentation. It's a pain but way better than dealing with IRS correspondence! Also, don't forget that if you use part of your home for storing inventory or photographing items, you might be able to deduct a portion of your home expenses on Schedule C. Every little deduction helps when you're self-employed!

Great question and you're smart to ask early in the year! I went through this exact situation a couple years ago. Here are the key points: 1. **Yes, you must report the income** even without a 1099. The IRS requires all income to be reported regardless of forms received. 2. **Where to report it:** If this is occasional selling of personal items, you might not need Schedule C. If you sold personal collectibles for less than you originally paid, that's actually a personal loss (not deductible, but also not taxable income). However, if you made a profit or this is becoming a regular business activity, you'll need Schedule C. 3. **Documentation is key:** That spreadsheet you mentioned is perfect! Include the item, original cost (estimate if needed), selling price, and any fees paid to eBay/PayPal. 4. **Don't forget deductions:** eBay fees, PayPal fees, shipping costs you paid, and packaging materials are all deductible business expenses if you're filing Schedule C. The fact that you're asking now instead of scrambling at tax time shows you're on the right track. I'd recommend consulting with a tax professional if your total sales were significant or if you plan to continue selling regularly - the rules can get tricky when you're mixing personal item sales with potential business activity.

Has anyone calculated whether there's actually any market risk in selling and rebuying vs doing the in-kind transfer? I keep hearing that time out of market is a concern but for a same-day sale and purchase, how much could prices really change?

Great question about the market risk! I actually went through this exact calculation when I did my son's Coverdell distribution last spring. For individual stocks, the risk can be pretty significant even intraday - especially if you're dealing with volatile securities. But even with stable dividend stocks, I found the bid-ask spread alone could cost me 0.1-0.3% on each transaction (sell + buy = double hit). The bigger issue I ran into was timing - even though I planned to sell and rebuy the same day, my Coverdell custodian took 2 business days to process the distribution request, and then another day for the cash to settle in my brokerage account. So I was actually out of the market for 3 days, during which one of my holdings went up 4%. The in-kind transfer took the same 2-3 days to process, but the shares were never actually sold, so there was zero market risk. That sealed the deal for me - the operational simplicity plus eliminating any market timing risk made the in-kind transfer the clear winner. Just make sure your custodian supports in-kind transfers for the specific securities you hold. Some have restrictions on certain types of investments.

As someone who works in government compliance, I want to emphasize just how serious these per diem scheme violations can be from an enforcement perspective. The IRS has been increasingly aggressive about auditing contractor compensation arrangements, especially in the tech sector where these "per diem mills" have become rampant. What many contractors don't realize is that the IRS often targets these schemes through data matching - they compare contractor filings against company payroll records and look for patterns that suggest non-compliant per diem arrangements. When they find discrepancies, they don't just audit one person - they often audit entire groups of contractors who worked for the same firms. The recruiter's suggestion about keeping your old driver's license is particularly egregious because it creates a paper trail of intent to deceive. If you're ever audited, having maintained false residency documentation while claiming per diem exemptions could escalate this from a civil tax matter to potential criminal fraud charges. I'd strongly recommend not just walking away from this offer, but also reporting this recruiting firm to the appropriate authorities. These schemes hurt legitimate contractors by creating unfair competition and undermine tax compliance across the entire industry. Trust your instincts here - any company or recruiter promoting tax avoidance schemes this aggressively is not worth the risk to your professional reputation or financial future.

This thread has been absolutely invaluable for understanding the serious risks behind these per diem schemes. As a newcomer to the contracting world, I had no idea how widespread these questionable arrangements were or how devastating the consequences could be. What really struck me was the consistency of everyone's advice - from experienced contractors to those with government compliance backgrounds, everyone is saying the same thing: these arrangements are extremely risky and not worth the potential consequences. The $40K audit story and the escalation to potential criminal fraud charges really drive home just how much is at stake. The practical advice about requesting written documentation from tax professionals seems like such a simple but effective litmus test. If recruiters are confident these arrangements are legitimate, they should have no problem providing proper backing. Their refusal or defensiveness tells you everything you need to know. For Sofia and anyone else facing similar situations, it sounds like the safest approach is to counter with a fully taxable offer at the equivalent rate and walk away if they won't restructure it properly. No job opportunity is worth risking your financial future or legal standing. This is exactly the kind of community knowledge sharing that helps people avoid costly mistakes. Thanks to everyone who took the time to share their expertise and real-world experiences!

I went through this same dilemma last year and almost made a huge mistake by claiming exempt. After reading through everyone's experiences here, I'm so glad I didn't go through with it! What really opened my eyes was when I finally sat down and did the math properly. Like others have mentioned, that big deduction on your pay stub includes way more than just federal income tax. When I broke down my $285 in total deductions, I found: - $198 for Social Security and Medicare (unavoidable) - $45 for state taxes - $42 for actual federal withholding So claiming exempt would have only saved me about $42 per paycheck, not the full $285 I was initially thinking. And when I compared that $42 to what I actually owed in federal taxes the previous year, I was only overwithholding by maybe $15-20 per paycheck. The wake-up call was realizing that going exempt would have meant underpaying by about $25 per paycheck, which over a full year would have left me owing around $650 plus penalties at tax time. The IRS underpayment penalty rates would have cost me way more than any interest I could have earned. Instead, I made a small adjustment to reduce my federal withholding by $20 per paycheck. Now I get an extra $40 per month while staying compliant and avoiding any risk of penalties. It's not life-changing money, but it's meaningful without the stress. My advice: definitely do the detailed breakdown first before making any changes. The real numbers are usually very different from what you initially think!

I've been reading through all these responses and they've completely changed my perspective on this! I was initially thinking about going exempt to get back that full $300 per paycheck, but now I realize I was making the same mistake everyone else mentions - not understanding what that total actually represents. The breakdown from Emma (the payroll professional) was especially eye-opening. If Social Security and Medicare taxes alone can account for $380+ on a $5,000 monthly salary, then my situation is probably similar. That $300 coming out of my check likely includes way more than just federal income tax that I could actually exempt myself from. What really convinced me to take the safer route was Payton's warning about the legal requirements for claiming exempt - you have to have had NO tax liability last year AND expect none this year. Since I definitely owed taxes last year, I clearly don't qualify for exempt status regardless of how much is being withheld. I'm going to follow everyone's advice here: get a detailed breakdown from HR of exactly what portions are federal withholding versus other unavoidable taxes, compare that to what I actually owed last year, and then make a modest adjustment to my W-4 if needed. Getting an extra $100-150 per month through a proper adjustment sounds way better than risking thousands in penalties by falsely claiming exempt. Thanks to everyone who shared their real experiences and numbers - this thread probably saved me from making a very expensive mistake!