Code 720 is totally normal - just means your return is in their processing queue! I've been through this several times and the wait can definitely be anxiety-inducing. What helped me was understanding that this code can stick around anywhere from 2-8 weeks depending on their workload and your return complexity. I'd recommend checking your transcript only once a week (Friday evenings work best since they update over weekends) rather than daily - trust me, obsessive checking just makes the wait feel longer! If you have a straightforward return with just W-2s and standard deduction, you're likely looking at the shorter end of that timeline. Hang tight! 🙂

Had code 720 show up on my transcript about 2 weeks ago and was getting pretty worried about what it meant! Reading through everyone's experiences here is super reassuring - sounds like it's just a normal processing code that means they've got my return and are working on it. The Friday evening check schedule that everyone's mentioning makes total sense, I've been checking mine way too often during the week. My return is pretty simple (just W-2 and standard deduction) so hopefully I'll see some movement soon. Thanks everyone for sharing your timelines and experiences, it really helps to know this is all part of the normal process! 🙏

Been waiting since April 2024 here and this is super helpful info! Had no idea they'd include the interest in the same check. At 7% that's actually not terrible considering how long we've all been waiting. Thanks for the heads up about the 1099-INT too - would've definitely forgotten to report that interest as income next year.

Just wanted to chime in as someone who finally got their refund check last month after waiting since February! Can confirm everything comes in one check - the original refund amount plus all the accumulated interest. The breakdown was actually printed right on the stub that came with the check, so you can see exactly how much was interest vs the original refund. Really helpful for record keeping before that 1099-INT shows up next January. Hang in there everyone, the wait sucks but at least we're earning something on it!

This is a great discussion with lots of solid analysis! I'd add one more consideration that might tip the scales further toward selling the option outright - transaction costs and bid-ask spreads. When you exercise an option, you typically pay exercise fees to your broker, plus you'll eventually pay commission when you sell the stock. If you sell the option directly, you only pay one set of transaction costs. For a single contract, this might only be $10-20 in savings, but it's another factor that reduces the net benefit of exercising. Also, individual stock options sometimes have wider bid-ask spreads than the underlying stock, so make sure you're looking at the actual bid price (what you can sell for) rather than the mid-point price when doing your calculations. The real-world proceeds from selling your option might be slightly less than that $24.50 figure. Given all the analysis here - the time value loss, opportunity cost of capital, modest tax savings, earnings risk, and transaction costs - it really does seem like selling the option makes more financial sense than exercising, even though it means short-term capital gains treatment.

This has been an excellent educational thread! As someone who works with options strategies regularly, I want to emphasize one additional point that complements all the great analysis here. The decision framework that's evolved in this discussion - quantifying tax differences, calculating opportunity costs, considering time value, and factoring in external events - is exactly the kind of systematic approach that separates successful options traders from those who make emotional decisions. What I find particularly valuable is how the community worked through the math to show that sometimes the "conventional wisdom" (hold for long-term gains) isn't always optimal when you consider all variables. The $140 tax savings vs $150 time value comparison was especially illuminating. For the original poster and others in similar situations, I'd also suggest keeping a trading journal to track these decisions and their outcomes. Whether you choose to exercise or sell the option, documenting your reasoning and the actual results will help you refine your decision-making process for future positions. One final thought: this type of analysis becomes even more important as your position sizes grow. The same principles apply, but the dollar impacts become more significant, making the thorough evaluation you've all done here even more crucial for larger trades.

I just want to echo what others have said about the importance of finding a new accountant after this gets resolved. What happened to you is a serious breach of professional responsibility - no CPA should ever apply a $40,000+ refund to next year's taxes without explicit written authorization from the client. Based on all the responses here, it sounds like you have several good options to get your money back relatively quickly. The written request approach that former IRS employee Dylan Evans and others described seems like the most efficient path forward - much faster than the 16+ weeks for an amended return. I'd also suggest documenting everything about this situation in case you need to file a complaint with your state's board of accountancy. Most states require CPAs to get client consent for major financial decisions, and applying such a large refund without permission could be considered professional misconduct. When you do find a new accountant for next year, make sure to ask them upfront about their policies regarding refund applications and estimated tax payments. Any reputable tax professional should welcome that conversation and be completely transparent about their standard practices. Hope you get this resolved quickly! Keep us updated on how it goes.

I work as a tax preparer and wanted to add some perspective on why this happens and how to prevent it in the future. What your accountant did is unfortunately not uncommon, but it's absolutely unacceptable without your explicit consent, especially for such a large amount. Many tax software programs default to applying refunds to estimated taxes for high-income taxpayers, and some preparers don't bother to change this or discuss it with clients. This is poor practice - ANY refund disposition should be clearly discussed and approved by the client before filing. For getting your money back, the written request approach mentioned by others is definitely your best bet. Include language like "I hereby revoke my election to apply my 2024 overpayment to 2025 estimated taxes and request immediate refund via direct deposit." Send it certified mail to your IRS processing center. Going forward, always ask to review your complete return before it's filed, paying special attention to the refund section. Ask specifically: "How is my refund being handled?" A good tax preparer will walk through this with you and explain the options - direct deposit, check, or applied to next year's estimated taxes. Given their dismissive response to your legitimate concern, I'd strongly recommend finding a new accountant. Professional tax preparers should welcome questions about their processes, not brush off client concerns about unauthorized financial decisions.

As someone who's been doing gig work for a while, I'd also suggest looking into opening a separate business checking account for your DoorDash earnings. It makes tracking income and expenses so much easier come tax time. Many banks offer free business accounts for sole proprietors. Also, consider getting a basic accounting app like QuickBooks Self-Employed or even just using a spreadsheet to track your weekly earnings and expenses. I wish I had started this from day one instead of scrambling to organize everything at tax time. One last thing - don't forget about potential deductions beyond just mileage. You can deduct your phone bill (percentage used for work), any delivery bags you buy, car washes, phone mounts, even parking meters and tolls when you're working. Keep all those receipts! The tax situation seems overwhelming at first, but once you get a system in place it becomes pretty routine. You've got this!

I've been doing DoorDash for about 8 months now alongside my regular job, so I totally get the confusion! Here's what I wish someone had told me when I started: First, definitely update your W-4 at your main job. I calculate it by estimating my monthly DoorDash income, multiplying by 0.28 (covers income tax + self-employment tax), then dividing by how many paychecks I get per month. Put that amount on line 4(c) of your W-4. Second, start a simple spreadsheet right now with columns for: Date, Hours Worked, Gross Earnings, Miles Driven, and any expenses (gas, car wash, etc). Update it weekly - trust me, trying to reconstruct this months later is a nightmare. Third, download a mileage tracking app immediately! I use MileIQ but there are free ones too. Track from your first pickup to your last drop-off each shift. At $0.67 per mile for 2024, this adds up fast. One thing that surprised me: you can deduct a portion of your phone bill since you use it for work. I deduct about 30% of mine since that's roughly how much I use it for DoorDash. The tax stuff seems scary but once you get organized it's really manageable. Feel free to ask if you have other questions!