Here's what typically happens with IRS verification: 1. Initial screening - All returns go through automated filters that look for discrepancies 2. Selection - Returns flagged by these filters move to verification 3. Notification - At this point, a letter may be sent (CP05, 4464C, etc.) 4. Processing - The IRS reviews information against their records 5. Resolution - Approval, adjustment, or request for additional documentation For amended returns specifically, the process is more thorough because they're comparing against your original filing. The best approach is to check your transcript weekly and watch for status code changes. This gives you the most up-to-date information without waiting for postal mail.

The 37-day timeline you mentioned for your amended return is actually pretty standard - you're right in the normal processing window. Amended returns typically take 16+ weeks, so you're still early in the process. One thing I'd add to the excellent advice here: if you're dealing with verification, keep detailed records of all your documentation. Even if they don't request anything initially, having everything organized (receipts, W-2s, 1099s, etc.) can save you weeks if they do follow up later. Also, that missed deduction you discovered - was it a significant amount? Sometimes larger discrepancies between original and amended returns can trigger additional scrutiny. The IRS computers are pretty good at flagging unusual patterns, but it's all part of their normal process to protect against fraud. Your right to know about verification is valid, but unfortunately the IRS timeline for notification isn't always consistent with when verification actually begins. Checking your transcript weekly is really your best bet for staying informed about what's happening behind the scenes.

Has anyone dealt with the situation where disability gets approved retroactively? My father was in a similar situation where he got a lump sum payment that covered previous months, and it really messed up my tax return from the prior year.

This is exactly the kind of complex situation where getting professional guidance can save you both money and stress. Based on what you've described, you're likely eligible for multiple tax benefits, but there are some important details to consider. First, make sure you understand the "support test" - you need to provide more than 50% of each dependent's total support for the year. This includes housing, food, medical expenses, clothing, education, and other necessities. Keep detailed records of everything you pay for them. For your disabled parent, even though they're waiting for disability approval, as long as their current income is under the threshold and you're providing the majority of their support, you should qualify to claim them. When/if disability gets approved retroactively, you may need to reassess, but that's a bridge to cross later. Your minor sibling should definitely qualify as a dependent, and this could make you eligible for Head of Household filing status, which has significantly better tax rates than Single status. Don't overlook the medical expense deduction if you're paying for your parent's medical costs. While there's a 7.5% AGI threshold, with multiple dependents and significant medical expenses, you might exceed it. I'd strongly recommend consulting with a tax professional who has experience with these types of family caregiver situations, as the potential tax savings could be substantial and the rules can be tricky to navigate correctly.

Make sure you actually qualify for the American Opportunity Credit before accepting it! The requirements are different from the Lifetime Learning Credit. AOC can only be claimed for the first 4 years of post-secondary education and you must be pursuing a degree. LLC has no such restrictions.

This is such a common source of confusion! I went through the exact same thing last year. The key thing to understand is that most tax software has algorithms that automatically optimize your return by choosing the most beneficial credits and deductions available to you. What likely happened is the software determined you were eligible for both the Lifetime Learning Credit and the American Opportunity Credit, ran the calculations for both scenarios, and automatically selected the AOC because it resulted in a larger refund due to its partial refundability. The software should have shown you this switch somewhere in the review process, but it's often buried in the details and easy to miss. For future reference, you can usually find a summary of all credits applied in the final review section before filing. It's always worth double-checking that summary to understand exactly what credits and deductions are being claimed on your behalf. Your refund amount sounds completely legitimate if you qualify for the American Opportunity Credit!

I made a terrible mistake last year with this exact issue! I thought I had updated my direct deposit info, but I missed clicking the final "Save" button after entering the new account details. My $3,400 refund went to my ex-spouse's account instead! 😱 It was a nightmare trying to get it back. Now I take screenshots of every confirmation page and double-check everything before submitting. TurboTax's interface can be really confusing with how it saves (or doesn't save) your banking changes. I'm so grateful for all the detailed advice in this thread - wish I had seen something like this last year!

I went through this exact same situation when helping my mom with her taxes! What finally worked for me was logging into TurboTax on a completely different device (I used my tablet instead of my laptop). For some reason, this bypassed whatever caching issue was causing the old account info to keep appearing. When I got to the direct deposit section on the fresh device, I was able to enter the new banking information without any auto-population from previous years. After entering the new info, I made sure to go through each review screen slowly and took a photo of the final confirmation page showing the correct account details. The refund went to the right account without any issues. Sometimes these web applications get "sticky" with saved data, and switching devices can be the simplest solution. Hope this helps with managing your parent's finances!

Is anyone else having super long wait times for processing amended returns with Form 8863? I submitted mine for 2023 back in August, and the "Where's My Amended Return" tool still says it's processing. Makes me nervous about filing for the other years I missed (2022 and 2024).

I went through this exact same situation with my 2022 Form 8863 last year! The key thing that helped me was calling the IRS number on the rejection notice (not the main customer service line) and asking specifically what documentation they needed. In my case, they wanted three things: 1) A copy of my official transcript showing I was enrolled at least half-time during 2022, 2) My student account statement showing the actual dates payments were made (not just what was billed), and 3) A corrected Form 8863 where I had to change one of the checkboxes in Part III about completing the first four years of postsecondary education. The reason your 2022 form got rejected while 2023 and 2024 were accepted is probably because the IRS has stricter verification requirements for older tax years - they want to make sure people aren't making retroactive claims that can't be verified. Also double-check that you used the correct year's version of Form 8863 for 2022, as using a newer form version for an older tax year will cause automatic rejection. Don't give up on that refund! It took me about 8 weeks after resubmitting with the correct documentation, but I eventually got my 2022 education credit refund.