Also make sure you're using the correct year's TurboTax software! If you accidentally started your return in last year's version (2023), it might be telling you to wait until "next year" (meaning 2024) because the withdrawal date you entered is in 2024. The version of TurboTax you should be using right now for a 2024 1099-R is the 2024 version (which would typically be labeled as TurboTax 2024, for filing in 2025).

Based on what you've described, you definitely need to report this 1099-R on your 2024 tax return. The key rule is that retirement distributions are reported in the tax year shown on the 1099-R form, regardless of when you requested the withdrawal. Since you mentioned this was a complete cash-out (not a rollover) and the form is dated 2024 with distribution code 7, this is a straightforward taxable distribution that belongs on your 2024 return. The TurboTax issue is likely one of two things: either you accidentally answered a question suggesting it was a rollover, or there's a glitch in the software's interview process. I'd recommend deleting the entry completely and re-entering it from scratch, being very careful to indicate that you kept the money rather than rolling it over. If the software continues to give you the wrong guidance after re-entering, that's definitely a software error and you should contact TurboTax support. Don't let the software convince you to delay reporting this - the IRS expects to see this 1099-R on your 2024 return since that's what your financial institution reported to them.

Quick tip: If you do decide to amend, make copies of EVERYTHING before sending it in. I had an amended return get "lost" by the IRS last year and had to resend the whole package. Also, if you mail it, use certified mail with tracking so you have proof it was delivered!

Just wanted to chime in as someone who went through this exact situation a couple years ago! I missed claiming about $400 in student loan interest and ended up amending to get back around $85. Here's my honest take: Yes, absolutely do it! Not just for the money (though $69 is definitely worth it), but also because it's great practice for understanding the tax system better. The amendment process taught me so much about how deductions actually work. One thing I'd add to the great advice already here - when you're filling out the 1040-X, the form asks you to explain the changes you're making. Be specific but concise. I wrote something like "Adding previously unreported student loan interest deduction of $381 per Form 1098-E" and attached a copy of my 1098-E form. Also, don't stress too much about making it perfect. The IRS will contact you if they need clarification on anything. Good luck with your first amendment - you've got this! 😊

Just wanted to add my experience since I went through this exact situation last year with my daughter. I paid her $425 for social media help with my consulting business. I ended up putting it on line 48 (Other expenses) with the description "Contract services - family member" after consulting with a CPA. The reasoning was that it provides clearer documentation for the IRS about the nature of the payment, especially since no 1099 was issued. One thing I learned that might help others - make sure you and your daughter are consistent about how you both report this. I reported it as a contractor payment on my Schedule C, so she needed to report it as self-employment income on her Schedule C (even though it was under $600). The IRS can cross-reference these if they want to, so consistency is key. Also, even without a formal contract, I created a simple written record of what work she did and when, along with copies of her deliverables (social media posts, graphics she made, etc.). This gave me solid backup documentation in case of questions later. The amount doesn't matter for deduction purposes - you get the same $387 deduction whether it goes on line 11 or line 48. It's really just about clear documentation and making sure both parties report consistently.

I've been dealing with similar questions about family member payments for my home-based business. One thing that helped me was understanding that the IRS doesn't really care which line you use (11 vs 48) as long as the expense is legitimate and properly documented. What I found most important was creating a clear paper trail. Even for small amounts like your $387, I recommend: 1. Write up a simple agreement or work order describing what your daughter did 2. Keep records of when the work was performed 3. Document how you paid her (check, Venmo, etc.) 4. Have her create basic invoices for the work The "Other expenses" approach on line 48 with a description like "Contract services - family member" or "Freelance work - under $600" seems to be the preferred method among tax professionals I've spoken with. It's more transparent and less likely to raise questions since you're clearly indicating this was a small contractor payment that didn't require a 1099. Just make sure your daughter reports it correctly on her return. If this was her only freelance income and she's not running a regular business, she might be able to report it as "Other income" instead of setting up a whole Schedule C, which could save her from self-employment taxes.

This is such a comprehensive thread - thank you everyone for sharing your experiences! I'm dealing with code 740 on my 2021 amended return and was completely lost until I found this discussion. I wanted to add one more tip that might help others: if you have a local Taxpayer Advocate Service office in your area, they can sometimes help with these refund reissuance issues too, especially if you've been trying to resolve it for several weeks without success. They're a separate division within the IRS that helps taxpayers navigate complex situations. I'm going to try the direct phone call approach first using all the great advice here (early morning, have all docs ready, get confirmation numbers), but it's good to know there's another option if that doesn't work out. Has anyone had experience with how long it takes for the "Where's My Refund" tool to update once the IRS processes an address change? I'm hoping I can use that to track progress once I get this sorted out. Thanks again to everyone who shared their stories - it really helps to know this is fixable and that I'm not the only one who's been through this frustrating situation!

I just want to thank everyone who contributed to this thread! I was panicking when I first saw code 740 on my transcript, thinking my refund was lost forever. Reading through all these detailed experiences and solutions has been incredibly reassuring. It's amazing how a simple address change can create such a complex situation, but it's clear from everyone's stories that the IRS does have processes in place to handle this - you just need to know how to navigate them. I'm bookmarking this thread because the step-by-step advice here is better than anything I found on the official IRS website. The phone tree sequence, timing recommendations, document preparation tips, and even the alternative solutions like callback services and transcript analysis tools - this is like a complete guide for dealing with code 740! For anyone else finding this thread in the future: don't panic, your money isn't gone, and these strategies really do work. Special thanks to everyone who took the time to share their confirmation numbers, timelines, and specific details. This community is incredibly helpful for navigating these confusing tax situations.

One more consideration that could save you money - since you never actually rented out the property before selling it, you might want to double-check whether this qualifies as an investment property at all for tax purposes. The IRS generally requires that property be "held for productive use in a trade or business or for investment" to qualify for capital gains treatment. Since you purchased with the intent to rent but never actually did due to circumstances beyond your control, you should be fine. However, some aggressive IRS agents might try to argue this was personal property, especially given the short holding period. To strengthen your position, make sure you document your original investment intent - save any emails, texts, or notes about rental market research you did, listing the property on rental websites, communications with property managers, etc. Even though you never completed a rental, showing clear evidence of your investment intent helps establish this as investment property rather than personal use property. This documentation becomes especially important if you ever face an audit, since the distinction affects both your ability to claim the renovation expenses in basis and potentially the tax rates applied to any gains.

This is a complex situation but you're definitely on the right track thinking about including those renovation costs in your basis! A few additional points that might help: First, regarding documentation - while 65% receipts is actually pretty good, don't forget about bank records, loan statements, and even photos you might have taken during renovation. The IRS accepts various forms of proof, and contemporaneous photos showing the work being done can be surprisingly helpful in supporting your expense claims. Second, since you mentioned the property was in your personal name and you have another rental property, make sure you're treating this consistently with your other real estate investments on your tax returns. The IRS likes to see patterns of investor behavior. Also, consider whether any of those renovation expenses might qualify for specific tax benefits beyond just adding to basis. For example, if you installed energy-efficient systems, there might be additional credits available even though you sold before renting. Finally, given the complexity and the significant dollar amounts involved (potentially saving thousands in capital gains tax), this might be worth a consultation with a tax professional who specializes in real estate. They can review your specific situation and ensure you're maximizing all available benefits while staying compliant with IRS requirements. The silver lining is that even though your plans changed, the tax treatment should still work in your favor as long as you document everything properly!