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! 😊

This might be silly, but doesn't the short timeframe mean this could be considered "dealer property" (meaning you're in the business of flipping houses)? I thought if you buy, renovate and sell quickly without renting, the IRS might classify you as a dealer and tax the gains as ordinary income plus self-employment tax...

Just wanted to add one more important point that hasn't been mentioned - make sure you understand the timing of when you can claim these renovation expenses. Since you never actually placed the property in service as a rental (you sold it before renting it out), you can't depreciate any of the improvements. However, you can absolutely add all the renovation costs to your cost basis for calculating capital gains, which is exactly what you want in this situation. Also, don't forget about the soft costs during renovation - things like property taxes, insurance, and loan interest you paid during the 6-month rehab period. These can also be added to your basis. Many people overlook these "carrying costs" but they can add up to several thousand dollars. One last tip: if you used a credit card for any renovation expenses, those statements can serve as excellent documentation even if you don't have the original receipts. Credit card companies are required to keep detailed transaction records that the IRS generally accepts as valid proof of expenses.

Don't forget to file Form 8822 (Change of Address) with the IRS regardless of which method you use to get your current refund. This ensures all future IRS correspondence goes to the right place!

I'm currently dealing with this exact same code 740 situation right now! My 2020 amended return refund got returned because I moved between filing and when they processed it. Reading through all these responses is super helpful - I had no idea there were so many different approaches to resolving this. I was planning to just call the IRS directly, but now I'm considering some of the other options mentioned here like the callback services or even checking if my tax software can help. One question I have that I don't think was fully addressed: Does anyone know if there are different procedures depending on whether it was an original return refund vs an amended return refund that got code 740? I'm wondering if amended returns might take longer to reissue or require different verification since they're processed differently in the first place. Also, for those who successfully got their refunds reissued, about how long did the whole process take from when you first contacted the IRS to when you actually received the money? Trying to set realistic expectations for myself! Thanks to everyone who shared their experiences - this thread is a goldmine of practical advice for this frustrating situation.

One thing nobody mentioned: if you used the card for business expenses and deducted 100% of those expenses on last year's tax return, but get the rewards this year, you might need to include the rewards as income for this year's return. Timing matters. Talk to a CPA to be safe.

Just to add another perspective - I'm a tax preparer and see this question a lot during tax season. The key distinction everyone's mentioned is spot on: regular spending rewards = rebate (not taxable), sign-up bonuses without spending requirements = potentially taxable income. For business cards specifically, if you're deducting the full business expense but then receiving rewards back, you're essentially double-dipping. The cleanest approach is usually to either: 1) reduce your business expense deduction by the amount of rewards received, or 2) report the rewards as business income. Both achieve the same net effect. One more thing - keep good records of your rewards earning and redemption. Even though most rewards aren't taxable, having documentation helps if you ever need to explain your position to the IRS. The fact that you're asking this question puts you ahead of most people who just ignore it completely!

Has anyone tried TurboTax for figuring this stuff out? I used it last year and it seemed pretty clear that pet expenses weren't deductible, but I'm wondering if the premium version might have more options for finding other deductions to make up for it?

I've been dealing with massive vet bills too - my cat needed emergency surgery twice this year totaling about $4,800. After reading through all these comments, I decided to try both taxr.ai and Claimyr since everyone seemed to have good experiences. The taxr.ai analysis was really thorough and while they confirmed my vet bills weren't deductible (as expected), they found several business expense deductions I had completely overlooked since I do some freelance work. Saved me about $900 in taxes which definitely helps with the vet bill sting. Then I used Claimyr to get through to an actual IRS agent to double-check some of the more complex deductions taxr.ai had identified. Got connected in maybe 25 minutes and the agent was incredibly helpful - even walked me through proper documentation requirements so I wouldn't have issues if audited. Between the two services, I feel much more confident about my tax situation this year. Sometimes you just need professional help to navigate all the rules properly, especially when you're dealing with significant unexpected expenses like vet bills.