Why Your IRS Refund Release Date and Your Actual Bank Deposit Date Are Not the Same
When you are tracking your refund through IRS transcripts, nothing is more important than Transaction Code 846. For millions of taxpayers, TC 846 is the moment of relief—the code that means the IRS has officially released your refund. But one of the most misunderstood parts of the refund process is this:
The TC 846 date is NOT the day the refund will hit your bank account.
Instead, it is the date the IRS sends the money out. Your bank or financial institution determines when the deposit actually becomes available.
If you want to understand exactly when your refund will arrive, this guide breaks down the difference between the IRS 846 release date and your actual bank deposit date, so you know exactly what to expect.
What Is Transaction Code 846?
TC 846 – Refund Issued
This is the final, most important code on the IRS Account Transcript. It means:
- Your refund has been approved
- All holds or reviews have been cleared
- The payment is being released from the IRS
- No further IRS action is needed
The date next to TC 846 is the official disbursement date—the day the IRS sends your refund to your bank or card provider.
It is not the same as your deposit date.
The TC 846 Date = IRS Release Date
The IRS processes refunds in batches. When your return reaches the end of the cycle and passes every final check, TC 846 posts with a date indicating:
This is the date the IRS transmits funds to your bank.
On that date, the payment leaves the Treasury Department and enters the banking system.
Once the IRS releases the funds, the timing is out of their hands.
Your Bank Determines the Actual Deposit Date
After the IRS releases your refund, your financial institution must:
- Receive the incoming Treasury deposit
- Process and verify the payment
- Post the funds to your account
Depending on the bank, this can take:
- 1 business day for major banks
- 2–3 business days for some credit unions
- Up to a week for prepaid cards or smaller institutions
This is why two taxpayers with the same TC 846 date may receive their deposits on different days.
Typical Timing for Most Taxpayers
The most common pattern is:
- TC 846 date → IRS releases the refund
- 1–3 business days later → Bank posts the deposit
If the TC 846 date is a Friday, weekend processing rules mean:
- Deposit may not show until Monday or Tuesday
- Some institutions only process government deposits during business hours
- Prepaid cards may take longer than traditional banks
This timeline varies based on the bank’s internal posting policies.
Why WMR and IRS2Go Stop Updating After TC 846
After TC 846 posts, IRS systems consider your refund fully processed.
Where’s My Refund and IRS2Go often display messages such as:
- Refund Sent
- Refund Approved
- Your refund should be deposited by [date]
But they will not show banking delays or posting issues.
Only your transcript provides the actual release date.
Common Factors That Delay Bank Deposits
Even after TC 846 posts, certain issues can delay your refund reaching your account:
1. Incorrect or partial direct deposit information
Banks may reject deposits that do not match account names or numbers.
2. Bank security holds
Some institutions delay large or unusual deposits for review.
3. Deposit posted before or after business cutoff times
Funds released after banking hours often post the next business day.
4. Weekends and federal holidays
These can delay posting until the next banking day.
5. Refund sent to prepaid cards
Many prepaid card companies batch-process payments more slowly.
6. Joint returns deposited into a single-name account
Some banks hold deposits until identity can be confirmed.
How to Confirm Your Refund Is on the Way
Once TC 846 posts:
- The refund has been officially issued
- The IRS has completed all processing
- No further review codes (570, 810, 971) will apply
- Funds have left the Treasury on the listed date
From there, the deposit timeline depends entirely on your bank.
If your bank rejects the deposit, the IRS will mail a paper check, which can take several weeks.
What If You Don’t Receive Your Deposit After Several Days?
If five business days pass after your TC 846 date and no deposit arrives:
- Call your bank first
- Confirm the account and routing number you filed with
- Ask whether any incoming Treasury deposits are pending or rejected
If the bank confirms no deposit ever arrived:
- Contact the IRS at the refund hotline
- You may need to request a payment trace (Form 3911)
This is rare, but it can happen when account information is incorrect.
Understanding the difference between the TC 846 date and your bank’s deposit date is essential during refund season.
TC 846 means: “The IRS has released your refund.”
It does not mean: “The money is already in your account.”
Most taxpayers receive their deposit 1–3 business days after the TC 846 release date, but exact timing depends on the bank’s posting schedule. Watching your transcript gives you the most accurate view of where your refund stands in the process.
