How to Confirm That Your New Deductions Were Actually Applied

With the rollout of the OBBB tax reforms, millions of taxpayers in 2026 will be claiming one or more of the new refund-enhancing deductions, including:

• the $6,000 Senior Deduction
• the Overtime Deduction
• the Tip Income Deduction
• the Auto Loan Interest Deduction

But simply claiming these on your return is only the first step. The real confirmation — the proof that they were accepted and applied — appears where it matters most:

on the IRS transcript.

This year, the IRS is expected to use new TC 77X series transaction codes to record these specialized deductions.

Here’s what that means — and what to look for.

The OBBB Deductions Will Not Post as Regular TC 766 or TC 806 Entries

Typical tax credits such as:

• Child Tax Credit
• Earned Income Tax Credit
• Premium Tax Credit

appear as TC 766 or similar codes.

But the OBBB deductions function differently. They are neither a standard withholding credit nor a traditional refundable credit. These represent new above-the-line and adjusted income deductions, and the IRS is introducing new tracking codes for them.

The Expected New OBBB Transcript Codes: The TC 77X Series

While final implementation may vary as the IRS provides public documentation, taxpayers can expect to see codes in this structure:

• TC 771 — Senior Bonus Deduction Posted
• TC 772 — Overtime Deduction Posted
• TC 773 — Tip Income Deduction Posted
• TC 774 — Auto Loan Interest Deduction Posted

These allow the IRS to:

• track these deductions separately
• audit and verify employer reporting
• detect fraud or overclaiming
• link the deductions to employer or lender documentation

The presence of these codes confirms that the deduction was officially accepted by IRS processing.

Where to Look on the Transcript

Go to your Wage & Income Transcript or Account Transcript under the IRS Online Account and look for:

• the TC 77X code
• a dollar amount
• a posting date

Example (not an actual sample, but representative):

TC 771   -$6,000    03-01-2026
TC 772   -$3,420    03-01-2026
TC 773   -$2,615    03-01-2026

If these are present, your deductions are active in the processing calculation.

What If the Codes Are Missing?

If you claimed the deduction but see no matching TC 77X:

• the return may still be in preliminary processing
• your employer or lender may not have reported the supplemental data yet
• the IRS may be verifying the documentation
• a TC 570 hold might be in place pending review
• there may be a mismatch in Form W-2 Box 14 reporting
• additional verification may be required

In some cases, taxpayers may receive a CP or 971-series letter requesting clarification or documentation.

How These Codes Help You Predict Refund Timing

The OBBB deductions often post before TC 846.
The expected sequence might look like:

• TC 150 — Return Filed
• TC 806 — Withholding
• TC 77X — New OBBB Deductions
• TC 570 — Hold (if triggered)
• TC 571 — Hold Lifted
• TC 846 — Refund Issued

Seeing the 77X codes post is a strong signal that:

• the IRS accepted the deduction
• the refund calculation is nearing completion
• the final refund amount may be larger than your initial filing software estimated

Why This Matters in 2026

These new deductions are not minor.
They can significantly boost refunds, especially for:

• seniors
• hourly workers
• service industry employees
• car buyers
• overtime-heavy professions
• tipped professions
• gig-based earners

Being able to verify their posting on the transcript helps taxpayers stay ahead, avoid panic, and track their refund accurately — even when Where’s My Refund is delayed or frozen.

The Bottom Line

If you claimed a new OBBB deduction this year:

• don’t rely solely on your tax software
• don’t trust only the refund estimate
• check your IRS transcript
• look specifically for the TC 77X series codes

Those codes are the digital confirmation that the IRS accepted your deduction and is factoring it into your refund amount.