Tax Transcript Code 846 on your tax transcript means that the IRS has issued you a refund for your tax return. You can use the cycle code to find out when your tax return started processing and the explanation of the transaction section of your current tax transcript to determine when a code post to your tax transcript.
What is Tax Transcript Code 846?
Tax Transcript Code 846 indicates Refund Issued meaning that the IRS has finished processing your return and approved a refund on your tax return. The amount shown on the line will detail your refund amount. If the amount does not match the amount you claimed on your return, you will need to wait for an explanation letter from the IRS about the difference.
The amount shown on the transcript will also include any interest the IRS owes you on your refund. The refund is calculated as your total tax liability less any credits on your account (for federal income taxes withheld or estimated tax payments) plus any interest due to you.
Can I see the 846 Transcript code on WMR?
The Tax Transcript Code 846 will show on your transcript when the IRS has completed the tax returns and verified that you’re eligible to receive a refund.
It will appear as the status REFUND SENT on the IRS2Go or WMR app. It is important to note that the amount can be considered positive for Tax Transcript Code 840 once refunds are given, as opposed to the negative numbers of tax credits code (e.g., 766), which are the amount the IRS has to pay you.
You might see the Tax Transcript Codes showing adjustments, offsets, holds, freezes, and notices issued before Tax Transcript Code 846 updates. This is a result of additional adjustments the IRS has made before releasing your refund.
When Will My Tax Refund Arrive?
Once you see a Tax Transcript Code 846 on your transcript, your refund will be processed. The timing of your refund will depend on whether you asked for a direct deposit refund or a check. If you requested a check, you should receive it on or after the date listed next to the Tax Transcript Code 846. Direct deposit refunds will depend on your financial institution. Most banks will release the deposit as soon as they receive the funds but others could hold your refund until the day listed next to the Tax Transcript Code 846.
If you have not received your refund by the date next to the Tax Transcript Code 846 check and make sure you enter your account number correctly on your tax forms.
What Does the Date Next to Tax Transcript Code 846 Mean?
The date next to Tax Transcript Code 846 is the date that the IRS sent your refund. If you are receiving your refund via direct deposit, this is the date that the direct deposit was initiated by the IRS.
Some financial institutions could post the deposit to your account instantly but others can still take several days for the refund to appear in your account. If you opted for a paper check to be mailed, this is the date that the IRS printed the check. It could take several additional days to receive the refund by mail.
