For many taxpayers eagerly awaiting their refunds, checking a tax transcript can provide early insight into the status of their return. One of the most anticipated codes on a tax transcript is Tax Transcript Code 846, which indicates that the IRS has officially issued a refund.
What is Tax Transcript Code 846?
Tax Transcript Code 846 means that the IRS has completed processing your tax return and has approved your refund. The amount displayed on the line will indicate your refund total. If the refund amount differs from what you initially claimed on your return, the IRS will send an explanation letter detailing any adjustments made.
Additionally, the refund amount listed may include interest if the IRS took longer than the standard processing time to issue your refund. The refund is calculated by subtracting any tax liability from your total credits, including withheld federal income taxes and estimated tax payments, plus any applicable interest.
Can I see the 846 Transcript code on WMR?
Yes, Tax Transcript Code 846 corresponds to the status “Refund Approved” on the IRS Where’s My Refund (WMR) tool and the IRS2Go app. However, tax transcripts often update before WMR, meaning you may see Code 846 before WMR reflects your refund status.
It’s important to note that other transcript codes—such as adjustments, offsets, holds, or freezes—may appear before Code 846 updates. These indicate that the IRS made additional changes to your return before finalizing and issuing your refund.
When Will My Tax Refund Arrive?
Once Tax Transcript Code 846 appears, your refund is on its way. The time it takes to receive it depends on your refund method:
- Direct Deposit: Refunds typically arrive by the date shown next to Code 846, depending on your financial institution’s policies.
- Paper Check: If you requested a paper check, expect it to arrive via mail within a few weeks of the date listed next to Code 846.
If your refund does not arrive by the expected date, double-check that you entered your direct deposit information correctly on your tax return. Incorrect account details can result in refund delays or a mailed paper check instead of a direct deposit.
What Does the Date Next to Tax Transcript Code 846 Mean?
The date next to Tax Transcript Code 846 is the date the IRS sent your refund:
For Paper Checks: This is the date the IRS printed your check. Depending on mail delivery times, it may take several days for you to receive the check in your mailbox.
For Direct Deposit: This is the date the IRS initiated the transfer of funds to your bank account. Some banks post the deposit immediately, while others may take additional processing time.
Seeing Tax Transcript Code 846 on your transcript is great news—it means your refund has been approved and issued! While your actual refund arrival depends on banking processes or mail delivery, this code confirms that the IRS has completed its part. If you experience any delays beyond the expected timeframe, checking with your bank or the IRS may help clarify the issue.
