IRS Code 846 Explained: How to track Your Tax Refund
Tax season can feel like a waiting game, especially when you’re counting on a refund. But once you spot IRS code 846 on your tax transcript, relief is in sight! This code is your golden ticket—it means the IRS has approved your refund and is preparing to send it your way. Let’s break down what this code means, how to track your refund, and what to do if things don’t go as planned.
What is IRS code 846?
IRS Code 846, labeled “Refund Issued,” appears on your tax transcript once the IRS finishes processing your return and confirms your refund amount. Think of it as the final stamp of approval before your money heads out the door. Here’s what you need to know:
- It’s official: The IRS has reviewed your return and found no errors requiring adjustments .
- Timing matters: The date next to Code 846 shows when the IRS initiated your refund—not necessarily when it’ll hit your bank. Direct deposits typically arrive 1–5 days after this date, while paper checks take 3–4 weeks .
- Check for offsets: If you see Codes 898 or 899 alongside 846, part of your refund might have been diverted to pay debts like student loans or child support .
How to track your refund using IRS code 846
Tracking your refund is simpler than you might think. Here’s your step-by-step guide:
1. Access your IRS tax transcript
Your tax transcript is the key to unlocking Code 846. To view it:
- Visit the IRS Get Transcript portal and log in with your Social Security Number or ITIN.
- Select “Account Transcript” for the current tax year.
- Look for Code 846 under the “Transactions” section. The amount and date listed here reflect your approved refund .
2. Use the “Where’s my Refund?” tool
The IRS updates its Where’s My Refund? tool daily. Enter your filing status, refund amount, and Social Security Number to see real-time updates. You’ll progress through three stages:
- Return Received: The IRS has your paperwork.
- Refund Approved: Processing is complete (hello, Code 846!).
- Refund Sent: Your money is en route .
3. Check your bank account or mailbox
- Direct deposit: Most refunds arrive within 5 days of the Code 846 date.
- Paper checks: Allow 3–4 weeks for delivery .
Why your refund might be delayed?
Even with Code 846, delays happen. Here are common culprits:
| Issue | What It Means | How to Resolve |
|---|---|---|
| PATH Act Holds | If you claimed EITC/ACTC, the IRS can’t issue refunds before mid-February . | Wait until after February 15—the IRS typically releases these refunds by early March. |
| Bank Rejections | Incorrect account details can bounce direct deposits (Code 841) . | Update your banking info via IRS Direct Pay; a paper check will follow in 4–6 weeks. |
| Debt Offsets | Code 898 means part of your refund went toward unpaid taxes or loans . | Contact the Bureau of Fiscal Service at 800-304-3107 for details. |
| Processing Errors | Math errors or missing forms trigger reviews (Code 570) . | Respond to IRS notices promptly with corrected documents. |
Understanding other IRS codes related to refunds
While IRS code 846 is the star of the show, other codes on your transcript can provide additional context about your refund status. Here’s a quick rundown of some common ones:
- Code 150: Tax return filed. This means the IRS has received your return and is processing it.
- Code 806: Withholding tax credit. This indicates the IRS has credited your account for taxes withheld from your paycheck.
- Code 766: Tax credit claimed. This shows the IRS has applied credits like the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) to your account.
- Code 570: Additional account action pending. This means the IRS is reviewing your return for potential issues, which could delay your refund.
- Code 971: Notice issued. The IRS has sent you a notice, often related to adjustments or additional information needed.
Understanding these codes can help you decode your tax transcript and stay informed about your refund status.
How to avoid refund delays
Nobody likes waiting for their money, especially when it’s a tax refund. Here are some proactive steps you can take to minimize delays:
- File Early: The earlier you file, the sooner the IRS can process your return. Aim to submit your paperwork as soon as you have all the necessary documents.
- Double-Check Your Information: Simple mistakes, like typos in your Social Security Number or bank account details, can cause significant delays. Review your return carefully before submitting it.
- E-File Your Return: E-filed returns are processed faster than paper returns. Plus, you’ll receive confirmation that the IRS has received your return.
- Choose Direct Deposit: Direct deposit is the fastest way to receive your refund. It also eliminates the risk of your check getting lost in the mail.
- Respond Promptly to IRS Notices: If the IRS needs additional information or identifies an issue with your return, respond as quickly as possible to avoid further delays.
What to do if your refund is delayed
Despite your best efforts, delays can still happen. If your refund is taking longer than expected, here’s what you can do:
- Check your transcript: Your tax transcript will provide the most detailed information about your refund status. Look for any codes that might indicate a hold or issue.
- Use the “Where’s my Refund?” tool: This tool is updated daily and can provide real-time updates on your refund status.
- Contact the IRS: If it’s been more than 21 days since you filed electronically (or 6 weeks since you mailed your return), you can call the IRS at 800-829-1040 for assistance.
Consider professional help: If your refund is stuck due to a complex issue, a tax professional can help you navigate the process and resolve the problem more quickly.
FAQs about IRS code 846
Q: The date next to IRS code 846 has passed, but no refund. What now?
A: Give it 5 business days for direct deposit. If it’s still missing, call the IRS at 800-829-1040 .
Q: Can code 846 show up for past tax years?
A: Yes! Check the date column to confirm it’s for the current year. Older codes may reflect prior refunds .
Q: My refund amount doesn’t match my return. Why?
A: The IRS might have adjusted your credits or applied offsets. You’ll receive a notice explaining the change .
Q: Does IRS code 846 affect state refunds?
A: No. State refunds follow separate timelines. Check your state’s Department of Revenue portal for updates .
Pro tips for a smooth refund experience
- File electronically: E-filed returns process 3x faster than paper .
- Choose direct deposit: Avoid mail delays and lost checks.
- Review your transcript early: Catch errors before they stall your refund.
Update your address: Ensure the IRS has your current mailing details.
Final thoughts
IRS Code 846 is your signal to relax—your refund is approved and on its way. By tracking your transcript and using the IRS’s tools, you’ll stay informed every step of the process. Remember, delays are usually fixable, and the IRS provides clear updates if adjustments are needed.
Need More Help?
- Visit the IRS Refund FAQs page for troubleshooting.
Contact a tax professional if your refund is stuck in limbo.
With this guide, you’re equipped to navigate tax season confidently. Here’s to faster refunds and fewer headaches!
