You’ve been hitting refresh on the "Where’s My Refund?" tool for three days straight. The orange bar hasn't budged. It’s stuck on "Received," and you’re starting to wonder if your tax return fell into a digital black hole at the IRS processing center in Ogden or Kansas City. So, you do what any sane person does: you pull your tax transcript. You scroll past the jargon, the "Cycle Codes," and the confusing dates until you see it. Code 846 on IRS transcript.
It’s the holy grail of tax season.
Most people think the IRS is a monolith that just "sends money," but the reality is much more bureaucratic. Your transcript is the raw feed of what the IRS computer system, the Integrated Data Retrieval System (IDRS), is actually doing with your life. When you see that 846, the wait is basically over. It’s the official signal that the IRS has finished its math, verified your identity, and authorized the release of your refund.
Money is moving. Finally.
What is Code 846 on IRS transcript and Why Should You Care?
Basically, Transaction Code (TC) 846 means "Refund Issued."
In the IRS Master File—the giant database that tracks every American taxpayer—this code acts as the final green light. It signifies that the assessment of your tax return is complete. If you had a Code 570 (Account Hold) or a Code 971 (Notice Issued) earlier in the transcript, the 846 appearing below them means those hurdles have been cleared.
It’s not just a "we got your return" note. It is a "we are paying you" note.
The IRS uses a specific set of codes to communicate internally, and for us on the outside, 846 is the only one that truly matters if you're looking for cash. It represents the specific amount of the refund plus any interest the IRS might owe you if they took too long to process your return. Honestly, seeing this code is the most reliable way to know your refund is safe. The "Where’s My Refund?" tool (WMR) actually lags behind the transcript. Often, the transcript will update with an 846 on a Friday morning, while the WMR tool won't show "Approved" until Saturday.
The Relationship Between TC 846 and Your Refund Date
Don't just look at the code; look at the date right next to it.
That date isn't just a random Tuesday. It is your Refund Sent Date. If you opted for direct deposit, that is the day the IRS intends to blast the funds to your bank via the ACH system. If you’re old school and requested a paper check, that’s the day the envelope is supposed to hit the mail.
However, there is a catch.
Banks are weird. Even though the IRS "issues" the refund on that date, your bank might hold it for a few days. Or, if you used a tax prep service like TurboTax or H&R Block and chose to have your filing fees deducted from your refund, the money goes to a third-party bank first (like Santa Barbara Tax Products Group). They take their cut, then send the rest to you. This can cause a 24-to-48-hour delay that drives people crazy.
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Why the 846 Might Look Different This Year
If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you’ve probably heard of the PATH Act. This law prevents the IRS from issuing these refunds before mid-February. You might see other codes on your transcript, like a 150 (Tax Return Filed) or an 806 (W-2 Withholding), but that 846 won't show up until the PATH Act "lifts."
Last year, many taxpayers saw their transcripts update with an 846 on the Friday following February 15th. It’s a pattern. The IRS likes to process in batches.
Reading the "Cycle Code" Next to Your 846
Next to your transaction codes, you’ll see an eight-digit number under the "Cycle" column. It looks like 20260505.
The first four digits are the year (2026). The next two are the week of the year. The last two represent the day of the week the IRS posted the transaction to your account.
- 01 is Friday
- 02 is Monday
- 03 is Tuesday
- 04 is Wednesday
- 05 is Thursday
If your cycle code ends in 05, you are what the tax community calls a "weekly." Your transcript only updates once a week, usually on Friday mornings. If you're a daily (01 through 04), you might see changes any day of the week. Knowing your cycle helps you stop checking the site 50 times a day—though we all do it anyway.
Can a Code 846 Be Cancelled?
It’s rare, but yes.
If the IRS realizes there was a massive error or suspected fraud after the 846 was generated but before the money hit the wire, they can "freeze" it. You would see a Code 841 (Refund Cancelled) or a Code 941. This usually only happens if the bank rejects the deposit—maybe you closed the account or mistyped the routing number.
If the bank sends the money back, the 846 stays there, but a new code appears showing the money returned to the IRS. Then, they’ll usually default to mailing you a paper check, which adds about three to four weeks to your wait time. It’s a nightmare, honestly. Triple-check your bank info.
Real Examples of Transcript Sequences
Let's look at what a "clean" transcript looks like versus one with issues.
In a perfect world, your transcript looks like this:
- Code 150: Return filed and tax assessed.
- Code 806: Your W-2 withholding is credited.
- Code 766: Refundable credits (like the Child Tax Credit) are applied.
- Code 846: The refund is authorized.
If you see Code 570, it means there’s a "freeze" or a hold. Maybe they need to verify your income or your identity. You’ll sit there with a 570 for weeks sometimes. When the IRS finally finishes their review, you’ll see Code 571 (Resolved), and then, finally, the 846 will pop up underneath it. The 846 is always the finish line.
Why Your 846 Amount Might Be Lower Than Expected
Sometimes you see the 846, but the dollar amount doesn't match what you put on your 1040.
Don't panic. Look for Code 826. This code means "Overpayment Transferred." Basically, the IRS took part of your refund to pay off an old debt. This could be back taxes from three years ago, unpaid child support, or even a defaulted student loan that’s been referred to the Treasury Offset Program.
The Bureau of the Fiscal Service (BFS) handles these offsets. They take the money before you ever see it. The 846 will show the remaining balance that is actually being sent to your bank account. If the offset wipes out your entire refund, you might not see an 846 at all, or it will show $0.00.
How to Get Your Transcript to Check for Code 846
You don't have to wait for the mail. The fastest way is to use the IRS.gov "Get Your Tax Record" tool. You’ll have to go through ID.me, which requires a photo of your ID and a selfie. It’s a bit of a pain, but it gives you access to the "Record of Account Transcript."
That is the specific document you want.
The "Account Transcript" is the one that shows the codes. The "Tax Return Transcript" just shows what you submitted, which isn't helpful for tracking a refund. You want to see the "live" updates on the Account Transcript.
Misconceptions About the 846 Code
People on Reddit and Facebook groups often say that an 846 means the money is already in your bank. That’s just not true. It means the IRS has sent the instruction to send the money.
Another big myth is that the date next to the 846 is the "guaranteed" day you get paid. Again, not exactly. It is the date the IRS expects the money to be available, but bank processing times are the ultimate wild card. If your 846 date is a Monday, some "neo-banks" like Chime or Varo might give you the money on the preceding Wednesday or Thursday. Big traditional banks like Chase or Wells Fargo will almost certainly hold it until the actual date listed.
Actionable Steps for Taxpayers
If you are staring at your transcript right now, here is exactly what you should do based on what you see:
- If you see Code 846: Check the date. If that date has passed and you don't have money, contact your bank first. If the bank sees nothing, wait five days before calling the IRS.
- If you see Code 570 without an 846: The IRS is manually reviewing something. Do not call them yet; they usually tell you to wait 60 days. Check for a Code 971, which means a letter is coming in the mail explaining the hold.
- If you see Code 846 but the amount is wrong: Look for Code 826 or 898 (Bureau of Fiscal Service offset). You’ll get a notice in the mail within 10 days explaining exactly who took the money and why.
- If there is no 846 and your transcript says "N/A" for the current year: The IRS hasn't even started "inputting" your return into the Master File yet. This is common in the first two weeks of February.
The IRS system is ancient. We’re talking about code written decades ago. It’s clunky and slow, but the transcript is the most honest look you’ll ever get into the process. If that 846 is there, breathe easy. The check is—quite literally—in the mail (or the wire).
What to Do if the 846 Date Passes and No Money Appears
This is the nightmare scenario. If your 846 date was more than five days ago for direct deposit (or 4 weeks for a paper check), you need to initiate a Refund Trace.
You do this by filing Form 3911, Taxpayer Statement Regarding Refund. This forces the IRS to check with the Treasury to see if the payment was actually cashed or if the ACH transfer failed. If it was a bank error, the bank usually returns the money to the IRS within 30 days, and the IRS will then mail a paper check to the address on your return.
Make sure your address is updated. If you moved since you filed, file Form 8822 immediately. The IRS doesn't just take your word for a new address over the phone most of the time; they want the paperwork.
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Understanding the 846 code is basically like having a secret decoder ring for the most frustrating government agency in America. It won't make the money arrive faster, but it will definitely stop you from worrying about whether your return was lost in the shuffle.
Next Steps for You:
- Log into your IRS Online Account via ID.me to access your 2025 (or 2026) Account Transcript.
- Locate the Transaction Codes section at the bottom of the document.
- Match the Cycle Code to determine if your account updates daily or weekly.
- If Code 846 is present, mark the date in your calendar and notify your bank's customer service if the deposit doesn't land within 48 hours of that date.