$1,523 Refund Transferred to 2021 Tax Return (Code 826) with Notice 971 - No Explanation Received

Just checked my transcript and it shows a notice was issued on March 3rd, 2025 but I haven't received anything in the mail or in my IRS account online. Looking at my transcript, I can see my refund was supposed to be $1,523.00 (made up of $666.00 in W-2/1099 withholding and a credit of $857.00), but the transcript shows it as "Credit transferred out" on March 3rd with code 826. My transcript shows $0.00 for current account balance, accrued interest, and penalties as of March 3rd, 2025. My adjusted gross income was $13,076.00, with taxable income of $0.00 and tax per return of $0.00. I filed as Single with 01 exemption. The credit transfer shows it went to "1040 202112" but I don't understand what that means. The transcript shows code 971 for "Notice issued" on March 3rd, 2025, but I haven't received any notice explaining this transfer. The original processing date was March 3rd, 2025. Here's exactly what my transcript shows: FORM NUMBER: 1040 TAX PERIOD: Dec. 31, 2024 ACCOUNT BALANCE: 0.00 ACCRUED INTEREST: 0.00 AS OF: Mar. 03, 2025 ACCRUED PENALTY: 0.00 AS OF: Mar. 03, 2025 ACCOUNT BALANCE PLUS ACCRUALS (this is not a payoff amount): 0.00 INFORMATION FROM THE RETURN OR AS ADJUSTED: EXEMPTIONS: 01 FILING STATUS: Single ADJUSTED GROSS INCOME: 13,076.00 TAXABLE INCOME: 0.00 TAX PER RETURN: 0.00 SE TAXABLE INCOME TAXPAYER: 0.00 SE TAXABLE INCOME SPOUSE: 0.00 TOTAL SELF EMPLOYMENT TAX: 0.00 RETURN DUE DATE OR RETURN RECEIVED DATE (WHICHEVER IS LATER): Apr. 15, 2025 PROCESSING DATE: Mar. 03, 2025 TRANSACTIONS: CODE EXPLANATION OF TRANSACTION - CYCLE - DATE - AMOUNT 150 Tax return filed - 20250705 - 03-03-2025 - $0.00 16211-434-48756-5 806 W-2 or 1099 withholding - 04-15-2025 - -$666.00 766 Credit to your account - 04-15-2025 - -$857.00 826 Credit transferred out to 1040 202112 - 03-03-2025 - $1,523.00 971 Notice issued - 03-03-2025 - $0.00 I checked the Request Date and Response Date on the transcript, which both show 02-15-2025, and there's a Tracking Number listed too. It says "This Product Contains Sensitive Taxpayer Data" at the top and bottom. Anyone know what this means or why my refund was transferred out? Why would there be a notice issued that I haven't received? Does the "1040 202112" mean it went to my 2021 tax return for some reason? I'm really confused about where my refund went.

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14 comments

Isla Fischer

•10M

This tax transcript shows several key details about your 2024 return. Your total refund of $1,523 was made up of $666 in withholdings (code 806) and an $857 credit (code 766). However, the entire amount was transferred out (code 826) to what appears to be a 2021 Form 1040 tax debt ("1040 202112" indicates December 2021). Despite having $13,076 in adjusted gross income, your taxable income was $0, which is consistent with filing single with one exemption at this income level. The IRS automatically applied your 2024 refund to offset the prior year's debt, which explains why your current account balance is $0.00. The code 971 dated March 3rd, 2025, indicates that a notice explaining this offset was generated. Since your transcript shows the notice was just issued, it may take 2-3 weeks to arrive in your mail. This notice will detail why your refund was redirected to the 2021 tax year. All penalties and interest show as $0.00 as of March 3rd, 2025, suggesting that this transfer should fully resolve the prior tax debt.

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