IRS Transcript Shows -$27,646.24 Balance with Refund Freeze: Confused About $30,919 Credits vs $17,380 Income

I just checked my transcript and I'm seeing a negative balance of -$27,646.24. Looking at the transactions, I'm completely confused about what this means. The transcript literally shows "ACCOUNT BALANCE ACCRUALS: -27,646.24" at the top of page 2 of 2. According to the INFORMATION FROM THE RETURN OR AS ADJUSTED section, I have: - EXEMPTIONS: 01 - FILING STATUS: Single - ADJUSTED GROSS INCOME: $17,380.00 - TAXABLE INCOME: $2,824.00 - TAX PER RETURN: $3,129.00 - SE TAXABLE INCOME TAXPAYER: $17,270.00 - SE TAXABLE INCOME SPOUSE: $0.00 - TOTAL SELF EMPLOYMENT TAX: $2,642.00 The RETURN DUE DATE OR RETURN RECEIVED DATE (WHICHEVER IS LATER) shows Aug. 02, 2024, and the PROCESSING DATE is Nov. 04, 2024. Here's what's really confusing me in the TRANSACTIONS section: CODE | EXPLANATION OF TRANSACTION | CYCLE | DATE | AMOUNT 150 | Tax return filed | 20244205 | 11-04-2024 | $3,129.00 16221-615-10516-4 810 | Refund freeze | | 08-15-2024 | $0.00 766 | Credit to your account | | 04-15-2024 | -$28,770.00 766 | Credit to your account | | 04-15-2024 | -$2,129.00 768 | Earned income credit | | 04-15-2024 | -$20.00 176 | Penalty for not pre-paying tax | 20244205 | 11-04-2024 | $143.76 971 | Notice issued | | 11-04-2024 | $0.00 The transcript shows credits totaling -$28,770.00 and -$2,129.00 from April 15, 2024, plus an earned income credit of -$20.00. There's also a tax return filed showing $3,129.00 and a penalty of $143.76 for not pre-paying tax. What's most concerning is the "Refund freeze" from August 15, 2024. And they issued a notice on November 4, 2024 (code 971), but I haven't received anything in the mail yet. With all these different numbers and the refund freeze from August, can someone help me understand if this negative balance means I'm getting a refund or if I owe? Does the -$27,646.24 balance mean the IRS owes me that amount? The processing date shows as Nov. 04, 2024, which is the same date they issued a notice. I'm really confused about what all these numbers mean for my situation and why there's such a large negative balance when my income was only $17,380.00.

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11 comments

Ana Rusula

The IRS transcript shows a significant negative balance of -$27,646.24, which indicates money owed to you by the IRS. Breaking down the transactions, you have substantial credits posted on April 15, 2024: -$28,770.00 and -$2,129.00, plus a small earned income credit of -$20.00. These credits total -$30,919.00. Against these credits, there's a tax assessment of $3,129.00 and an estimated tax penalty of $143.76 for not making sufficient tax prepayments throughout the year. Your return was processed with filing status Single, showing an Adjusted Gross Income of $17,380.00 and taxable income of $2,824.00. The self-employment income of $17,270.00 generated a self-employment tax of $2,642.00. Important to note: There's currently a refund freeze (Code 810) placed on your account as of August 15, 2024. This freeze must be resolved before the IRS will release your refund. The most recent activity shows a notice issued on November 4, 2024 (Code 971), which likely explains the freeze status. Final processing occurred on November 4, 2024, but due to the freeze, you'll need to wait for the IRS to complete their review before receiving your refund of $27,646.24.

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- 1M