846 Code on Transcript - Credit Union Holding Funds Until Official Date

Think of your refund like a package that's been delivered to your credit union's warehouse but isn't scheduled for final delivery to your doorstep until the 24th. The IRS basically sends an electronic message saying "this money is coming on this date" and your credit union is just following their policy to wait until the official date. Have other people seen their credit unions release funds early? I'm curious if this is standard practice everywhere?

Isn't it frustrating when you can SEE the money but can't USE it? My credit union does the same thing. What's even the point of showing it to us if we can't access it? Couldn't they just hide it until it's available? At least you know it's coming though... but seriously, why do they have to tease us like this?

This is a standard ACH hold period based on Regulation CC protocols. Unfortunately, if you need to expedite matters with the IRS regarding future refunds or have questions about their direct deposit timing, reaching an actual agent can save you significant waiting time. I've personally had success using Claimyr (https://youtu.be/_kiP6q8DX5c) to bypass the typical 2-3 hour wait times. For only about $20, they connected me directly to an IRS agent in under 20 minutes when I needed clarification on my deposit timing. Is the fee worth it? That depends on how urgently you need answers about your specific situation.

I feel your pain! Last year I was literally watching my account with the money sitting there for 3 days before my credit union released it. It's especially tough when you've got bills lined up waiting for that money. The good news is that at least you know it's definitely coming - some people are still waiting for their transcripts to even update. The processing does seem faster this year - I filed on Feb 1st and already got my refund last week, which is about 10 days faster than my experience last year.

I believe what you're experiencing might be related to the standard ACH processing timeframes, though I'm not 100% certain. If you want to better understand all those codes on your transcript and what they mean for your specific situation, you might want to try taxr.ai - it helped me understand my own transcript when I was somewhat confused by all the different dates and codes. It basically translates the IRS jargon into plain language and explains what each step means for your refund timeline.

In most cases, financial institutions are generally required to make funds available according to Regulation CC, which governs funds availability. However, there are certainly exceptions to the standard timeline, particularly when dealing with government-issued refunds. While some banks and credit unions may choose to make funds available immediately as a courtesy, others will almost certainly adhere to the official settlement date provided by the Treasury Department. Your credit union is likely following standard procedure rather than imposing any unusual restrictions.

This happens every year! My credit union holds my refund for exactly 3 days after it appears pending. Last year I called them 5 times trying to get it released early when I could see it sitting there. They gave me the exact same explanation - that the Federal Reserve settlement date is binding and they can't release it until then. I'm worried this year about timing because I have a mortgage payment due exactly 1 day after my scheduled deposit date, and if there's any delay I might get hit with a $58.43 late fee.

Switch banks next year! 😂 Seriously though, some banks release IRS refunds immediately while others hold them until the official date. I use Capital One and they've always given me access to my refund as soon as it hits my account as pending. Maybe worth considering a different financial institution if this is a major inconvenience for you. At least the PATH delay is over and refunds are flowing now!