According to Internal Revenue Manual 21.4.1.3(1), the 846 code indicates a refund issuance, while 971 refers to a notice or correspondence. Per IRM 5.19.1.4.10, when you have an outstanding tax liability, the IRS is authorized under IRC § 6402(a) to offset your refund to satisfy the debt, which appears to be what happened in your case. The February 25th date on the 846 code indicates when the refund was issued (after any applicable offsets), and the March 10th date on the 971 code indicates when they'll send formal documentation of this transaction. This is standard procedure when the IRS applies refund offsets to satisfy existing tax liabilities.

I just went through this exact scenario last month and can confirm what others are saying. The 971 code is basically the IRS saying "we're sending you paperwork" and the 846 is "money is coming your way." Since your 846 date was 2/25, you should check your bank account - the refund might already be there (minus whatever you owed). The timing makes perfect sense too - they process everything first, send the money, then mail you the explanation letter. It's like ordering something online and getting the package before the shipping confirmation email! One thing to watch for: the amount next to your 846 code will show exactly how much they sent you after taking out what you owed. So if you were expecting $1000 back but owed $200, the 846 should show $800. The 971 notice will just be a letter breaking down those numbers for your records.

try calling the IRS directly... jk dont waste ur time, been on hold for 3 hrs today and got disconnected 💀

Same situation here - filed 2/3 and still getting that exact message. It's frustrating but at least we're not alone! I've been checking every few days but trying not to obsess over it. From what I've read, as long as you don't get any letters or notices, it's just a waiting game. Hang in there!

bruh same. filed in march, still processing. this is my villain origin story fr fr

Ugh, I feel your pain! I've been waiting since March too and it's so frustrating. The "still processing" message is like a broken record at this point. I tried calling so many times I could probably recite their hold music from memory 😭 Have you tried checking if there are any issues with your return that might be causing the delay? Sometimes it's something simple like a form that needs verification. Hang in there!

pro tip: make sure your bank info is correct bc if theres any issues itll get kicked back and delay everything another 6-8 weeks

Congrats Mei! That's awesome news after such a long wait. Code 846 is definitely the refund issued code, so you should see that money hit your account on or around 1/10/25. I know the feeling of waiting almost a year - it's incredibly frustrating but you're finally at the finish line! Make sure to keep an eye on your bank account starting a day or two before that date, sometimes they process a bit early.

I did a single photography job last year for a wedding and wondered the same thing. Ended up having to pay self-employment tax and it sucked. Don't forget you'll need to pay ESTIMATED taxes next year if he does something like this again!! I got hit with a penalty because nobody told me about that rule.

I was in a very similar situation a few years back with some freelance web development work I did for a neighbor's small business. The amount was around $3,800, so pretty close to what your husband earned. Even though it felt like "just helping someone out," the IRS treats any income from services as self-employment income regardless of whether it's a one-time thing or an ongoing business. I learned this the hard way when I tried to report it as "other income" initially. One thing that helped me was keeping detailed records of all the expenses related to the project - software licenses, the portion of my home internet used during those work hours, even some office supplies I bought specifically for organizing the project files. These deductions on Schedule C helped offset some of the self-employment tax burden. Also, since your husband's friend didn't send a 1099, make sure to keep any records of the payment (bank deposits, checks, PayPal records, etc.) in case the IRS ever has questions. The lack of a 1099 doesn't mean the income doesn't need to be reported, but having your own documentation makes everything cleaner.