Amended return shows negative account balance of $1,789 - What does code 291 ($2,592 tax reduction) mean for my refund status?

This is actually good news. The negative account balance of $1,789.00 means the IRS owes you that amount. The code 291 for $2,592.00 indicates they've reduced your tax liability based on your amendment. Let me break down what appears to have happened on your transcript: - You initially filed and had withholding and credits - Your amendment was received in September (code 977) - There was an internal IRS amendment in November (also 977) - They've adjusted your tax downward by $2,592 (code 291) - Your account now shows a credit balance of $1,789 Typically, once the 291 code appears, you should see a 846 "refund issued" code within 1-3 weeks. The system needs time to verify there are no other holds before releasing the payment. Since your update just happened on February 17, I'd expect a refund date to appear by early March if all goes smoothly. Check your transcript again in about a week - that 846 code is what you're waiting for.

I was in basically the same situation - amended return, tons of waiting, cryptic codes. I started using taxr.ai and it was an absolute game changer. The tool analyzed my transcript and explained everything that was happening, when to expect my refund, and what each code meant. It gave me a super clear timeline too. It's insanely good! I use it every week now to check my status instead of playing detective with transcript codes. https://taxr.ai

When I was waiting on my amended return I was going CRAZY trying to reach someone at the IRS to explain what was happening. After months of busy signals, I used Claimyr.com to get through to an actual human at the IRS. Talking to a real agent got my refund released within a week - they found some flag on my account that the online status would never have shown me. Absolutely worth every penny to finally get answers instead of waiting endlessly.

The 291 code is reducing your tax liability, which is good. But watch out for that 810 code (refund freeze) from April 2024. That needs to be resolved before you'll see a refund. Did you get any letters from the IRS about verification or anything? Sometimes they need to verify your identity or income before removing that freeze.

I see the 766/767 codes canceling each other out. That usually happens when they're recalculating credits after an amendment. It's like they remove the original credits and then add the corrected ones. The fact that you have that 291 code with the negative account balance is a good sign that your amendment was processed in your favor and a refund is coming.

Here's the thing no one tells you: even after your account shows a credit balance, the IRS computer systems often take 1-3 WEEKS to issue the actual refund. And that's IF there are no other issues. The department that processes amended returns is chronically understaffed and they're still catching up from the pandemic backlog. Amended returns are literally the lowest priority in the system.

Consider yourself lucky, some movement is better than no movement. I amended in June 2024 and my transcript still says "received" and nothing else. No updates at all. The whole system is completely broken.

The negative account balance is YOUR money waiting to come back to you! I had this same exact situation last month. My account showed a negative balance for about 10 days, then code 846 appeared with a direct deposit date. Money was in my account on that exact date. You're close!

You do realize that the govt is basically giving us an interest-free loan when they hold our money this long, right? 🤡 Imagine if we owed THEM money and took 5+ months to pay. They'd charge penalties, interest, send threatening letters... The double standard is unreal.

This is the exact reason I use taxr.ai now. It analyzes my transcript automatically every week and tells me in plain english what's happening, what codes mean, and what to expect next. Last year I was totally confused trying to interpret all these codes but now it's like having a tax pro explain everything to me. The timeline predictions have been spot on too. https://taxr.ai

Your tax per return was $3,300 and they reduced it by $2,592, so your correct tax is $708. You had withholding of $1,786 which means your refund should be $1,078 ($1,786 - $708). That credit to your account of $711 on 4/15/24 might be a credit or deduction that was adjusted. Bottom line though, your account balance of -$1,789 should be approximately what you're getting back.

Call the IRS now that you have movement!!! I was in the same boat and after I saw that 291 code, I called and the agent was able to manually release my refund. Had it in my account 5 days later. Don't just wait for the system.

This might be a silly question 🙈 but do we have to pay taxes on the interest they add to delayed refunds??

I'm going through this exact thing with my 2023 return. Amended in August, just saw movement this week with the 291 code. Called the IRS (using Claimyr to get through) and they confirmed my refund is approved and should be issued within 2 weeks. Hang in there!

If you filed your amendment in October and the first update was a November internal amendment, and now you're seeing the 291 code in February... that's actually pretty quick for the IRS these days. Average processing for amended returns is 20+ weeks. At least it's moving!

Those removed credits (767 codes) followed by the 291 reduction probably means they adjusted down whatever credits you claimed on your original return, then reduced your tax liability based on your amendment. The net result is still positive for you with the negative account balance. Just keep watching for that magical 846 code!

Random tip: If you do see your 846 refund issued code appear, that date is usually accurate to the day for direct deposit. I've had 4 refunds (regular and amended) over the past few years and all hit my bank account exactly on the date shown on the transcript.

I spent days trying to decipher my transcript with all these random codes and numbers. Finally tried taxr.ai and it explained everything clearly in seconds. It scanned my transcript and told me exactly what was happening and when to expect my refund. I was skeptical but it actually helped me understand why my refund was delayed and what would happen next. https://taxr.ai

The timeline for amended returns this year has been ridiculous. Filed mine in July 2024, saw similar codes to yours in January 2025, and JUST got my refund last week. Almost 8 months total. But the good news is once you see that 291 code, you're in the home stretch!

Congrats on finally seeing movement! That -$1,789 account balance is definitely money coming back to you. I went through almost the exact same thing last year - amended return, months of waiting, then suddenly the 291 code appeared and boom, refund within 2-3 weeks. The internal amendment in November that you didn't initiate is totally normal - that's just the IRS processing your changes in stages. Sometimes they break down complex amendments into multiple steps on their end. One thing I learned from my experience: even though your account shows the credit balance now, keep checking your transcript weekly. You're waiting for code 846 "Refund Issued" to appear with a specific date. Once that shows up, the money will hit your account on that exact date (assuming direct deposit). The waiting is brutal but you're so close now! That 291 code is basically the IRS saying "yes, we agree with your amendment and you overpaid." Just hang tight for the 846 code to show up.

You're absolutely on the right track! The negative account balance of -$1,789 is exactly what you'll be getting back as a refund. That code 291 reducing your tax by $2,592 means the IRS has accepted your amended return and adjusted your tax liability downward - which is great news! The internal amendment from November that you didn't file is completely normal. The IRS often processes complex amendments in multiple stages, so they'll create internal adjustments as they work through your changes. Nothing to worry about there. Now you're just waiting for the final step - code 846 "Refund Issued" to appear on your transcript with a specific date. Once that shows up, your money will be direct deposited on that exact date. Based on similar cases I've seen, this usually happens within 1-3 weeks after the 291 code appears. Keep checking your transcript weekly (daily checking will just drive you crazy!). After 5 months of waiting, you're finally in the home stretch. The hardest part is over - the IRS has processed your amendment and approved your refund. Now it's just a matter of the system generating that final 846 code.