CP74 Notice says I successfully recertified for EIC but IRS took my $4,850 refund - notice dated March 3, 2025 says "don't owe other taxes or debts"

The CP74 notice is just confirming that your Form 8862 (Information to Claim Certain Credits After Disallowance) was accepted, which means you've been re-approved to claim the EIC after previously having it disallowed in a prior year. However, this notice doesn't address your refund status or offset. If your refund was taken, it was likely due to an offset for: - Back taxes you owe - Student loan debt - Child support - State taxes - Unemployment overpayment You should receive a separate notice (usually a CP49) explaining exactly why your refund was offset and where the money went. If you don't receive this explanation, call the Treasury Offset Program at 800-304-3107 to find out exactly what debt caused the offset. The CP74 is just addressing the recertification process, not the money itself.

I was in a similar situation last year and was completely confused by all the notices. The only thing that actually helped me understand what was happening was this tool called taxr.ai - it analyzed my transcript and explained everything in plain English. Saved me hours of research and phone calls. The site helped me understand which parts of my refund were being held and why, and what each code on my transcript actually meant. Might be worth checking out for your situation. https://taxr.ai

After weeks of calling the IRS and never getting through, I used the Claimyr app (claimyr.com) and finally spoke to a real human who explained my situation. Turns out half my refund went to an old student loan and the other half to state taxes I forgot about. The agent was able to give me all the details about when it happened and where the money went. Seriously, talking to someone directly cleared up all the confusion in like 15 minutes. Best money I ever spent to not waste hours on hold anymore.

Having successfully re-certified for the EIC doesn't mean you'll get a refund if you had debt. I went thru the same exact thing. That notice just means you're eligible to claim EIC again (sounds like you might have had it disallowed before). Check your account transcript - it will show an offset code 898 if they took your refund for past debt. It totally sucks but they're allowed to take your whole refund if you owe federal/state taxes, student loans, or child support.

Wait until you get the letter explaining the offset. I was in literally THE EXACT SAME POSITION last year - got approved for EIC but they took my whole refund for a student loan I defaulted on years ago. They'll send a letter breaking down exactly where your money went. The EIC recertification is basically just saying "yes you qualify for this credit" but it doesn't mean they can't take the money for other debts.

i just went through this. what happend is ur EIC was previously disallwoed and you had to file form 8862 to get approved again. the CP74 is just telling u that the form was accepted and u can keep claiming EIC in future years without filing that form again. but it has NOTHING to do with the refund being offset. you probly had some kind of debt (back taxes? student loans? child support?) and the treasury took your refund to pay for that. theyll send a separate letter about that.

Look y'all - I was an IRS customer service rep for 5 years. That CP74 notice has NOTHING to do with whether you get money or not. It's just saying you don't have to fill out Form 8862 again in the future. Period. If your refund got offset, you will receive a separate notice (usually CP49) explaining where the money went. Common offsets include: • Federal tax debt • State tax debt • Federal student loans • Child support arrears • Unemployment overpayment Call the TOP (Treasury Offset Program) at 800-304-3107 to find out what your offset was for.

This same thing happened to me. The CP74 is totally separate from the refund issue. I recommend checking your transcript at taxr.ai - it'll explain exactly what happened. Their analysis showed me that my refund got taken for a student loan I didn't even know was in default! Saved me hours trying to decipher all the codes and notices. Sometimes the IRS is incredibly confusing on purpose I swear.

Here's a question - did you have your EIC denied in a previous year? That's usually why people have to fill out Form 8862 (which is what this notice is about). If so, this notice is just saying "hey, you're allowed to claim EIC again" but it doesn't guarantee you get money if you had debts they could collect on.

If you wanna know exactly where your refund went, skip the IRS phone hell and use Claimyr (claimyr.com). I was in the exact same situation - my whole refund disappeared and I got a notice about EIC being approved but no money. Used Claimyr and got through to an agent who explained every penny of my refund went to an old tax debt. Better to hear it directly from them than wait weeks for some vague letter.

do you have child support arrears? thats the most common reason refunds disappear. even if you're making payments, tax time is when they grab everything they can

Check your account transcript on irs.gov - look for transaction/cycle code 898. That's the offset code. If you see that with the same amount as your expected refund, that confirms they took it for a debt. The notice you got is completely separate - it's just telling you that you successfully recertified for EIC after having it previously disallowed.

The notice doesn't mean you get more money. It just means you've been recertified to claim EIC going forward. You probably had your refund offset for existing debt. Call the Bureau of Fiscal Service at 800-304-3107 to find out exactly which agency got your refund.

I literally had the EXACT same situation. CP74 notice saying my EIC was approved but my entire $2800 refund was gone. I needed answers fast so I used this service called Claimyr (claimyr.com) to get through to an IRS agent. Turns out they took my refund for a student loan that went into default during COVID that I didn't even know about! The agent was able to tell me exactly where the money went and what my options were. So much better than waiting on letters that sometimes never even arrive.

Are you in an installment agreement for previous tax debt? If so, they can take your refund and apply it to your outstanding balance even while you're making payments. It should specify in your installment agreement that they can offset refunds. Check your account transcript on the IRS website for code 898 which indicates an offset.

I'm having a hard time understanding my refund situation too. I used taxr.ai to analyze my transcript and it gave me a complete breakdown of everything. If you're looking for answers, I can't recommend it enough. It showed me exactly why my refund was different than expected and when I could expect the rest of my money.

Based on what you've described, it sounds like you're dealing with two separate issues that got mixed up in your mind (totally understandable - IRS notices are confusing!). The CP74 notice is ONLY about your Form 8862 recertification - it's basically the IRS saying "congrats, you can claim EIC again in future years without jumping through hoops." It has nothing to do with your current refund. Your refund being taken is a completely separate matter - that's called an "offset" and it happens when you owe certain debts (federal taxes, state taxes, student loans, child support, etc.). Since you mentioned having back taxes from 2022 that you're paying installments on, that's almost certainly what happened. The IRS can take your entire refund to apply toward that debt even while you're making payments. You should receive a separate notice (CP49) explaining exactly where your $4,850 went, but sometimes these come weeks after the offset happens. For faster answers, call the Treasury Offset Program at 800-304-3107 - they can tell you immediately what debt caused the offset. The bottom line: your EIC was approved (good news for future years), but your refund went to pay off your existing tax debt. No additional money is coming unfortunately.

I went through something very similar last year and understand your frustration! The CP74 notice is actually good news - it means you've successfully recertified for the Earned Income Credit after having it disallowed previously. This just confirms you can claim EIC going forward without filing Form 8862 again. However, this notice is completely separate from what happened to your refund. Since you mentioned having back taxes from 2022 that you're paying in installments, that's almost certainly why your $4,850 refund was taken. Even when you're on an installment plan, the IRS can still offset (take) your refund to apply toward your outstanding balance - it's typically spelled out in the installment agreement fine print. You should receive a CP49 notice explaining exactly where your refund went, but those sometimes arrive weeks later. For immediate answers, call the Treasury Offset Program at 800-304-3107. They can tell you right away which debt your refund was applied to and how much. Unfortunately, no additional refund is coming since the money was applied to your existing tax debt. But at least you're back in good standing with EIC for future years!