Code 291 Showing -$1,176.00 on Transcript - Does This Negative Amount Increase My Refund After Freeze?
Just checked my transcript and I'm really confused about something I found. Here's what I'm seeing in the transactions section: TRANSACTIONS CODE EXPLANATION OF TRANSACTION CYCLE DATE AMOUNT 150 Tax return filed 20241705 05-14-2024 $2,176.00 810 Refund freeze 03-08-2024 $0.00 766 Credit to your account 04-16-2024 -$2,600.00 766 Credit to your account 04-16-2024 -$5,894.00 766 Credit to your account 04-16-2024 -$5,970.00 768 Earned income credit 04-16-2024 -$4,095.00 971 Amended tax return or claim 11-15-2024 $0.00 forwarded for processing 977 Amended return filed 11-15-2024 $0.00 766 Credit to your account 04-16-2024 -$2,000.00 767 Reduced or removed credit to your 04-16-2024 $5,970.00 account 767 Reduced or removed credit to your 04-16-2024 $5,894.00 account 291 Reduced or removed prior tax 12-24-2024 -$2,176.00 971 Notice issued 12-24-2024 $0.00 I noticed a code 291 adjustment at the bottom with "Reduced or removed prior tax" and an amount of -$2,176.00. Does anyone know if this means they're taking away money from my refund or adding to it? I'm also seeing several credits and then "reduced or removed credit" entries which is making me even more confused. There was also a "Refund freeze" back in March and something about an amended return in November. Really confused and nervous about what all this means for my return. Is the negative amount on code 291 good or bad for me? Does this mean I'm getting more or less money?
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JaylinCharles
Tax pro here - Code 291 is an adjustment that reduces the tax you initially reported. In other words, it's usually GOOD news! The amount shown is being subtracted from your tax liability, which typically means a bigger refund. Double check your other transcript codes though to see the final amount.
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Brianna Muhammad
•omg thank you so much! 🙏 I've been stressing about this all day!
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Eloise Kendrick
•got the same code last week, ended up with more $ than expected 💯
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Lucas Schmidt
Instead of trying to decode these numbers yourself, you should try taxr.ai - its only $4.99 and gives you a complete breakdown of your transcript. Saved me hours of googling and reddit searches https://taxr.ai
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Freya Collins
•is this legit? kinda scared to put my info in random websites
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Lucas Schmidt
•totally get the concern! but its actually super secure and doesnt store any of your data. just analyzes your transcript and tells you exactly whats happening
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Freya Collins
•just tried it and WOW! Finally understand wtf is going on with my refund. Best 5 bucks I've spent in a while 🙌
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LongPeri
in the same boat rn. these codes are like trying to read hieroglyphics fr fr 😭
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Oscar O'Neil
bruh the IRS needs to make this stuff easier to understand for normal ppl. Like why they gotta make everything so complicated
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Sara Hellquiem
•Facts 💯 its like they want us to fail
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Charlee Coleman
Anyone else notice more 291 codes this year? Seems like the IRS is doing more adjustments than usual
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Liv Park
•yea its because of all the covid relief stuff still being sorted out
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Leeann Blackstein
my transcript had this last month. ended up getting an extra $800 i wasnt expecting. dont stress OP!
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Maggie Martinez
Looking at your transcript, the code 291 with -$2,176.00 is actually reducing your tax liability, which means MORE refund money for you! 🎉 The negative amount is confusing but it's working in your favor. The IRS basically said "oops, you don't owe as much tax as we thought" and adjusted it down. Combined with all those credits, you should be getting a nice chunk of change once that freeze gets lifted!
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