Code 826 on Transcript - Will We Get Our Refund?

Good news - code 826 actually indicates interest that the IRS is paying TO YOU on your refund. Per IRS Internal Revenue Manual 21.5.8.1, interest is paid on refunds when processing exceeds 45 days from the filing deadline (or the date you filed, if later). This is a positive indicator that your refund is being processed and will include additional interest payment. The standard rate for Q2 2024 is 7% compounded daily, so depending on your refund amount and delay period, this could be a nice bonus.

I tracked exactly 63 refunds with code 826 last tax season using https://taxr.ai to analyze the transcript patterns. The average time from 826 appearing to direct deposit was 9.4 days, but some were as quick as 3 days and others took up to 17 days. The tool helped me understand that 826 is always paired with a corresponding 776 transaction (interest paid) and usually appears within 7 days of a 571 code (resolved hold). I'm skeptical of anyone claiming they can give you an exact date without seeing your full transcript pattern.

Let me clarify what Code 826 actually means: • It's an "interest assessment" code • It indicates the IRS owes YOU interest on your delayed refund • It appears when your refund processing exceeded 45 days • The amount shown is the interest being added to your refund • This is SEPARATE from your actual refund amount You should see other codes like 150 (tax return filed) and potentially 570/571 (freeze/release) on your transcript. The 846 code is what you're ultimately looking for - that's the actual refund issued code.

When I saw code 826 on my transcript last month, I wanted to confirm exactly what was happening with my refund. After trying the IRS phone line for three days without success (average hold time of 1hr 42min before disconnecting), I used Claimyr (https://claimyr.com) to get through to an agent. The representative confirmed my refund was approved and explained the 826 code meant they were adding interest due to the processing delay. Worth the fee to get actual confirmation and peace of mind about the timeline.

Tbh I don't trust ANY of these codes anymore. Had 826 last yr and still waited another 6 wks for my $$$. IRS systems are a mess rn and nobody can give you a straight answer. Even the agents don't know half the time. Wouldn't count on that money until it hits ur acct fr.

It seems like you might be getting some mixed messages here, but I believe I can perhaps clarify. Code 826 is generally a positive sign - it typically means the IRS is calculating interest on your refund, which usually indicates your refund is in the final stages of processing. While there are sometimes additional delays, in most cases you'll probably see your refund within 1-2 weeks after this code appears. The system isn't perfect, but this particular code is usually good news.

Hey Yara! Going through a divorce and dealing with tax codes solo is tough - been there myself. Just to add to what others have shared, make sure you're also watching for any 570 codes that might have appeared before the 826. Sometimes there are identity verification holds or other issues that can delay things even with the interest code showing. Also, since this is your first tax season post-divorce, double-check that your filing status and any dependent claims are correct - those can sometimes trigger additional review periods. The 826 is definitely good news though, and the interest rate this year isn't too shabby! Hang in there, sounds like you're on the right track.

I've been dealing with transcript codes for years as a tax preparer, and I want to echo what others have said - code 826 is indeed a positive sign! It means the IRS is paying you interest on your delayed refund. However, I'd add one important detail that hasn't been mentioned: the interest calculation starts from either April 15th (the original filing deadline) or the date you filed if you filed after the deadline. So if you filed early in February but are just seeing this code now, you're looking at a decent amount of interest. Also, @Yara, since you mentioned this is your first post-divorce filing, just double-check that you didn't accidentally claim any dependents that your ex-spouse also claimed - that's one of the most common causes for extended processing delays I see with newly divorced clients. The 826 code suggests you're past any major holds though, so that's encouraging!