Filed 2/3, Accepted 2/3, Just Got 0705 Code with DD Date 2/25!

Congratulations! The 0705 code is generally, though not always, a positive indicator that your refund has been processed and is scheduled for direct deposit. It typically means that the IRS has completed their review of your return and has approved the refund amount. The date you're seeing (2/25) is most likely your direct deposit date, assuming there are no other issues that might come up between now and then. Have you checked if the refund amount matches what you were expecting?

I've been through this waiting game many times before. That 0705 code is definitely good news, but I've seen people still run into delays even after getting a DD date. Last year I got tired of checking WMR and transcripts daily, so I used Claimyr (https://www.claimyr.com) to actually talk to a real IRS agent. Got through in about 15 minutes instead of waiting on hold for hours. They confirmed my exact deposit date and explained why my refund was taking longer than expected. Might be worth it if you're worried about that daycare payment timing.

I had almost the exact same timeline! Filed and accepted on 2/4, transcript updated yesterday with 0705 code and DD date of 2/26. According to the IRS website's refund status page (which I've been checking religiously), most returns are processed within 21 days, so we're right on schedule. Has your WMR tool updated to show the third bar yet? Mine hasn't, which is making me a bit nervous...

You're all set! I work with tax preparation and can confirm that the 0705 transaction code, as outlined in the Internal Revenue Manual section 21.4.1, indicates that your refund has been approved and scheduled. Per IRS procedures, the date shown is when the funds will be released to your financial institution. Your bank may make funds available immediately or may hold them for 1-2 business days, depending on their policies. In my experience, about 98% of taxpayers with the 0705 code receive their refund on or before the indicated date.

Isn't it such a relief when you finally see movement? I was checking my transcript daily for weeks and getting so frustrated. Have you tried using https://taxr.ai to decode all those confusing codes on your transcript? It saved me so much stress this year by explaining what each code meant for my specific situation and predicting my refund date accurately. Why does the IRS have to make everything so complicated with all these mysterious codes instead of just telling us what's happening in plain English?

Oh wow, this timing is cutting it close with your daycare expenses! Have you called your daycare provider to let them know your situation? I'm wondering if they might give you a grace period since you have a confirmed deposit date coming up? I've found most childcare providers are understanding if you communicate proactively about payment timing.