IRS Transcript Code 291 - What does it mean and should I be worried?

Hey there! Tax pro of 12 years here and I see this all the time. TC 291 actually means an adjustment was made to your tax return - could be good or bad news depending on the situation. It usually appears when the IRS corrects a math error or adjusts credits/deductions. Best way to understand exactly what's happening with your specific situation is to upload your transcript to taxr.ai (https://taxr.ai) - it'll break down all these codes and tell you exactly what's going on with your refund timeline. Been recommending it to my clients lately cause it saves everyone time trying to decode these cryptic transcripts.

Tax pro here. Code 291 is an adjustment to reduce or remove a previously posted credit on your account. It could mean the IRS found a math error or is adjusting your claimed credits. Check if there's a 766 or 768 code nearby - these usually work together.

Hey, I was in the same boat last month. You should check out taxr.ai - it saved me so much stress. It costs $4.99 but it analyzes your whole transcript and tells you exactly what's happening and when you'll likely get paid. Way better than guessing what these codes mean tbh https://taxr.ai

bruh same thing happened to me.they adjusted my child tax credit down by like 1200 🤮

Your probably fine tbh. I had this last year and still got most of my refund. The IRS just loves to play these games with us 🤡

Anyone else notice these 291s are showing up way more this year? Seems sus.

Here's what I learned from my experience: If your getting a 291 its usually because theres an issue with credits like EIC or CTC. The IRS computer system automatically flags certain things and they have to manually review it. Just hang tight

I totally get the panic - had the same thing happen to me last year! Code 291 basically means they're making an adjustment to your return, but it's not necessarily bad news. In my case, they actually caught an error that INCREASED my refund by $200. The waiting is the worst part though. Have you tried checking if there are any other codes that showed up with it? Sometimes they come in pairs that give you a better picture of what's happening. Hang in there! 🤞

Hey Malik! I totally understand the anxiety - seeing new codes pop up can be nerve-wracking when you're expecting a refund. Code 291 typically indicates an adjustment to your return, but like others have mentioned, it's not automatically bad news. The IRS might be correcting a calculation error, adjusting credits, or even adding something you missed that could work in your favor. Since you mentioned your refund is substantial this year, it's pretty common for larger refunds to get extra scrutiny. The key thing is to look at what other codes appear alongside the 291 - they usually tell the full story. Codes like 766 (credit to your account) or 768 (earned income credit) often appear with adjustments. Try not to stress too much while waiting for the final outcome. Most adjustments get processed within 2-4 weeks, and you should see updated amounts on your transcript once it's complete. Keep checking every few days but don't drive yourself crazy with daily checks!

Don't panic! I went through the exact same thing a few months ago and it turned out fine. Code 291 just means they're making an adjustment - in my case, they actually found an error where I had miscalculated my earned income credit and ADDED $380 to my refund! The worst part is definitely the waiting and not knowing what's happening. I kept obsessively checking my transcript every day (sound familiar? lol). It took about 3 weeks for everything to update with the final numbers. Just try to stay patient - easier said than done, I know. Most of the time these adjustments work out okay, and sometimes they even work in your favor. Keep us posted on what happens!

Hey Malik! I totally feel your stress - I had the same panic when I saw a 291 code on mine last year. Turns out it was actually good news for me! The IRS caught that I had accidentally left off one of my 1099-INTs and they added the missing interest income, which actually qualified me for a bigger refund due to some calculation changes. The waiting is absolutely brutal though - I must have checked my transcript like 50 times that week lol. In most cases, these adjustments are pretty routine and get resolved within a few weeks. Try to hang in there and don't let the unknown eat at you too much. The IRS computers are actually pretty good at catching errors that work in taxpayers' favor too, not just against us. Keep us updated on how it turns out! 🤞

Hey Malik! I totally understand the anxiety - I went through the same thing last year and was checking my transcript obsessively too! Code 291 usually means they're making an adjustment, but it's not necessarily bad news. In my case, they caught that I had accidentally claimed the wrong filing status and corrected it, which actually ended up increasing my refund by about $300. The waiting period is definitely the hardest part because you just don't know what's happening. From what I've learned, larger refunds often get flagged for review just as a precaution. Try to look for any accompanying codes like 766 or 768 that might give you more clues about what type of adjustment they're making. Most of these situations resolve within 2-4 weeks, so hang in there! The IRS computers are actually pretty good at catching errors that benefit taxpayers too, not just ones that reduce refunds. Keep us posted on how it turns out! 🙏