IRS issued refund with EIC despite 'Disallowed claim' code 290 - different reference numbers on transcript, should I be concerned?

Tax transcript codes can seem contradictory, but here's what's happening: • Code 977 confirms your amended return was received and entered into their system • The first 971 indicates they sent you a notice about receiving your amendment • Code 768 shows they processed your earned income credit • The second 971 with "forwarded for processing" means they moved your amendment to the next processing stage • Code 290 "Disallowed claim" means they rejected some aspect of your amendment (likely not the EIC part) • Code 846 is the good news - they issued your refund despite partially disallowing the claim Basically, they accepted the EIC portion of your amendment but rejected something else. The reference numbers are internal tracking IDs. You'll likely receive a notice explaining exactly what was disallowed, but the important part is you got your refund. The system worked as designed, even if it's confusing to read!

I had a similar situation with my transcript looking like hieroglyphics! Total nightmare trying to figure it out until my accountant told me about taxr.ai - it literally explains your entire transcript in plain english and shows exactly what's happening with your refund/amendments. Instead of guessing what all those codes mean, the tool just translates everything and tells you what's happening and when to expect your money. It even predicted my refund date to the day! I can't recommend it enough after I wasted so much time trying to decode my transcript myself. I'm never going back to squinting at those tiny numbers and codes lol. Check it out: https://taxr.ai

Had a similar problem and spent WEEKS trying to get someone on the phone at the IRS with no luck. Finally used Claimyr.com and had an IRS agent call ME back within an hour. The agent explained that sometimes the system will show a disallowed claim code but still process a refund if certain conditions are met. Got all my questions answered and my refund showed up a few days later. Best decision I made after spinning my wheels for so long - talking to a real person cleared everything up instantly!

The same EXACT thing happened to me last week! My transcript showed disallowed but I got the $$$ anyway. I think the IRS computers sometimes contradict themselves but as long as you got paid, I wouldn't worry about it. The money hit my account last Tuesday and I was freaking out wondering if they would take it back, but my tax guy said once it's deposited for this reason, they don't claw it back.

Its actually pretty common. The 290 disallowed claim is probably for something specific on your return, not the whole amendment. They might have approved your EIC change (thus the 768 code and refund) but denied something else. You should get a letter explaining what was disallowed. But dont worry - the money is yours!

Don't question it! Just take the win and move on 😂 The IRS works in mysterious ways. I had the opposite happen - my transcript looked perfect but I never got my money for 6 months. The system is broken but at least it broke in your favor!

KEEP RECORDS OF EVERYTHING. Screenshot your transcript, save bank statements showing the deposit, and make copies of any letters they send. My sister had something similar happen and 8 months later they tried to say she owed it all back. She had to prove she was entitled to the refund.

Lol welcome to the wonderful world of IRS transcript codes. I've learned not to question when things work in my favor after 10 years of dealing with their nonsense. Just make sure you're actually entitled to that EIC and if you are, enjoy your money!

Just to add some context - code 290 with "Disallowed claim" doesnt always mean your entire amendment was rejected. Often it means a SPECIFIC PART was denied while other parts were approved. That's why you see both the disallowed code AND the refund code. The amount they approved might've been related to the EIC portion (code 768) while rejecting something else.

Check your ACCOUNT TRANSCRIPT not just the return transcript. Sometimes additional info is there that explains the seeming contradiction. But honestly, if the money is in your account and it matches what you expected, I wouldnt overthink it.

I spent like 4 hours trying to figure out my transcript codes once and still had no idea what was happening. Then I realized there's a tool that explains it all - taxr.ai - saved me so much confusion. It analyzes your transcript and translates all those stupid codes into actual English.

Anybody else notice how the IRS has been processing refunds faster this year even with all these weird codes? My amended return only took 8 weeks compared to 20+ weeks last year. Maybe they finally hired more people?

I had to call the IRS 37 times before I got through last month. When I finally talked to someone, they told me that sometimes the codes contradict because different departments process different aspects of your return. The left hand doesn't know what the right is doing basically.

Your tax file probably got kicked to an actual human who reviewed it, approved the EIC adjustment, but denied something else. The good news is the EIC was probably the biggest dollar impact which is why you still got your refund! The 846 code is all that matters - that's the money code! 🤑

I remember the days when you could actually talk to someone at the IRS without spending your entire day on hold... the transcript codes wouldn't be such a problem if they just had adequate customer service 🙄

I looked at my transcript yesterday and got a headache trying to figure out what all the codes meant. It's like trying to read hieroglyphics! I wish they would just use plain English so regular people could understand what's going on with their own money.

Make sure you keep track of the reference numbers (43277-whatever and 89254-whatever) in case you need to call. Those are specific to your case and will help the agent locate exactly which notices were sent.

I've seen this exact thing happen to 3 of my clients this year. It's because the IRS is processing refunds first, then doing a separate review of the amended return. They issue the money based on the clear-cut stuff (like EIC) while still reviewing other aspects of your amendment. Totally normal in the current environment.

I strongly suspect (as a CPA who deals with this all day) that the 290 Disallowed claim is referring to something SPECIFIC that you claimed on your amendment, not the entire amendment itself. The fact that code 768 (EIC) appears and you got your refund suggests they approved the EIC portion but denied something else. Nothing to worry about as long as you were entitled to what you received.

I work as a tax professional and see this scenario frequently. What's happening is that the IRS processed different parts of your amended return separately. The code 768 (Earned Income Credit) and 846 (Refund Issued) show they approved and processed your EIC correction, which was likely the main focus of your amendment. The 290 "Disallowed claim" with the different reference number is probably rejecting a separate, smaller item on your return - maybe a deduction or credit that wasn't related to your EIC issue. This is actually how the system is designed to work now - they'll approve the clear-cut items (like correcting an EIC calculation error) while continuing to review other aspects. The different reference numbers indicate different processing tracks within their system. You should receive a CP12 or similar notice in the mail explaining exactly what was disallowed, but based on what you've described, you're entitled to keep the refund you received. The 846 code is your confirmation that the money is legitimately yours. Just keep good records of everything in case questions arise later.

This is actually a pretty common scenario! The IRS system processes different parts of your amended return through separate workflows. What you're seeing with the 290 "Disallowed claim" code having a different reference number (89254-638-99014-2) than your amended return (43277-462-87615-2) is totally normal - it means they're tracking different aspects of your case separately. The good news is that code 768 (Earned Income Credit) followed by code 846 (Refund Issued) confirms they accepted your EIC correction and processed your refund. The 290 code is likely rejecting something else entirely - maybe a small deduction or another credit that wasn't the main focus of your amendment. Since you filed specifically to correct your EIC and that's what they approved (hence the refund), you should be fine. The money is legitimately yours. You'll probably get a notice in a few weeks explaining exactly what the 290 code refers to, but it shouldn't affect the refund you already received. Keep screenshots of your transcript and bank records just in case, but this looks like the system working as intended, even if it's confusing to interpret!

I went through something very similar last year! The transcript codes can be super confusing, but what you're describing is actually pretty normal. The IRS often processes amended returns in chunks - they'll approve the obvious stuff (like your EIC correction) and issue that refund right away, while still reviewing other parts of your amendment that might take longer to verify. The fact that you got code 768 (EIC) followed by 846 (refund issued) means they confirmed your earned income credit calculation was correct and you deserved that money. The 290 "disallowed claim" with the different reference number is probably something completely unrelated - maybe a small deduction or other credit that wasn't part of your main EIC issue. I'd recommend taking screenshots of your transcript now and keeping your bank deposit records, but you should be good to spend that refund. When the IRS approves something and issues an 846 code, that money is yours. You'll likely get a letter in a few weeks explaining what exactly was disallowed, but it shouldn't affect the refund you already received. The system worked in your favor this time!

This is exactly what happened to me a few months ago and it drove me crazy trying to figure it out! What you're seeing is actually the IRS processing different parts of your amendment through separate workflows. The 290 "Disallowed claim" code with reference number 89254-638-99014-2 is completely separate from your amended return reference 43277-462-87615-2 - they track different issues independently. Since you got code 768 (EIC) followed by 846 (Refund issued), that confirms they approved your earned income credit correction and the money is legitimately yours. The 290 code is probably rejecting something else entirely - maybe a small deduction or another credit that wasn't the main focus of your amendment. I was in your exact shoes worrying they'd take the money back, but my tax preparer explained that once they issue an 846 code, that refund is yours to keep. You'll probably get a CP12 notice in a few weeks explaining what specific item was disallowed, but it won't affect the EIC refund you already received. Definitely keep screenshots of your transcript and bank records, but you can safely spend that money - the system actually worked correctly even though it looks confusing!

This is such a relief to read! I had almost the exact same situation happen to me about 6 weeks ago and I was convinced I was going to get hit with some huge bill from the IRS later. My transcript showed a 290 disallowed claim code but I still got my EIC refund deposited. I spent days trying to decode what it meant and honestly was losing sleep over it. Reading everyone's explanations about how they process different parts of amendments separately makes SO much sense. It's actually pretty clever that they can approve the straightforward stuff like EIC corrections while still reviewing other items that might need more scrutiny. I wish the IRS would just explain this somewhere instead of leaving us all to guess what these cryptic codes mean! I never did get that explanation letter some people mentioned, but the money has been sitting in my account for weeks now with no issues. Definitely taking everyone's advice to keep screenshots and records though - better safe than sorry with the IRS!

This exact situation happened to my brother earlier this year! The transcript codes looked totally contradictory but everything worked out fine. What you're seeing is actually the IRS being more efficient - they're processing the straightforward parts of your amendment (like EIC corrections) first while still reviewing other items that might need more scrutiny. The key thing is that code 846 (Refund Issued) means the money is legitimately yours. The 290 "Disallowed claim" with the different reference number is probably rejecting something completely separate from your EIC correction - maybe a small deduction or other credit that wasn't the main reason you amended. My brother was worried for weeks that they'd claw back the money, but his tax preparer explained that once they issue that 846 code for a specific item like EIC, that refund is yours to keep. He did eventually get a letter explaining what minor item was disallowed, but it didn't affect his main refund at all. Definitely keep screenshots of everything and your bank records, but you should be fine to use that money. The system actually worked in your favor, even though it's confusing to read!

This is actually a really common scenario that I see all the time! The IRS has been processing amended returns in a "chunked" approach where they approve straightforward items like EIC corrections first while continuing to review other aspects that might need more detailed examination. Your codes tell a clear story: the 977 and 971 codes show they received and processed your amendment, the 768 and 846 codes confirm they approved your EIC correction and issued your refund, and the 290 "disallowed claim" with the different reference number is rejecting something completely separate from your EIC issue. The fact that you got code 846 (refund issued) means that money is legitimately yours - once the IRS processes a refund for a specific item like EIC, they don't typically claw it back. You'll probably receive a notice in the next few weeks explaining exactly what was disallowed, but it shouldn't affect the refund you already received. I'd recommend taking screenshots of your transcript and keeping your bank deposit records for your files, but you should be safe to use that refund. The system actually worked correctly in your favor, even though the codes make it look contradictory!

This is such a helpful thread! I'm dealing with a similar situation where my transcript shows what looks like contradictory codes, and reading everyone's explanations about the "chunked" processing approach makes so much sense. It's reassuring to know that the 846 refund code essentially means the money is legitimately yours, even when there are other confusing codes showing up. The fact that the IRS can approve straightforward items like EIC corrections while still reviewing other aspects is actually pretty smart from an efficiency standpoint, even though it creates confusing documentation for us taxpayers. I wish they would just include a plain English explanation somewhere instead of leaving us all to decode these cryptic numbers! Definitely taking everyone's advice to screenshot everything and keep detailed records. Better to be overprepared when dealing with the IRS. Thanks to everyone who shared their experiences - it really helps to know we're not alone in trying to figure out what these codes actually mean!

I'm going through almost the exact same thing right now! Filed an amended return 2 months ago to fix my EIC calculation and my transcript updated yesterday with a bunch of confusing codes. Like you, I see the 290 "Disallowed claim" but also got my refund deposited. Reading through all these explanations about chunked processing makes SO much sense - I had no idea the IRS could approve parts of your amendment while still reviewing other sections. That explains why we're seeing different reference numbers and what looks like contradictory information. The 846 refund code seems to be the key thing everyone's focusing on, which is reassuring since that means the money is legitimately ours. I was definitely worried about spending it in case they wanted it back later, but after reading all these similar experiences I feel much better about it. Thanks for posting this - it's such a relief to know other people are dealing with the same confusing transcript codes! Definitely screenshotting everything and keeping records just to be safe.

This is such a helpful thread! I'm dealing with almost the exact same situation - filed an amended return for EIC and got similar confusing codes on my transcript. Reading everyone's explanations about the "chunked processing" approach really cleared things up for me. The idea that the IRS processes straightforward items like EIC corrections first while still reviewing other aspects makes perfect sense, even though it creates what looks like contradictory codes. It's so reassuring to know that the 846 refund code essentially means the money is legitimately ours. I was definitely losing sleep over whether I should touch the refund money, but seeing so many people share similar positive experiences gives me peace of mind. The IRS really needs to provide better explanations of these codes instead of leaving us all to play detective with our own tax situations! Thanks to everyone who shared their experiences - this community is incredibly helpful for navigating these confusing situations. Definitely taking the advice to screenshot everything and keep detailed records just in case.

This sounds like a classic case of the IRS processing different parts of your amendment through separate workflows, which is actually pretty common these days! The key thing to focus on is that you got code 846 (Refund Issued) - that's basically the IRS saying "this money is legitimately yours." What's happening is they approved your EIC correction (hence the 768 code and refund) while simultaneously rejecting something else entirely (the 290 code with different reference number). Think of it like they're handling your case in chunks - they fast-track the straightforward stuff like EIC calculations while taking more time to review other items that might need closer scrutiny. The different reference numbers (43277-462-87615-2 vs 89254-638-99014-2) are just their way of tracking different aspects of your case separately. You'll probably get a notice in a few weeks explaining exactly what was disallowed, but it shouldn't affect the refund you already received. My advice: screenshot your transcript, keep your bank deposit records, and feel confident spending that refund. Once the IRS issues an 846 code for something like EIC, they don't typically claw it back. The system actually worked in your favor here, even though the codes look confusing!

I had a very similar experience last year and it really stressed me out until I understood what was happening! What you're seeing is actually the IRS processing your amended return in separate chunks - they approved your EIC correction quickly (hence the 768 code and 846 refund) while still reviewing other aspects of your amendment. The 290 "Disallowed claim" with the different reference number (89254-638-99014-2) is rejecting something completely separate from your EIC issue. The fact that you got the 846 refund code means that money is legitimately yours - once they process a refund for something like EIC, they typically don't reverse it. I was in your exact shoes worrying they'd take the money back, but my tax advisor explained that this chunked processing approach is how they handle complex cases now. You'll probably get a letter in a few weeks explaining what specific item was disallowed, but it won't affect your EIC refund. Definitely take screenshots of your transcript and keep your bank records, but you should be safe to spend that refund. The system actually worked correctly even though those codes make it look contradictory!