Is My $7,004 Refund Correct? $24K Self-employed Income with Head of Household and EIC

I just filed my 2024 return as self-employed and got my transcript today from the IRS. My refund shows -$7,004.00 and I want to make sure I'm reading this correctly. I filed as Head of Household with earned income credit. My adjusted gross income was $24,645.00 with taxable income of $2,196.00. My self-employment taxable income was $24,490.00, with a total self-employment tax of $3,747.00. Here's what my account transcript from the Internal Revenue Service shows: Request Date: 02-11-2025 Response Date: 02-11-2025 FORM NUMBER: 1040 TAX PERIOD: Dec. 31, 2024 ACCOUNT BALANCE: -7,004.00 ACCRUED INTEREST: 0.00 AS OF: Feb. 24, 2025 ACCRUED PENALTY: 0.00 AS OF: Feb. 24, 2025 ACCOUNT BALANCE PLUS ACCRUALS (this is not a payoff amount): -7,004.00 INFORMATION FROM THE RETURN OR AS ADJUSTED: EXEMPTIONS: 04 FILING STATUS: Head of Household ADJUSTED GROSS INCOME: 24,645.00 TAXABLE INCOME: 2,196.00 TAX PER RETURN: 3,747.00 SE TAXABLE INCOME TAXPAYER: 24,490.00 SE TAXABLE INCOME SPOUSE: 0.00 TOTAL SELF EMPLOYMENT TAX: 3,747.00 RETURN DUE DATE OR RETURN RECEIVED DATE (WHICHEVER IS LATER): Apr. 15, 2025 PROCESSING DATE: Feb. 17, 2025 TRANSACTIONS: CODE | EXPLANATION OF TRANSACTION | CYCLE | DATE | AMOUNT 150 | Tax return filed | 20250505 | 02-17-2025 | $3,747.00 766 | Credit to your account | | 04-15-2025 | -$3,322.00 768 | Earned income credit | | 04-15-2025 | -$7,429.00 Looking at the transcript, I see there's a credit to my account for -$3,322.00 and an earned income credit of -$7,429.00. The account balance shows -$7,004.00 with zero accrued interest and penalties as of Feb. 24, 2025. Just want to make sure everything is processing right before I get too excited. The return was processed on Feb. 17, 2025, and the transcript shows my filing status as Head of Household with 4 exemptions. Is this all looking correct? Do the numbers add up? The tax per return shows $3,747.00 but then I have credits totaling -$10,751.00 (-$3,322.00 and -$7,429.00), which would give me the refund of -$7,004.00. I'm just trying to understand if this means I'll be getting a refund of $7,004.00 or if I'm misinterpreting something on this transcript. The document says "ANY MINUS SIGN SHOWN BELOW SIGNIFIES A CREDIT AMOUNT" which seems to confirm this is a refund coming my way.

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PrinceJoe

The transcript confirms your tax return is processing normally with a refund of $7,004.00 coming your way. Let's break down the key components: Your self-employment earnings of $24,490 resulted in a self-employment tax of $3,747.00 (shown under "TOTAL SELF EMPLOYMENT TAX"). This represents your Social Security and Medicare contributions as a self-employed individual. Two significant credits are offsetting your tax liability: - An earned income credit of $7,429.00 (Transaction code 768) - An additional credit of $3,322.00 (Transaction code 766) The math works out as follows: $3,747.00 (tax owed) - $3,322.00 (credit) - $7,429.00 (EIC) = -$7,004.00 (your refund) The transcript confirms your Head of Household filing status with 4 exemptions, and shows your return was processed on February 17, 2025. The transaction code 150 indicates a standard tax return filing with no issues. Since there are no penalties or interest showing, and all codes are routine, your refund should proceed normally.

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