Help Understanding Why IRS Removed My $10,557 Withholding and Now Shows $3,472 Balance Due Instead of Refund
I'm looking at my transcript from the IRS and I honestly have no idea what I'm looking at. There's all these codes and dates and numbers that are confusing me. Can anyone break down what these things mean and how to actually read them? I just want to know when I might get my refund tbh. Here's what my transcript shows: Internal Revenue Service United States Department of the Treasury This Product Contains Sensitive Taxpayer Data Request Date: 11-11-2024 Response 11-10-2024 Account Transcript TAX PERIOD: Dec. 31, 2023 ACCOUNT BALANCE: $3,472.21 ACCRUED INTEREST: $0.00 AS OF: Nov. 25, 2024 ACCRUED PENALTY: $0.00 AS OF: Nov. 25, 2024 ACCOUNT BALANCE PLUS ACCRUALS (this is not a payoff amount): $3,472.21 INFORMATION FROM THE RETURN OR AS ADJUSTED EXEMPTIONS: 01 FILING STATUS: Single ADJUSTED GROSS INCOME: $42,233.00 TAXABLE INCOME: $28,383.00 TAX PER RETURN: $3,185.00 SE TAXABLE INCOME TAXPAYER: $0.00 SE TAXABLE INCOME SPOUSE: $0.00 TOTAL SELF EMPLOYMENT TAX: $0.00 RETURN DUE DATE OR RETURN RECEIVED DATE (WHICHEVER IS LATER) Apr 15, 2024 PROCESSING DATE Jun. 17. 2024 TRANSACTIONS CODE EXPLANATION OF TRANSACTION CYCLE DATE AMOUNT 150 Tax return filed 20242205 06-17-2024 $3,185.00 76211-502-50115-4 806 W-2 or 1099 withholding 04-15-2024 -$10,557.00 570 Additional account action pending 06-17-2024 $0.00 971 Notice issued 08-26-2024 $0.00 290 Additional tax assessed 20244405 11-18-2024 $0.00 71254-704-99585-4 807 Reduced or removed W-2 or 1099 04-15-2024 $10,557.00 withholding 290 Additional tax assessed 20244505 11-25-2024 $0.00 71254-699-08470-4 196 Interest charged for late payment 20244505 11-25-2024 $159.81 276 Penalty for late payment of tax 20244505 11-25-2024 $127.40 971 Notice issued 11-25-2024 $0.00 I'm especially confused about the "807 Reduced or removed W-2 or 1099 withholding" line - it looks like my withholding of $10,557.00 was removed? Does that mean I'm not getting a refund? And what's with all those cycle dates and numbers after the codes? I filed back in April but it looks like they're still making adjustments in November. Help!
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Amina Bah
As a tax professional, I understand the confusion. IRS transcripts can look like hieroglyphics if you don't know what you're looking at. Each code represents a different action taken on your return. The most common ones are 150 (return filed), 570 (hold/review), and 846 (refund issued). The cycle dates show when actions happened or will happen. But without seeing your specific codes, it's hard to give exact guidance.
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Paolo Longo
•Thanks for explaining! But how do I know which dates actually matter? There's like 5 different dates on mine 😩
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Amina Bah
•The date next to the most recent code is usually most important. That's typically when the last action was taken on your return.
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Oliver Becker
Hey everyone! I've been using taxr.ai and it's seriously a game changer for understanding transcripts. Instead of trying to decode everything yourself, it analyzes your transcript and tells you exactly what's happening and when you'll likely get paid. It's only $4.99 and worth every penny imo. Check it out: https://taxr.ai
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CosmicCowboy
•Fr? Does it actually work? These delays got me stressed af 😫
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Oliver Becker
•100% works! It showed me exactly why my refund was delayed and when to expect it. Way better than guessing or waiting on hold with IRS for hours 💯
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Natasha Orlova
•Sounds interesting. How exactly does it work? Does it just read your transcript or does it do more?
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Natasha Orlova
•UPDATE: Y'all I tried it and im shook! 🤯 It literally explained everything about my delay AND gave me the exact steps to fix it. Best $5 I ever spent fr fr
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Javier Cruz
in the same boat rn... these transcripts might as well be written in alien language lol
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Emma Thompson
The IRS website is straight trash tbh. Even their own employees cant explain half this stuff 🤡
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Malik Jackson
•facts 💯 called them 3 times and got 3 different answers smh
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Isabella Costa
My transcript been saying 'as of' date March 4th for like 2 months now... anyone else?
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StarSurfer
•Mine too! Starting to think that date dont mean nothing fr
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Cynthia Love
Looking at your transcript, that code 807 "Reduced or removed W-2 or 1099 withholding" is definitely concerning - it means the IRS removed your $10,557 in withholding credits, which is why you now owe $3,472 instead of getting a refund. This usually happens when they can't verify your W-2s or suspect there's an issue with the withholding reported. You'll need to contact them ASAP to find out why they removed it and provide documentation to get it reinstated. The 971 notices should explain what documentation they need from you.
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Nia Johnson
•This is really helpful @facf45268409! I was wondering if this could be related to identity verification issues? I've heard the IRS sometimes removes withholding when they can't verify someone's identity. Did you get any letters in the mail about this @9461ebb9f50a? Also those penalty and interest charges from November suggest they're treating this like you underpaid, which makes sense if they removed your withholding credits.
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