Self-Employed HOH Tax Transcript Shows $6,542 Refund with $21,530 AGI and $6,960 EIC - Is This Correct?

Can someone help me understand my 2024 tax transcript? I just received it and want to make sure I'm reading everything correctly. I have my IRS Account Transcript from the Internal Revenue Service (United States Department of the Treasury) for Tax Period ending December 31, 2024. I filed as Head of Household and I'm showing a balance of -$6,542.00. My adjusted gross income was $21,530.00 with taxable income of $0.00. Looking at the account details: - ACCOUNT BALANCE: -$6,542.00 - ACCRUED INTEREST: $0.00 AS OF: Feb. 17, 2025 - ACCRUED PENALTY: $0.00 AS OF: Feb. 17, 2025 - ACCOUNT BALANCE PLUS ACCRUALS: -$6,542.00 (this is not a payoff amount) Under "INFORMATION FROM THE RETURN OR AS ADJUSTED": - EXEMPTIONS: 03 - FILING STATUS: Head of Household - ADJUSTED GROSS INCOME: $21,530.00 - TAXABLE INCOME: $0.00 - TAX PER RETURN: $3,273.00 - SE TAXABLE INCOME TAXPAYER: $21,394.00 - SE TAXABLE INCOME SPOUSE: $0.00 - TOTAL SELF EMPLOYMENT TAX: $3,273.00 Looking at the transactions section: - Tax return filed (Code 150): $3,273.00 on 02-24-2025 (Cycle 20250603) - Credit to your account (Code 766): -$2,855.00 on 04-15-2025 - Earned income credit (Code 768): -$6,960.00 on 04-15-2025 The RETURN DUE DATE OR RETURN RECEIVED DATE (WHICHEVER IS LATER) is Apr. 15, 2025, and the PROCESSING DATE was Feb. 24, 2025. I'm self-employed, and I see my SE taxable income is $21,394.00 with a total self-employment tax of $3,273.00. I notice I received an EIC credit of -$6,960.00 and another credit of -$2,855.00. Does this all look correct for my situation? I want to verify before counting on that -$6,542.00 refund amount! I don't see any accrued interest or penalties, which seems good, but I want to make sure I'm not missing anything important.

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Mei Liu

The tax transcript shows you're getting a legitimate refund of $6,542. Here's how it breaks down: Your self-employment income of $21,394 generated a self-employment tax of $3,273 (shown under code 150). However, you're receiving two significant credits: an Earned Income Credit of $6,960 (code 768) and another credit of $2,855 (code 766), which is likely the Child Tax Credit given your Head of Household filing status with 3 exemptions. Despite having an adjusted gross income of $21,530, your taxable income is $0, which is common when credits and deductions fully offset your income. The mathematics of your refund works out perfectly: $3,273 (tax owed) minus $2,855 (credit) minus $6,960 (EIC) equals -$6,542 (your refund amount). Your return was processed on February 24, 2025, and the transcript shows no penalties or interest accrued as of February 17, 2025. The credits are dated April 15, 2025, which is standard IRS practice for showing when credits are officially applied. All transaction codes and amounts are consistent with a properly processed return.

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