What does code 291 on my tax transcript mean?

Code 291 generally indicates an adjustment to your tax return, possibly reducing your refund amount. It's typically associated with changes made to your tax credits or withholdings. The IRS might have adjusted something on your return based on their records, which could potentially affect your expected refund amount. You might want to compare your original return with the transcript to see what specifically changed.

Call the IRS directly. Code 291 means they made an adjustment to your tax assessment. You need to know what changed and why. I tried calling for three days straight last month about a similar issue and couldn't get through. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in 15 minutes who explained exactly what happened with my adjustment. Don't waste days trying to reach them yourself.

I believe code 291 specifically means there was an adjustment to the amount of tax you owe or are owed. It might be related to a correction the IRS made to your return, perhaps concerning credits or deductions. I would suggest you look for a corresponding 971 code which might provide more information about the notice they may have sent explaining the adjustment. If you haven't received anything in the mail yet, you might want to wait a few days to see if an explanation arrives.

I was in the same boat last month - staring at my transcript like it was written in hieroglyphics! I finally tried https://taxr.ai and it was like having a tax transcript translator. It explained that my 291 code was just an adjustment to my Child Tax Credit (I had calculated it wrong). The tool broke down every code on my transcript like having a tax pro look over my shoulder. It's like going from trying to assemble furniture without instructions to suddenly having a detailed guide.

Tbh I'm always suspicious when ppl recommend these tax services. The IRS website has all the info for free if u just take time to read it. Code 291 is just an adjustment to ur tax assessment. Could be good or bad. Check if ur refund amt changed and look for a notice in the mail. No need to pay for what's already free info.

While the Transaction Code 291 definition is indeed available on the IRS website, interpreting the full context of transcript codes requires understanding the interrelationship between multiple codes, cycle dates, and processing indicators. The recommended analysis tools provide algorithmic interpretation of these complex relationships, not just definitions. For remote workers with multi-state taxation issues, these nuances can be particularly relevant for proper assessment of adjustment implications.

Does the 291 code always mean they're reducing your refund? I'm so frustrated with how cryptic these transcripts are! I just want to know if I should be preparing for less money than I expected or if this could potentially be in my favor?

Here's what you need to know about code 291: 1. First, check if there's a dollar amount next to the 291 code - this tells you the amount of the adjustment 2. Next, look for a 971 code which indicates a notice was generated 3. Then, check if there's a 570 code (additional account action pending) which might mean further review 4. Finally, look for an 846 code (refund issued) with a future date I'm concerned that remote work might have triggered this if you didn't properly account for state tax obligations across multiple jurisdictions.

I've seen situations where code 291 appeared and people ignored it, assuming it was a minor adjustment, only to discover later that it was the first sign of an audit. Not saying that's your situation, but compared to other common transcript codes like 570/971 combinations, a standalone 291 warrants closer attention. In my professional experience, it often relates to credits being adjusted downward after verification processes fail.

The community wisdom on code 291 is that it's an adjustment to your tax assessment, which could go either way. I've tracked exactly 73 cases in the tax forums over the past 2 years, and in 41 cases it was a reduction in refund, in 27 cases it was an increase, and in 5 cases it was a wash (they adjusted something that didn't affect the bottom line). The average adjustment was $843. Most people received a notice explaining the change within 14 days of the code appearing on their transcript.

I'm dealing with the exact same code right now! As someone who just started working remotely this year, I'm totally overwhelmed by all these new tax complications. What's really stressing me out is that I claimed the home office deduction for the first time, and now I'm wondering if that's what triggered the 291 code. Did you claim any new deductions this year that might have flagged your return? I'm trying to figure out if I should be worried about my home office expenses or if this is just a routine adjustment. The waiting game is killing me!

I'm in a similar situation - working from home for the first time this year and feeling completely lost with all these codes! I noticed a 291 code on my transcript yesterday and I'm honestly panicking a bit. Like you, I was counting on my refund for some equipment upgrades (desperately need a better webcam and lighting setup). From what I'm reading in these comments, it sounds like we just need to wait for that notice in the mail to understand what exactly was adjusted. I'm trying to stay optimistic that it might not be a huge reduction, but the uncertainty is really stressing me out. Has anyone here had experience with 291 codes specifically related to home office deductions or remote work expenses? I'm wondering if that's what's triggering these adjustments for us new remote workers. Fingers crossed we both get some clarity soon! At least we're not alone in this confusing process.

I completely understand the stress you're going through! I had a similar experience last year when I first started working remotely. The 291 code appeared on my transcript and I was convinced I had messed up my home office deduction calculations. Turns out, the IRS had simply corrected a math error I made on my Form 8829 - nothing major, just a small miscalculation in my office percentage that actually resulted in a slightly higher deduction than I claimed! The adjustment was only about $200 and I received the full explanation in a CP12 notice about 10 days later. A few things that helped me through the waiting period: - I double-checked my home office measurements and calculations against what I filed - I made sure I had all my documentation organized (utility bills, rent/mortgage statements, etc.) - I called the IRS after receiving the notice to confirm I understood the adjustment correctly The remote work transition definitely adds complexity to taxes, but from what I've seen in this community, most 291 adjustments for home office deductions are relatively minor corrections rather than major problems. Try not to panic too much - the notice will give you all the details you need to understand what happened. Hang in there, and hopefully you'll still be able to get that equipment upgrade even if there's a small adjustment!

I'm seeing a lot of great advice here about code 291, but I wanted to add something that might help ease some anxiety. I work for a tax preparation service and we see 291 codes fairly regularly - they're actually one of the more routine adjustment codes the IRS uses. For remote workers specifically, I've noticed the IRS has been more thorough in reviewing home office deductions this year, but that doesn't mean they're looking to deny legitimate claims. Often what happens is their automated systems flag returns where the home office percentage seems high relative to the home's total square footage, or where certain expenses don't align with typical patterns. A few red flags I've seen that commonly trigger 291 adjustments for home office deductions: - Claiming 100% of utilities when you should only claim the office percentage - Using the wrong square footage calculations (measuring only floor space vs. including walls) - Claiming expenses that aren't purely for the home office area The good news is that even if there's an adjustment, you usually have 30 days from the notice date to respond if you disagree with their calculation. I'd recommend gathering all your documentation now - photos of your workspace, utility bills, and your square footage measurements - just in case you need to provide additional support. Most of my clients who get 291 adjustments see changes under $500, and many times it's actually in their favor when the IRS catches an error they missed. Try not to stress too much while waiting for that notice!

Hey everyone! I just wanted to jump in here as someone who went through this exact situation about 6 months ago. I was also a new remote worker and got hit with a 291 code that had me completely panicked. After reading through all these helpful responses, I can confirm that @Kyle Wallace's advice is spot-on about the routine nature of these adjustments. In my case, it turned out the IRS had actually INCREASED my home office deduction because I had been too conservative in my calculations! I was so worried about making a mistake that I underestimated my legitimate office space percentage. What really helped me was keeping a detailed log of my workspace usage and taking photos with measurements clearly visible. When I eventually spoke with an IRS agent (took about 2 weeks to get through), they walked me through exactly what they had adjusted and why. The agent was actually pretty patient and explained that they see a lot of first-time home office claims and most people are honest but just unfamiliar with the rules. @Melina Haruko - I totally get the overwhelm! The transition to remote work tax stuff is no joke. But based on what I learned and what others have shared here, you'll likely get clarity within the next week or two. Hang in there, and don't let it stress you out too much in the meantime. Most of these adjustments really are pretty minor in the grand scheme of things.

I can relate to the remote work tax stress! I've been working from home for about two years now and still remember how confusing everything was that first year. Code 291 essentially means the IRS made an adjustment to your tax calculation - it could be positive or negative. What helped me was creating a simple comparison between what I originally filed and what shows on my transcript to identify exactly what changed. Since you mentioned being organized this year, that's actually going to work in your favor if you need to respond to any notices. Keep all your home office documentation handy (measurements, photos, utility bills, etc.) just in case, but don't panic yet. In my experience, most adjustments for remote workers are pretty straightforward corrections rather than major red flags. The waiting period is definitely the worst part, but you should get a clear explanation in the mail within the next week or two. Try not to let it consume too much mental energy in the meantime - most of these situations resolve much more smoothly than we anticipate when we're in the middle of the uncertainty!

I'm going through the exact same thing right now! Just saw code 291 on my transcript yesterday and immediately started spiraling. Like you, this is my first year working remotely and I claimed the home office deduction for the first time. I keep second-guessing every calculation I made. What's really getting to me is that I spent so much time trying to do everything correctly - measuring my office space multiple times, keeping detailed records of all my expenses, even taking photos of my setup. Now I'm wondering if I still somehow messed something up despite all that preparation. I was also counting on my refund for some equipment upgrades (my current setup is pretty basic and I really need a better monitor). The uncertainty is killing me because I can't plan financially until I know what's actually happening with my return. Reading through all these responses has been incredibly helpful though. It sounds like most people get their explanation notice within about 2 weeks, and the adjustments are usually pretty minor. I'm trying to stay positive that it might even be a correction in my favor like some people mentioned, but the waiting is tough when you're used to having more control over your financial planning. Thanks for posting this question - it's reassuring to know other remote workers are dealing with the same confusion and stress!

I'm dealing with the same 291 code situation and wanted to share what I found after doing some digging. I called the IRS taxpayer advocate service (different from the main IRS line) and they were actually really helpful in explaining what was happening with my transcript. In my case, the 291 code was related to a verification process they run on first-time home office deductions. Apparently, when you claim the home office deduction for the first time, their system flags it for a basic review to make sure the calculations align with standard patterns. The agent told me this is becoming more common as so many people started working remotely. What really put my mind at ease was learning that this verification process usually results in either no change or minor adjustments - they're not looking to penalize people, just making sure the math adds up correctly. She also mentioned that many remote workers actually end up with slightly higher deductions after the review because people tend to be overly conservative on their first attempt. The key thing is that 291 by itself isn't necessarily bad news. If you see it combined with other codes like 570 (additional account action) then there might be a more complex issue, but a standalone 291 is typically just a routine adjustment. For anyone still waiting on their notice, the agent said they're currently running about 10-14 days behind on mailing out the explanation letters, so don't panic if it takes a bit longer than usual. Hope this helps ease some anxiety while everyone waits for their answers!

I'm going through the exact same situation! Just noticed a 291 code on my transcript this morning and I'm feeling that familiar mix of confusion and anxiety that comes with IRS codes. This is also my first year working remotely and claiming the home office deduction - seems like there are quite a few of us in the same boat! Reading through all these responses has been incredibly reassuring. @Grace Durand - thank you so much for calling the taxpayer advocate service and sharing those details about the verification process for first-time home office claims. That explanation makes so much more sense than the scary scenarios I was imagining in my head. Like many others here, I was super conservative with my calculations because I was terrified of making a mistake. I measured my office space three times, kept detailed expense records, and probably undersold myself on legitimate deductions. Now I'm actually hoping the IRS review might catch something I missed and work in my favor! The community support in this thread has been amazing. It's so helpful to know that most 291 adjustments are routine corrections under $500 and that the explanation notices are coming within 2 weeks or so. I'm going to try to be patient and not check my mailbox obsessively (easier said than done!). For anyone else dealing with this - we're definitely not alone in navigating the remote work tax learning curve. Fingers crossed we all get positive news when those notices arrive!

I'm in exactly the same situation! Got the 291 code on my transcript a few days ago and have been stressing about it ever since. This is my first year working remotely and I claimed the home office deduction for the first time - seems like that's a common thread among many of us here. Reading through everyone's experiences has been such a relief. @Grace Durand - your explanation about the verification process for first-time home office deductions really helped me understand what's probably happening. I was imagining all sorts of worst-case scenarios when it's likely just a routine review. Like others have mentioned, I was probably too conservative with my calculations because I was so worried about making a mistake. I triple-checked my measurements and kept every single receipt, but I'm wondering now if I actually claimed less than I was entitled to. The timeline everyone's sharing about getting explanation notices within 10-14 days is really helpful too. I'll try to be patient instead of panicking every time I check the mail and don't see anything yet. This community has been amazing for helping us remote work newbies navigate this confusing process - thank you all for sharing your experiences and keeping the rest of us sane while we wait for answers!