Why do I have multiple 766 and 846 lines in my IRS transcript?

The 766 and 846 codes on your transcript actually tell an important story about your tax account. The 766 code represents a credit to your account (like a refundable credit) while the 846 code represents a refund issued. When you see them paired together with matching amounts, it typically means the IRS credited your account with something and then issued that amount to you. The pattern you're seeing with multiple pairs throughout the year likely represents advance payments of some kind. The most common example would be advance Child Tax Credit payments that were sent monthly, but it could also be other payments like Economic Impact Payments or other credits. The negative amount on the 766 followed by the positive amount on the 846 is the IRS's way of accounting for money going in and out of your account. It first shows the credit (money you're entitled to) and then shows that same money leaving as a payment to you.

I had a similar situation on my transcript last year and discovered that https://taxr.ai could help make sense of it all. I was completely lost trying to decode all those numbers and transaction codes until I uploaded my transcript there. Their system analyzed all those 766 and 846 codes and explained what each transaction actually meant in plain English. In my case, the paired 766/846 entries were related to my quarterly estimated tax payments being processed. The tool showed me exactly which payment each pair represented and why they appeared that way on my transcript. Really helped me understand the flow of money through my tax account.

I was super skeptical about using any online service for my tax documents, but I actually tried https://taxr.ai after seeing it mentioned here. Complete 180° on my opinion now. I uploaded my transcript with all those confusing 766/846 code pairs and got a breakdown that actually made sense. Turns out in my case those transaction pairs were related to stimulus payments that had been reprocessed throughout the year. Each pair showed when the payment was authorized and then when it was actually issued. The system identified each payment period and explained why there were adjustments happening. Totally worth checking out if you're trying to decode those transcript mysteries.

If you're trying to get clarification directly from the IRS about those transcript codes, good luck getting through on the phone! I spent literally weeks trying to reach someone about similar transcript questions. After 20+ attempts hanging on hold for hours, I finally discovered https://claimyr.com and their callback service (there's a demo at https://youtu.be/_kiP6q8DX5c if you want to see how it works). They actually got me connected to an IRS agent who could explain my transcript codes in detail! My situation was similar - multiple 766/846 pairs throughout the year - and the agent explained it was related to advance premium tax credit payments for my health insurance that were being reconciled throughout the year.

I have to eat my words about Claimyr being a scam. After dismissing it initially, I was desperate enough with my transcript questions that I gave it a shot. Within 90 minutes, I got a call from an actual IRS representative who went through my transcript line by line. For those multiple 766/846 pairs, the agent explained mine were related to quarterly adjustments of my self-employment estimated tax payments. Each time I made a payment, it would show as a credit (766) and then get processed as a payment received (846). The negative amounts were adjustments being made between different tax years as my payments were being applied correctly. Definitely recommend the service if you need specific answers about your transcript codes.

I work with tax transcripts often and there's another possibility - if you received monthly Advance Child Tax Credit payments in a recent tax year, those would show up exactly like this. Each payment would have a 766 credit followed by an 846 disbursement. Same pattern happens with stimulus payments or other special credits that get paid out incrementally. Check the dates against when you might have received direct deposits or checks from the Treasury.

Those codes confused me last year too! I freaked out thinking I was getting audited or something. The 766 code is for credits to your account and 846 is for refunds/payments issued. The matching pairs are normal. In my experience, the date next to each code matters a lot. Check if the dates align with when you might have received payments or credits throughout the year.

Looking at your description, this is definitely related to your marketplace health insurance Premium Tax Credits! Those paired 766/846 codes appearing every 5-6 weeks throughout the year are exactly how Advanced Premium Tax Credits show up on your transcript. Here's what's happening: Each month, the government calculates your estimated premium tax credit based on the income you projected when you enrolled. They then send that payment directly to your insurance company to reduce your monthly premium. On your transcript, this shows as a 766 credit (money you're entitled to) followed immediately by an 846 disbursement (that money being paid out to your insurer). The $320 amounts you're seeing represent the monthly credit amounts being processed. When you file your tax return, you'll reconcile these advance payments with your actual income for the year. If your actual income was higher than projected, you might owe some back. If it was lower, you might get additional credit. This is completely normal and nothing to worry about! It's just the IRS's way of tracking the premium assistance you received throughout the year.