A refundable credit or generated credit posted to your account — it feeds the refund. Here is what it means, what usually happens next, and what to do.
On your account transcript it reads: 766 Credit to your account Normal / good news
TC 766 posts a refundable credit or other generated credit to your account — most often the Additional Child Tax Credit, the refundable part of the American Opportunity education credit, a net premium tax credit, or the reversal of an earlier charge. It adds to your side of the ledger, the same direction as withholding.
Reversal code: TC 767 — Credit reversed. When it posts after this code, the effect above is undone.
Also written as: IRS code 766, code 766 on transcript, 766 IRS code, transaction code 766.
Seeing 766 alongside 150 and 806 is normal. What matters is what follows: an 846 means the credit is flowing into a refund; a 570 means the credit is under review; a 767 means some of it was reversed. Refunds that include the Additional Child Tax Credit or Earned Income Credit are also subject to the PATH Act and cannot be released before mid-February.
| On the same transcript | What it usually means |
|---|---|
| 766 + 768 + 846 | Refundable credits and Earned Income Credit posted and refunded. |
| 766 + 570 | Credit posted but held for review — watch for a CP05, 12C or 4464C. |
| 766 then 767 | Part of the credit was reversed; a notice explaining the change follows. |
Compare it with the refundable credit lines on your return (for example Schedule 8812). A different amount means the IRS changed something.
Credit reviews usually come with a letter asking for documents — respond by the date on it.
Birth certificates, school or medical records, or Form 1098-T are what credit reviews ask for.
Paste it into the free decoder — every code explained, open holds flagged, refund and offsets summarized. Runs in your browser; nothing is sent anywhere.
Decode my transcript →No — it is a credit that feeds your refund. The refund itself is TC 846. Credits minus the tax assessed equals the overpayment that 846 pays out.
Like withholding, many refundable credits are treated as paid on the return's original due date, so they post with that date.
On your IRS account transcript for the tax year — in your IRS Online Account under tax records, or by mail using Form 4506-T. The transactions section lists each code with its description, date and amount. Return transcripts do not show transaction codes.
Yes. IRS code 766, code 766 on transcript, transaction code 766 and TC 766 all refer to the same three-digit transaction code the IRS posts to your account.