Interest the IRS pays on a late or increased refund — added to the 846 amount. Here is what it means, what usually happens next, and what to do.
On your account transcript it reads: 776 Interest credited to your account Normal / good news
TC 776 is interest the IRS pays on your overpayment. It appears when the refund went out more than 45 days after the later of the due date or the date the return was filed, or when an amended return or adjustment increased your refund. It is included in the 846 refund amount.
Also written as: IRS code 776, code 776 on transcript, 776 IRS code, transaction code 776.
Overpayment interest is taxable income for the year you receive it. If it is $10 or more, the IRS issues a Form 1099-INT; report it on next year's return either way.
| On the same transcript | What it usually means |
|---|---|
| 776 + 846 | Refund issued with interest added. |
| 291 + 776 + 846 | An adjustment increased your refund and interest was paid on the delay. |
It is taxable interest income for the year received.
Issued when the interest is $10 or more.
No response is required.
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Decode my transcript →Yes. It is interest income in the year you receive it, reported on Form 1099-INT when it is $10 or more.
Generally because the refund went out more than 45 days after the return was filed or due, or because a later adjustment increased the refund.
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 776, code 776 on transcript, transaction code 776 and TC 776 all refer to the same three-digit transaction code the IRS posts to your account.