Federal income tax withheld from your pay and other income, credited to the account. Here is what it means, what usually happens next, and what to do.
On your account transcript it reads: 806 W-2 or 1099 withholding Normal / good news
TC 806 credits the federal income tax withheld from your wages and other income — box 2 on your W-2s and the federal withholding on 1099s and similar forms — as reported on your return. It is dated the return's original due date (for most individuals, April 15), because withholding is treated as paid on that day, whatever date your return actually posted.
Reversal code: TC 807 — Withholding credit reversed. When it posts after this code, the effect above is undone.
Also written as: IRS code 806, code 806 on transcript, 806 IRS code, transaction code 806.
The 806 amount is compared with what employers and payers reported to the IRS. If they do not match, the refund can be reduced (a CP12 explains the change) or held while the IRS verifies wages (a Letter 4800C or a 570 hold). A TC 807 later on the transcript reverses some or all of the credit.
| On the same transcript | What it usually means |
|---|---|
| 806 + 846 | Withholding credited and refund issued — the common happy path. |
| 806 then 807 | Part of the withholding credit was reversed — usually because it does not match the W-2 or 1099 on file. |
| 806 + 570 | Withholding is being verified before release; watch for a 4800C or CP05. |
Add up the federal withholding on every W-2 and 1099. A mismatch with the 806 amount explains most refund changes.
April 15 on an 806 line is a legal convention, not a processing milestone.
A reversal is almost always followed by a CP12 or 4800C — respond with the corrected W-2 or pay records.
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 →Withholding is deemed paid on the original due date of the return, so the IRS posts it with that date regardless of when the return processed.
It reverses a withholding credit: the IRS removed some or all of the 806 amount, commonly because the W-2 on file shows different withholding. A notice explaining the change usually follows.
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 806, code 806 on transcript, transaction code 806 and TC 806 all refer to the same three-digit transaction code the IRS posts to your account.