How much will my return total be? Or do I owe anything

Forum|Forum|1 year ago
January 31, 2025
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I don’t understand my transcripts for code 768 and 766 they have negative balances. What does that mean? How much will my return be

TurboTax Free Edition Online

DawnC

Employee

Here is the master file of IRS codes - 768 is definitely the Earned Income Credit. Did you use TurboTax to prepare your return? You can print or view your returns to see what your refund or amount due is.

Decoding IRS Transcripts - This may help to decipher your transcript.

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KeswiftAuthor

I have code 766 showing -$2299.00 and 768 showing -6969.00 what does it mean to have the negative next to it?

KeshaH

Positive numbers on your IRS transcripts represent tax that you owe and negative numbers on your IRS transcripts represent credits and payments. It's a little different than the way we normally think about owing money or being owed money.

Try to think about it as - you owe the IRS money (your tax liability) and then you're taking away any payments you've already made and any credits you qualify for to get to the final number. If that number is still positive, that means the total payments you made weren't enough to cover your tax liability and you still owe. If that final number is negative, that means you overpaid and are due a refund.

Code 768 showing -6,969 means that your transcript is showing that you have an Earned Income Credit of $6,969. Code 766 showing -2,299 means you have another refundable credit of $2,299 on your tax return. The code doesn't specify which credit it is.