Is my refund being held over $33 EIC?

[Otter]

As the title shows, I filed my return via TurboTax Self-Employed on 1/27, and the IRS accepted on 1/29.

Today, I was finally able to get my transcript, and it shows the following codes:

150 | Return Filed (cycle date: 20200705) | Date: 03/02/2020
766 | Credit to your Account | Date: 4/15/2020 (-$4473, health insurance premium tax credit)
768 | Earned Income Credit | Date: 4/15/2020 (-$33)
971 | Notice Issued | Date: 03/02/2020

In addition to the normal 1040, I also filed Schedule C and Schedule SE. From reading other comments, I’m assuming that it is the EIC that is holding everything up at this point?

[Otter]

Thanks for that info!

[Jim Z]

Yeah 971 can mean a ton of things, but in your case they should have already sent a letter of some sort or will send something. As for what that says, I’m not sure. Probably related to your refund paying healthcare costs. It doesn’t necessarily cause your refund to be held. I suggest that you check WMR over the weekend, maybe Tuesday next week, and see what WMR says. If you don’t get a ddd maybe give them a call

[Otter]

Thanks for that. I freaked out a little bit when I saw TC 971 show up since the bulk of the refund is used to pay for health insurance for the year.

[Jim Z]

If you claimed EIC, even just $33, yup, you’re on the PATH and therefore they will hold your refund until “late to mid February” … Aka next week or the week following.

It seems reallllly dumb that you would have to wait over $33 but yeah, you’re one end of an extreme. Keep in mind, some folks are getting a refund of $13,000 + and so there is a need for returns claiming these credits to be reviewed

[Author]

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