IRS Code 766 & 768: Refundable Credit Allowance (766) / Earned Income Credit (768)
IRS code 766 is a refundable credit added to your account, and code 768 is the Earned Income Tax Credit (EITC) you claimed. Both are credits that reduce what you owe or increase your refund; neither means the refund has been sent.
What code 766 / 768 actually means
Document 6209 defines 766 as a generated refundable credit allowance: a refundable credit (other than withholding or estimated payments) verified on your return or allowed in a later adjustment. It is used for many kinds of credits, so the description on your transcript matters. In one Taxpayer Advocate Service example, a 766 appeared as a tax relief credit.
Code 768 posts the Earned Income Credit from your return. Credits appear as negative amounts on the transcript because they reduce the balance.
Seeing 766 or 768 means the credit posted to your account; it does not mean the refund was issued (that is 846). In a less common situation, a 766 tied to an offset trace number reverses a prior Treasury Offset Program offset (898), returning money that had been taken for a non-IRS debt.
What to do next
- 1Compare the 766 and 768 amounts with the credits on your return. If they are lower or missing, look for a notice explaining a change.
- 2If your return claims EITC or the Additional Child Tax Credit, the IRS cannot issue that refund before mid-February, even if the return is otherwise processed.
- 3Look for 846 (refund issued) on a later update and use Where's My Refund for timing.
- 4If you get an audit notice about the EITC or ACTC (such as CP75), respond with the requested documents by the deadline. A tax professional can help you put that response together; we offer a free consultation.
Codes it often appears with
The processed return the credits belong to.
Withholding credit, posted separately.
Refund issued after the credits are applied.
A 766 with an offset trace number can reverse an earlier 898 offset.
Letters that often go with it
- CP75 / Letter 566 — Correspondence Audit — Documents Requested
- CP12 — Math Error — Refund Changed
- CP11 — Math Error — Balance Due
Common questions
What does code 766 mean on my transcript?+
766 is a refundable credit added to your account, such as a credit allowed on your return or in a later adjustment. Read the description next to it to see which credit it is.
What does code 768 mean?+
768 is the Earned Income Tax Credit (EITC) posted from your return. It is a credit, so it shows as a negative amount.
Does 766 or 768 mean my refund was approved?+
No. It means the credit posted. A refund appears separately as 846. If your return claims EITC or ACTC, the IRS cannot release the refund before mid-February.
Why is my 766 or 768 lower than what I claimed?+
The IRS may have changed the credit during processing. It should mail you a notice explaining the change; follow its instructions if you disagree.
Checked against IRS primary sources — see how we source these guides. Transcripts show what has posted, not every action in progress; notices mailed to you and your IRS online account are the controlling record.
Other transcript codes
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