Does Tax Topic 152 Mean Direct Deposit?
Tax Topic 152 indicates your return is processing. Learn how this common IRS code relates to your refund status and the timeline for an approved direct deposit.
If you have checked the status of your tax refund on the IRS “Where’s My Refund?” tool, you may have encountered a message referencing Tax Topic 152. This can cause confusion and anxiety about the status of your expected refund.
Explaining IRS Tax Topic 152
Tax Topic 152 is a generic code used by the IRS to indicate that your tax return has been successfully received and is undergoing normal processing. This is not an error message and does not mean there is a problem with your return. The IRS states that most refunds are issued in less than 21 days; however, seeing this topic code can mean processing may take longer than this standard timeframe.
Several factors can lead to a return remaining in this processing stage. One reason is the Protecting Americans from Tax Hikes (PATH) Act. This law requires the IRS to hold refunds for returns claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) until at least mid-February to help prevent fraud. Other reasons for the Tax Topic 152 status include minor errors that the IRS is correcting internally, additional identity verification checks, or if you have filed an Injured Spouse Claim using Form 8379. Your refund may also be used to pay other government debts, a process known as a refund offset.
From Tax Topic 152 to Direct Deposit
The appearance of Tax Topic 152 is a standard step in the refund process, but it does not signal that your direct deposit is imminent. It is a transitional status indicating your return is in the queue and being reviewed. You should not expect your refund to be deposited while the “Where’s My Refund?” tool displays this message.
The change to look for is an update in your refund status from “Return Processing” to “Refund Approved.” Once the IRS approves your refund, the “Where’s My Refund?” tool will update to show a specific date for your direct deposit. The IRS is accurate with these dates, and you can expect the funds to be in your account on the specified day, though some banks may post the deposit a day earlier.