How Long After Code 150 Will I Get My Refund?

Tax refunds from the Internal Revenue Service (IRS) are a common occurrence for many individuals each year. Understanding the various stages of tax return processing, especially what certain codes mean on a tax transcript, can provide clarity on when to expect a refund. One such code, “Code 150,” often appears on tax transcripts, signaling a particular step in the IRS’s review process.

Understanding IRS Code 150

When “Code 150” appears on an IRS tax transcript, it indicates the tax return has been processed and a tax liability or refund amount posted to the taxpayer’s account. This code confirms the IRS has accepted the return for processing. It is a preliminary step, suggesting the return is moving through the system. The date next to Code 150 signifies the official date the IRS accepted the return. While Code 150 may be accompanied by a dollar amount representing an assessed tax liability, this does not mean taxes are owed, as credits and payments can reduce or eliminate that amount.

Typical Refund Timelines

After Code 150 appears, the refund process continues. For most taxpayers who file electronically and opt for direct deposit, the IRS typically issues refunds within 21 days of accepting the return. This timeframe is consistent for error-free submissions. Paper-filed returns involve manual processing and usually take longer, with refunds often issued within six to eight weeks from the date the IRS receives the return.

The 21-day timeline after e-filing is an IRS goal, but it is not a guarantee. The date next to Code 150 marks the beginning of the IRS’s processing timeline, but it does not indicate the exact date the refund will be issued. The IRS updates its refund status information once a day, typically overnight.

Tracking Your Refund

Taxpayers can monitor the status of their federal tax refund using the IRS “Where’s My Refund?” tool or the IRS2Go mobile app. To use this tool, individuals need to provide their Social Security number or Individual Taxpayer Identification Number, their filing status, and the exact whole dollar amount of the refund requested. For electronically filed returns, the refund status usually becomes available within 24 hours of e-filing. For paper returns, it takes about four weeks before status information is updated.

The “Where’s My Refund?” tool displays different statuses. “Return Received” means the IRS has the return and is processing it. “Refund Approved” indicates the IRS has approved the refund and is preparing to issue it by the displayed date. “Refund Sent” confirms the IRS has dispatched the refund to the bank for direct deposit or sent it via mail. It may take a few additional days for funds to appear in a bank account after the “Refund Sent” status.

Factors Affecting Refund Delivery

Even after Code 150 appears, several factors can extend the time it takes to receive a tax refund. Errors on the tax return, such as incorrect Social Security numbers, mismatched income information, or computational mistakes, can lead to delays as the IRS may need to manually review the return. An incomplete return or one missing required forms can also cause processing to slow down.

Claiming certain tax credits, like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), can also delay refunds. By law, the IRS cannot issue refunds for returns claiming these credits before mid-February, typically making them available by the first week of March, if filed electronically with direct deposit. This measure, part of the PATH Act, allows the IRS additional time to prevent fraudulent claims. Other factors contributing to delays include identity verification issues, suspected fraud, or if the return is selected for further review. Large processing volumes or external circumstances like government shutdowns can also impact the general refund timeline.