IRS code 776: Interest paid to you
- Effect:
- Adds interest the IRS owes you
- Posts as a:
- Credit
The IRS credited interest it owes you on an overpayment.
What code 776 means
Code 776 credits your account with interest the IRS owes you when the year is overpaid because of a credit or an abatement (a reduction of tax).
That interest is paid out with your refund: code 846 covers the overpaid tax plus applicable interest.
Interest you receive on a tax refund is taxable income. If it's $10 or more, you should get a Form 1099-INT for it.
Codes often seen with 776
Source
IRS title: Generated Interest Due on Overpayment (Document 6209, Section 8A, page 8A-31).
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TTOC Finder is independent and isn't affiliated with the IRS. This page explains what the code means in general. For your own account, check your IRS online account or Where's My Refund?