IRS code 806: W-2 or 1099 withholding
- Effect:
- Credit
- Posts as a:
- Credit
Credit for the federal income tax withheld from your wages or other income.
What code 806 means
Code 806 credits your account for the income tax withheld, plus any excess Social Security tax, claimed on your return. The Taxpayer Advocate Service describes it as the withholding shown on your return and on the W-2s and 1099s attached to it.
It shows as a negative amount because on a transcript, a minus sign means a credit.
Its date is usually the return due date, even if you filed earlier, because the law treats withheld tax as paid on the 15th day of the fourth month after the tax year ends.
Codes often seen with 806
- 807 Withholding credit reduced or removed The IRS reversed some or all of the withholding credit on the account.
- 150 Tax return filed Your original return posted, and the amount is the tax it showed, not your refund.
- 846 Refund issued The IRS issued a refund for the amount shown.
- 766 Refundable credit allowed A refundable credit was added to your account.
Questions about code 806
Why is my 806 amount negative?
A minus sign on an IRS transcript means a credit, money in your favor. Withholding reduces what you owe, so it shows as a negative number.
Source
IRS title: Credit for Withheld Taxes and Excess FICA (Document 6209, Section 8A, page 8A-32).
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More withholding and credits codes
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?