Potential Delays in State Tax Refunds for Residents in Several U.S. States
Residents in New York, Oregon, South Carolina, Idaho, and Washington, D.C. may experience longer-than-usual wait times to receive their state tax refunds this year. Officials say various administrative and technical issues are contributing to the delays.
In New York, some taxpayers who filed their returns using the TurboTax software may see processing delays. A software glitch reportedly caused some returns to be submitted incorrectly, although the issue has since been fixed.
In Oregon, paper tax returns will not begin processing until later this month. As a result, many taxpayers may not receive their refunds until April. Officials say the delay occurred because the Internal Revenue Service (IRS) took longer than expected to provide necessary tax forms and information needed to update state computer systems.
South Carolina officials also warned that differences between federal and state tax laws could cause processing delays. Taxpayers are advised to ensure that certain types of income—such as overtime pay, tips, additional senior deductions, and car loan interest—are properly reported on their state returns if they are treated differently under state law.
In Idaho, state officials say budget constraints and delays in aligning with updated federal tax laws have slowed the refund process.
Meanwhile, the situation in Washington, D.C. is more complicated due to a dispute over tax law conformity with the federal government. Local officials initially chose not to follow certain federal tax changes, but Congress later overturned that decision. This has created legal uncertainty about which rules apply, potentially delaying refunds and requiring some residents to refile their tax returns.
Tax experts recommend that anyone who has not yet filed should carefully review all tax information before submitting their returns to avoid additional delays or complications.
