Tax refund delays hit 5 states. Is yours one of them?
Yahoo Finance·2026-03-05 20:52

Core Insights - Taxpayers are facing potential delays in receiving refunds due to various state-level issues and the implementation of new tax breaks from President Trump's tax and spending bill [1][4][11] Group 1: Tax Filing and Refund Processing - As of mid-February, the IRS has received 41,892,000 tax returns, processed 41,362,000, and issued 28,738,000 refunds [2] - Most electronic tax refunds are typically issued within 21 days, while paper returns may take up to 42 days or longer if additional review is needed [3][8] Group 2: State-Specific Delays - Idaho is experiencing delays due to budget cuts that reduced temporary workers, potentially slowing processing by 12 to 24 weeks and delaying refunds by up to six weeks, costing taxpayers up to $7 million in increased interest payments [4][5] - New York taxpayers are facing delays due to issues with Intuit TurboTax software, which may not have reflected the latest tax breaks in time for some filings [6] - Oregon's Department of Revenue will not begin processing paper returns until the end of March due to delays in receiving necessary tax forms from the IRS [9][10] - South Carolina is experiencing longer processing times as it does not currently conform to the federal One Big Beautiful Bill Act, leading to expected delays for residents [11] - Washington, D.C. is facing delays due to a legal dispute regarding the implementation of new federal tax rules, affecting both electronic and paper tax forms [12][13]

Tax refund delays hit 5 states. Is yours one of them? - Reportify