Tax Refunds: Why Some States Face Multi-Week Delays and What Filers Are Experiencing

Many taxpayers are bracing for slower tax refunds this season as state processing bottlenecks, reduced temporary staffing and software updates create backlogs. Recent counts from mid-February show millions of returns processed and millions of refunds already issued, but a mix of state-specific issues means some filers will wait longer than the typical electronic timeline.

Tax Refunds in Idaho, Oregon and New York: where delays are showing up

Several states are highlighted for delayed processing this year. In Idaho, state officials warned that budget cuts reduced the number of temporary workers hired for tax season, a change that could slow overall processing by 12 to 24 weeks and push refunds out by up to six weeks. That slowdown could result in increased state payments for refund interest reaching into the millions.

Oregon’s revenue department is processing electronically filed returns in the order received, but paper returns will not begin processing until the end of March because a late delivery of federal forms and programming information delayed the state’s ability to handle paper filings. The department has said that filing electronically is the best way to avoid a paper-related delay.

In New York, at least one filer who submitted a straightforward return in early February was told his state refund could take up to 90 days. That filer received a federal refund in about two weeks, but his state return remained listed as processing more than a month later. State officials note that most people receive their refunds within 30 days, but questions or hand-processing can add extra time once a return is pulled for review.

Why tax refunds are taking longer in some cases

Multiple causes for longer waits are in play. Electronic filing generally speeds processing—most refunds are issued within 21 days when a return is e-filed—whereas paper filings can double processing time. Returns that contain errors, missing information, indications of identity theft or fraud, or items that require additional review will be held for further examination; the IRS or state department will contact filers by mail if more information is required.

Software problems have also contributed. Some filers encountered tax-preparation software that did not reflect newly enacted tax breaks or changes, slowing correct calculations and downstream processing. A tax software provider worked to update its product to handle a state-specific refund program and indicated the issue would be resolved by early February.

What filers are doing and what to expect next

• Check processing timelines: Electronic returns tend to move faster; paper returns can be delayed until state systems are fully programmed.
• Be prepared for hand-processing delays: If a return is selected for manual review, an additional processing window may apply before a refund is issued.
• Stay persistent with state tax offices: Some taxpayers report limited information from phone or web inquiries, and tax professionals encourage continued contact when progress stalls.

Mid-February counts showed tens of millions of returns received and processed and tens of millions of refunds issued, but those broad totals mask state-level variation. For filers who already received a federal refund quickly, lingering state hold-ups can be especially frustrating. Tax secrecy rules limit what departments can disclose about individual accounts, so states emphasize general timelines and suggest electronic filing and patience when returns require extra review.

Recent updates indicate delays are concentrated in specific states and tied to staffing, late form deliveries and software updates; details may evolve as states finish processing and adjust operations for the season.