Some American states will receive delayed tax refunds — is yours on the list?
With tax-filing season in full swing, Americans will be hoping to get some tax refunds to ease their financial burden for a while. For example, $3000 stimulus checks to low-middle-income families through the proposed billionaire tax are awaiting a green signal from the legislation. While most people will receive their refunds on time, the same cannot be said for some states. President Donald Trump signed his signature tax and spending bill in 2025, which features tax breaks for middle-class Americans. However, some states are either struggling to conform to those rules or are unwilling to.
"State tax conformity will be the biggest hurdle, as some states conform, some don’t conform, and some only partially conform,” said Richard Pon, a certified public accountant in San Francisco. In fact, as per a report in USA Today, the District of Columbia is currently in a battle with the federal government over implementing the new tax laws put forth by the Trump administration. The following is a list of states and cities that could see delayed refunds as a result of non-compliance and other issues.
Idaho
The administrator in the state's Division of Financial Management, Lori Wolff, claimed that tax refunds may be delayed by up to 6 weeks as budget cuts brought down the temporary tax-season workforce. This could cost taxpayers up to $7 million in increased refund‑interest payments. Idaho Gov. Brad Little did not sign the state bill to implement the new federal tax laws either.
New York
The issue here is technical in nature, as Intuit TurboTax faced a problem that was supposed to be fixed on February 4. Unfortunately, this led to a lack of filing and delayed tax returns, as per customer complaints.
Oregon
The state authority here has blamed the IRS for delayed refunds to taxpayers. It turns out that the returns filed won’t even be processed until at least the end of this month. The reason for this is that the IRS failed to provide the necessary tax forms and information for the state to program its computer systems on time. The state revenue department also said that a "small number of taxpayers" claimed an incorrect amount for the Oregon Kids Credit because of a form error.
South Carolina
The state’s revenue department announced on its website that tax processing was taking longer as it was not complying with the Trump administration’s new state laws. Taxpayers must adjust their state tax filings to add back income that may have been deducted at the federal level as a result.
Washington DC
The great American city falls under the District of Columbia, which is currently in a battle with the Trump administration over new state laws. The district had taken a vote last year and decided not to comply with the new tax laws. However, Congress voted to reverse that decision recently. "Electronic and paper versions of the 2025 district income tax forms will be delayed," the Office of Tax and Revenue said.
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