New Trump Tax Perks and Other Issues Are Slowing State Refunds in 5 Places — Here’s How To Prevent Delays
Written by
Vance Cariaga
Edited by
Rebekah Evans
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Taxpayers in some states and cities could face delays in their state or local income tax refunds — including those who live in Idaho, New York, Oregon, South Carolina and Washington, D.C., according to MSN.
As reported by USA Today, many of the delays are tied to problems conforming to tax provisions in the One Big Beautiful Bill Act (OBBBA), which President Donald Trump signed into law last summer.
That’s the case in South Carolina, where the state Department of Revenue issued a warning that return processing is “taking longer than usual because South Carolina currently does not conform” to the OBBBA.
Other delay reasons include budget cuts (per Idaho’s Division of Financial Management), Intuit TurboTax software issues and slowdowns in processing paper returns (per the state of Oregon).
If you are worried about delays, here are three things you can do to prevent them, based on a GOBankingRates analysis of various tax and government sources.
Check Common Problem Areas
Depending on where you live, you might run up against common problems that could delay your return.
In South Carolina, for example, you should ensure that your state tax return adds back items that are now deductible at the federal level, such as tips, overtime, auto loan interest and additional senior deductions. If you miss these items, you might have to file an amended return that could delay your refund.
In Oregon, be sure that items such as the Oregon Kids Credit are correct — especially if you claimed new federal deductions for overtime, tips or car loan interest along with state credits.
Track Your Refund Status Correctly
Similar to federal returns, you can check your state refund status through the state’s Department of Revenue’s “Where’s My Refund” tool, which you can usually find on the state tax or revenue website. Be prepared to provide your Social Security number, filing status and exact refund amount.
For New York taxpayers who used tax software, log in and confirm that your state return shows as “Filed/Accepted” — and not just “Started” or “Transmitted.” Some returns there have been delayed by software issues.
Change the Way You File Returns
E-filing is usually the quickest way to prevent a refund delay — and in some cases the difference is substantial.
In Oregon, for example, the first refunds for e-filed returns were expected to be issued in mid-February, according to the state’s Department of Revenue. But if you filed a paper return, refunds won’t start being issued until early April.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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