Your Tax Refund Might Take Longer Than Usual. Here's Why.

Some states have already warned that residents may have to wait a little bit longer for their tax refunds this year. What gives?

It all has to do with the new tax provisions that went into effect with the One Big Beautiful Bill. Among these were the increased SALT deduction cap, a higher standard deduction, a special senior citizen deduction, and no tax on tips or overtime (with a cap, of course). While the IRS seems to have the federal tax changes under control, states are having a harder time adjusting to the changes, leading to longer refund processing times.

"State tax conformity will be the biggest hurdles as some states conform, some don’t conform and some only partially conform," CPA Richard Pon told USA Today.

Tax Refunds In These States May Be Delayed

Residents in four states have already experienced delays with their state tax returns: Idaho, New York, Oregon, and South Carolina.

Budget cuts in Idaho led to fewer workers processing tax filings, leading to delays as long as six weeks. The state's governor, Brad Little, also did not officially conform to the new provisions until Feb. 11 — after 158,000 residents had already filed.

In Oregon, the delays are a result of a chain reaction. The IRS was delayed giving the state updated tax forms, leading to a delay in processing, ultimately leading to delayed refunds. Oregonians shouldn't expect their refund until April at the earliest.

South Carolina returns may take longer because they are not going along with the new tax laws. So tips or overtime, for example, that were deducted on federal returns need to be added back in for the state return. The state is expecting many residents to miss this and have to file an amended return, further delaying their refund.

Meanwhile, Washington, D.C. is in an intense legal battle over whether or not they must conform to the new tax laws.