Treasury Department officials last month warned taxpayers of possible delays in issuing refunds this year, in part because the tax agency is still processing millions of tax returns from last year. Still, taxpayers are wondering what to expect from the state refunds.
Will they also be paid with delays? Not really. You may even see your state payments first before the federal refund.
While the federal tax system grapples with an overload of raw returns, the IRS reported on Feb. 11 that it has issued 4.3 million refunds worth $9.5 billion so far.
But many taxpayers who even filed their taxes on January 24, when the season began, are still waiting. Claiming the Earned Income Tax Credit or the Child Tax Credit will delay filing due to regulations designed to deter fraud, but that means people who claim those credits and file their returns early may not receive their refund until early March, the IRS said.
And other problems can delay your refund, like math errors or misreporting Child Tax Credit amounts. In those cases, the tax return will be manually reviewed by IRS staff, causing delays of weeks or even months.
The IRS said Monday that tax returns with errors related to the third stimulus check, missing information, or suspected fraud or theft could take 90 to 120 days to resolve.
In contrast, some taxpayers report receiving their state refunds even just over a week after filing their taxes.
HOW DO I CHECK THE STATUS OF MY STATE REFUND?
A taxpayer who files the federal tax return can check the status of his refund through the tool in Spanish Where is my refund? from the IRS; however, each state has its own process for handling state income taxes.
The IRS generally takes 21 days to process an electronic return, but states can take 30 days or more. Each entity has an online system that allows the taxpayer to check the status of their refund.
The taxpayer must take into account that each state uses a different system than the federal one and that of other entities to inform taxpayers about their return. However, in general, there are two main pieces of information you will need to verify your refund.
The first is the Social Security (SSN) or Individual Taxpayer Identification Number (ITIN). If you file a joint return, you must record the identification number that appears first on the return.
Almost all states will also require you to provide the exact amount of the refund. Some states will require the taxpayer to round the figure to the nearest amount, but some states, such as Vermont, require the exact amount.
Other states may also require date of birth, filing year, filing status, and even zip code.
Here you will find a list of states arranged in alphabetical order with the link to the interface to check the status of the refund.
Please note that Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming have no state income tax. Also, New Hampshire and Tennessee do not tax regular wages and income, but do tax some dividend and investment income.
Tennessee
Tennessee residents do not pay income tax on their income and wages. The tax only applies to interest and dividend income, and only if it exceeds $1,250 ($2,500 for joint filers). A refund for this income tax is unlikely.
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