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Malia Ponder

Does state tax refund usually come before federal refund?

I just finished up my taxes about a week ago and I'm super confused about the refund timing. The IRS took only like 3 days to tell me my refund is coming on February 24th. But my state refund is still showing as pending in the system. I always thought state refunds were supposed to process faster than federal ones? But the IRS somehow approved mine in just 3 days which seems crazy fast. Anyone else experiencing this? Is it normal for federal to be this quick while state is dragging their feet? This is my first time filing in this state so I have no idea what's normal here.

This actually varies significantly depending on which state you're in. While the IRS has centralized processing systems, each state has its own tax department with different staffing levels, technology, and processing procedures. Some states are lightning fast with refunds (sometimes even faster than federal), while others are notoriously slow. What state are you in? That might help explain the timeline you're experiencing. Also, how did you file? Electronic filing generally speeds things up for both federal and state returns. The 3-day federal approval is impressively fast, but not unheard of if you filed electronically, had a straightforward return, and requested direct deposit.

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I'm in Michigan. And yeah, I e-filed through TurboTax and selected direct deposit for both.

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Michigan is generally middle-of-the-pack for processing speeds. They typically take 2-3 weeks for e-filed returns with direct deposit, sometimes longer during peak filing season. Your federal refund timeline is definitely on the faster end, but Michigan's processing time is pretty standard. If you filed last week, I wouldn't start worrying about your state refund until at least mid-March. Michigan also has additional identity verification steps they sometimes use that can add time. You can check your refund status on Michigan's Treasury website if you want to keep tabs on it.

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I had the exact same issue last year and discovered taxr.ai after getting frustrated with the waiting game. I was getting different answers from everyone about why my state refund (Colorado) was taking forever while my federal came through quickly. I uploaded my tax documents to https://taxr.ai and it analyzed my entire return and showed me exactly why my state refund was delayed - turns out I had a mismatch between my state withholding on my W-2 and what the state had on record. Their system flagged this specific issue that neither TurboTax nor the state website mentioned. It even gave me step-by-step instructions for resolving it - saved me weeks of waiting and confusion!

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How does this work exactly? Do you have to upload your entire tax return with all your personal info?

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Sounds interesting but I'm skeptical - how would they have access to what the state has on record? That seems like something only the state tax department would know.

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You only need to upload the relevant tax forms you're having questions about - for state refund delays, usually just your state return and W-2s. They use encrypted secure servers that meet all the financial industry standards. They don't have direct access to state records, but their AI can identify common patterns that typically cause delays based on analyzing thousands of returns. In my case, they spotted that my employer's state ID number format was incorrect, which is a known trigger for manual review in Colorado. They don't need state database access to know this - they've seen this pattern before.

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I'm actually coming back to say I tried taxr.ai after posting my skeptical comment. It was genuinely helpful! My Illinois refund was stuck for three weeks and their analysis found that my property tax credit calculation had an error that was likely causing the delay. They explained exactly what the issue was and how to file an amended return. Two days after I fixed it, my refund was approved! The detailed explanation they provided about how different states handle specific deductions was eye-opening.

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If you're really concerned about your state refund status, I'd recommend Claimyr. I was in a similar situation last year with my California refund and spent WEEKS trying to get through to someone on the phone. After 20+ attempts of waiting on hold for hours only to get disconnected, I found https://claimyr.com and watched their demo video at https://youtu.be/_kiP6q8DX5c. They actually got me connected to a real human at the state tax department in under 20 minutes! The agent I spoke with explained that my return had been flagged for a manual review due to a tax credit I claimed, but they unflagged it while I was on the phone. My refund was processed 3 days later after sitting in limbo for over a month.

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Wait, how does this even work? How can they get you through phone queues faster than if you called yourself?

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This sounds like total BS. No way some random service can magically get through government phone systems. They probably just keep you on hold themselves and then connect you when they eventually get through - something you could do yourself.

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They use an automated system that navigates phone trees and waits on hold for you. When they reach a human representative, they call you and connect you directly to that person. You don't have to stay on the phone during the wait time. I was skeptical too, but it's not about "magically" getting through - it's about technology that handles the waiting so you don't have to. It worked exactly as advertised for me. I was cooking dinner when I got the call that they had a tax agent on the line ready to speak with me.

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I'm eating humble pie right now. After posting that skeptical comment, I decided to try Claimyr myself since my Georgia refund has been "processing" for almost a month. I honestly expected it to be a waste of time, but they actually got me connected to a GA Department of Revenue agent in about 30 minutes. Turns out my return was put on hold because I had moved mid-year and my address history triggered some automated flag. The agent removed the hold while I was on the phone with them. My refund was approved yesterday - would have been sitting there for who knows how long if I hadn't called. I'm genuinely surprised this service delivered exactly what it promised.

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Nobody's mentioned this, but return complexity makes a HUGE difference too. My federal return is super simple (one W-2, standard deduction) and always processes within a week. My state return has rental property income, business deductions, and a bunch of credits - takes 4-6 weeks every year without fail. If your federal return is straightforward but your state return has more complexity, that could explain the timing difference. Also, did you file both returns at exactly the same time? Sometimes when using tax software, the federal gets transmitted immediately but the state might take an extra day.

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Thanks for this perspective! Both my returns were filed simultaneously and are pretty simple (just one W-2 and standard deduction for both), so complexity doesn't seem to be the issue. Maybe Michigan is just slower than I expected. I think I'm just being impatient because seeing how fast the federal processed got my hopes up. I'll chill and wait a few more weeks before panicking!

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That's the right approach. Michigan does tend to be slower than some other states, especially at the beginning of tax season when they're ramping up. One other thing to keep in mind is that states sometimes batch process returns on specific schedules rather than processing them as they arrive. So the IRS might handle returns continuously throughout the day, while your state might only run their processing jobs a few times per week. That would make it seem like federal is much faster when it's really just a different workflow.

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I find it fascinating how everyone has such different experiences with this! In Oregon, my state refund has consistently come BEFORE my federal for the past 3 years. Last year I got my state refund in 6 days and federal took almost 3 weeks. But my friend in Illinois waited 2 months for her state refund while her federal came in 10 days. I think it really varies by: 1) Which state you're in 2) How you filed (electronic vs paper) 3) The complexity of your return 4) Time of filing season (early filers vs deadline rushers) 5) Whether any special credits/deductions triggered extra review

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Utah is lightning fast too! I got my state refund in 4 days this year while federal took 2 weeks. I think states with smaller populations process faster since they have fewer returns to handle.

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That's a great observation about population size potentially affecting processing speed. Oregon isn't tiny but definitely handles fewer returns than places like California or New York. The other factor I've noticed is that some states seem to have invested more in their processing technology than others. My Oregon refund status tracker is super detailed and updates frequently, while my parents in Pennsylvania get very limited information from their state system.

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Michigan typically takes 2-4 weeks for e-filed returns, so you're still well within the normal timeframe! I've been filing in Michigan for about 5 years now and have noticed they tend to be more conservative with their processing compared to the IRS. One thing that might help ease your mind - you can check your Michigan refund status on the Treasury website using your SSN and expected refund amount. They usually update it every few days once it's in their system. Also, early February is still peak filing season, so they're probably dealing with a higher volume than usual. Your 3-day federal approval is actually pretty exceptional - the IRS has really improved their e-file processing in recent years. Don't let that fast turnaround set unrealistic expectations for your state refund! If you don't see any movement by early March, then it might be worth looking into potential issues, but for now you're just experiencing typical Michigan processing times.

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This is super helpful, thank you! I just checked the Michigan Treasury website and my refund is showing as "received" but still processing. At least I know it's in their system now. I think you're right that the 3-day federal approval set my expectations way too high. I was expecting everything to be that fast! It's good to know that 2-4 weeks is normal for Michigan. I'll mark my calendar for early March and try to be more patient. Thanks for the reality check!

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I'm dealing with something similar right now! Filed my taxes two weeks ago and got my federal refund approved in 5 days, but my state (Minnesota) is still showing "processing" with no estimated date. What I've learned from talking to friends is that it really depends on your state's infrastructure and staffing. Some states like Delaware and Wyoming are known for super fast processing (sometimes under a week), while others like California and New York can take 6-8 weeks during busy season. The IRS has really streamlined their electronic processing system over the past few years, which is why you're seeing those crazy fast federal approvals. But each state is basically running its own separate operation with different levels of technology and resources. I'd say don't worry unless you hit the 4-6 week mark without any updates. Most states publish their expected processing times on their tax department websites if you want to check what's typical for Michigan specifically.

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Thanks for sharing your Minnesota experience! It's reassuring to know I'm not the only one dealing with this timing difference. I just looked up Michigan's processing times on their Treasury website and they do say 2-4 weeks for e-filed returns, so I guess I need to adjust my expectations. It's interesting how much variation there is between states - I had no idea some states like Delaware could process refunds in under a week! Makes me wonder what they're doing differently technology-wise. The federal system really has gotten impressively fast though. I remember a few years ago waiting weeks for federal refunds too. I'll definitely give it until the 4-6 week mark before getting concerned. Good luck with your Minnesota refund!

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