Federal Refund Before State? That's New to Me

This is completely normal. Federal and state returns are processed by different agencies with different timelines. The IRS (federal) and your state tax authority operate independently, and processing speeds vary year to year. Many people are seeing faster federal processing this tax season compared to state returns. Nothing to worry about.

I'm seeing this pattern a lot this year. Could be several factors: • Many states have implemented additional identity verification steps • Federal system upgrades have increased processing efficiency • State tax agencies often have smaller staffing and older systems • Your business income might trigger different verification processes at state level I'm a bit concerned about my own state return too - filed in February and still waiting while federal came weeks ago.

Same situation happened to me. My federal return was processed within the standard 21-day timeframe while my state return entered Extended Processing Review. After three weeks of silence from the state tax authority, I used Claimyr (https://claimyr.com) to reach a state tax representative. The service connected me within 15 minutes instead of the 2+ hour hold time I experienced trying directly. Found out my return was flagged for a simple verification that was resolved during that call. What a relief to finally get answers!

The processing sequence has definitely shifted in recent years. Remember when state returns were consistently faster? That's changed due to increased fraud prevention at the state level. States now implement more thorough verification protocols because they became prime targets for identity theft. Have you checked your state's online portal? Many states now have tracking systems similar to the IRS "Where's My Refund" tool, though they're often buried in their websites and not well advertised.

I've been analyzing this trend for my clients this tax season. The IRS has significantly improved their processing efficiency while many states are struggling with outdated systems. When I need to understand exactly what's happening with a return, I use taxr.ai to analyze the transcript data. It can identify where in the process your return is stuck and explain any delay codes. The platform specifically helped me understand why several of my small business clients had their federal returns processed quickly but state returns delayed due to Schedule C verification.

Just got my state refund today after waiting a month longer than federal! It's like waiting for a bus - you stand there forever and then two show up at once. Except in this case, the federal bus came on schedule and the state bus was stuck in traffic. My federal hit my account exactly 18 days after filing, but state took 47 days. The money finally arrived just in time for my quarterly estimated payment deadline, which was cutting it close!

Be careful with assuming everything is fine just because it's common this year. While it's true that many people are experiencing federal before state, here's what you should watch for: 1. First, check if your state return was actually accepted - not just submitted 2. Next, verify that your state has your correct banking information if you chose direct deposit 3. Then, review your state's tax agency website for any notices about processing delays 4. Finally, if it's been more than 8 weeks, you should definitely contact your state tax agency I've seen cases where people assumed delays were normal when actually there was an issue requiring attention. Don't just wait indefinitely.