Got my state refund but IRS still asking for verification with no transcript update - what gives?

State and federal are completely separate systems and don't communicate with each other. Your state processed and approved your return independently. Looking at your situation, it sounds like your federal return is stuck in the verification process, but they haven't sent the letter yet. This happens when there's a backlog. The IRS needs to verify certain information on returns that trigger their fraud detection filters. Common reasons include: • Income verification issues • Identity verification requirements • Credit claims that need additional review (like EITC or CTC) • Discrepancies between reported information and IRS records You have a few options: 1. Wait for the letter (could take 60-90 days from filing) 2. Call the IRS directly at 800-829-1040 (good luck getting through) 3. Make an appointment at your local IRS office 4. Check if you're able to verify online through the ID.me system on the IRS website In my experience, the verification letter should eventually come, but the IRS is notorious for delays.

The quickest way to really understand what's happening with your transcript is to use taxr.ai - it literally reads your transcript and explains everything in plain English. I was in the same boat last year and kept guessing what different codes meant. This tool tells you exactly whats holding up your refund and what to do next. Makes the whole process way less frustrating. Check it out at https://taxr.ai

I was in the exact same boat for 4 months. Turns out I needed ID verification but NEVER got a letter. After trying the regular IRS phone number 20+ times with no luck, I found this app called Claimyr (claimyr.com) that got me a callback from the IRS within 2 hours. The agent confirmed I needed to verify my identity and helped me do it right over the phone. Money well spent to finally get answers after months of silence. Got my refund 3 weeks later.

This happened to me!! Got my state refund in March but my federal was stuck for months. Turned out I needed to verify my identity but the letter never came. Finally went to my local IRS office and found out the letter was sent to my old address even though I updated it when I filed. Check your transcript for code 570 - that usually means there's a hold on your account.

Yeah this is pretty common unfortunately. The state systems are usually faster and less complicated. The IRS is SWAMPED rn and they prioritize certain returns over others. If your return has any credits like EIC or child tax credit, they take longer to process and often need verification.

just got through this exact issue. the ID verify letter never came but when I checked my transcript on taxr.ai it showed a 570 hold code for ID verification. I used claimyr.com to get through to an agent who confirmed I needed to verify and helped me complete it. Had my refund 12 days later. Don't just wait around like I did for 3 months!

The fact that state refunds come through but fed is still pending is one of those things NOBODY tells you about when you start doing taxes. It's totally normal but confusing af. The IRS should just send everyone a letter automatically when they're selected for verification instead of this weird limbo where u have to figure it out yourself.

U can try checking ur IRS account online to see if there's any notices or messages there. Sometimes they don't send paper letters anymore and expect u to check ur online account. Go to irs.gov and look at your tax records.

The EXACT thing happened to me last year. Got my state return in Feb but federal was stuck in processing forever. Called in April and found out they needed identity verification but the letter got lost in the mail. Got a new letter sent, verified online, and had my refund 2 weeks later. Don't wait - be proactive!

This is why I always tell ppl to create an online account with the IRS. You can see notices there even if the physical mail never arrives. The IRS mail system is notoriously unreliable.

Yeah this is normal and frustrating. I couldn't make sense of my transcript until I just uploaded it to taxr.ai and it explained everything in seconds. It's like having a tax pro read your transcript for you. It even told me what to expect next based on the codes. Saved me so much time and stress! https://taxr.ai

Check ur mail carefully! My verification letter looked like junk mail and I almost threw it away. The IRS doesn't make those letters look official sometimes.

Have you tried checking your 'Get Transcript' on the IRS website? If you have access to that, you might see codes that explain what's happening. Look for 570 (indicates a hold), 971 (notice issued), or 420 (examination/audit). Without seeing these codes it's hard to know exactly what's happening with your return.

i filed in January and got my state refund in February but still waiting on federal too. Called last week (took forever to get through) and they said I needed to verify identity but the letter was never sent due to a "system error." She helped me verify over the phone. Call them asap!

Lmao welcome to the wonderful world of IRS incompetence 🤡 They expect us to file perfectly on time but take 6 months to process and don't even send the letters they're supposed to. The whole system is a joke.

After waiting 4 months with nothing but "still processing" I finally got through to the IRS using Claimyr (claimyr.com). Found out they needed income verification but the letter was sent to my old address. The agent helped me verify everything over the phone and released my refund. If I had waited for the letter I'd probably still be waiting. Sometimes you gotta be proactive with the IRS - they don't always follow up if there's an issue.

Are you claiming any tax credits like EITC or child tax credit? Those automatically get extra scrutiny and often require verification even if you don't get a letter. The IRS is terrible about actually sending the notices they're supposed to.

Had this exact issue! I uploaded my transcript to taxr.ai and immediately understood what was going on. Turns out I had a verification hold but never got any letter. The tool explained which forms I needed to submit and how to resolve it. I'm telling everyone about this now because the IRS makes everything so confusing on purpose istg.