State Tax Refund Arrived But Federal (with EIC) Still Processing - Filed in January

This is... actually pretty normal this year. I'm in a similar boat. Filed on January 23rd and got my state refund about two weeks ago, but federal is still processing. From what I understand, returns with EIC are subject to additional review under the PATH Act, which can delay processing by several weeks. The IRS typically doesn't release these refunds until after mid-February, even if you filed in January. I wouldn't worry too much yet, but it might be another week or two before you see movement.

I was in exactly the same situation! Filed on January 22nd, got my state refund on February 3rd (exactly 12 days later), but my federal was nowhere to be found. I called the IRS exactly 17 times over 3 days and couldn't get through to anyone. Finally used Claimyr (https://claimyr.com) and got connected to an agent in 28 minutes. The agent confirmed my return was just caught in the EIC verification process and would be released soon. Sure enough, I got my deposit 6 days later. So relieved to finally get answers instead of that frustrating automated system!

This is a classic PATH Act delay scenario. The Protecting Americans from Tax Hikes Act mandates that the IRS cannot issue EITC or ACTC refunds before mid-February, regardless of when you filed. The processing queue prioritizes non-credit returns first, which explains why you're seeing this discrepancy between state and federal timelines. Your state DOR doesn't have the same statutory constraints, allowing them to process and issue refunds based solely on their workflow capacity.

Think of your tax returns like two different trains on separate tracks. Your state return is like a local train with fewer stops, while your federal return with EIC is like an express train that paradoxically has to go through mandatory inspection stations. I was confused by this too until I used taxr.ai to analyze my transcript. It's like having a train schedule interpreter - it showed me exactly where my return was in the process and explained that the EIC verification was normal. The site explained all those cryptic codes on my transcript that looked like hieroglyphics to me before!

Have you checked your tax transcript yet? That's the most reliable source of information. Here's what you need to do: 1. Go to IRS.gov and create an account if you don't have one 2. Request your 2023 Account Transcript 3. Look for code 846 (refund issued) with a date 4. If you see code 570 (additional account action pending), that's your holdup 5. Code 971 often follows and indicates a notice is being sent Why is this happening? Because the PATH Act requires additional verification for EITC claims, and the IRS is legally prevented from issuing these refunds before mid-February regardless of when you filed. Have you received any correspondence from the IRS requesting additional information?

Def normal for EIC returns. The IRS has special processing for these bc of the PATH Act. State and fed systems are completely separate, so ur state can process faster w/o these restrictions. IMO, you should see movement on ur fed return soon if u filed in Jan. The IRS didn't even start processing EIC returns until Feb 15th, no matter when they were accepted. Hang in there!

Be careful about identity verification requirements this year. Last year I filed early with EIC, got my state refund quickly, but then my federal went into limbo. Turns out they flagged me for ID verification but the letter took 3 weeks to arrive. By the time I got it and verified my identity, I'd already waited 2 months. If you don't see any movement by March 1st, check if you need to verify your identity through ID.me or by calling the dedicated verification line. Don't just wait indefinitely like I did.

I'm in the exact same situation! Filed January 20th with TurboTax, claimed EIC, got my state refund on February 2nd, and my federal is still processing. Have you checked your account transcript on the IRS website? Mine shows a 570 code which apparently means they're reviewing something. Did you have any investment income or unemployment this year? Those can trigger additional review.