New York City

Fuming New Yorkers Say Tax Refunds Are Stalled As State Swears Money Is Moving

AI Assisted Icon
Published on April 03, 2026
Fuming New Yorkers Say Tax Refunds Are Stalled As State Swears Money Is MovingSource: Unsplash/ Markus Winkler

New Yorkers who rushed to file their taxes early have been venting online about frozen status bars and missing deposit dates. State officials, however, insist the money is moving and say the system is busier, not broken, as some returns get pulled aside for extra scrutiny.

What the Tax Department Says

The Department of Taxation and Finance told reporters it has already issued about $3.6 billion in refunds to roughly 3.4 million filers and has received more than 6.2 million returns so far. The agency expects roughly five million more filers in the next two weeks, according to News10.

State officials told the outlet there is no systemic backlog and that many of the delays people are griping about come from returns that trigger extra review. The department says it is working “at maximum capacity” and insists it is issuing refunds faster than it did last year, even if that does not match what frustrated filers are seeing in their apps and bank accounts.

Why Some Returns Take Longer

Some filings are routed for manual checks, for example when information does not match state records, when there is a math error, or when refundable credits need additional verification. Those added checks can slow down a refund.

To cut down on delays tied to the mail and paper processing, the Tax Department recommends filing electronically and using direct deposit for faster updates, according to tax.ny.gov. If a return is under review, officials say the online status tools will update once a refund issue date is assigned, which means hitting refresh every hour will not speed things up but will eventually show movement.

Watch for AI-Powered Scams

With Tax Day closing in, Attorney General Letitia James is warning New Yorkers that scammers are getting more creative, not more subtle. Her office says residents should be on alert for slick AI-generated videos, cloned voices and highly convincing phishing messages that pretend to come from tax officials.

The consumer alert from her office advises New Yorkers to verify any unexpected tax-related communication, check the credentials of tax preparers and report suspicious outreach to authorities, according to the Attorney General's office. Officials add that anyone asking for tax payments via gift cards, cryptocurrency or other unconventional methods is almost certainly running a scam.

What To Do If You Are Still Waiting

The calendar is not flexible, even if your refund is. Mailed returns must be postmarked by April 15 to avoid penalties, and an extension to file does not extend the deadline to pay what you owe.

Taxpayers who cannot pay in full can request an installment payment agreement online if the balance is $20,000 or less and can be paid within 36 months. The state offers a streamlined IPA through its Online Services portal, per tax.ny.gov.

The department also noted that some commercial tax-prep vendors had a brief external issue early in the season that has since been fixed, a hiccup that added to the confusion for some filers, according to News10.

If you are unsure about your status, you can use the state's online refund tools or automated phone lines and avoid answering unsolicited messages that ask for bank information or other sensitive data. The department is asking for patience from anyone whose return has been flagged for review and says taxpayers can call for help if their online tracker shows no information for an extended stretch.