February 26, 2026, 9:40 a.m. ET
Residents in Michigan who submitted their state tax returns early are reporting significant delays in their refunds.
The Michigan Department of Treasury has processed over 1.6 million state income tax returns, which is a more than 45% increase compared to last year, according to department officials.
Many early filers are frustrated with how long it’s taking to receive their tax refunds. There’s a Facebook group titled “Michigan Refund” that features numerous complaints. Tax preparers are encountering a common issue where their status checks show a “pending review” for 2025 state returns filed in early 2026.
Questions abound regarding the unusually long wait for these refunds.
Comments on Reddit reflect the same frustrations. One tax preparer mentioned that for three weeks, his status fluctuated between “final” and “under review.”
Individuals seek refunds to cover expenses
Angela Valetti, a 45-year-old from Holly, shared her experience of electronically filing her state income tax return on January 18, which was accepted by the state on January 27. The Michigan Department of Treasury had started accepting returns on January 26, aligning with the IRS timeline for federal returns.
Valetti has had no issues with her federal refund, but she is still awaiting a $1,145 refund from the state, which remains in “pending manual review.” She expressed her frustration, noting, “My return was sitting there for four weeks,” and added, “That just seems ridiculous.”
Previously, Valetti worked as a tax preparer but is currently focused on health challenges, limiting her work hours. She has also filed taxes for family and friends this year, but it appears her children’s refunds are also caught in the same delays.
While it might seem trivial to wait for more than $1,000, Valetti emphasized that this money could help cover essential bills.
“The real frustration is the lack of communication and transparency,” she said, expressing concerns that the state’s home heating credit seems to be facing delays as well.
Concerns grow over refund delays
Matt Heatherwick, from the Detroit nonprofit Accounting Assistance Association, mentioned that he’s heard reports of slower income tax refund processing this year, but he can’t confirm if this is a widespread issue.
He noted, “I know the state is upgrading their technology; there might be a correlation, but who knows?”
George Smith, a CPA from Bloomfield Hills, indicated that Michigan’s Income Tax Division experienced a month-long closure in November for system maintenance, but there wasn’t any public announcement. Many taxpayers learned of this in December when inquiring about their unreceived refunds.
Smith added that this maintenance contributed to the bottleneck in processing returns.
Response from the Michigan Department of Treasury
Officials from the Michigan Department of Treasury confirmed receiving over 1.6 million tax returns, marking a 45% rise compared to last year. Spokesperson Ron Reis acknowledged that some delays have arisen due to system changes initiated late last year.
He explained that the department is transitioning to a modern IT platform and noted that these changes are indeed causing processing delays. According to Reis, the department resumed processing as the system transition wrapped up.
He mentioned that they are aware of issues regarding “pending review” alerts that create confusion and are working to clarify the messaging. Returns with multiple refundable deductions might require additional time to process.
Rex, from the Treasury, stated that more complex returns could determine the variance in refund timelines and that tax errors could further slow down the process. He encouraged taxpayers to be thorough when preparing their returns.
Delays might also occur for those who mailed paper returns, opted against direct deposit, or have returns flagged for more scrutiny. Taxpayers can verify their status for refunds at the Michigan Treasury’s online site.
Rex concluded that while they aim to provide excellent service amidst the surge in tax returns, they also acknowledge the increased volume of inquiries can create slowdowns. As of February 25, the state had processed over 1.1 million returns, disbursing around $565 million in refunds. Most taxpayers typically receive their refunds within four to six weeks post-confirmation of their return.
Understanding the Earned Income Tax Credit delay
The state of Michigan currently enhances the Earned Income Tax Credit (EITC), which matches 30% of a taxpayer’s federal EITC. For 2025, the maximum deduction stands at $2,414. The IRS previously noted that those claiming EITC on their federal returns could see refunds as early as March 2, pending they filed online without any complications.
