Tax refunds are the biggest pay day of the year for most Americans, but may be delayed if you live in certain states or in Washington, DC. The President Donald Trump's signature tax and spending bill introduced new tax breaks for middle class Americans in 2025, but some states are struggling to implement or exclude them. Software and tax forms must be updated to account for new provisions such as the extra senior deduction, no tax on tips and overtime, and new auto loan interest deduction. Meanwhile, the District of Columbia is embroiled in a dispute with the federal government over whether it will conform to the new federal tax laws. Taxpayers in four states, including Idaho, and New York, may see slower-than-usual tax refunds due to budget cuts. Oregon's Department of Revenue expects its first tax refunds to be issued until early April due to late tax forms and information provided by the IRS. South Carolina's warning indicates that tax processing is taking longer than usual due to not conforming to Trump's new federal laws. The National Taxpayers Union warns that nearly 90% of taxpayers would need to adjust their state tax filings to add back income that may have been deducted at the federal level.