Michigan’s Tax System Switch Causes Refund Delays

Michigan changed its old tax system this spring, and that switch slowed refunds. The state now says it has finished processing 95 % of the 2025 returns, but many taxpayers still wait longer than usual. The new system was meant to be safer and more accurate, but the transition added extra steps for complicated returns or those missing information. Tax filing started on January 26, with the deadline of April 15. Normally, an electronically filed return would get a refund by late May; paper returns take a bit longer. If a refund takes more than 45 days, the state must pay interest to the taxpayer.Officials explained that updating a 40‑year‑old process is like moving from a landline to a smartphone. They focused on keeping data secure and avoiding mistakes, which slowed things down. Tax professionals helped test the new system and gave feedback about problems with retirement documents. Their input was key to fixing bugs before the public launch. One glitch is the automated phone line that sometimes gives wrong refund status. That will be fixed in July, and a new system will let callers request callbacks instead of waiting on hold. The state thanked both taxpayers and tax experts for staying patient while the new system settled in.