TurboTax Blocks New York State Tax Filings

Software glitch related to state's Inflation Refund checks causes temporary filing issues

Published on Feb. 4, 2026

Got story updates? Submit your updates here. ›

Some New Yorkers were unable to file their state tax returns through TurboTax after the tax preparation software temporarily stopped accepting New York state returns. The issue traces back to last year's state-issued Inflation Refund checks, which threw off TurboTax's tax calculations. TurboTax owner Intuit says the problem requires a software patch to correctly handle the refunds, and the company expects the fix to roll out by February 4.

Why it matters

The temporary TurboTax filing block impacts many New Yorkers who rely on the popular tax software to prepare and submit their state returns. Intuit is working to resolve the issue quickly, but the glitch highlights the challenges that can arise when government programs like tax rebates interact with commercial tax preparation platforms.

The details

According to WETM, some New York residents encountered issues when trying to file their state tax returns through TurboTax. The problem was caused by last year's state-issued Inflation Refund checks, which threw off TurboTax's tax calculations. As a result, TurboTax temporarily stopped accepting New York state returns until the issue could be addressed.

  • In 2025, the state of New York issued Inflation Refund checks to residents.
  • On February 4, 2026, Intuit expects to roll out a software patch to correctly handle the Inflation Refund checks and resume accepting New York state tax filings through TurboTax.

The players

Intuit

The company that owns TurboTax, the popular tax preparation software.

WETM

A local news station that reported on the TurboTax filing issues in New York.

Got photos? Submit your photos here. ›

What’s next

Intuit has stated that it expects to roll out the necessary software patch by February 4, 2026, which should allow New Yorkers to resume filing their state tax returns through TurboTax.

The takeaway

This incident highlights the importance of tax preparation software companies staying up-to-date with changes to government tax policies and programs, as well as the need for effective communication between software providers and taxpayers when technical issues arise that impact the filing process.