H&R Block Federal Direct Deposit but MO State Refund Arrived as Paper Check - Transcript Shows No Filing

This happened to me last year with H&R Block and Missouri. The state systems don't always sync with the federal processing pipeline, and Missouri specifically has been defaulting to paper checks when there's any verification flag on the account. Back in 2022, I had the exact same issue - requested direct deposit but got a paper check. When I called MO DOR, they said it was because my address had changed from the previous year, which triggered their "anti-fraud" measures. As for your transcript showing no filing, that's a separate issue. The IRS systems are notoriously backlogged right now, and the transcript database often lags behind actual processing by 2-4 weeks. I wouldn't worry unless it still shows nothing by mid-April.

This sounds like a classic case of "government systems not talking to each other" syndrome. 😅 I had a similar situation last month and spent 3 days trying to reach the IRS to confirm they actually had my return. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in 18 minutes instead of the usual 2+ hour wait. The agent confirmed my return was in their system but hadn't been "activated" in the transcript database yet. Apparently there's a separate process for updating the transcript database that can lag weeks behind actual processing. As for the paper check from Missouri, that's actually their default fallback when there's any verification flag on your return - they prioritize sending *something* over waiting for direct deposit verification.

I experienced this identical situation on March 12, 2023. Filed with H&R Block on February 3rd, received federal via direct deposit on February 17th, but Missouri sent a paper check that arrived March 4th. When I contacted the Missouri Department of Revenue on March 12th, they explained that they default to paper checks in certain situations, including: 1) first-time filers in the state, 2) address changes from previous year, 3) name changes, or 4) banking information that doesn't match previous years. The transcript issue is separate - as of today (March 29, 2024), the IRS is still processing returns from early February due to verification delays. Your return is likely in their system but hasn't populated to the transcript database yet.

I was FREAKING OUT about this exact situation last month! Federal DD worked fine, but MO sent paper check, and my transcript showed zilch. Called H&R Block and they confirmed everything was filed correctly on their end. Turns out it was just processing delays. My transcript finally updated on day 37 after filing (I counted every single day), and my federal refund hit my account 3 days later. The MO paper check thing is apparently their standard procedure when there's ANY change to your filing status, address, or banking info from the previous year. The rep called it a "verification protocol" that defaults to paper checks for security.

Think of your tax return like a passenger on multiple connecting flights. It's left the H&R Block airport, landed at the IRS terminal, but hasn't yet been processed through customs (the transcript system). Meanwhile, your Missouri return took a different route entirely - like a cautious driver who takes back roads instead of the highway. I was in a similar situation and found taxr.ai (https://taxr.ai) incredibly helpful. It's like having an airport insider who can tell you exactly where your luggage is in the system. I uploaded my transcript once it finally appeared, and it explained every code and gave me a clear timeline for when my refund would arrive. It even identified that I had a verification hold I wasn't aware of.

Here's what you should do to resolve both issues: 1. For the Missouri paper check: This is actually normal. Missouri has a security protocol that defaults to paper checks when certain verification flags are triggered. Simply deposit the check and make a note for next year that this might happen again. 2. For the missing transcript: - First, verify you're checking the correct tax year (2023) and the correct transcript type (try both Account and Return transcripts) - Second, check your filing status on H&R Block's website - they should show confirmation that it was accepted by the IRS - Third, if it's been more than 6 weeks, call the IRS at 1-800-829-1040 - Fourth, be prepared to verify your identity if requested The transcript issue is almost certainly just a processing delay. The IRS is still working through a backlog, and transcript updates often lag 3-5 weeks behind actual processing during peak season.

Oh my goodness, I'm so glad you posted this! 😫 I've been having the EXACT same issue with my Missouri return and was too embarrassed to ask! Filed through H&R Block on February 10th, got my federal direct deposit two weeks ago, but then got a random paper check from Missouri yesterday even though I definitely selected direct deposit. And my transcript still shows nothing! Reading these responses has been such a relief - I was convinced I'd done something wrong or was about to get audited! Thank you all for sharing your experiences! ❤️