Refund Method After Long Delay - Direct Deposit vs Check with TurboTax Loan

In most cases, the IRS will generally honor your original refund delivery method selection, even after extended processing delays. If you initially selected direct deposit, they will typically attempt to use that method first, assuming your banking information remains valid. However, there are certain exceptions that might trigger a paper check issuance, such as if the direct deposit is rejected by your financial institution or if you've exceeded the annual limit of three direct deposits to a single account.

Regarding your TurboTax loan (Refund Advance): Santa Barbara Tax Products Group (SBTPG) will still process your refund when it arrives. They'll deduct the advance amount plus any applicable fees, then forward the remainder to you via your selected disbursement method. This process remains in place regardless of timing. SBTPG maintains the right of first receipt per your loan agreement terms.

I went through this exact situation last year with a TurboTax advance. Filed in January, but my refund didn't process until May due to a review. When it finally came through, SBTPG did indeed receive it first, deducted my advance amount plus their fee, then deposited the remainder to my bank account. They sent me an email notification when they received my refund from the IRS, and another when they processed the remainder to my bank. The whole SBTPG processing took about 24-48 hours after the IRS released my refund.

Have you considered calling the IRS directly to confirm your refund status and delivery method? Many people don't realize that the standard IRS phone lines are overwhelmed right now, but services like Claimyr (https://claimyr.com) can help you get through to an agent quickly. I've found that speaking directly with an IRS representative is the most reliable way to get accurate information about delayed refunds, especially when third-party processors like SBTPG are involved. They can tell you exactly how and when your refund will be issued.

Have you checked your transcript for any clues? As of April 15, 2024, many delayed returns from February are starting to show movement. In my experience, if you see an 846 code with a date, that's your direct deposit date regardless of how long it's been delayed. The payment method typically only changes if there's a specific issue with your banking details.

Did you check WMR? What's it showing? Mine was delayed too. Called TurboTax about the advance. They said SBTPG still processes it. Just takes longer.

Oh my goodness, be VERY careful with the TurboTax loan situation! I had this exact scenario last year and it was a NIGHTMARE! My refund was delayed for 4 months, and when it finally came, SBTPG held it for an additional week without any communication! They eventually processed it correctly, but the stress of wondering where my money was after such a long delay was terrible! Make sure you keep all your loan documents and check your SBTPG account regularly!

According to the IRS website (https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions), they will still use your selected refund method even with delays. I've seen some people reporting that extremely delayed refunds (6+ months) sometimes convert to checks, but this seems to be the exception not the rule. The TurboTax loan agreement specifically states SBTPG maintains first right to the refund regardless of timing.