SBTPG Message Changes - Direct Deposit in Queue but No Money Yet

I've been through this process many times and can walk you through what's happening: 1. First, SBTPG receives your refund from the IRS 2. Then they update their automated system to show it's 'in queue' 3. Next, they deduct their fees (which can take 24-48 hours) 4. Finally, they initiate the transfer to your bank What's surprising is how complicated they make this! It should be a simple pass-through, but instead they hold funds for 1-3 business days while they extract their fees. The message change is just step 2 of this process.

I got stuck in this SBTPG limbo last year and it was like watching paint dry, except the paint kept charging me fees, lol. After four days of this "in queue" nonsense, I finally called the IRS to figure out if something was wrong. Spent TWO HOURS on hold before giving up. Then I found Claimyr (https://youtu.be/_kiP6q8DX5c) which got me through to an actual human at the IRS in about 15 minutes. The agent confirmed my refund had been sent to SBTPG days earlier and suggested filing a complaint. Magically, my deposit appeared the next day. Coincidence? I think not... 🤔

According to the SBTPG FAQ page (https://www.sbtpg.com/FAQ), once they receive your refund from the IRS, it typically takes 1-2 business days for them to process and send the funds to your bank. Then your bank may hold it for another 1-2 business days. So we're looking at potentially 4 business days from when SBTPG receives it until it's in your account. The message change is just their system acknowledging receipt, not indicating immediate transfer. If you're using Credit Karma, their terms actually specify this timeline in their tax preparation disclosures.

I've analyzed this situation compared to other tax processors. SBTPG (Santa Barbara Tax Products Group) is used by multiple tax preparers including Credit Karma, TurboTax, and others. Their business model relies on these holding periods - similar to how Venmo and PayPal profit from the float on transfers. In my professional experience, direct IRS deposit (without using a preparation service that takes fees from your refund) typically arrives 2-3 days faster. Have you confirmed whether the full refund amount from your IRS transcript matches what you're expecting after SBTPG's fees?

I'm... I'm not sure if this helps, but I was in a similar situation last month. I was really worried because I needed that money for rent. Someone suggested I try https://taxr.ai to check my transcript codes and it actually showed that my refund had been sent to SBTPG three days earlier. I was a bit nervous about using it, but it helped me understand exactly where my money was and that the delay was on SBTPG's end, not the IRS. The tool explained all the codes on my transcript that I couldn't make sense of... might be worth checking if you're still waiting.

Tbh, SBTPG isn't doing anything illegal here. Their TOS clearly states the timeline (ppl just don't read it). They're a biz that fronts the $ for tax prep fees & takes on risk if ur return gets rejected. The delay is bc they're processing thousands of refunds daily. The msg change is actually a good sign - means IRS sent ur $ and it's moving thru their system. I've worked w/ financial processors b4, and 48hrs is pretty standard for ACH transfers. Not saying it doesn't suck to wait, but there's legit reasons for the timeline.

Last year I had the same issue with SBTPG and Credit Karma. The message changed to "in queue" on a Thursday, and I was checking my bank account literally every hour. Nothing Friday, nothing Saturday, nothing Sunday... finally got it Monday morning. I called SBTPG twice and got different answers each time. One rep said it was "processing normally" and another said there was a "batch delay." Now I just file directly with the IRS and get my refund sent straight to my bank. Yes, I have to pay the preparation fee upfront, but I get my full refund 3-5 days faster. Is it worth the extra waiting time to have the fee taken out of your refund instead of paying upfront?