How do I receive my tax refund with PayPal?
You asked "where does it go?" I can't speak for PayPal, but many financial institutions only credit deposits on business days. So, if (for example) your deposit arrives after the close of business on a Friday and the following Monday is a Federal holiday, it will not be credited until Tuesday. Since many FI's only update during the overnight hours, that Tuesday overnight credit will not appear in your account until Wednesday. Thus, the "up to 5 days."
Think of it this way: your mail arrives at local Post Office, but has not yet been delivered to your mailbox.
