The IRS will begin phasing out paper refund checks for individual taxpayers starting September 30, 2025, as part of a government-wide push to modernize payments. Most refunds will go direct deposit (with limited exceptions). IRS
What’s changing (and what isn’t)
- Refunds go digital: Direct deposit (or other approved electronic options) becomes the default for individual refunds issued after the phase-out date. IRS
- Most people already use direct deposit: In the 2025 filing season, the IRS says 93% of refunds went by direct deposit. IRS
- Exceptions exist: Prepaid debit options and limited hardship waivers will be available; the IRS will publish more details before the 2026 filing season (for 2025 returns). IRS+1
- Payments to the IRS: No immediate change to how you pay; more guidance expected in phases. IRS+1
What to do now
- Add banking info to your return or IRS Online Account to avoid delays (errors slow refunds). Taxpayer Advocate Service
- If unbanked, consider FDIC/NCUA low-cost accounts or prepaid options the IRS/Treasury will support. IRS
- Use official IRS payment tools (Direct Pay, EFTPS) and watch for phishing as scammers exploit the transition. Taxpayer Advocate Service
Need help? We’ll help you get set up for direct deposit, choose the right IRS payment method, and secure your info during the transition.
Sources: IRS News Release IR-2025-94; National Taxpayer Advocate blog; IRS tips on electronic payments. IRS+2Taxpayer Advocate Service+2