The U.S. Treasury has announced a major change that will impact how millions of Americans receive their federal tax refunds. Beginning September 30, 2025, the Treasury will no longer issue paper checks for tax refunds. This move is part of a broader government initiative to modernize payment systems, improve efficiency, and reduce fraud by transitioning to electronic disbursements.
What’s Changing?
After September 30, 2025, if you are due a federal tax refund, you will receive it electronically. The main options include:
- Direct deposit to your bank or savings account – This is the fastest and most secure way to receive your refund.
- Deposit to a prepaid debit card account – If you don’t have a traditional bank account, you can use a prepaid debit card in your name that accepts direct deposits.
- Other digital payment options – The Treasury is exploring additional methods, such as digital wallets and real-time payment systems, to make refunds accessible to more taxpayers.
Are There Any Exceptions?
Yes, but they are limited. Paper checks may still be issued in the following situations:
- You do not have access to banking services or electronic payment systems.
- You are facing an emergency or undue hardship that makes electronic payment impossible.
- Certain national security and law enforcement activities require paper checks.
- Other exceptions as determined by the Treasury Secretary.
The Treasury will provide further guidance on how to qualify for these exceptions and what documentation may be required.
What Should You Do Now?
- Make sure your direct deposit information is current with the IRS.
- If you don’t have a bank account, consider opening one or obtaining a prepaid debit card that can accept direct deposits.
- Stay tuned for additional guidance if you believe you may qualify for an exception.
Bottom Line
The move to paperless refunds is designed to make the refund process faster, safer, and more reliable for most taxpayers. If you have questions or need help preparing for this transition, our office is here to assist you every step of the way.
