The paper check tax refund is disappearing: Here's what to know

The IRS and federal government are phasing out paper check tax refunds, effective September 30, 2025, accelerating a transition to faster, more secure digital payments.¹

The shift isn’t just about keeping up with the times; it’s aimed at improving efficiency, reducing fraud, and minimizing the risk of lost or stolen checks. While a limited number of taxpayers may still qualify for a paper refund check, most Americans will now receive their tax refunds through direct deposit or prepaid debit cards.

So, what does this mean for you at tax time — and what should you do if you still prefer a paper check? Here’s what you need to know as the old system fades out and a new era of tax refunds begins.

How will you get your tax refund now?

With paper check tax refunds quickly becoming a thing of the past, most taxpayers will now receive their IRS or state refund through direct deposit.

Setting this up is straightforward: When you file your federal or state income tax return, you’ll simply provide your bank account and routing number.

The IRS recommends e-filing your tax return to speed up processing and reduce the chance of errors.² If you choose to file a paper return, be aware that it will likely take longer to process, and options for receiving a paper check are now extremely limited.

If you’re self-employed, filing with an ITIN instead of a Social Security number, or on an installment agreement, you can still use direct deposit — just make sure your account information is accurate and up-to-date. In some cases, additional verification may be needed, so keep an eye on your mail or IRS notifications if your refund seems delayed.

Tracking your refund

With paper check tax refunds largely phased out, there’s no need to watch the mailbox anymore. Now, you can keep tabs on your IRS or state refund online from start to finish.

The IRS’s “Where’s My Refund?” tool is your go-to resource.³ After you file your federal tax return, you can check your refund status using your Social Security number (or ITIN), filing status, and exact refund amount. Many state tax agencies offer similar online tracking tools.

If your refund is delayed, your prepaid debit card goes missing, or you need to update your bank details, reach out directly to the IRS or your state tax agency as soon as possible. Most issues can be resolved, but acting quickly will help get your refund moving again.

What if there’s a problem with your refund?

Even with digital payments, issues can pop up — delays, lost refunds, or funds sent to the wrong account.

If you’re waiting longer than expected, the first step is to check the status of your refund using the IRS’s “Where’s My Refund?” tool or your state tax website.

Here's a look at some common situations and what to do next:

For more complex issues, contacting the IRS directly — using the official phone numbers listed on IRS.gov — is the best course of action.

No matter what the tax year brings, staying proactive and responding quickly will help resolve most refund issues efficiently.

The future of tax refunds

As the IRS and state governments move away from paper check tax refunds, digital payments are quickly becoming the new normal for taxpayers across the country.

For most filers, this means faster, more secure refunds and less waiting around for the mail. The transition may take some adjustment — especially if you’re used to traditional paper checks — but understanding the new process can make tax season smoother.

If you have questions about your refund status or need help navigating the changes, consult the official IRS website or your trusted tax advisor. In a digital-first world, a little preparation goes a long way toward making sure your tax refund arrives quickly and safely year after year.

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Paying for your US taxes or receiving a tax refund can be tricky — the payment options are often slow and costly, and this doesn’t get better when you’re not in the country and/or manage different currencies.

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When you fill out your tax forms, use your Wise USD Account and routing numbers.

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This article has been written in collaboration with Katelynn Minott, the CEO and Managing CPA at Bright!Tax US Expat Tax Services. Katelynn is the CEO at Bright!Tax US Expat Tax Services, and has helped thousands of American expats become compliant with their US filing obligations over the last 10 years. She spent time as an expat herself, residing in both Chile and Brazil. She was recognized by CPA Practice Advisor's with a 40 under 40 award in 2021 and is a regular contributor to various media outlets including CNBC, Forbes, and Fast Company.

Sources

1. Whitehouse.gov - Modernizing Payments To and From America’s Bank Account
2. IRS - Electronic filing (e-file)
3. IRS - Where’s my refund?
4. Eligibility claim is subject to verification of customer’s identity
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