The Internal Revenue Service will stop mailing paper checks for federal tax refunds beginning with the 2026 filing season. The change applies to returns filed for tax year 2025, with the filing deadline set for April 15, 2026 for most taxpayers.
The change follows an executive order President Donald Trump signed in March 2025 directing federal agencies to stop issuing paper checks by September 30, 2025. The order cited cost reduction, fraud prevention, and faster payments as the reasons for the transition.
What The Numbers Show
The IRS issued refunds to more than 93 million individual filers in fiscal year 2024. In Ohio, 4.3 million taxpayers received about $13.4 billion in refunds, averaging about $3,100 per filer.
Nationwide, about 93% of filers already receive refunds through direct deposit. The IRS sent about 4.9 million paper checks in 2025. The Treasury Department’s Bureau of the Fiscal Service has said paper checks are more than 16 times more likely than electronic payments to be lost, stolen, delayed, or altered.
The IRS has said direct deposit refunds typically arrive within 21 days of filing, while paper checks can take six weeks or longer.
New Tax Law And Refund Size Estimates
The move away from paper checks comes as tax changes from the One Big Beautiful Bill Act enacted in 2025 take effect for the 2026 filing season. The legislation made the 2017 tax cuts permanent, increased the standard deduction, and created new deductions.
Carl Breedlove, principal tax research analyst with the Tax Institute at H&R Block, said the law includes a $6,000 deduction for seniors, deductions for tips and overtime pay, an auto loan interest deduction, and changes to the child tax credit.
Alex Muresianu, a senior policy analyst with the Tax Foundation, told the Dayton Daily News that refunds could increase by $300 to $1,000 for some taxpayers, depending on individual circumstances and income types. The White House and Republican leaders, including House Ways and Means Committee Chairman Jason Smith, have estimated an average increase of about $1,000 in refunds for families.
The IRS has not updated withholding tables to reflect the new deductions, which tax analysts said could affect the difference between withholding during the year and the final refund amount at filing.
Who Benefits From The Tax Changes
The Tax Policy Center estimated the tax changes would reduce 2025 income taxes by an average of $650 per family. The group estimated two thirds of families could see an average tax cut of $1,030, with larger dollar benefits concentrated among higher income households.
The Tax Policy Center also estimated that about 9% of households would pay less tax on overtime income, about 3% would benefit from the tipped income deduction, and about half of people age 65 and older would benefit from the new $6,000 senior deduction. For families in the bottom income quintile, the group estimated that 16% would receive a tax cut averaging about $220.
Options For Taxpayers Without Bank Accounts
The transition affects filers who do not use bank accounts. About 4.2% of Ohio households were unbanked in 2023, meaning they did not have checking or savings accounts at banks or credit unions, according to a Federal Deposit Insurance Corp. survey. Nationally, the FDIC reported an unbanked rate of about 4.5%.
The FDIC reported several reasons households avoid banks, including minimum balance requirements, lack of trust in financial institutions, and concerns about fees.
For the 2026 filing season, filers will generally need to provide electronic payment information unless they qualify for an exception, according to the Taxpayer Advocate Service. IRS spokesperson John Fuld said taxpayers without bank accounts can receive refunds electronically through prepaid debit cards or digital wallets.
Treasury also provides prepaid debit card options. Some credit unions and online banks offer low fee or no fee accounts designed for consumers who do not currently use traditional bank accounts.
Treasury’s Electronic Payment Solution Center may grant waivers in limited situations, including for taxpayers with certain impairments, those living in remote locations, or individuals over age 90.
What Happens If Direct Deposit Information Is Incorrect
If a filer provides incorrect account or routing numbers, an electronic payment can fail and be returned to the Treasury Department, which can delay delivery.
The IRS advises filers to verify direct deposit details before submitting returns. The IRS “Where’s My Refund?” tool on IRS.gov allows taxpayers to check refund status.
Broader Federal Payment Modernization
The IRS change is part of a broader federal shift away from paper checks. Other agencies, including the Social Security Administration, the Department of Veterans Affairs, and the Department of Labor, have also been moving toward electronic payments for benefits.
Executive Order 14247, titled Modernizing Payments To And From America’s Bank Account, set the September 30, 2025 deadline for agencies to complete the transition. The order identifies direct deposit, prepaid debit cards, and digital wallets as standard payment methods.
Filing Season Timeline
The 2026 tax filing season opened January 26, 2025. The deadline for most taxpayers to file 2025 returns is April 15, 2026. Taxpayers can request an extension to file by October 15, 2026, though any taxes owed are still due by April 15.