The IRS (https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers) is phasing out paper checks to enhance security, reduce fraud, speed up processing times, and lower administrative costs. Following a March 2025 executive order, the transition to electronic payments aims to eliminate the high risk of paper checks being lost or stolen.
Yes, the IRS is phasing out paper tax refund checks for individuals starting September 30, 2025, shifting to electronic payments (Direct Deposit, debit cards) to boost security, speed up refunds, and cut costs, as mandated by an Executive Order to modernize federal payments, though exceptions for vulnerable populations may exist. Taxpayers who still get paper checks need to set up direct deposit or another electronic method to receive refunds faster and avoid mail-related fraud.
IRS is moving away from sending paper refund checks for most taxpayers. The change will improve security, speed up refunds and lower costs.
With 84% of all U.S. households owning a computer,2 we're no longer fumbling to find an envelope and stamp. Paying online is faster and cheaper than writing a check. Businesses and utilities encourage online and automatic payments, which increase the availability and use of such options.
This policy shift includes phase out of paper tax refund checks beginning Sept. 30, 2025, to the extent permitted by law. The purposes of EO 14247 are to defend against financial fraud and improper payments, increase efficiency, reduce costs, and enhance the security of federal payments.
In 2025, Social Security saw a 2.5% Cost-of-Living Adjustment (COLA), increasing average benefits, alongside ongoing discussions about long-term solvency, with the trust fund still projected to deplete by 2033, potentially leading to benefit cuts, while new legislation, the Social Security Fairness Act, began adjusting payments for some affected by WEP/GPO. Key changes for 2025 included higher SSI rates, increased taxable maximums for Social Security, and continued pushes for better online services and electronic payments from the SSA.
WASHINGTON — The Internal Revenue Service, working with the U.S. Department of the Treasury, today announced that paper tax refund checks for individual taxpayers will be phased out beginning on Sept. 30, 2025, as required by Executive Order 14247, to the extent permitted by law.
New Continuous Clearing (2025–26)
Phase 1 (October 4, 2025 – January 2, 2026): Banks accept cheques from 10 a.m. to 4 p.m. on working days. Upon deposit, cheques are instantly scanned and sent to the clearing house. The drawee bank must confirm clearance or rejection by 7 p.m. the same day.
The IRS is required to cease issuing paper checks by September 30, 2025, and all payments to the federal government, including those from trusts and estates, must be processed electronically as soon as practicable. This change presents unique challenges for trusts and estates.
It's simply the government returning your money that you've been overpaying them—money you could have been using all year long to pay extra on your debt. Your goal should be to have a tax refund as close to zero as possible so you'll have more money in your paycheck. Don't wait until next year to get your money back.
Yes, you can assure your clients that the IRS will continue to accept payments by check. However, after 2027, the IRS is expected to require most payments to be made electronically, with limited exceptions.
Effective September 30, 2025, the IRS discontinued the issuance of paper checks for all tax-related refunds. All payments from the IRS will be made electronically via direct deposit, electronic funds transfer, prepaid debit cards, or other approved digital methods.
A new deduction for qualifying overtime pay is now available, effective in the 2025 tax year. You can deduct up to $12,500 if you're a single filer or up to $25,000 if you're married filing jointly. The deduction begins to phase out once your MAGI hits $150,000 for single filers or $300,000 for joint filers.
Did paper checks go away? In general, all federal agencies phased out sending and receiving paper checks after the September 30 deadline. This included: The Internal Revenue Service (IRS).
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
Here are the best low-risk investments in 2025:
High-yield savings accounts. Money market funds. Short-term certificates of deposit. Cash management accounts.
The extra $144 added to Social Security usually comes from the Medicare Part B Giveback benefit, offered by some Medicare Advantage (Part C) plans, which pays back some or all your Part B premium, showing up as extra money in your check if it's deducted from your Social Security. To qualify, you need Original Medicare (Parts A & B), pay your own Part B premium, live in a plan's service area, and enroll in a specific Medicare Advantage plan that offers this "rebate," with the amount varying by plan and location.