There are going to be many updates and changes for the 2026 tax season. There has been talk about eliminating paper checks, and it wasn’t a joke. The change began when the IRS announced that paper checks will “phase out beginning Sept. 30, 2025,” and now, most refund payments will be made electronically.
The goal of the measure is to increase speed and security for all federal agencies, including the IRS. The people impacted by these changes will mostly be the 7% of taxpayers who still received their refund by mail.
Why paper tax refund checks are ending
In 2026, paper checks for tax refunds will no longer be sent because of an executive order signed by President Donald Trump (the One Big Beautiful Bill). Paper checks “impose unnecessary costs, delays, and risks of fraud, lost payments, theft, and inefficiencies,” the order says.
“Paper tax refund checks for individual taxpayers will be phased out beginning on Sept. 30, 2025,” the IRS announced in September. “This marks the first step of the broader transition to electronic payments,” they continued.
Since physical checks are more than 16 times more likely to be lost, stolen, altered, or delayed than electronic payments, the main goals are to avoid all of this, protect taxpayers, and expedite payments.
If they file online, many people receive their money through direct deposit in less than 21 days; by mail, it may take up to six weeks. Direct deposit also eliminates the risk of undeliverable refund checks.
Digital refunds and new tax benefits
Since the executive order is applicable to all federal departments and agencies, the IRS enters this category and the refund payment process is standardized. This aims to minimize losses and fraud while cutting expenses and delays.
For the majority of people, the process for filing stays the same; the refund is delivered via secure digital methods or direct deposit.
How can you get your refund faster? Enter your account and bank routing numbers if you use tax software so the IRS can deposit your refund directly. If you use a tax preparer, make sure they include your bank information and let them know you want direct deposit.
With very few exceptions, people without bank accounts will be able to use prepaid debit cards and digital wallets. When filing the 2026 return, the IRS advises signing up for direct deposit by providing routing and account numbers. You can set up direct deposit even if you file on paper.
If you don’t already have an account, you can open one at a bank or credit union; the IRS points out that the FDIC website and the Credit Union Locator Tool are useful tools in this case.
Furthermore, more changes are happening in 2026:
- Deductions for charitable contributions up to $1,000 for individuals and $2,000 for joint returns are available to those who take the standard deduction (previously, this benefit was mainly for higher-income taxpayers).
- Increased 401(k) contributions: $24,500 for those under 50 (up from $23,500 in 2025); $32,500 for those 50–59 or 64 and older.
Less paper and faster refunds in 2026
Prepaid cards, digital wallets, or direct deposit will be required for the 7% of people who still receive checks by mail. In exchange, the risks (theft, loss, delays) are reduced and the process speeds up (less than 21 days with e-file + direct deposit).
The 2026 season will be easier if you prepare now and start setting up a digital wallet, having routing and account numbers ready, or opening an account if necessary.
Although it is true that we are living in a technological era, many people—especially older adults—still struggle with the online world. Therefore, if you need help throughout the process, you can contact the IRS office directly by phone for more information.
