Tax refunds are significantly larger this year on average after a series of tax law changes pushed through in President Trump’s domestic policy bill last summer. But many filers may face delays getting their payments because of the government’s push to eliminate paper checks.
The average federal refund as of March 6 was about $3,700, an increase of about $350, or almost 11 percent, from the same time last year, the Internal Revenue Service said. The federal filing deadline is April 15.
Yet the agency is sending notices to taxpayers who didn’t include direct-deposit information on their tax returns. If they don’t provide an account, they may have to wait six weeks or longer for their refunds to be sent by check, the I.R.S. says. Millions of people got paper refund checks last year, I.R.S. statistics show.
As of early March, 830,000 such notices had been or were scheduled to be sent, according to a letter to the I.R.S. from Representatives Danny K. Davis of Illinois and Terri A. Sewell of Alabama, both Democrats. Refund delays represent an “undue hardship” for affected taxpayers, they wrote, many of whom may not have bank accounts or may have impairments that make it difficult to arrange electronic payments.
Why are paper refund checks being phased out?
The federal government is speeding up a shift to digital payments, arguing that they are faster, cheaper and more secure than checks sent by mail, which are increasingly vulnerable to fraud. Last March, Mr. Trump signed an executive order mandating that most federal payments, including tax refunds, be issued electronically starting October 2025. The I.R.S. said in a fact sheet published in January that it would establish “limited exceptions” to the phaseout of paper checks.
The change isn’t a problem for most taxpayers, more than 90 percent of whom provided direct deposit information on their tax returns last year, the I.R.S. says. Still, more than 9.5 million people got their refunds by paper check in 2025.
Lower-income filers in particular rely on tax refunds to help cover expenses and may struggle with delays, said Stephen Roll, research director at the Center for Social Development at Washington University in St. Louis. “It’s likely the single largest payment they receive all year,” he said.
Is there still a way to get a paper check if I get a notice?
Yes. Erin M. Collins, the national taxpayer advocate, who heads a group within the I.R.S. that works on behalf of taxpayers, said people who received the I.R.S. notice, which alerts them to a lack of direct-deposit information on their tax return, could consider several options to get their refund.
They can do nothing and wait for the I.R.S. to mail a check, which the agency says it will eventually do if filers don’t provide their bank account information. This could take six weeks or longer, according to the agency.
The fastest and most secure option, Ms. Collins said, is for filers to promptly create an online I.R.S. account, if they don’t have one already, and submit their bank account information there. The refund will typically arrive electronically in less than a week.
Those who can’t or don’t want to create an online account, lack a bank account or simply prefer a paper check can request one by calling the I.R.S. general help line (800-829-1040), she said. While the I.R.S. isn’t promoting this option, customer service representatives for the agency are aware of the situation, she said. (Navigating the I.R.S. phone system to ask for a paper check may take time. Be prepared to provide information like your Social Security number and tax return details.)
“Say, ‘May I please have a paper check,’” she suggested. This method is faster than doing nothing but will take twice as long as the online option, she warned.
Can I provide my bank account details to the I.R.S. over the phone?
For security reasons, you cannot give your bank account information over the phone or in person, the I.R.S. says. And take note: The I.R.S. will never call you on the phone and request your bank account details; it will contact you only by U.S. mail in this situation, using your last known address.
What if I don’t have a bank account?
Alternatives to traditional bank accounts, like prepaid debit cards, are acceptable ways to receive your refund, the I.R.S. says. You can also consider opening a low-cost bank account through the Federal Deposit Insurance Corporation’s Get Banked program, or at a credit union.
Many prepaid debit cards — such as those from Green Dot or PayPal — have account and routing numbers, just like traditional bank accounts, that you can provide to the I.R.S. to receive your refund electronically, said Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals. Some mobile apps do, too, the I.R.S. says. The agency recommends checking with the card company or app to confirm the numbers to use; in the case of a debit card, the account number may be different from the number shown on the card.
About 5.6 million households were “unbanked” in 2023, meaning they lacked a checking or savings account at a bank or credit union, the F.D.I.C. reported. Common reasons cited were a lack of money to meet minimum deposit requirements or a distrust of banks.
Why are refunds bigger this year?
Congress approved a basket of tax breaks — many of which are more likely to benefit affluent households — in a major tax-and-spending bill last summer. The changes include a higher standard deduction, a larger child tax credit, and new deductions for tips, overtime pay, seniors and certain auto loan interest, said Elizabeth Young, director of tax practice and ethics at the American Institute of Certified Public Accountants.
While the law took effect in mid-2025, the I.R.S. didn’t immediately adjust the tables employers used to calculate tax withholdings for worker paychecks, Ms. Young said. That meant many workers had too much money withheld from their paychecks, resulting in higher refunds when they file their tax returns this year.
Mr. O’Saben said a larger refund didn’t necessarily mean a bigger tax break. “It often just means taxpayers overpaid during the year and are getting that money back now,” he said.
What should I do with my refund?
It’s important to remember that a tax refund isn’t a gift, said Brittney Castro, a certified financial planner in Los Angeles. “It’s not free money,” she said. “It’s your money, coming back to you.”
That said, she recommends using a simple rule for lump-sum payments like tax refunds: “Two goals and a splurge.” Save one-third of the amount for unexpected expenses; use a third to pay down debt, like high-interest credit card debt; and spend a third to do something fun, like a trip.
About a third of Americans say they find it challenging to set aside funds for emergencies, according to a survey conducted by Bank of America late last year. Tax refunds “are a wonderful opportunity to build an emergency fund,” said Mary Hines Droesch, head of consumer and small business products and analytics at Bank of America.
Can I still use my tax refund to buy I bonds?
It used to be possible to submit a form with your tax return instructing the I.R.S. to use part or all of your refund to buy government I bonds, which are savings bonds that protect against inflation. But that option was eliminated last year. (You can still use the money you receive from a refund to buy savings bonds if you wish, but you must visit the Treasury Direct website to do so.)
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