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The End of Paper Checks for Social Security and Tax Refunds
As of September 30, 2025, paper checks for Social Security benefits and federal income tax refunds will no longer be issued for the vast majority of recipients. With the transition towards electronic payments, the U.S. government is stepping away from traditional paper payments, a move that is expected to enhance efficiency and reduce costs significantly.
Why the Change Matters
This shift is largely fueled by the information that issuing a paper check costs approximately 50 cents, while electronic transfers come in at a much lower cost of about 15 cents, according to the Treasury Department. Furthermore, paper checks have been rated 16 times more likely to be reported lost or stolen compared to electronic funds transfers, raising concerns over security and fraud.
For those nearing retirement, or anyone supporting elderly family members, this transition could mean the need to adapt to a new way of managing benefits and finances.
Who Will Be Affected?
While most Social Security recipients already receive their payments electronically, there remains a small group who still rely on paper checks. As of the recent data, approximately 0.1% of beneficiaries—or around 390,800 individuals—continue to get their payments via mail. This includes notably significant numbers from states like California, Texas, and Florida.
The Social Security Administration (SSA) is proactively contacting individuals who still receive paper checks, providing them with information about how to transition to direct deposit or to the Direct Express card, a prepaid debit card designed for those without bank accounts.
Implications for Tax Refunds
Equally significant is the IRS's decision to phase out paper checks for tax refunds beginning on the same date. Taxpayers who don’t have a bank account or are unsure how to securely receive their refunds may find themselves in a difficult position. The IRS has reminded taxpayers to consider opening a bank account, exploring prepaid debit cards or digital wallets for electronic refunds.
Many tax professionals emphasize the convenience and speed of direct deposit, which generally sees refunds issued within 21 days, compared to the longer wait times for mailed paper checks.
Next Steps for Citizens
For the elderly, low-income beneficiaries, and others uncertain about making this transition, it is crucial to take immediate action. The Social Security Administration has provided resources online, including steps on how to switch to electronic payments, ensure secure access to funds, or request exemptions if facing specific hardships such as mental incapacitation or living in remote areas.
For more information, beneficiaries can visit www.ssa.gov/deposit/ or contact the SSA at 800-772-1213 for assistance, especially for the Direct Express Card application.
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