If you have always waited for a paper check to show up in the mail after filing your taxes, that habit is on its way out. The IRS is phasing out paper check refunds as part of a broader federal push toward electronic payments, and direct deposit is quickly becoming the only practical way to receive your money.

For most people, this is a minor adjustment. For a few, it is worth a quick decision before next filing season.

What changed

The IRS is moving away from mailed paper checks in favor of direct deposit, a shift tied to a federal executive order to modernize how the government sends and receives payments. Direct deposit is not limited to a traditional checking account, either. Refunds can go to a bank or credit union account, a payment app, a prepaid debit card, a digital wallet, or even an IRA.

Paper checks have not disappeared entirely. If a bank rejects a direct deposit and returns the funds, the IRS will still mail a check to the address on file. But that is now the exception, not the default, and filers should expect to provide account and routing information rather than count on a check showing up in the mail.

The account you use for your refund matters

Here is the part worth thinking about before you file next year: which account should actually receive that refund?

Our recommendation is to use a secondary bank account for your refund rather than your primary everyday account. The reasoning is simple. Once the IRS has direct deposit information on file, that account is linked to federal refund activity. Routing refunds into a secondary account keeps your primary account, the one you use for day-to-day spending and bill pay, a step removed from that connection.

This is not about avoiding taxes or hiding money. It is about basic account hygiene: keeping the account used for federal refund deposits separate from the one you rely on for everything else.

Oklahoma state refunds now give you three options

At the state level, Oklahoma taxpayers can choose between direct deposit, a state-issued debit card, or a mailed paper check. The debit card used to be the fallback for anyone who didn't choose direct deposit, but the state added the paper check option back after it became clear the debit card didn't work well for everyone.

Direct deposit is still the fastest and most efficient way to get a state refund, so it is worth selecting if convenience is your priority. But if you'd rather have a check or are not comfortable managing a state debit card, that option is available again, too.

What to do before you file next year

Take a few minutes before your next return to confirm which account you want listed for your refund. If you do not already have a secondary account, opening one now gives you time to have it ready well before filing season.

Reach out to our office if you want help thinking through account setup ahead of next year's return.