The era of the paper check is basically over. If you're waiting by the mailbox for a federal refund or a benefit check this year, you might be waiting a long time.
Honestly, the shift has been coming for a while, but 2025 is the year the hammer finally dropped. On March 25, 2025, Executive Order 14247, titled Modernizing Payments To and From America’s Bank Account, set a hard deadline. As of September 30, 2025, the Treasury has officially been ordered to stop "to the extent permitted by law" issuing those familiar multicolored paper checks for most federal payments.
This isn't just a suggestion anymore. It's a mandate.
Who Actually Qualifies for Direct Deposit in 2025?
Eligibility isn't really about "if" you can get it—it’s about the fact that the government now expects it. Basically, if you are a legal resident or citizen receiving money from Uncle Sam, you're eligible. More than that, you're expected to provide an account.
Specific groups affected include:
- Social Security & SSI Recipients: Most were already on electronic payments, but any holdouts are being pushed toward the Direct Express® card or a bank account.
- Taxpayers: If you’re filing your 2025 taxes (the ones you file in early 2026), the IRS is making direct deposit the default.
- Veterans: VA disability and pension payments are now strictly electronic.
- Federal Retirees: Whether it’s Civil Service or Railroad Retirement, the check is going digital.
The criteria are simple. You need a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). You also need a routing and account number from a US-based financial institution.
The "Six-Week Penalty" Nobody Talks About
Here is the kicker that caught a lot of people off guard. If you file your 2025 tax return and stubbornly refuse to provide bank info, the IRS isn't going to just refuse to pay you. They can't do that.
Instead, they’re going to make you wait.
The current policy is to hold those "non-electronic" refunds for at least six weeks after processing. They’ll send you a letter (Letter 1, usually) basically asking one more time for your bank info. If you still don’t provide it, they might eventually cut a check, but only after you've jumped through several hoops. It is a massive headache.
What About People Without Bank Accounts?
Not everyone has a bank. I get it. Some people have had bad experiences with overdraft fees, or they live in "banking deserts."
The government knows this.
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If you truly can't get a traditional checking account, you aren't just out of luck. The Treasury points people toward the Veterans Benefits Banking Program (VBBP) for vets or the Direct Express® Debit Mastercard for social security. These act like bank accounts but don't require the same credit checks. You can also use digital wallets like PayPal, Venmo, or CashApp now, provided they give you a routing and account number.
Hardship Exceptions
There are "limited exceptions" for feasibility. If you live in a rural area with no internet and no banks within 50 miles, or if you have deeply held religious beliefs against electronic banking, you can apply for a waiver.
But be warned. These waivers are becoming much harder to get. The Treasury's goal is to hit a 98.4% electronic rate for non-tax payments by the end of the 2025 fiscal year. They aren't in a hand-holding mood.
The Rumor Mill: $1,390 and $2,000 Payments
You've probably seen the headlines on social media. "IRS Announces $1,390 Direct Deposit for December!" or "Trump Tariff Checks of $2,000 Coming Soon!"
Let's clear the air.
Most of that is junk. As of right now, there is no official $1,390 relief payment scheduled for 2025. Those numbers usually come from "news" sites trying to bait you into clicking.
The $2,000 "Tariff Stimulus" is a different story—it's a real proposal, but it’s just that: a proposal. It’s tied to the idea of redistributing tariff revenue back to households earning under $100,000. But since Congress hasn't passed it, and the Supreme Court is still sniffing around the legality of the tariffs themselves, don't go spending that money yet. If it happens, it likely won't be until late 2026 at the earliest.
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Speed Matters (21 Days vs. 2 Months)
If you use direct deposit, the IRS aim is to get your money to you in under 21 days.
Paper checks? Forget it. Between the six-week "holding period" for missing info and the actual mailing time, you could be looking at two or three months. Plus, mail theft is at an all-time high. The Treasury notes that paper checks are 16 times more likely to be altered or stolen than an electronic transfer.
Actionable Next Steps
If you want to make sure your 2025 payments aren't stuck in limbo, do these three things immediately:
- Open a "Low-Fee" Account: If you’re unbanked, look at FDIC/GetBanked. It lists accounts with no overdraft fees and low monthly costs specifically designed for this transition.
- Verify your SSA Account: Log into your my Social Security account. Make sure the "Payment Address" isn't a physical one but a direct deposit link. It takes about 30 to 60 days for a change to go through, so don't wait until the week before your check is due.
- Check Your 2025 Tax Prefs: When you file your taxes in early 2026, don't just skip the bank info section because you're used to a check. If you changed banks mid-year, the IRS won't know unless you tell them. Use IRS Direct Pay for any owed amounts to keep your info fresh in their system.
The bottom line is that the government is tired of paying for postage and printing. They want everything digital, and they’ve finally set the rules to make it happen.