Effective September 30, 2024, the government will no longer issue paper checks for tax refunds or Social Security payments.
This change affects millions of Americans, and while most people already receive their payments electronically, approximately 7% still rely on paper checks. That might sound small, but when you consider the total number of Social Security recipients alone, we’re talking about hundreds of thousands of people who need to take action.
Why This Matters
The government is making this change to improve efficiency and reduce costs. Electronic payments are faster, more secure, and less prone to fraud than paper checks that can be lost, stolen, or delayed in the mail.
However, this transition also creates opportunities for scammers to target vulnerable populations, particularly seniors who may be confused about the change or worried about their benefits.
Protecting Your Family and Community
We expect to see an increase in fraud attempts targeting Social Security recipients over the coming months. Scammers may use this transition as an opportunity to steal personal information or money from people who are uncertain about the changes.
Here’s how you can help protect the people in your life:
1. Spread Awareness
Make sure your parents, grandparents, neighbors, and anyone else you know who receives Social Security is aware of this change. Remind them to be skeptical of unexpected phone calls claiming to be about their benefits – legitimate government agencies rarely call without prior contact.
2. Help Set Up Direct Deposit
If someone you know needs to switch to electronic payments, help them navigate the process. They can:
- Log into their Social Security account online to update their banking information
- Visit their local Social Security office for in-person assistance
- Call Social Security directly (but remind them to use the official number, not one provided by a caller)
3. Consider the Direct Express Card
For those who don’t have or don’t want to provide bank account information, the Direct Express Card is a government-issued debit card that automatically receives Social Security benefits. Recipients can register at www.ssa.gov/deposit or by calling (800) 333-1795.
4. Help with Banking Options
If someone doesn’t have a bank account, you can help them explore options through:
- FDIC: Get Banked! (www.getbanked.fdic.gov)
- National Credit Union Administration (www.mycreditunion.gov)
Many banks and credit unions offer basic accounts specifically designed for Social Security recipients.
5. Know the Limited Exceptions
Very few people qualify for exceptions to this rule. Those who think they might qualify should contact their Social Security office directly to request a waiver, but these are rarely granted.
What About Tax Refunds?
For taxes already filed: If you’re waiting on a refund for a return you’ve already submitted, the IRS will honor whatever payment method you selected on that return.
For upcoming filings: With the tax extension deadline approaching in October, make sure to:
- Choose electronic filing when possible
- Select direct deposit for any refunds
- Consider directing refunds to an IRA if you don’t have a traditional bank account but have contribution room
If you must mail a tax return and don’t have electronic payment options, you can still do so for now. The IRS will provide additional guidance before the 2025 filing season begins in January.
Red Flags to Watch For
Help your loved ones recognize potential scams:
- Unsolicited phone calls claiming to be about the “new payment system”
- Requests for immediate action or threats of benefit suspension
- Demands for personal information, Social Security numbers, or banking details over the phone
- Pressure to purchase gift cards or send money to “secure” benefits
- Claims that there are fees associated with switching to electronic payments (there aren’t)
The Bottom Line
This change is designed to make government payments more efficient and secure, but transitions always create opportunities for confusion and fraud. By staying informed and helping the vulnerable people in our communities navigate these changes safely, we can ensure this transition goes smoothly for everyone.
Remember: legitimate government agencies will not pressure you for immediate action over the phone, and switching to electronic payments should never cost money.
Need help navigating these changes or have questions about how they might affect your tax situation? Contact SMP Business Services – we’re here to help our community stay informed and protected.
This information is current as of September 25, 2025. For the most up-to-date guidance, always consult official government sources or speak with a qualified professional.