MCLENNAN COUNTY, Texas (KXXV) — The shift to digital tax refunds aims to cut costs and speed up returns, but some worry about the impact on seniors and low-income individuals who rely on paper checks.
- The U.S. Department of the Treasury is phasing out paper tax refund checks in favor of digital options like direct deposit to cut costs and speed up returns.
- Experts warn the shift to digital refunds could heavily impact seniors, low-income individuals, and demographics that do not frequently use technology.
- Despite concerns about how the change will affect seniors, 92-year-old Myrl Luper transitioned to direct deposit four years ago after her paper check got lost in the mail, and she now prefers the speed and convenience of digital refunds.
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The U.S. Department of the Treasury is phasing out paper tax refund checks, pushing taxpayers toward digital options like direct deposit.
The change stems from recent tax legislation passed in 2025 that also eliminated taxes on tips and overtime. While the shift aims to speed up refunds, cut costs, and prevent lost checks, it is sparking mixed reactions in the Waco community, particularly concerning older adults.
According to the IRS, more than 93.5 million tax refunds were distributed to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.
Ben Valdez, a reporter for Tax Notes who covers the IRS and tax administration, noted the impact the digital shift will have on specific groups.
"Low income people, elderly folk, there's also Native American tribes and other demographics that just don't use a lot of technology or they don't really interact with the government, you know, via digital means often, and those are really the people that are going to get hit by this the hardest," Valdez said.
On Facebook, local residents expressed concerns, with comments stating the change makes things more complicated and shows no respect for the senior population.
However, some seniors have already made the transition. I spoke with Myrl Luper, 92, who receives free tax help from AARP’s Tax-Aide program and is getting over $400 back this year. Four years ago, Luper preferred receiving her tax return in the mail until it got lost.
"I got a telephone call from this lady in Lorena who had received my check, so after that, I thought they can just send it directly to my account and I don't have to worry," Luper said.
"I have to say it is convenient and a lot faster, so now they ask if I want it to be mailed, I say just deposit it," Luper said.
For those adamant about receiving a paper check, there are exceptions. Valdez said taxpayers should be able to call the IRS and request a paper check. Other options include prepaid cards and digital wallets.
For those needing free tax help before the April 15 deadline, University High School is hosting an event on Thursday, April 9, from 4:30 p.m. to 6:30 p.m.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
