January 25, 2026, 5:06 a.m. ET
This year, tax refunds are anticipated to be quite significant, prompting many Americans to consider the quickest method for receiving their refunds, which is via free electronic direct deposit.
For millions, tax season typically represents the largest financial windfall of the year; around 75% of Americans typically receive a refund. According to IRS figures, the average refund in 2025 was about $2,939. James Knightley, an economist at ING, noted that new features in President Trump’s substantial tax bill could potentially boost refunds by as much as 30% this year.
Currently, 90% of taxpayers opt for direct deposit to receive their refunds, but the IRS aims to further increase this number, as it’s the most efficient and secure payment method. The agency has been phasing out paper checks for individual taxpayers since September 30 of last year.
“Paper checks are over 16 times more likely to be lost, stolen, or delayed compared to electronic payments,” stated the IRS. “Using direct deposit also eliminates the risk of your refund check being sent back as undeliverable.”
You can expedite the process even more. The IRS mentioned that combining direct deposit with electronic filing is the quickest way to get your refund.
How do I sign up for direct deposit?
- If you are using tax software:
Select Direct Deposit as your preferred refund method, and input your bank account and routing numbers. You can find the routing number, which indicates your bank’s location, on the bottom left corner of your check or on your bank’s site. The account number appears in the bottom right corner. Alternatively, you could log into your online banking account or contact your bank branch directly.
- If working with a tax professional:
Just let them know you want to use direct deposit, and they should have the process down. Make sure to label your return as “Direct Deposit” and provide your information. It’s wise to double-check everything to prevent any errors or delays. If you happen to miss entering your account or routing number, the IRS might issue you a paper check instead.
What if I don’t have a bank account?
You can search for a bank via the FDIC website or the National Credit Union Administration. Opening an account is usually a straightforward process. Also, inquire with the provider if they accept alternative electronic payment options.
Otherwise, you might be able to receive your refund on a reloadable prepaid debit card or through a mobile app. Many of these options will have their unique routing and account numbers, so check with your financial institution to confirm their compatibility for deposits.
Can I split my refund across multiple accounts?
Yes, you can! With refunds likely to be larger this year, managing your funds through splits can be a smart strategy. You could allocate part of your refund for immediate expenses and save the rest for later.
This can also be handled electronically with tax software using the IRS Form 8888, or if you filed a paper return, you can include your request there.
You can divide your refund in any proportion, directing funds into up to three different U.S. accounts, reloadable prepaid debit cards, or mobile apps. However, refunds can only go into accounts that belong to you, your spouse, or both in the case of a joint account. Also, keep in mind that a single financial institution or prepaid card can accept a maximum of three electronic refunds.
How long does it take to receive my tax refund via direct deposit?
If you file electronically and choose direct deposit, most refunds are typically processed within 21 days.
You can track the status of your refund using the IRS’s “where is my refund” tool, which allows you to see when they received your tax return, approved your refund, and issued the payment. Once the IRS gives their nod to your refund, it should appear in your account within five days.
If you mailed a paper return and are waiting for a refund, be aware that it might take longer than four weeks to process. If you’re claiming the Earned Income Tax Credit or the Supplemental Child Tax Credit, the IRS states that refunds won’t be issued until mid-February. Most refunds related to these credits should appear in bank accounts or debit cards by March 3, provided there are no issues.
Can I track my refund?
Absolutely. Whether you’re receiving a paper check or using direct deposit—into one or multiple accounts—you can check where your refund stands.
If you decide to split your refund, the tracking feature will indicate that the refund has been divided, though it won’t specify the amount for each account. You’ll see the estimated date for the deposit, and if the IRS has to adjust your refund due to errors, that will be noted as well.
