IRS Eliminates Paper Tax Refund Checks: What SDG Accountant Clients Need to Know for 2026

IRS Eliminates Paper Tax Refund Checks

Starting October 1, 2025, the Internal Revenue Service stopped both accepting paper checks for tax payments and issuing paper refund checks. This change, prompted by a federal executive order with a September 30, 2025, cutoff, is part of a broader federal initiative to move entirely to electronic transactions to improve efficiency, lower costs, and reduce fraud and theft risks linked to paper checks.

This initiative is part of a broader modernization effort required under Executive Order 14247, aimed at improving efficiency, security, and overall taxpayer experience.

At SDG Accountant, we want to ensure you are prepared for this digital shift so your refund—money you’ve worked hard for—arrives safely and without unnecessary delays.

Why the Change?

The move away from paper is part of a broader federal initiative to modernize government payments. According to the IRS and the Department of the Treasury, the benefits are clear:

  • Security: Paper checks are 16 times more likely to be lost, stolen, or fraudulently altered compared to electronic payments.
  • Speed: Electronic refunds are typically issued within 21 days. In contrast, paper checks can take six weeks or longer to arrive by mail.
  • Cost Efficiency: Phasing out paper is estimated to save the federal government over $600 million annually in printing and postage costs.

What does this mean for you?

If you are among the 93% of taxpayers who already use direct deposit, your experience won’t change. However, if you are part of the 7% who still rely on paper checks, you must take action before you file your 2025 return.

1. The “Default” is Now Digital

Starting with the 2026 filing season, the IRS will no longer offer a “paper check” checkbox as a standard refund option on tax software. Taxpayers will be prompted to provide banking information or select an alternative electronic method.

2. Options for the “Unbanked”

  • 👉 Prepaid Debit Cards: Many reloadable cards have account and routing numbers that can be used for direct deposit.
  • 👉 Digital Wallets: Certain mobile payment apps now provide routing numbers specifically for federal deposits.
  • 👉 Low-Cost Accounts: The IRS encourages using resources like FDIC GetBanked to find no-fee or low-cost banking options.

3. The “Six-Week Wait” for Exceptions

While limited exceptions will exist for those with religious objections, disabilities, or extreme hardships, they are not automatic. Taxpayers who fail to provide banking information and do not have an approved exception may have their refunds held for at least six weeks while the IRS verifies their status, eventually resorting to a manual check.

How to Prepare Now?

To avoid any disruption when you file this January, we recommend taking these steps:

TN Visa Taxes Explained: What Canadians Need to Know About U.S. & Canadian Taxes
  • Verify Your Info: Double-check your bank account and routing numbers. Even a single-digit error can cause your refund to be bounced back to the Internal Revenue Service.
  • Open an Account: If you don’t have one, now is the time to set up a basic savings or checking account. Confirm accurate bank details before filing your return. Then choose direct deposit when filing taxes.
  • Consult Your Tax Professional↗: If you have concerns about how this transition affects your specific situation—especially for international taxpayers or those with complex filings—reach out to us↗.

How SDG Accountants Can Help?

At SDG Accountants & Enrolled Agents, we stay ahead of IRS changes so our clients don’t have to worry. Our tax professionals help individuals and businesses:

  • File accurate tax returns
  • Set up direct deposit correctly
  • Avoid refund delays and errors
  • Stay compliant with IRS updates
  • Maximize refunds while minimizing risk

Whether you’re filing as an individual, self-employed professional, or small business owner, our Miami Tax Accountant ensures your tax process is smooth and stress-free.

Final Thought

The IRS’s phasing out of paper tax refund checks marks a significant shift toward a faster, more secure tax system. While change can feel inconvenient, electronic refunds ultimately benefit taxpayers through speed, safety, and reliability.

As we head into the 2026 filing season, electronic payments aren’t optional anymore—they’re becoming the federal standard. At SDG Accountant, we’ll make sure your estimated tax payments, balance-due payments, and any IRS remittances are set up correctly and credited to the correct account, so nothing gets delayed, misapplied, or lost.

If you’re unsure how this change affects you or want expert guidance, Miami Accountant is here to help. 👉 Contact SDG Accountant & Enrolled Agent today to prepare for the future of digital tax refunds.

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Tax Deductions for Esports Players and Streamers in Miami, FL

Tax Deductions for Esports Players

This is an excellent way to localize your blog post! The primary tax deductions for esports players or streamers are Federal. Still, their location in Miami, Florida, has significant implications for their State and Local tax obligations, which impact their overall tax strategy.

Here is a breakdown explicitly focused on the Florida/Miami context:

Decoding Alimony and Separation Taxation for Miami and Tampa Residents

🌴 Tax Deductions for Esports & Streamers in Miami, FL

The core deductions remain the same as they are governed by Federal law (IRS), but the Miami tax structure offers a massive benefit.

1. The Major Florida Advantage: No State Income Tax

The biggest win for a self-employed individual in Miami is that Florida does not have a state income tax.

  • 👉 Impact on Deduction Value: While your business expenses reduce your income for Federal taxes (the highest burden), they do not need to reduce income for state taxes, as Florida doesn’t tax individual income to begin with.
  • 👉 Focus: Your entire deduction strategy should be laser-focused on lowering your Adjusted Gross Income (AGI) for your Federal 1040 return, which in turn reduces the Federal income tax and the 15.3% Federal Self-Employment Tax (SE Tax).

Tax residency is determined differently in the U.S. and Canada. That’s why many TN professionals get confused — and why our firm often steps in to help.

TN Visa Taxes Explained: What Canadians Need to Know About U.S. & Canadian Taxes

2. The Core Federal Deductions (The Same Deductions, but Higher Stakes)

Since all the savings come from the Federal level, every dollar in expense is critical. All the standard deductions covered previously apply directly:

Deduction CategoryMiami/FL Specific Context
PC & Streaming GearDeducting high-cost equipment (PC, cameras, mics) via Section 179 or depreciation is a top priority, as it directly lowers the income subject to the 15.3% SE Tax and Federal Income Tax.
Home Office DeductionEssentially, most Miami-based streamers work from home. Use the Simplified or Actual Expense method to deduct a percentage of rent/mortgage interest, utilities, and internet.

*Note: The internet portion is still deductible even if you do not claim the full home office deduction.
Travel & TournamentsDeducting flights, hotels, ground transport, and 50% of meals for any travel outside of Miami for competitions, conventions, or sponsor meetings (e.g., TwitchCon, game publisher meetings).
Professional ServicesFees paid to your Miami Accountant (CPA), business manager, or lawyer—especially important for managing complex sponsorship contracts. These are deductible business expenses.
Health Insurance PremiumsSelf-employed individuals can often deduct 100% of their health insurance premiums from their gross income via the Self-Employed Health Insurance Deduction (if you were not eligible for an employer-sponsored plan).

3. Miami/Local Business Tax Obligations

While Miami doesn’t have an income tax, streamers and players operating a business out of their homes still have local obligations to consider, which are also deductible expenses:

Local Tax/FeeDeduction StatusDetails
Local Business Tax Receipt (LBTR)DeductibleMiami-Dade County (and individual municipalities such as Miami, Miami Beach, etc.) require a Local Business Tax Receipt (formerly an Occupational License) to operate a business legally. The fee paid for this is a deductible business expense.
Tangible Personal Property TaxDeductibleBusiness property (computers, streaming gear, furniture) used in a business must be reported annually to the Miami-Dade County Property Appraiser, and you may owe a tax on this value. This tax is a deductible business expense.
Florida Sales and Use TaxMay ApplyIf you sell merchandise (T-shirts, hoodies, mugs) to customers in Florida, you must register as a dealer with the Florida Department of Revenue and collect/remit Florida sales tax (6% state + any local option tax). The time/fees for this registration may be deductible, but the tax collected is not an expense—it’s a pass-through liability.

🔑 Key Miami Warning for Your Audience

Miami’s lack of a state income tax can lead to a false sense of a low tax burden. Emphasize the importance of the Federal Self-Employment Tax (15.3%) and Estimated Quarterly Taxes.

⚠️ The Quarterly Tax Trap: Because no state or local income tax is withheld, and no Federal income tax is withheld, the self-employed individual is responsible for paying all of their Federal Income Tax + the 15.3% Self-Employment Tax on their net profit. Esports players and streamers must make estimated quarterly payments (using Form 1040-ES) to the IRS to avoid penalties.

SDG Accountants & Enrolled Agents focus on creating a checklist specifically for the Miami Local Business Tax requirements and its deduction details:

This is a vital topic for your blog, as the local taxes and licenses in Miami-Dade County (MDC) are deductible business expenses and mandatory for compliance. Here is a ready-to-use checklist focusing on the three main local tax areas for a self-employed esports player or streamer operating a home-based business in Miami-Dade County, FL.

📝 Miami-Dade Local Compliance & Deduction Checklist

For streamers and esports professionals operating out of a Miami-Dade residence, these local expenses are generally deductible on Federal Schedule C, Part II, Line 23 (Taxes and Licenses).

1. The Local Business Tax Receipt (LBTR)

This is a mandatory license required to conduct business, even from a home office, legally, and the fees are deductible.

RequirementAction & Deduction
County & Municipal ReceiptsAction: The business must obtain a Local Business Tax Receipt (LBTR) from Miami-Dade County. If the company is located within a municipality (e.g., the City of Miami, Miami Beach, or Coral Gables), a separate LBTR is required from that city.
Home-Based Business StatusAction: You must confirm that your streaming/gaming business is allowed under local Zoning and Planning rules for a home occupation. This often requires completing a Home Occupation Affidavit.
Certificate of Use (CU)Action: New home-based businesses in unincorporated Miami-Dade County may need to apply for a Certificate of Use and Occupancy (CU). Municipalities may have their own version.
The DeductionDeduction: The fees paid for the County LBTR, Municipal LBTR, and any associated Certificate of Use (CU) or initial filing fees are fully deductible business expenses.
RenewalAction: The LBTR is valid for one year (October 1 to September 30) and must be renewed annually to maintain legal status and the deduction.

2. Tangible Personal Property (TPP) Tax

This is an annual tax on the equipment (tangible assets) used in your business, and it is a significant deduction opportunity.

Personal Property Tax
RequirementAction & Deduction
What is TPP?Definition: TPP includes all movable property used to generate income. For a streamer/esports player, this means the PC, monitors, consoles, microphones, cameras, streaming desks, and office furniture.
Annual Filing (DR-405)Action: Every business that owns or controls TPP on January 1 must file a Tangible Personal Property Tax Return (Form DR-405) with the Miami-Dade County Property Appraiser by April 1st each year.
The $25,000 ExemptionAction: Filing the DR-405 by the April 1 deadline qualifies you for an exemption of up to $25,000 of assessed value. Since most streamers’ gear is likely valued below this threshold, they may owe no tax but must still file to secure the exemption.
The DeductionDeduction: Any tax paid on the TPP (if the equipment value exceeds the $25,000 exemption) is a fully deductible business expense.

3. Florida Sales and Use Tax (for Merchandise)

This is a tax collection and reporting requirement, not a deduction, but it is a critical Florida-specific obligation for anyone selling merchandise.

RequirementAction & Implication
ApplicabilityApplies if: You sell tangible goods (T-shirts, hoodies, mugs, stickers) to customers.
RegistrationAction: You must register with the Florida Department of Revenue (DOR) and obtain a Sales and Use Tax Certificate of Registration.
Tax RateAction: You must collect the state sales tax (6%) plus the Miami-Dade County Discretionary Sales Surtax (currently 1%), totaling a 7% tax on the sale of merchandise delivered to customers in Miami-Dade County.
FilingAction: You must report and remit the collected sales tax to the DOR periodically (monthly, quarterly, or annually, based on sales volume).
The Deduction/ExpenseKey Note: The sales tax collected is a liability, not income or an expense. However, the fees associated with setting up the registration or any penalty paid for late filing are a deductible business expense.

Miami’s tax landscape is favorable due to the absence of state income tax, but the local compliance requirements (LBTR and TPP Tax) are non-negotiable for operating a legal home-based business.

That is a critical addition. Since tax law is constantly changing and depends heavily on individual circumstances, a strong disclaimer is essential. It is recommended to consult with a tax professional in Miami to ensure all applicable deductions are maximized and tax obligations are met.

Tax Deductions for Esports Players

Florida has no state income tax, players only need to worry about their federal tax obligations

Make life easier. Make billing transparent. Reduce stress.

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🛑 Important Tax Disclaimer: Seek Professional Counsel

The information provided in this article is for educational and informational purposes only and does not constitute financial, accounting, or tax advice. While Florida offers the significant advantage of no state individual income tax, the complexities of Federal Self-Employment Tax (15.3% SE Tax) and specific local requirements in Miami-Dade County (such as the Local Business Tax Receipt and Tangible Personal Property Tax) require specialized knowledge. You must not act or refrain from acting based on any content included in this article without seeking advice from a qualified tax professional. We strongly recommend consulting our Miami Tax Accountant, who specializes in self-employment income, the creator economy, and Florida state/local requirements, to ensure proper compliance and maximize legal deductions.

This disclaimer uses bolding to highlight the key risks and explicitly directs the reader to a specialist, minimizing your liability while providing responsible advice.

📢 Conclusion

By engaging in effective planning and partnering with an experienced accounting service in Miami, such as our dedicated Miami Accountant team, you can ensure accurate filing, avoid double taxation, and maximize your financial retention.

Reach out to SDG Accountant & Enrolled Agents, and our Miami Tax Accountants will be more than happy to assist you. For tailored guidance on your unique tax circumstances, don’t hesitate to click below for a consultation with one of our skilled Miami tax professionals.

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TN Visa Taxes Explained: What Canadians Need to Know About U.S. & Canadian Taxes

TN Visa Taxes Explained

Working in the U.S. on a TN Visa can be exciting — new job, new city, new opportunities. But when tax season arrives, many Canadians suddenly discover something unexpected. Here are SDG Accountants & Enrolled Agents explaining in detail about the TN Visa Taxes:

Taxes get complicated. Fast.

This guide explains TN Visa taxes in a clear, friendly way while showing where an accounting firm can help simplify the process. If you’re a Canadian working in the U.S. — or planning to — this is essential reading.

Facilitating Cross-Border Success: SDG Accountant Paves the Way for Canadian Businesses Expanding into Florida

Do TN Visa Holders Pay Taxes in the U.S., Canada, or Both?

Here’s the reality:

  • 👉 You may have to file taxes in the USA, Canada, or both countries.
  • 👉 It does not depend on your TN Visa.
  • 👉 It does depend on your tax residency.

Tax residency is determined differently in the U.S. and Canada. That’s why many TN professionals get confused — and why our firm often steps in to help.

Let’s break it down.

U.S. Tax Obligations for TN Visa Professionals

1. Are You a U.S. Tax Resident?

The USA uses the Substantial Presence Test (SPT). It’s based on how many days you’ve spent in the U.S. over the past 3 years.

  • If you meet the test, you’re a U.S. tax resident.
  • If you don’t, you file as a non-resident.

2. Some TN workers may qualify for exceptions:

  • New arrivals
  • Cross-border commuters
  • Individuals claiming a “closer connection” to Canada

Understanding these exceptions can be tricky — having a tax accountant in Miami can help avoid costly mistakes.

3. What Taxes Do You Pay in the U.S.?

✔ Federal Income Tax

  • Paid to the IRS.

✔ State Income Tax

  • Depends on your state.
  • Some states have no income tax, while others have high rates.

✔ FICA (Social Security + Medicare)

  • Many TN workers pay this unnecessarily when they could be exempt with the proper Certificate of Coverage.
  • Our firm reviews each case to confirm whether FICA should apply — because overpaying is incredibly common.

4. Required U.S. Tax Documents

To file correctly, you’ll need:

  • W-2 from your U.S. employer
  • I-94 travel record
  • SSN (Social Security Number)

Missing or incorrect documents are among the most significant reasons TN taxpayers experience delayed refunds.

5. Which U.S. Tax Form Should You File?

  • Form 1040 → U.S. tax residents
  • Form 1040-NR → non-residents
US Form 1040-NR Refund Recovery for Canadian Citizens: Case Study

Some TN workers file a dual-status return in their first year — something we handle frequently for clients.

Canadian Tax Obligations for TN Visa Workers

1. Are You Still a Canadian Tax Resident?

Canada looks at residential ties, such as:

  • A home in Canada
  • Spouse or dependents
  • Provincial health care
  • Canadian bank accounts

Even if you live in the U.S. for work, you might still be considered a Canadian tax resident.

Most people don’t realize this — until the CRA asks questions.

2. If You Remain a Canadian Resident

You must:

  • Report your worldwide income, including U.S. wages
  • Claim foreign tax credits to avoid double tax

Our firm ensures the credits are calculated accurately — because even a small mistake can lead to double taxation.

3. If You Become a Non-Resident of Canada

If you cut ties with Canada, you may qualify for non-resident status. In that case:

  • You usually don’t pay Canadian tax on your U.S. salary
  • But you may face a departure tax

We help clients determine the exact date of residency change and handle CRA departure filings.

Avoiding Double Taxation

This is the #1 concern for TN professionals — and understandably so.

Thankfully, the U.S.-Canada Tax Treaty protects you by:

  • Determining which country gets to tax your income
  • Allowing foreign tax credits
  • Providing “tie-breaker” rules for unclear cases

Our firm specializes in treaty-based filings and Form 8833, which is required when claiming treaty benefits.

Common Tax Mistakes TN Visa Holders Make

We see these issues all the time:

❌ Filing the wrong U.S. form (1040 instead of 1040-NR)
❌ Paying FICA when exempt
❌ Not cutting enough ties to qualify as a non-resident of Canada
❌ Forgetting to file Canadian departure forms
❌ Not reporting U.S. income to Canada
❌ Missing foreign tax credits

Fixing these mistakes retroactively is possible — but resolving them early is much easier.

State Taxes Make a Big Difference

State Taxes

Where you work matters. A lot.

States with no income tax:

  • Texas
  • Florida
  • Nevada
  • Tennessee
  • Washington

High-tax states:

  • California
  • New York
  • New Jersey

We help clients compare state tax impacts before they relocate.

Smart Tax Planning Tips for TN Professionals

Obtaining an ITIN for Canadians

✅ Track your days in the U.S.

Everything depends on this.

✅ Know your residency before filing

Avoid IRS and CRA surprises.

✅ Review your investment accounts

RRSPs, TFSAs, and 401(k)s all have cross-border rules.

✅ Keep your documents organized

We provide clients with an annual checklist.

✅ Work with a firm that handles cross-border tax

This is not a good area for DIY tax software.

TN Visa Taxes

Understanding your tax residency, income rules, and filing obligations

Make life easier. Make billing transparent. Reduce stress.

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TN Visa Tax FAQ

Do I need to file taxes in both countries?

Sometimes yes. It depends on your residency and income source.

Can I get a U.S. refund?

Absolutely — TN workers often get one.

Can I keep my home in Canada?

Yes, but it may keep you taxable in Canada.

Can I avoid double taxation?

Yes, through foreign tax credits and treaty claims.

Do you help with dual-status returns?

Yes — we prepare them for many TN clients every year.

Conclusion: Tax Rules Are Complicated — But They Don’t Have to Be

TN Visa workers face one of the most confusing tax situations:
Two countries, two tax systems, one income.

With proper planning — and the right accounting firm like our Miami Accountant team — you can file correctly, avoid double taxation, and keep more of your money.

Contact SDG Accountant & Enrolled Agents, and one of our Miami Tax Accountants will gladly help. If you need precise advice on your specific tax situation, you can also click below to get a consultation with one of our Miami tax professionals.

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