Paper Tax Returns Fall to Multi-Year Low in 2025
Paper tax returns became significantly less common during the 2025 Filing Season as most taxpayers shifted toward electronic filing. Federal filing statistics show that the vast majority of individual income tax returns are now submitted digitally using tax preparation software, tax professionals, or IRS-supported programs such as Free File. The shift reflects a broader move toward faster IRS processing, quicker tax refunds, and a more automated system for handling income tax returns.
Federal filing season statistics show that paper tax returns declined again during the 2025 Filing Season. By early May, the IRS had received roughly 144.8 million individual income tax returns for the tax year. Tax professionals or tax preparation software electronically filed nearly 96 percent of the Federal Form 1040 filings.
That left about 5.8 million tax returns submitted by mail. During the same period in the prior filing season, the number was about 6.2 million. In 2023, the figure was closer to 7 million, indicating a clear decline in mailed Form 1040 and Form 1040-SR submissions.
The trend reflects long-term changes in how taxpayers file their taxes. Most filers now submit Federal Form 1040 digitally, often attaching schedules such as Schedule 1 or supporting documents, including Form W-2, the Wage and Tax Statement, or Form W-9 information provided by payers.
Electronic filing has gradually replaced paper filing as the primary method for submitting an income tax return. The tax software industry, along with tax professionals, has helped expand digital filing options for millions of taxpayers each year.
Digital systems allow a tax return to move directly into IRS processing systems without manual data entry. Automated submission processing minimizes transcription errors and delays that can occur when handling paper documents manually.
Electronic filing also improves confirmation timelines. When taxpayers file their taxes online, the system usually confirms acceptance within hours. That allows errors involving mismatches in Social Security numbers, taxpayer identification number issues, or incorrect employer identification number entries to be corrected quickly.
Several programs have helped expand electronic filing nationwide. One of the most widely used options is Free File, which connects eligible taxpayers with guided tax preparation software at no cost.
Free, fillable form files offer another option for those who are comfortable completing their own Form 1040. The system allows filers to submit Federal Form 1040 electronically while attaching documents such as Form W-2 or Form W-4 wage records, and to report credits and deductions, including the child tax credit.
Treasury officials also announced that the Direct File program would become a permanent option for future filing seasons. The system allows taxpayers to file their taxes directly with the IRS without relying on commercial software providers.
Refund speed is a major reason many taxpayers choose electronic filing over mailing a tax return. Upon digitally submitting a return and opting for direct deposit, most taxpayers receive their tax refunds within about 21 days.
Paper tax returns typically take longer because they must pass through multiple processing stages. Mailroom employees sort the documents before IRS processing teams begin submission processing.
These steps increase the chance of processing delays, transcription errors, or a paper backlog during busy periods of the filing season. When delays occur, taxpayers may have to wait longer to learn the amount of their refund on their income tax return.
Changes in technology have made digital filing easier for most taxpayers. Online tax preparation software allows filers to import income data directly from Form W-2 Wage and Tax Statement records or other employer documents.
Electronic systems also automatically verify credits and deductions. This includes checks for estimated tax payments, payments made during the tax year, and entries tied to credits, such as the Child Tax Credit.
Mobile-friendly formats and built-in data-extraction tools are now common features across many systems. These features allow financial data to be transmitted quickly while reducing storage costs associated with paper documents.
Despite the overall decline, paper tax returns remain necessary for certain situations. Some taxpayers lack reliable internet access or may not be comfortable using digital tax preparation software.
Others may experience electronic filing rejections that require them to submit an income tax return by mail. In those cases, the taxpayer may need to attach original signatures to documents such as Form 1040-V Payment Voucher or other supporting forms.
Some specialized filings may also involve additional documentation. This can include Form 1040-X for amended returns, fiduciary tax returns, or situations in which taxpayers are responding to audit or conference requests.
A lower volume of mailed tax returns can improve operational efficiency during the filing season. Paper filings require several manual processing steps before the information is entered into IRS systems.
Electronic submissions, by contrast, move through automated processing pipelines that rely on machine-read technology, optical character recognition, and scanning equipment. These tools reduce the need for manual processing and speed up submission processing.
Oversight reviews have noted that improvements in scanning technology and 2-D barcoding may help agencies reduce the paper backlog, improve the taxpayer experience, and strengthen fraud detection and enforcement against tax scams.
The continued decline in paper tax returns suggests that electronic filing will remain the dominant filing method in future filing seasons. Digital filing tools, faster IRS processing times, and improved refund delivery have reshaped how taxpayers file their income tax returns.
For most households, the choice between mailing a tax return and filing electronically comes down to speed and convenience. Electronic filing generally results in faster tax refunds and fewer processing delays.
Paper filing is still an option, but the latest Filing Season data indicates that mailed Forms 1040 are becoming increasingly rare compared with digital tax return submissions.
By William Mc Lee, Editor-in-Chief & Tax Expert—Get Tax Relief Now