The U.S. Department of the Treasury announced on March 10 that almost half of all tax returns filed so far this season have claimed at least one of President Trump’s new Working Families Tax Cuts. The department said millions of American households are seeing larger refunds and increased take-home pay as a result.
The announcement highlights the impact of recent tax legislation, which aims to provide relief to middle- and low-income taxpayers. According to Treasury Secretary Scott Bessent, “Halfway through this filing season, the Working Families Tax Cuts are already delivering meaningful relief to middle- and low-income taxpayers, increasing after-tax income and putting more money back into the pockets of American families, workers, and small business owners.” Bessent also said, “Treasury and the IRS have worked tirelessly to ensure that relief was delivered efficiently, securely, and on time. This filing season reflects our commitment to making the tax system work for working families. Because of the landmark legislation signed into law by President Trump, millions of Americans are keeping more of what they earn and seeing their paychecks go further than ever before.”
As of March 8, nearly 63.5 million tax returns had been processed—representing about 45 percent of all expected filings by April 15—with an average refund exceeding $3,700. Of these returns, over 27.5 million claimed at least one new tax cut on Schedule 1-A.
Specific provisions reported include more than 3.5 million returns claiming No Tax on Tips; over 15.5 million claiming No Tax on Overtime; over 9.2 million claiming the Enhanced Deduction for Seniors; and more than 690,000 claiming No Tax on Car Loan Interest. Additionally, nearly 3.5 million Trump Accounts have been opened so far this year with over 800,000 qualifying for a $1,000 pilot program.
The Treasury’s report suggests that these changes could continue to affect household finances as more Americans file their taxes ahead of the April deadline.
