New Analysis: The Working Families Tax Cuts Delivers the Largest Share of Tax Relief to American Families and Workers

WASHINGTON-The Department of the Treasury's new analysis of this past tax filing season confirms President Trump's Working Families Tax Cuts delivered the largest share of tax relief directly to millions of low- and middle- income Americans providing for their families, working overtime, living on fixed incomes, and running small businesses.

"American families and workers overwhelmingly benefitted from the Working Families Tax Cuts, receiving the largest share of the historic tax relief delivered this past filing season. This analysis confirms President Trump's tax policies deliver substantial tax cuts to hardworking Americans and provide greater relief and financial certainty to low- and middle- income households," said Secretary of the Treasury Scott Bessent. "Under President Trump, our federal tax code and system reflect the American people's mandate to reject policies that punish success with tax hikes and embrace those that restore fairness, reward work, respect hard-earned paychecks, and reignite the American Dream."

DELIVERING FOR AMERICAN FAMILIES AND WORKERS

Through the April tax filing deadline, American families and workers claimed $82 billion in individual relief directly from the Working Families Tax Cuts. That relief will grow as taxpayers who have filed for extensions continue to file their returns.

Without this consequential piece of legislation, tax filers would currently be feeling the expiration of the 2017 Tax Cuts and Jobs Act and hit with a $5 trillion tax hike. Instead, 97% of filers received a tax cut this past filing season, who would have otherwise owed taxes absent the extension of President Trump's 2017 tax cuts.

Data from this most recent filing season shows millions of American families and workers claimed expanded tax deductions and credits tied directly to wages, children, overtime, tips, and earned income.

The data further shows tax relief was concentrated among American families and workers earning under $200,000.

96% of filers receiving a tax cut earned less than $200,000.

• Filers earning between $100,000 to $200,000, who claimed one of President Trump's signature tax cuts, received an average tax cut of over $1,250.

Nearly 70% of filers receiving a tax cut earned less than $100,000.

• Filers earning between $50,000 to $100,000, who claimed one of President Trump's signature tax cuts, received an average tax cut that is over $815.

No Tax on Tips: Over 7.5 million filers have claimed No Tax on Tips, with an average deduction of over $7,000.

• 90% of filers claiming the No Tax on Tips deduction had income under $100,000.
• 99% of filers claiming the No Tax on Tips deduction had income under $200,000.

No Tax on Overtime: Over 29 million filers have claimed No Tax on Overtime, with an average deduction of over $3,100.

• 75% of filers claiming the No Tax on Overtime deduction had income under $100,000.
• 96% of filers claiming the No Tax on Overtime deduction had income under $200,000.

Enhanced Senior Deduction: Over 35 million seniors have claimed the Enhanced Deduction for Seniors, with an average deduction of over $7,500.

• 68% of filers claiming the Enhanced Senior Deduction had income under $100,000.
• 94% of filers claiming the Enhanced Senior Deduction had income under $200,000.

No Tax on Car Loan Interest: Over 1.4 million filers have claimed No Tax on Car Loan Interest on their new American vehicles, with an average deduction of over $1,800.

• 62% of filers claiming the No Tax on Car Loan Interest deduction had income under $100,000.
• 98% of filers claiming the No Tax on Car Loan Interest deduction had income under $200,000.

Trump Accounts: Over 5.5 million Trump Accounts have been opened, with 1.4 million eligible for the $1,000 pilot program contribution.

• 86% of all Trump Accounts opened are linked to families earning less than $200,000, giving working families more opportunity to invest in the future of their young, loved ones.

Enhanced Child Tax Credit: Nearly 40 million families have claimed the enhanced Child Tax Credit, which is permanently doubled and expanded by the Working Families Tax Cuts.

• 65% of all families claiming the credit had income under $100,000.
• 89% of all families claiming the credit had income under $200,000.

Doubled Standard Deduction: Over 127 million filers (90% of all tax filers) have claimed the permanently doubled standard deduction, simplifying tax filing for millions across America.

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