A Look at the First-Year Results of the Working Families Tax Cuts

American Families and Workers Claimed Over $82 billion in Individual Relief

Directly from the Working Families Tax Cuts

WASHINGTON - As America celebrates its 250th anniversary, we also mark another milestone: one year since President Trump signed the Working Families Tax Cuts into law. Treasury's analysis of the first filing season under the law provides an early measure of the Working Families Tax Cuts impact and the tax relief delivered to low- and middle-income American families and workers across the country.

"One year ago, President Trump signed the Working Families Tax Cuts into law, and it took only a single tax season for American families and workers to overwhelmingly benefit from lower taxes, bigger refunds, and increased take home pay," said Secretary Scott Bessent. "As promised, President Trump and the unity of a Republican majority in Washington delivered this landmark legislation that codifies the America First agenda and lays the foundation for a new era of American prosperity."

BLOCKING A $5 TRILLION TAX HIKE

President Trump and Republicans in Washington prevented a $5 trillion tax hike with this landmark legislation, and the American people had a record Tax Day because of it.

97% of filers received a tax cut this past filing season, who would have otherwise owed taxes absent the Working Families Tax Cuts.

It should not be forgotten every single Democrat voted against this consequential piece of legislation. If the Radical Left had its way, the American people would have been subjected to the largest tax hike in history.

CUTTING TAXES FOR LOW- AND MIDDLE-INCOME AMERICANS

The 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.

Despite critics' claims, 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 over $815.

DELIVERING FOR AMERICAN FAMILIES AND WORKERS

Through the April tax filing deadline, American families and workers claimed over $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.

President Trump's signature tax cuts deliver substantial relief to hardworking Americans and provide greater relief and tax certainty to low- and middle-income households.

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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