Working Families Tax Cuts Boost Tax Refunds

Washington, D.C.-With this year's tax filing season beginning today, Americans are anticipating significant refunds due to the Working Families Tax Cuts advanced by U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho). Because key components of the law apply retroactively to 2025, the U.S. Department of the Treasury estimates tax refunds could total $100 billion for American families this year. And, according to the nonpartisan Joint Committee on Taxation (JCT), the largest proportional benefits of the tax relief are going to workers and families making less than $50,000.

"With these tax cuts, Republicans are delivering on our promise to make life more affordable for all Americans," said Crapo. "By providing permanently lower tax rates and new, immediate tax relief, Americans will have more money in their pockets and more opportunities to get ahead-especially the low- and middle-income households that need it most."

Key wins:

• Permanent lower tax rates
• Permanent increased standard deduction
• No tax on tips for millions of tipped workers
• No tax on overtime for millions of hourly employees
• New $6,000 bonus tax deduction for seniors
• Enhanced child care tax credit
• Extended paid family and medical leave credit
• New school choice tax credit

What they are saying:

"This consequential legislation cements the blue-collar boom and improves the lives of Americans on every rung of the economic ladder. As we saw after the passage of the 2017 Trump Tax Cuts, American businesses will hire, invest, and raise wages now that this Administration and the Republican Congress have delivered certainty and stability for the economy." - U.S. Secretary of the Treasury Scott Bessent

"Since its passage, the TCJA has delivered meaningful economic gains for women, workers, families, and businesses-boosting take-home pay and driving the creation of millions of jobs across the economy. With the Working Families Tax Cuts. . . signed into law on July 4, 2025, these historic tax cuts are now permanent. The new law builds on the success of the TCJA by expanding support for working families, increasing take-home pay, and unlocking new job and economic opportunities for Americans nationwide." - Carrie Sheffield, senior policy analyst at Independent Women's Forum

Click HERE, HERE and HERE to see how the Working Families Tax Cuts are making life more affordable.

Click HERE to learn more about the Finance Committee provisions in the Working Families Tax Cuts.

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