As of Tax Day 2026, it has become clear that the Working Families Tax Cuts (WFTC) passed last year by Congress and President Trump have clearly delivered for the American people. We have spent the last year describing all of the pro-taxpayer provisions in this bill, and, since the bill was so large and varied in scope, we will continue to do so. However, it does seem appropriate to declare passage of the bill as a clear victory for taxpayers. Tax refunds are larger this year than last year, and more Americans are receiving them.
According to data provided by the IRS, as of April 3 of this year, approximately 100 million Americans have filed tax returns. The percentage of Americans who received refunds has increased by over 3%, with the average refund reaching $3,116 this year. This average refund is 11% higher than last year, with the total amount refunded to taxpayers increasing 14% to over $241 billion. These topline data points from the IRS show that taxpayers are benefiting greatly from the WFTC.
When one digs deeper into recently released IRS data, it clearly shows that working families in particular are benefiting from these tax cuts. Almost half of taxpayers—over 53 million—have claimed at least one of the new tax provisions in the WFTC. Over six million have claimed a No Tax on Tips deduction, with an average taxpayer benefit of over $7,100. Four times that many (25 million) have claimed a No Tax on Overtime deduction, saving taxpayers an average of over $3,000. Thirty-four million families have claimed the enhanced Child Tax Credit, which was permanently doubled and expanded by the WFTC. And over 105 million filers claimed the permanently doubled standard deduction, simplifying taxes for millions of Americans.
The IRS also deserves credit for conducting a successful tax season. Taxpayers are spending one billion fewer hours complying with the tax code compared to 2023. Direct deposits of tax refunds are being received within 21 days, benefiting the 98% of tax filers who choose direct deposit tax payments. A revamp of the IRS website to make it more taxpayer-friendly has resulted in a 58% increase in usage over last year’s filing season.
Larger tax returns are arriving to more taxpayers in less time. This represents a simple explanation of a great tax season, thanks to the Working Families Tax Cuts. Congratulations to Congress and President Trump for a job well done.