Taxpayers are experiencing a significant boost this filing season, with average refunds exceeding $3,700, according to recent Treasury figures obtained by Fox News Digital. This uptick in refunds comes midway through the tax season, with the IRS processing nearly 63.5 million returns, representing approximately 45% of expected filings by April 15. The Trump administration is touting its new tax breaks as a critical factor behind this increased take-home pay.
One striking detail from the report is that more than 27.5 million filers have claimed at least one of the new tax cuts associated with President Donald Trump. These claims were filed using Schedule 1-A, a form introduced for deductions linked to tips, overtime pay, specific car loan interest, and an enhanced deduction for seniors. Among the most notable new tax breaks are the “No Tax on Overtime” and “No Tax on Tips,” which have been claimed by more than 15.5 million and 3.5 million filers, respectively. These provisions allow eligible workers to exclude those earnings from their taxable income.
The updates reveal that taxpayers are also making use of the Enhanced Deduction for Seniors, with over 9.2 million returns taking advantage of this benefit. Additionally, more than 690,000 filers have claimed the “No Tax on Car Loan Interest” deduction, further demonstrating the reach of these tax provisions.
These new tax measures are part of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. This sweeping legislation builds on the framework established by the 2017 Tax Cuts and Jobs Act (TCJA) and presents new federal initiatives aimed at reshaping the tax landscape. Notably, the OBBBA makes certain tax cuts permanent, including lower individual income tax rates and an expanded standard deduction, effectively shielding millions from what could have been expansive tax increases.
The act also introduces innovative programs like “Trump Accounts,” designed specifically for young savers. This investment program resembles traditional long-term investment vehicles but incorporates unique rules to protect minors. Funded through federal seed money, contributions from families, and supplementary deposits from employers or nonprofits, these accounts are available exclusively to individuals under 18. An estimated 3.5 million “Trump Accounts” have been set up, with more than 800,000 participants qualifying for a $1,000 pilot program aimed at helping these young savers.
Treasury Secretary Scott Bessent highlighted the importance of these findings, stating that they serve as proof that the tax cuts initiated by the Trump administration are providing real financial relief. “Treasury and the IRS have worked tirelessly to ensure that relief was delivered efficiently, securely, and on time,” he affirmed. “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.” This commitment to the American worker is a theme that remains central to the current economic agenda, resonating with taxpayers who feel the impact in their wallets.
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