The U.S. Department of the Treasury released an analysis of the first filing season under the Working Families Tax Cuts, the sweeping tax legislation President Trump signed into law one year ago, showing American families and workers claimed more than $82 billion in individual tax relief through the April filing deadline.
According to Treasury’s analysis, 97% of filers who would otherwise have owed taxes received a tax cut during the most recent filing season. The department said tax relief was concentrated among lower- and middle-income households, with 96% of filers who received a tax cut earning less than $200,000, and nearly 70% earning less than $100,000.
“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 Treasury Secretary Scott Bessent.
The law, passed by a Republican-majority Congress without Democratic support, made permanent the reduced income tax rates from the 2017 Tax Cuts and Jobs Act and added several new provisions. Among the highlights from Treasury’s first-year data:
More than 29 million filers claimed the No Tax on Overtime deduction, with an average deduction of more than $3,100. Three-quarters of those filers earned under $100,000.
More than 7.5 million filers claimed the No Tax on Tips deduction, with an average deduction of more than $7,000. Nine in ten of those filers earned under $100,000.
More than 35 million seniors claimed the Enhanced Senior Deduction, with an average deduction of more than $7,500.
Nearly 40 million families claimed the enhanced Child Tax Credit, which the law permanently doubled and expanded. Nearly 90% of those families earned under $200,000.
More than 127 million filers — roughly 90% of all tax filers — claimed the permanently doubled standard deduction.
More than 5.5 million Trump Accounts have been opened, savings vehicles for children established under the law, with 1.4 million eligible for a $1,000 pilot program contribution.
Treasury said the $82 billion figure will grow as taxpayers who filed for extensions continue to submit returns. The administration has framed the law as preventing what it described as a $5 trillion tax hike that would have resulted from the expiration of the 2017 tax cuts had the legislation not passed.