NEWYou can now listen to Fox News articles!
FIRST ON FOX: Taxpayers are seeing an average refund above $3,700 halfway through the filing season, and the Trump administration is pointing to its new tax breaks as a driver of higher take-home pay.
Treasury figures reviewed by Fox News Digital show the IRS has processed nearly 63.5 million returns so far, or about 45% of the total expected by April 15.
In the same update, more than 27.5 million filers claimed at least one of President Donald Trump’s new tax cuts using Schedule 1-A, a new IRS form for deductions tied to tips, overtime, certain car loan interest and an enhanced senior deduction.
WHAT TRUMP’S NEXT PICK TO LEAD THE FEDERAL RESERVE MEANS FOR YOUR WALLET
Treasury said more than 15.5 million returns have claimed the “No Tax on Overtime” break, making it the most widely used new tax provision to date. (Emily Elconin/Getty Images)
Among the most widely claimed new tax breaks so far, Treasury said more than 15.5 million returns took the “No Tax on Overtime” break, while more than 3.5 million claimed “No Tax on Tips,” provisions the administration says allow eligible workers to exclude those earnings from taxable income.
Treasury also reported more than 9.2 million returns claiming the Enhanced Deduction for Seniors, and more than 690,000 claimed “No Tax on Car Loan Interest.”
Signed into law on July 4, 2025, Trump’s landmark One Big Beautiful Bill Act (OBBBA) is a sweeping tax and spending package that builds on the 2017 Tax Cuts and Jobs Act (TCJA), enacted during his first term, while introducing new federal initiatives.
The law extends tax cuts originally enacted under the TCJA that were scheduled to expire at the end of last year, preventing a broad tax increase for individuals. Several provisions are made permanent, including lower individual income tax rates and an expanded standard deduction.
It also extends other provisions temporarily, reshaping the tax landscape for households and businesses while adding new programs aimed at long-term savings.
One of the new initiatives tucked in the OBBBA is “Trump Accounts,” a government-created investment program for children.
YEAR IN REVIEW: HOW PRESIDENT TRUMP’S ECONOMIC AGENDA IS SHAPING UP SO FAR
Treasury said nearly 3.5 million “Trump Accounts” have been opened so far. (iStock)
The accounts function much like traditional long-term investment vehicles, but with rules specifically designed to protect young savers. Available only to those under 18, they’re funded through federal seed money, private contributions from families and, when applicable, supplemental deposits from employers or nonprofit organizations.
Treasury said nearly 3.5 million “Trump Accounts” have been opened so far, and more than 800,000 qualify for the $1,000 pilot program.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Secretary of Treasury Scott Bessent says President Donald Trump’s tax breaks are delivering financial relief to Americans. (Anna Moneymaker/Getty Images)
Treasury Secretary Scott Bessent pointed to the mid-season data as evidence the tax cuts are delivering relief.
“Treasury and the IRS have worked tirelessly to ensure that relief was delivered efficiently, securely, and on time,” Bessent said.
“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,” he added.
