WASHINGTON (AP) — On Wednesday, Tax Day arrives for most Americans filing their taxes. The latest reports show that millions have taken advantage of new tax breaks introduced by the Trump administration, including deductions for overtime, exemptions on certain car loan interests, and enhanced deductions for seniors and children’s savings accounts.
A Treasury official stated that over 53 million filers claimed deductions under these provisions. Specifically, 6 million benefited from the no tax on tips, 21 million claimed the overtime deduction, and 30 million older Americans utilized the enhanced deduction. The 2026 filing season is being viewed positively from the administration’s perspective.
Despite this, polling indicates a significant disconnect, with around 70% of Americans expressing that their taxes remain too high. The Republican tax overhaul was originally touted as a measure to provide substantial savings for taxpayers.
The IRS reported an average refund of $3,462 this tax season, reflecting an 11% growth from the previous year's average of $3,116. The White House had predicted that average returns would increase by at least $1,000, promoting a narrative of financial relief.
Tax refunds this year are being highlighted, showing an increase of 24% compared to the pre-Trump average over the last four years. However, these announcements face the challenge of public sentiment overshadowed by rising gas prices and the war in Iran, which has been stirring economic concerns.
The IRS has also seen significant changes internally, including a workforce reduction of 27% over the past year, raising questions about its capacity to handle the tax season effectively.
On this pivotal day, IRS CEO Frank Bisignano is scheduled to testify before the Senate Finance Committee, where he is expected to discuss the impact of Trump’s tax law while facing scrutiny over the disclosure of taxpayer data to immigration authorities.
