WASHINGTON, D.C. – Thanks to the Working Families Tax Cuts, this year’s tax refund season broke records and returned over $310 billion into the pockets of American workers and families, according to final tax filing season data released by the Internal Revenue Service (IRS). Americans received an average refund of nearly $3,300, marking an over 11 percent increase in average individual refunds from the year prior.

Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement on the historic level of tax relief provided to Americans this filing season:

“Republicans understood Americans are still struggling to put food on their tables, clothes on their backs and gasoline in their cars because of the cost-of-living crisis that was created by President Biden and the Democrats’ $10 trillion spending spree. One of the best ways to help working Americans win again is to enact policies that grow paychecks, create jobs, and put money back in the hands of taxpayers. That’s what we set out to do with the Working Families Tax Cuts, and the results prove we succeeded. Thanks to the testimony of real Americans all over the country, we targeted relief at working families, farmers, and small businesses. This filing season was indeed historic – giving back to American workers and families over $310 billion of their hard-earned money, with the average tax refund nearing $3,300. Republican-enacted tax relief gave family budgets an immediate boost and has helped spur stronger economic growth.

“So much of this new relief went directly to the working class through no tax on tips, no tax on overtime, relief for seniors through an additional $6,000 deduction on their Social Security benefits, and no tax on auto-loan interest. Over 60 million Americans claimed at least one of those four provisions this season – demonstrating how impactful this type of targeted tax relief has already been for working families. Additional policies like the enhanced child tax credit and higher standard deduction – with over 34 million families claiming the credit and over 105 million filers claiming the standard deduction – have also ensured that an average family of four in this country taking home $73,000 or less in income owed Uncle Sam zero dollars in taxes this filing season. The immediate benefits the Working Families Tax Cuts have provided to the American people should encourage Congress to continue looking for similar ways to raise wages and lower costs to provide real relief.”

How the Working Families Tax Cuts Deliver for Everyday Americans: 

• This tax season, over 60 million Americans – 42 percent of all filers – claimed at least one of the four new tax relief priorities for the working class – including:
  • 7 million Americans claiming no tax on tips – with an average deduction over $7,000.
  • 28 million claiming no tax on overtime – with an average deduction of $3,100.
  • 34 million taxpayers claiming the Social Security deduction – with an average deduction of $7,500.
  • Over 1 million claiming no tax on auto-loan interest – with an average deduction of over $1,800.
• No tax on tips delivers an average $1,300 tax cut. 
• No tax on overtime delivers an average $1,400 tax cut.
• Married seniors get a $12,000 deduction for their Social Security benefits. 
• The standard deduction is increased by $1,500 per family to $31,500. 
• The Child Tax Credit expands to $2,200 and is permanently indexed for inflation, so the credit never loses value. 
• $1,000 deposit for all newborns born from 2025 through 2028 in new Trump Accounts, which are available to all children up to the age of 18. 
• A family of four with two children earning $73,000 has zero federal income tax liability.
• Increases annual take-home pay for a typical family with two children by $10,900 and raises annual real wages by $7,200 per worker.