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Tax Day Data Show Bigger Refunds, Wide Uptake of New Trump Tax Breaks

Retroactive tax cuts plus unchanged 2025 withholding drove the bump in refunds despite warnings over deficits and IRS staffing cuts.

Overview

  • The Treasury Department, which released Tax Day figures Wednesday, said the average refund is $3,462, up 11% from last year, with $241.7 billion paid out so far.
  • More than 53 million filers used at least one new provision from last year’s law, including about 6 million claiming no tax on tips, about 21 million deducting overtime, and 30 million seniors taking the enhanced deduction.
  • The larger checks reflect retroactive changes and 2025 paychecks that still used old withholding tables, which caused many workers to overpay during the year and receive bigger refunds at filing.
  • The average gain of roughly $350 falls short of earlier White House projections of $1,000 to $2,000 for many taxpayers, and officials now emphasize a 24% increase versus the pre‑Trump four‑year average.
  • IRS workforce cuts of roughly 27% and leadership turnover framed Wednesday’s Senate testimony by IRS CEO Frank Bisignano, as Democrats questioned the agency over an agreement to share taxpayer data with immigration authorities.