Treasury Reports $3,700 Average Refund as New Trump Tax Breaks Widely Used
Treasury data provided to Fox News show that midway through the current tax filing season, the IRS has processed nearly 63.5 million returns—about 45% of those expected by April 15—and the average refund is running above $3,700. The figures detail early take‑up of President Donald Trump’s One Big Beautiful Bill Act (signed July 4, 2025), with more than 27.5 million filers already claiming at least one of the law’s new tax breaks via a new IRS Schedule 1‑A. Treasury says over 15.5 million returns have used the "No Tax on Overtime" provision and more than 3.5 million the "No Tax on Tips," excluding those earnings from taxable income, while more than 9.2 million returns have taken an enhanced senior deduction and about 690,000 have claimed "No Tax on Car Loan Interest." The article also reports that nearly 3.5 million child "Trump Accounts"—government‑created investment vehicles for minors funded with federal seed money and private contributions—have been opened so far, with over 800,000 qualifying for a $1,000 pilot deposit. Treasury Secretary Scott Bessent touts the early numbers as evidence that the law’s extensions of 2017 tax cuts and new targeted provisions are boosting take‑home pay, a claim critics online are already probing against broader budget costs and distributional effects.
📌 Key Facts
- IRS has processed nearly 63.5 million returns so far this season, about 45% of the total expected by April 15.
- Average federal tax refund is reported as above $3,700 midway through the filing season.
- More than 27.5 million filers have claimed at least one new Trump‑era tax break via Schedule 1‑A under the One Big Beautiful Bill Act.
- Over 15.5 million returns claimed 'No Tax on Overtime' and more than 3.5 million claimed 'No Tax on Tips.'
- Nearly 3.5 million child 'Trump Accounts' have been opened, with more than 800,000 qualifying for a $1,000 pilot program deposit.
📊 Relevant Data
In 2025, Black taxpayers are projected to make up 13 percent of the population but would receive only 8 percent of the benefits from extending the income tax provisions in the Tax Cuts and Jobs Act, while White taxpayers would receive 79 percent of the benefits despite comprising 59 percent of the population.
Two Ways a 2025 Federal Tax Bill Could Worsen Income and Racial Inequality — Institute on Taxation and Economic Policy (ITEP)
Tipped workers in the US are disproportionately women and people of color; for example, women make up about 70% of tipped workers, and Black and Hispanic workers are overrepresented compared to their share of the overall workforce.
FACT SHEET: Tipped Minimum Wage — Institute for Women's Policy Research
The median net worth for White families in the US is approximately $188,000, compared to $24,000 for Black families and $36,000 for Hispanic families, indicating significant racial wealth gaps that universal child savings programs like Trump Accounts may not adequately address without targeted support.
Trump Accounts and the Wealth Gap — TrumpAccounts.guide
Corporate tax cuts contribute to racial inequity because corporate stock ownership is disproportionately White; for instance, White households own about 89% of corporate stocks, leading to greater benefits for them from such cuts.
Corporate tax cuts worsen racial inequality in North Carolina and US — NC Budget and Tax Center
📊 Analysis & Commentary (1)
"A Fox News opinion piece praises the Trump tax cut that exempts up to $25,000 of tipped income and criticizes Democratic governors who refuse to conform state tax law, arguing conformity helps workers, reduces underreporting and that opposition is political rather than fiscal."
📰 Source Timeline (1)
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