Nearly Half of US Tax Filers Claim Deductions Under New Republican Tax Law
U.S. Treasury Secretary Scott Bessent said individual tax refunds in the 2026 filing season are more than 10% higher than last year. He also reported that nearly half of US tax filers now claim deductions introduced by the new Republican tax law.
Refunds and filing trends
As of March 20, the average individual refund was $3,571. That figure is $350 higher, a 10.9% rise from the same period in 2025.
One-quarter of returns filed so far claim a deduction for overtime premium pay earned in 2025. Bessent described that provision as “the home run” among the new deductions.
Which deductions are being claimed
Filers are also taking deductions related to untaxed tips, Social Security income, and interest on auto loans for domestic vehicles. The law raised the state and local tax deduction cap by $30,000.
Many taxpayers have reduced withholding for 2026 earnings. That change has increased take-home pay for numerous workers.
Fraud crackdown and whistleblower tips
Bank filings of suspicious activity reports are up about 20% this year. Officials attribute the rise to a crackdown on fraud tied to federal healthcare and social benefits.
The enforcement effort has uncovered abuses that reach into the billions of dollars. Treasury urged the public to submit tips via its whistleblower website.
Tipsters may receive rewards up to 30% of recovered funds. The program has yielded roughly 700 leads for Financial Crimes Enforcement Network investigators.
| Metric | Value |
|---|---|
| Average refund (as of Mar 20, 2026) | $3,571 |
| Increase vs 2025 | $350 (10.9%) |
| Returns claiming overtime deduction | 25% |
| Suspicious activity reports increase | 20% |
| Whistleblower leads | 700 |
Bessent made the remarks during an appearance on Fox and Friends on March 30. Reporting by David Lawder; editing by Franklin Paul.
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