Summary
Millions of Americans are getting larger tax refunds this year due to new tax breaks introduced under President Donald Trump's recently passed tax law. The average refund has increased by about $775 for those who claim the new deductions.
Key Facts
- The average tax refund this year is about $3,804, which is roughly 10% more than the same time last year.
- Over 40% of the tax returns filed so far include at least one new deduction from the recently passed tax law.
- Popular deductions include a $12,500 deduction for overtime pay and a $6,000 bonus for seniors.
- New tax provisions also include deductions for tipped income and incentives for buying American-made vehicles.
- Families with children benefit from larger, refundable tax credits, which can increase refunds even for those who owe little or nothing in taxes.
- Households with adjusted gross incomes below $100,000 are seeing the most benefit from these new tax breaks.
- The average refund gain could rise to $1,000 by the end of the tax season if current trends continue.
- Some financial experts note that while refunds are larger, ongoing inflation may offset these financial gains for many taxpayers.
