WASHINGTON — A new analysis from the U.S. Treasury Department found that American families and workers claimed $82 billion in individual relief from the Working Families Tax Cuts, with the overwhelming majority of benefits flowing to households earning less than $200,000 annually.
The analysis, released as the tax filing season drew to a close, showed that 96 percent of filers receiving a tax cut earned less than $200,000, and nearly 70 percent earned less than $100,000. Filers earning between $50,000 and $100,000 received an average tax cut of more than $815, while those earning between $100,000 and $200,000 received an average cut of more than $1,250.
Among the law’s signature provisions, the No Tax on Overtime deduction was claimed by more than 29 million filers with an average deduction of over $3,100, with 75 percent of claimants earning under $100,000. More than 7.5 million filers claimed the No Tax on Tips deduction, with an average deduction of over $7,000 and 90 percent of claimants earning under $100,000.
The Enhanced Deduction for Seniors was claimed by more than 35 million filers with an average deduction of over $7,500, while nearly 40 million families claimed the enhanced Child Tax Credit, which the legislation permanently doubled and expanded. More than 127 million filers — representing 90 percent of all tax filers — claimed the permanently doubled standard deduction.
More than 5.5 million Trump Accounts were opened under the law, with 1.4 million eligible for the $1,000 pilot program contribution. The No Tax on Car Loan Interest provision was claimed by more than 1.4 million filers on new American vehicles, with an average deduction of over $1,800.
House Speaker Mike Johnson cited the Treasury figures at the weekly House Republican press conference, saying the data disproved Democratic claims that the tax cuts primarily benefited wealthy Americans. The legislation passed without a single Democratic vote.