The Working Families Tax Cuts are reshaping the 2026 filing season with substantial increases to standard deductions and credits that put more money back into American households. For 2025 taxes being filed now, married couples filing jointly see their standard deduction rise to $32,200, while single filers receive $16,100, according to the Internal Revenue Service.
The law, formally known as the One Big Beautiful Bill Act, was signed into law one year ago and delivered its first major filing season this year. The Treasury Department reported that 97% of filers received a tax cut, with an average refund of $3,300, and the government issued a total of $325 billion in tax refunds across American families during the 2026 filing season.
Beyond the standard deduction increases, the Working Families Tax Cuts expanded other key provisions. The child tax credit climbed to $2,200 per qualifying child for 2025 taxes, up from the previous $2,000. Seniors age 65 and older gained a new $6,000 additional deduction on top of the standard deduction for tax years 2025 through 2028, effectively doubling the benefit for married couples filing jointly to $12,000 combined.
The expanded standard deductions represent a significant shift from prior law. For single filers, the increase of $350 from 2025 to 2026 means tax savings ranging from $75 to $278 depending on income bracket, according to the Bipartisan Policy Center. Married couples filing jointly saw their deduction jump by $700, translating to tax cuts between $150 and $556 across different brackets.
The refunds this year show a marked improvement over prior filings. The full-season average refund for 2024 returns filed in 2025 was $3,167, per IRS data. Early reports from the current 2026 filing season indicated refunds running 11% higher than the same point the previous year, with some estimates showing average refunds near $3,800 by early March 2026.
Workers also benefited from new deductions for tip income and overtime pay. Over 29 million filers claimed the no-tax-on-overtime deduction, with an average deduction exceeding $3,100, according to the Senate Finance Committee. These provisions, combined with the permanent nature of the tax cuts through 2028, aim to provide sustained relief for working and middle-income families navigating the evolving tax landscape.
Sources
- U.S. Department of the Treasury — reported $325 billion in total tax refunds, $3,300 average refund, and 97% of filers received tax cuts in 2026 filing season
- Internal Revenue Service — confirmed standard deduction amounts for 2026 ($32,200 married filing jointly, $16,100 single filers) and filing season statistics
- Bipartisan Policy Center — provided tax savings estimates by bracket for standard deduction increases
- Senate Finance Committee — reported 29 million filers claimed overtime deduction with average over $3,100
- The Motley Fool — cited full-season average refund of $3,167 for 2024 returns filed in 2025
