The U.S. Department of the Treasury reported Tuesday that millions of Americans claimed tax relief under President Donald Trump’s Working Families Tax Cuts during the most recent filing season. According to the analysis, low- and middle-income households received the largest share of the benefits.
According to a June 2 press release from the Treasury Department, taxpayers claimed approximately $82 billion in individual tax relief through the April filing deadline under provisions included in the Working Families Tax Cuts. Treasury officials said the total is expected to increase as taxpayers who requested filing extensions continue submitting returns.
Treasury Secretary Scott Bessent said the data demonstrates that the tax package delivered significant relief to working Americans and families.
“American families and workers overwhelmingly benefited from the Working Families Tax Cuts, receiving the largest share of the historic tax relief delivered this past filing season,” Bessent said. “This analysis confirms President Trump’s tax policies deliver substantial tax cuts to hardworking Americans and provide greater relief and financial certainty to low- and middle-income households.”
While Iran’s economy is in free fall, the regime has chosen to co-opt digital asset technologies for its own corrupt agenda, including evading sanctions and transferring wealth out of the country. Iran’s current economic chaos is proof that @POTUS’ maximum pressure campaign has… https://t.co/CJPNSgccqh
— Treasury Secretary Scott Bessent (@SecScottBessent) June 2, 2026
The Treasury Department stated that without the legislation, taxpayers would have faced the scheduled expiration of the 2017 Tax Cuts and Jobs Act, which officials said would have resulted in approximately $5 trillion in tax increases over time. According to the Treasury, 97% of filers who received a tax cut during the most recent filing season would have owed more in taxes absent the extension of the 2017 tax provisions.
The analysis found that tax relief was concentrated among households earning less than $200,000 annually. The Treasury reported that 96% of filers receiving a tax cut earned less than $200,000 per year, while nearly 70% earned less than $100,000.
Among taxpayers earning between $100,000 and $200,000 who claimed one of the tax provisions, the average tax reduction exceeded $1,250. Taxpayers earning between $50,000 and $100,000 who claimed one of the provisions received an average tax cut of more than $815.
The report highlighted several signature provisions included in the package. The Treasury reported that more than 7.5 million filers claimed the “No Tax on Tips” deduction, receiving an average deduction of more than $7,000. According to the department, 90% of taxpayers claiming the deduction earned less than $100,000 annually, while 99% earned less than $200,000.
More than 29 million filers claimed the “No Tax on Overtime” deduction, with an average deduction exceeding $3,100. The Treasury reported that 75% of taxpayers using the provision earned less than $100,000 annually, while 96% earned less than $200,000.
The department also reported that more than 35 million seniors claimed the Enhanced Deduction for Seniors, receiving an average deduction of more than $7,500. According to the Treasury, 68% of participating seniors earned less than $100,000 annually and 94% earned less than $200,000.
Other provisions cited in the report included the “No Tax on Car Loan Interest” deduction, which the Treasury said was claimed by more than 1.4 million taxpayers purchasing qualifying American-made vehicles. Those taxpayers received an average deduction of more than $1,800. The Treasury reported that 62% of claimants earned less than $100,000 annually and 98% earned less than $200,000.
The Treasury also reported that more than 5.5 million Trump Accounts have been opened since the program’s launch, with approximately 1.4 million qualifying for a $1,000 pilot contribution. According to the department, 86% of the accounts are linked to families earning less than $200,000 annually.
The report further found that nearly 40 million families claimed the enhanced Child Tax Credit, which the Treasury noted was permanently expanded under the legislation. Approximately 65% of participating families earned less than $100,000 annually, while 89% earned less than $200,000.
In addition, the Treasury reported that more than 127 million taxpayers—representing roughly 90% of all filers—claimed the permanently doubled standard deduction during the filing season. The department said the provision continues to simplify tax filing requirements for millions of Americans.
Arizona is known as the national gold standard for education opportunity. With a decades long history of tax credit scholarships supporting families and the nation’s first education savings account (ESA) program, Arizona paved the way for other states to make bold education reforms. Senate Bill 1142, now on the governor’s desk, is the next iteration of such reforms.
Arizona faces a choice: opt in to the federal education freedom tax credit (EFTC)—or lose big. Created by the Working Families Tax Cut Act, taxpayers can claim up to $1,700 in dollar-for-dollar federal tax credits for contributions to nonprofit Scholarship Granting Organizations, referred to as school tuition organizations (STOs) in Arizona. From there, STOs provide scholarships for numerous educational resources—including tuition, tutoring, and special education services—all designed to prioritize students.
And at what cost to state budgets? Absolutely none.
Simply put, these private donations will have a tremendous impact for Arizona families. If Arizona rejects this opportunity, 177,000 scholarships may be lost over the next three years alone. That’s 177,000 kids who won’t receive the educational support they need. Access to the EFTC ensures that Arizona parents can continue tailoring education to the unique needs of each child.
Importantly, Arizona taxpayers can donate to STOs regardless of their state’s opt in status. But states that decline to participate will effectively require residents to send donations across state-lines, instead of using funds to educate children in their home state.
Arizona is positioned to immediately and uniquely benefit from the EFTC because of its mature network of STOs. These non-profits are well-established—ready to immediately process charitable donations without the ramp up period that may hinder less-prepared states. Where other states may spend the early years building up organizational capacity of the nonprofit sector, Arizona can spend them distributing scholarships.
EFTC scholarships will be another avenue to fund the freedom for families who seek educational instruction alternatives. Denying families this simple yet effective tool will only hinder their ability to do what they need to for their child’s success. Research shows that choice benefits not only participating families, but traditional public school systems, too. A peer-reviewed study examined all 50 states and Washington, D.C., measuring access to private, charter, homeschool, and public school options. The findings were clear: states with higher levels of educational freedom consistently demonstrated higher student achievement.
One of the biggest reasons families chose to privately educate their children is that they desire instruction aligned with their values; one school cannot meet the needs of all students. By providing an array of opportunities, families are free to choose what’s best for their child. Arizona now has an opportunity to provide an additional $983 million in funding over the next three years.
Momentum is growing across the country with nearly 30 states opting in to the credit. A bipartisan coalition of governors and state legislators have embraced educational freedom, and now our state can supercharge education freedom for students and families.
Opt in or lose big, Arizona.
Kimmie Dillon serves as executive director of the America First Policy Institute’s Arizona state chapter.Sarah Hitchcock serves as director of the Education Freedom campaign at the America First Policy Institute.
Congressman Andy Biggs has called out Arizona Gov. Katie Hobbs for “blatant hypocrisy” after she publicly pitched the benefits of the federal Working Families Tax Cut, a policy she previously denounced as a “betrayal.”
In a statement released Thursday, Biggs said Hobbs is “shamelessly” attempting to attach herself to a Republican-driven tax package that she vocally opposed earlier this year.
“After calling the Working Families Tax Cut a ‘betrayal,’ Katie Hobbs now shamelessly wants to take credit for the tax cuts passed by President Trump and Congressional Republicans,” Biggs said. The congressman provided links to her July comments to Fox10 in which the Governor stated:
“This bill is a betrayal of working families, children, and seniors in Arizona who will lose their healthcare, their ability to put food on the table, and good-paying jobs, all to give tax cuts to the people who are already billionaires while ballooning our national debt by $3.4 trillion.”
Biggs argued that despite Hobbs’ prior opposition, Republicans “successfully delivered tax relief to working-class Arizonans and seniors who are being hurt by the rising energy costs of Hobbs’ progressive, green energy agenda.”
On X, Biggs highlighted Hobbs’ recent promotion of her own “Middle Class Tax Cuts Package,” which includes bigger deductions, tax relief for seniors, and exemptions on taxes for tips, overtime, and new car loan interest.
After calling the Working Families Tax Cut a “betrayal” and opposing its passage, Katie Hobbs now shamelessly wants to take credit for the tax cuts President Trump and Republicans in Congress delivered for Arizona families.
Hobbs, who recently launched her 2026 reelection bid, has highlighted the tax cut in campaign messaging and controversially billed her events as “Arizona First” rallies, as noted by Capitol Media. Biggs asserted that the move reflects political weakness within her own party.
“Even her fellow Democrats are calling her ‘weak’ because they know the truth just like Arizonans do: Katie Hobbs has failed our state, and now she’s trying to cover it up by taking credit for Republican victories,” he said citing an op-ed from AZ Mirror.
The Working Families Tax Cut, a component of the “One Big Beautiful Bill” championed by President Donald Trump, Biggs, and other House Republicans, expanded credits for lower- and middle-income households and included relief provisions for seniors. Hobbs criticized the measure during negotiations, calling it fiscally irresponsible and siding with Democrats who argued it favored Republican priorities.
