What to Know This Tax Season

Wednesday, April 15th, is Tax Day, but Republicans and President Trump are working to turn what is often a burden into more relief and simplicity for American families. Through the Working Families Tax Cuts Act, we are focused on putting more money back into your pockets while strengthening our local economy.

This tax year, Americans will see the impact. Early data shows the average tax refund has risen to more than $3,400, an increase of nearly 11% from last year. Many families are receiving their largest tax refunds in years. This money can be used to offset higher prices, pay down accrued debt, catch up on bills, or grow their savings. Put simply, this legislation provides real, meaningful relief.

The first and most significant impact of the Working Families Tax Cuts Act is the increase to the standard deduction, which approximately 88-91% of Americans utilize. The standard deduction reduces your taxable income, allowing taxpayers to avoid the time-consuming process of itemizing expenses. The legislation permanently extends the 2017 Tax Cuts and Jobs Act higher standard deduction and further increases this tax break to $15,750 for single filers and $31,500 for married couples.

Hourly workers or those who put in extra hours will also see new benefits. With no tax on overtime, those who take on additional shifts can keep more of their earnings. Whether it is a nurse working a double shift, a police officer protecting our communities, or a welder powering our industries, hard work should always be rewarded. We also included no tax on tips, which will result in boosting take-home pay for the nearly four million tipped workers across the country.

Investing in the next generation was a priority for the administration and was made possible through the newly created Trump Accounts. These savings accounts include a $1,000 initial contribution for eligible children born between 2025 and 2028. The accounts build long-term financial stability and give children a head start on saving for education opportunities, a first home, or even a dream business. According to historical trends, even if no additional contributions are made to these accounts, by 18 years of age the balance will grow to $6,000, by 27 the account will hold $15,000, and by 55 the account will contain $243,000. These numbers only go up if parents, grandparents, or other loved ones are able to contribute. It’s also not just kids. We delivered meaningful relief for our seniors through a $6,000 bonus deduction which will affect 88% of Oklahomans 65 and older.

We also strengthened support for working families through paid leave. This legislation permanently extends the paid family leave tax credit for employers and expands access nationwide. Paid leave is critical for families, ensuring they can be present for life’s most important moments.

This Tax Day should feel different. By lowering taxes, we are helping Americans keep more of what they earn and invest in their futures. This is exactly what the Working Families Tax Cuts Act was designed to do and why I was proud to support it.