Tax refund update: Extra $1,000 expected for 100 million American families

The Treasury Department says tax season is open and its Working Families Tax Cuts will raise average refunds by about $1,000 per household for more than 100 million households; filing began Jan. 26 and federal returns are due April 15.

The Treasury Department posted an update as tax filing season opened, saying President Trump’s Working Families Tax Cuts will affect refunds and what many taxpayers owe. Tax season opened on January 26 and federal income taxes remain due April 15. The department highlighted several changes, including higher child tax credits, a larger standard deduction, and a new option to open accounts for eligible children. Key points: - The Treasury said refunds are set to increase by an average of $1,000 per household and that more than 100 million households are expected to receive a refund. - For families with two children, the article reports an average tax cut of about $1,700 due to an enhanced child tax credit; the child tax credit for 2025 was raised to $2,200 and adjusted for inflation. - The standard deduction was doubled, which the Treasury said affects roughly 90 percent of American taxpayers. - About 44 million families with children under 18 can file Form 4547 to open a child account; children born Jan. 1, 2025 through Dec. 31, 2028 would receive a $1,000 Treasury contribution that is invested until adulthood. - Experts quoted in the article noted changes to the tax treatment of tips and the ability to deduct auto loan interest without itemizing, and they warned that some public messaging — including claims of "no tax on Social Security" — is inaccurate; reporting forms for tip taxation are being updated for fuller implementation in 2026. Summary: Larger refunds are reported to be arriving for many households, with specific increases tied to the boosted child tax credit and the doubled standard deduction. Experts in the article emphasize that some headlines oversimplify the rules and that several provisions have caps or phase-outs. Tax filing is underway after the Jan. 26 opening and federal returns are due on April 15.