U.S. Treasury Secretary Scott Bessent shared encouraging numbers about the 2026 tax filing season on Monday. Individual tax refunds are up more than 10% compared to last year. Nearly half of all filers now claim new deductions created by the Republican tax cut law Congress passed in 2025.
Speaking on Fox and Friends, Bessent highlighted the overtime pay deduction as the standout provision. About 25% of all returns the IRS has received so far include that specific claim. Bessent called it “the home run” among the new deductions. Filers are also taking advantage of tax-free treatment for tips, Social Security income, and auto loan interest on domestic vehicles.
Refund Numbers Tell the Story
IRS data through March 20 backs up Bessent’s claims. The average individual refund this year sits at $3,571. That marks a $350 jump — or 10.9% — over the same period in 2025.
The tax overhaul also raised the deduction cap for state and local taxes by $30,000. Bessent noted that many taxpayers are already adjusting their paycheck withholdings for 2026 earnings. In his words, they are getting automatic pay increases simply by updating their W-4 forms.
Treasury Ramps Up Fraud Crackdown
Bessent also addressed a sharp rise in fraud-related bank filings. Suspicious activity reports tied to potential money laundering and fraud jumped 20% this year. He attributed the spike to a broader crackdown on schemes targeting federal healthcare and social benefits programs. The fraud involved reaches into the billions, according to Bessent.
He urged the public to submit tips through the Treasury’s whistleblower website. Tipsters can earn rewards of up to 30% of any funds the government recovers based on their information. So far, the program has generated 700 leads for investigators at the Treasury’s Financial Crimes Enforcement Network.