Families in Indiana’s Second District are expected to receive an average of $1,252 in savings thanks to the Working Families Tax Cut. In total, American taxpayers will save $191 billion in net new tax relief in 2026.
“Hoosiers deserve to keep more of what they earn,” Rep. Yakym said. “The working families tax cut will deliver exactly that when Americans file their taxes this spring. Voters wanted more money in their pockets, and that’s precisely what President Trump and Republicans delivered. These tax refunds represent real, meaningful dollars that Americans can use to strengthen their financial security and better provide for their futures.”
For the 2026 tax filing season, taxpayers are expected to take home an additional $91 billion in refunds and keep an additional $30 billion in their paychecks from reduced withholdings – according to a new study from Piper Sandler based on Joint Committee on Taxation (JCT) data.
The Working Families Tax Cut puts more money back into the American household in multiple ways:
- Makes the doubled standard deduction and lower tax rates from the 2017 Trump tax cuts permanent;
- Further increases the Standard Deduction by up to $1500 per family in 2025;
- No tax on tips;
- No tax on overtime;
- No tax on Social Security;
- Boosts the Child Tax Credit to $2,200 and indexes its value to inflation;
- Expands access to child care and makes the paid leave tax credit permanent;
- Expands 529 savings accounts to help families choose education that best fits their needs; and
- Expands health savings accounts so Americans families control their own health care.
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