Tax Cuts for Working Families

Tax Day is approaching fast. It’s certainly not a day anyone looks forward to. Still, thanks to the Working Families Tax Cuts that we passed last year, many folks are seeing more money in their pockets.

The average tax refund this year is up 11 percent. With the No Tax on Tips and No Tax on Overtime provisions in the law, many of our service and essential workers are getting back more of their hard-earned money. This meaningful tax relief also extends to many of our seniors, with more than 26 million older Americans claiming the deduction so far.

Families across the country have also been given the opportunity to open Trump Accounts for their children on their tax returns, with more than 4 million already doing so. These tax-deferred investment accounts for children can receive contributions from parents, grandparents, companies, and others starting July 4th, setting kids up for the future when they are on their own while also teaching them the value of investing early in life. Parents of children born between 2025 and 2028 will also get a $1,000 contribution from the federal government.

One quick word of caution: if you are mailing your taxes this year and haven’t done so already, you need to get them mailed today or make sure your local Post Office postmarks the envelope in person. There is no guarantee that the Post Office will get it postmarked by April 15th, especially if you wait until the last minute. The conversation about whether the Post Office should postmark and process mail locally is a topic for another newsletter. Still, I want to ensure you don’t end up hit with an unexpected late fee because the Postal Service can't process mail in a timely fashion anymore.

With less than a week left until Tax Day, we’re already seeing folks take full advantage of the Working Families Tax Cuts. I’m thrilled we got it done last year, and now we’re seeing the benefits of that law. While everybody hates paying taxes, I’m glad that most middle-class Americans can keep more of their hard-earned money this year.

Sincerely,

Sam Graves