Treasury Secretary reports 10.9 percent rise in tax refunds

U.S. Treasury Secretary Scott Bessent announced on Monday that individual tax refunds in the United States have increased by more than 10% during the 2026 filing season. According to data from the Internal Revenue Service as of March 20, the average refund amount is $3,571, an increase of $350 from the previous year. Bessent noted that nearly half of all filers are claiming new deductions introduced in the Republican tax cut law passed last year.

A significant portion of taxpayers—approximately 25% of those who have filed so far—are claiming a deduction for overtime premium pay earned in 2025. Bessent described this provision as a major success for the new tax code. Other popular claims include deductions for income from tips, Social Security, and interest on auto loans for domestic vehicles. Additionally, the updated law includes a $30,000 increase in deductions for state and local taxes, leading many taxpayers to reduce their withholding for 2026.

Theyre getting automatic pay increases by changing their withholding.

In addition to tax updates, Bessent highlighted a 20% increase in bank-filed suspicious activity reports this year. This rise is attributed to a federal crackdown on fraud involving healthcare and social benefits, which has reportedly reached billions of dollars. Bessent encouraged the public to assist by providing tips through a Treasury whistleblower website.

Individuals who provide information leading to the recovery of funds are eligible for rewards of up to 30%. This initiative has already generated 700 leads for investigators at the Financial Crimes Enforcement Network.