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This Wednesday, the deadline for most Americans to file their income tax returns for 2025 will expire, and the Trump administration took advantage of Tax Day to highlight the benefits of the most extensive tax reform in decades: the Public Law 119-21, known as the "Great and Beautiful Law," reported AP.
Signed on July 4, 2025, the law introduces substantial changes that are already affecting tens of millions of taxpayers in this fiscal season.
Among the most relevant new developments, the law exempts tips and overtime from federal taxes for workers with annual incomes below 150,000 dollars.
Until March 2026, 3.5 million taxpayers claimed the tip deduction, with an average reduction of $1,300 in their tax liability, while over 25 million claimed the overtime exemption, with an average deduction of $3,100.
More than 30 million taxpayers over the age of 65 claimed the additional deduction of $6,000 per person —$12,000 for couples— with an average saving of $7,500, according to the Department of the Treasury.
The standard deductions have also increased: $32,200 for married couples, $16,100 for singles, and $24,150 for heads of household.
The limit for the deduction of state and local taxes (SALT) has been raised to $40,000 for taxpayers with an annual income of less than $500,000, effective from 2026 to 2029.
The Department of the Treasury reported that 53 million taxpayers utilized at least one of these new exemptions before the deadline of April 15.
The refunds from the Internal Revenue Service increased by 11% compared to the previous year, averaging $3,571 per taxpayer as of April 2, with a total refunded exceeding $202.595 billion.
However, the figures are not without controversy.
The Center for American Progress calculated that the Trump's promise of additional $1,000 refunds fell short by $665: the actual increase was only between $335 and $350.
The criticisms go beyond refunds.
A survey by Fox News published this month revealed that 70% of registered voters believe their taxes are too high, the highest level recorded since this indicator started being measured in 2004, eleven points higher than in March 2025.
Trump's fiscal management disapproval reached 64%.
The economist Kimberly Clausing, a law professor at the University of California, Los Angeles, and former Treasury official, described the administration's tariffs as the largest tax increase that consumers have faced in 50 years, manifested through price hikes, according to AP.
Wholesale prices rose by 4% last month, which undermines the tax relief experienced by many families.
The law also cut Medicaid by up to $1.02 trillion and the SNAP food assistance program by $295 billion over the course of a decade, which according to projections will leave between 10.9 and 16 million people without health coverage by 2034.
The 2026 tax season is also marked by fear within the immigrant community: more than one million tax returns were not filed compared to the previous year, partly because undocumented immigrants are afraid that their information will be shared with immigration authorities.
Taxpayers with a Individual Taxpayer Identification Number (ITIN) also lost access to the child tax credit, except in cases of mixed-status couples.
According to the Media and Taxation Committee of the House of Representatives, the reform is "a success story: greater refunds in 2026 that will continue to help families cover the cost of everyday expenses."
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