Early numbers from the 2026 tax season show that recent tax changes are shaping how people file their returns. More people are using new deductions from last year’s Republican tax law. According to Reuters, Treasury Secretary Scott Bessent said nearly half of all taxpayers have claimed at least one of these new options, which means more people are paying attention to the updated rules. 

The deduction for overtime premium pay is one of the most popular new benefits. Bessent called it “the home run” of the new law and said that 25% of tax returns have claimed it so far. Other new deductions cover tips, Social Security income, interest on auto loans for US-made vehicles, and a bigger state and local tax deduction.  

These changes are also affecting refund amounts. According to the IRS, the average refund as of March 20 is $3,571, which is $350 more than at this time last year, a 10.9% increase. Bessent said some people are adjusting their withholding due to the new rules, calling it “automatic pay increases by changing their withholding.” 

Reports of suspicious activity tied to possible fraud and money laundering are up by 20%. Bessent said this is part of a broader effort to stop misuse of federal programs. He encouraged people to send tips through Treasury channels, where whistleblowers can get up to 30% of recovered funds.