Taxpayer perception diverges from $130 billion in income tax cuts

Forty percent of adults believe their taxes are much or somewhat higher, while 10% believe they are lower. This perception exists despite the One Big Beautiful Bill Act cutting individual income taxes by almost $130 billion and increasing the average tax refund by 11%. The act implemented seven major cuts last year. It increased the maximum child tax credit by $200 and the standard deduction by $750 for single filers and $1,500 for joint filers. Taxpayers earning under $500,000 saw the state and local tax deduction cap increase to $40,000. The law created a $6,000 additional deduction for seniors phasing out above $75,000 for individuals and $150,000 for joint filers, and a $10,000 auto loan interest deduction phasing out above $100,000 for individuals and $200,000 for joint filers. It also established deductions for up to $25,000 in tip income and up to $12,500 in overtime income for individuals, both phasing out above $150,000 for individuals and $300,000 for joint filers. Withholding tables are adjusting this year to provide these cuts through higher take-home pay. Ten percent of adults believe their taxes are somewhat or much lower.