By CONGRESSMAN NICK BEGICH
April 15, 2026 – When Republicans took the majority in Congress, they made a clear commitment: deliver tax relief for working Americans and prevent a looming tax increase. The Working Families Tax Cuts were the result of that effort – designed to lower the tax burden, increase take-home pay, and make the tax code better reflect how Americans earn a living.
This tax season, the impact of those policies is beginning to show up in real terms.
Across the board, the average tax refund is up significantly this year (nearly 11%), with average refunds topping $3,500, while millions more Americans will see an immediate boost in their paychecks as they adjust withholding for the lower tax rates made permanent by the legislation.
At the center of the law are several key provisions designed around everyday work: no tax on tips, no tax on overtime, and no tax on Social Security, along with targeted relief for seniors, small businesses, and young families.
The decision to eliminate taxes on tips and overtime recognizes how millions of Americans make a living. Service workers, hourly employees, and those juggling multiple jobs often rely on tips and extra hours. Now, more of their income stays in their pockets. Recent data shows these provisions are delivering, as nearly half of all filers so far have claimed at least one of the law’s landmark new tax cuts.
For workers who regularly put in overtime, the impact is immediate and meaningful. More than 20 million taxpayers have claimed the No Tax on Overtime provision, giving these workers a powerful new break on their hard-earned extra hours. Nearly 4.6 million taxpayers have benefited from No Tax on Tips, providing meaningful relief to service workers who rely on gratuities.
In Alaska, where work often doesn’t fit a traditional 9-to-5 schedule, these provisions can be significant. Many workers juggle multiple jobs, pick up extra shifts, or depend on seasonal industries like tourism and hospitality. Allowing more of that income to stay in their pockets reflects the realities of those economies.
At Kriner’s Diner in Anchorage, owner Norann Kriner has seen firsthand how the no tax on tips provision is helping her employees. Servers who depend on tips are now able to keep more of what they earn, giving them a more reliable and meaningful boost in take-home pay. For small businesses like hers, that kind of policy helps support workers and retain staff in a competitive labor market.
The Working Families Tax Cuts also include targeted relief for seniors. A new $6,000 deduction – $12,000 for couples – aims to support lower- and middle-income retirees, many of whom have felt the strain of rising costs in recent years. For older Americans living on fixed incomes, that additional relief can provide greater financial stability.
Small businesses are also experiencing historic relief with nearly 12 million small business owners seeing an average tax reduction of nearly $7,000, while the permanent extension of the 20% Qualified Business Income deduction is delivering $4,600 in average relief to eight million entrepreneurs. Restoration of immediate deductibility for research and development expenses applied retroactively is freeing up $100 billion in prior-year deductions for tens of thousands of businesses, while full expensing allows companies to write off investments immediately, improving cash flow and fueling expansion.
Through the Working Families Tax Cuts, we’re also building long-term financial security for millions of children by creating tax-advantaged investment accounts for children under the age of 18. Parents of more than four million children have already filed for Trump Accounts on their returns, giving their children an economic stake in the future of their country and a jumpstart on the American Dream.
This Tax Day, one thing is clear: for many Americans, the experience feels different from years past. Refunds are a bit larger, and for workers putting in extra hours or relying on tips – more of what they earn is staying in their pockets.
Republicans in Congress fought for these pro-worker, pro-family, pro-growth policies while every Democrat voted against the historic Working Families Tax Cuts – a bill that not only delivered tax relief for working families, but also prevented the largest tax hike in history.
This Tax Day, that’s a story worth telling.
Congressman Nick Begich represents Alaska.
One thought on “Nick Begich: From tips to overtime, Alaskan workers see relief this tax season”
Social security and Retirements for our Seniors shouldn’t be taxed.
That’s money that was set aside for their of age like one senior I know is paying 1800 dollars.
It’s immoral and leaders will one day have to answer for that after their passings.
The child tax credit is still immoral taking from the single childless adults to give what they should get in a refund to people who didn’t even work for it. I also know 6 other (childless) adults who didn’t get refunds again and they never get refunds and it’s because of that immoral child tax credit