By Congressman Russ Fulcher
Tax season is upon us—and this year brings more than deadlines, it is anticipated to deliver historic savings for Idahoans.
It’s my honor to represent the First District of Idaho in the U.S. Congress. Here’s what you and your household need to know for this filing season.
The Treasury is now projecting that family refunds will increase by an average of $1,000, and the average worker earning between $15,000 and $80,000 is estimated to see a tax cut of 15 percent. This is largely due to recent legislation that the U.S. Congress passed, and President Donald Trump signed into law. H.R. 1, the Working Families Tax Cuts, otherwise known as the One Big Beautiful Bill Act, was enacted on July 4, 2025. This transformative, once-in-a-generation legislation achieved meaningful provisions for Idahoans. Because some of the tax cuts in this bill are retroactive to 2025, many Americans will see savings this filing season.
For households, H.R. 1 doubled the Standard Deduction, meaning Idaho families do not have to pay taxes on the first $31,500 earned, a significant saving for hardworking Americans. Launching July 5, 2026, families will have the opportunity to enroll their child in a new program called “Trump Accounts.” This game-changing, pro-family initiative is designed to help the next generation of Americans invest in America—setting them up early for success in their education, finances, and career. Specifically, Trump Accounts offer a tax-advantaged savings account for children, with $1,000—privately funded—given to every newborn delivered between 2025 and 2028. To open an account, file IRS Form 4547 when your child is born or when you file this year. Another policy win for Idaho families achieved in this legislative package is the enhanced Child Tax Credit (CTC), which was increased for eligible families to $2,200 per child. Whether it’s baby formula, diapers, or car insurance when they’re teenagers, there are a lot of expenses involved in raising a family. This tax break helps parents keep more of their hard-earned money.
For Main Street, there is also excellent news. In fact, the National Federation of Independent Business (NFIB) states H.R. 1 is one of “the most pro-small business pieces of legislation in recent history.” To stimulate economic growth and provide tax certainty for businesses, H.R. 1 increased the small business tax deduction (section 199a deduction) to 23 percent and made it permanent. This impactful write-off was claimed by 25.9 million small businesses in 2021 alone, according to the NFIB. Furthermore, the Working Families Tax Cuts supports efforts to reshore good-paying American jobs by allowing 100 percent expensing for new factories and upgrades to preexisting facilities, while also securing indefinite incentives for employers to provide paid family and medical leave for employees—helping recruit and retain a strong workforce.
I’m particularly proud that my bill, the KEEP Act, H.R. 405, to eliminate taxes on overtime pay, was included in this landmark package. As you may know, the KEEP Act was inspired by a constituent conversation at a town hall meeting in Sandpoint, Idaho. Since that chance encounter that prompted this legislation, I am pleased to share that it is now law, which means our dedicated firefighters, police officers, and nurses get to keep more of their hard-earned paycheck. I always say the best ideas come from you, and I continue to receive invaluable counsel as I meet and speak with folks across the Gem State.
To provide additional relief for Idahoans, this bill eliminated taxes on tips and created a $6,000 deduction for seniors filing individually and a $12,000 deduction for joint filers, significantly reducing the tax burden for citizens age 65 and older. After years of high inflation that forced Americans to pay more for just about everything, this package is delivering tangible, positive economic benefits. I am honored to have worked with my colleagues to achieve reforms in this bill that will benefit our Idaho communities, and when it arrived on the House floor, I gladly voted for its passage. For more information this tax season, I encourage you to view online resources from the IRS athttps://www.irs.gov/newsroom/one-big-beautiful-bill-provisions. Over the last 365 days, we have accomplished a great deal, and as we celebrate our nation’s 250th anniversary this year, I firmly believe the best is still ahead.
About Russ Fulcher
Russ Fulcher is a fourth-generation Idahoan, grew up on a dairy farm in Meridian, Idaho. He was elected to Congress to represent Idaho's first congressional district in 2019 after serving in the Idaho State Senate for ten years. Visit https://fulcher.house.gov/ for more information or to find contact info.
