Surprising Facts about American Taxes & Taxpayers
Knowing a few facts and trivia about American taxes can help take the edge off the day.
Keep reading to learn everything you ever wanted to know, plus some things you thought you didn’t want to know, about taxes and taxpayers.
1- Over 163 Million Americans Filed in 2025
The IRS received approximately 163.6 million individual income tax returns during the 2025 filing season. This reflects a steady increase in filing volume as more taxpayers entered the system.
2- Over 60 Million Americans Filed their Own Taxes
Around 64,601,000 taxpayers chose to self-prepare and file their returns electronically in 2025.
3- Most Taxpayers Still Use Professionals
Around 74,896,000 E-filing returns received from tax professionals.
4- Paper Filing is Becoming Rare
about 11 million taxpayers opted for traditional paper returns in 2025
5- Total Refunds
Approximately 104 million taxpayers (63%) received refunds, and about 3.6 million taxpayers received their refunds beyond the IRS’s normal processing time, with an average wait time of 7 weeks for e-filers and 14 weeks for paper filers.
6- The Average Refund Topped $3,000
The average tax refund grew to $3,167 in 2025.
7- Higher Standard Deductions
The bill makes the larger standard deduction created under the TCJA permanent. Additionally, the amounts for 2025 are slightly expanded.
- Single or Married Filing Separately — $15,750
- Head of Household — $23,625
- Married Filing Jointly or Qualifying Surviving Spouse — $31,500
8- Increased Deduction for Seniors
In addition to the standard deduction or itemized deduction, taxpayers 65 and older will be able to take an additional $6,000 off of their taxable income.
9- SALT Deduction Cap Bill Increase
The State and Local Tax (SALT) Deduction provides a federal deduction for income and property taxes paid at the local and state level.
The changes include the following:
- Cap raised to $40,000 for incomes under $500,000 ($250,000 for Married Filing Separately).
- If your Modified Adjusted Gross Income (MAGI) is over $500,000, then the cap is gradually reduced by 30% (until it reaches $10,000).
- The cap and income threshold will increase 1% annually.
10- Overtime Pay Received Deduction (No Tax on Overtime)
- Income eligible for the deduction is capped at $12,500 (Single) / $25,000 (Married Filing Jointly).
- Those with higher Modified Adjusted Gross Incomes (MAGI) may only be able to claim a partial deduction as the benefit begins to phase out starting at $150,000 (Single) / $300,000 (Married Filing Jointly).
11- Tips Received Deduction (No Tax on Tips)
The new No Tax on Tips law allows for a dollar-for-dollar deduction for a designated amount of tips earned by workers where tipping is customary.
12- Auto Loan Interest Relief
New deduction allows taxpayers to deduct up to $10000 on interest they paid to buy a new American-made vehicle in 2025.
13- Increased Child Tax Credit
The higher value of the Child Tax Credit (CTC) set by the TCJA is now permanent and slightly increased to $2,200 per child. Additionally, the amount of the CTC and related refundable credit of S1,400 will be adjusted for inflation annually.
14- Direct File Expanded to 25 States
The IRS’s free, government-run “Direct File” tool was made permanent and expanded to 25 states for the 2025 season.
15- 30 Million Taxpayers Were Eligible for Free Direct Filing
Approximately 30 million Americans were eligible to file directly with the IRS for free using the new Direct File system.
16- Free File Income Limits Increased
The traditional IRS Free File program now allows anyone with an Adjusted Gross Income (AGI) of $89,000 or less to use free commercial software.
17- Tax Return Takes 13 Hours on Average
average tax return takes 13 hours and costs $290.
18- Tax Day 2026
The deadline for most Americans to file their 2025 tax returns is April 15, 2026.
19- The IRS Workforce is Reduced
The IRS is navigating a period of significant upheaval, with its workforce reduced from approximately 100,000 in 2025 to around 75,000 staff currently.
20- The First Income Tax was for the Civil War
The first U.S. income tax was enacted in 1861 to help fund the American Civil War, though it was later repealed and replaced.
21- Tax Rates Once Hit 94% During World War II
In 1944, the top marginal tax rate peaked at 94% on taxable income over $200,000.
22- Nicolas Cage Owed Over $13 Million
In 2008, Nicolas Cage had $13.3M in tax liens after not paying his IRS debts in 2002, 2003, 2004, 2007 and 2008.
23- Most Americans Aren’t Sure If Stimulus Counts as Income
79% of Americans don’t know if they should pay income taxes on stimulus checks (they don’t!).
24- Charlie Sheen Once Paid Lindsay Lohan’s Taxes
In 2009, Lindsay Lohan had a $93,701.57 tax obligation, which Charlie Sheen paid off for her.
25- A Vice President Resigned Because of Tax Evasion
In 1973, Vice President Spiro T. Agnew resigned from the offices because of alleged bribery and tax evasion.
26- Less Americans Are Visiting IRS.gov This Year
Around 334,172,000 visited IRS.gov in 2025, which is less than 2024 that saw 591,742,000 visits.
27- Cryptocurrency Can Complicate Your Taxes
The IRS sent over 70,00 warning letters in 2019 to taxpayers who use cryptocurrency.
28- The Majority of Americans Are Eligible for Free Tax Filing
Roughly 70% of taxpayers qualify for IRS Free File, but only a fraction of eligible filers use the software.
29- Your Chances of Getting Audited Are Slim
According to IRS audit statistics, about 0.4% of total individual returns get audited by the IRS.
30- Baseball Players Can Get in Trouble For Not Paying Merch Taxes
In 1990, baseball legend Pete Rose served five months in jail for unpaid taxes on memorabilia sales.
31- Expect A Wait When You Call The IRS
The average IRS call wait time was between 17 to 19 minutes in 2025.
32- IRS Live Assistance
To improve service, the IRS has continued to modernize its phone lines with callback options available for 95 percent of callers seeking live assistance on its main toll-free phone applications when CSRs were available.
33- The Tax Freedom Day
According to the Tax Foundation’s calculations, Americans must work more than 99 days of the year before earning enough money to pay federal, state, and local taxes.
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