Senator Thune: “Relief is on the Way” as 2026 Tax Season Begins

Northeast Radio SD News – South Dakota - U.S. Senate Majority Leader John Thune (R-S.D.) addressed the Senate floor on Tuesday, February 10, 2026, to highlight significant new tax benefits now available to Americans under the Working Families Tax Cuts. Thune emphasized that these provisions, which apply to the 2025 tax year, are expected to result in larger refunds for millions of households this spring.

Key Tax Relief for Families and Seniors

A central pillar of the legislation is the permanent expansion of the Child Tax Credit, which has been increased to $2,200 per child and indexed to inflation to maintain its purchasing power. Additionally, the law introduces “Trump Accounts”—tax-advantaged investment accounts for newborns that feature an initial $1,000 government contribution for children born between 2025 and 2028.

Beneficiary	New Benefit	Impact
Parents	Enhanced Child Tax Credit	$2,200 per child, linked to inflation
Seniors (65+)	Senior Bonus Deduction	An additional $6,000 deduction for low-to middle-income seniors
All Filers	Boosted Standard Deduction	Nearly double the 2017 levels

“No Tax on Tips or Overtime”

In a significant shift for service and emergency workers, the legislation allows for the deduction of tips and overtime pay.

·        Tipped Workers: Professionals such as waitstaff, bartenders, and gig-economy drivers can now deduct up to $25,000 in tipped income.

·        Overtime Earners: Workers who frequently work extra hours—including nurses, firefighters, and paramedics—may deduct up to $12,500 of the “premium” portion of their overtime pay.

“We call it the Working Families Tax Cuts for a reason... We set out to make life better for hardworking Americans,” Thune stated, noting that the relief aims to offset the financial strain caused by recent inflation.

A Head Start for the Next Generation

The “Trump Accounts” initiative allows parents to build long-term wealth for their children. These accounts function similarly to a traditional IRA: funds are invested in stock market indices and become accessible when the child reaches age 18 for education, home purchase, or business start-up.

Leader Thune concluded his remarks by assuring taxpayers that this relief is designed to reach “the moms and dads struggling to fit dentist visits... into the budget” and seniors pursuing a hard-earned retirement.