Working Families Tax Cut Posts: 'No Tax on Social Security' Is False; Filer Counts Are Inflated

Economy / Taxes Source: Facebook Posts MISLEADING

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Why This Matters for NY-23

NY-23 has a high share of working-class households, retirees on fixed incomes, and service-sector workers who earn tips or overtime. Langworthy published at least three Facebook posts in late March and early April 2026 promoting the “Working Families Tax Cut” (WFTC) — the popular name for the One Big Beautiful Bill Act (P.L. 119-21), signed July 4, 2025. The posts contain several factual inaccuracies and inflated figures worth examining.

Background: What Is the Working Families Tax Cut?

The One Big Beautiful Bill Act (OBBBA, H.R. 1, P.L. 119-21), signed into law on July 4, 2025, made the 2017 Tax Cuts and Jobs Act (TCJA) permanent and added several new provisions:

  • Standard deduction increase and child tax credit expansion
  • Deduction of up to $25,000 for qualified tip income
  • Deduction of up to $12,500/$25,000 for overtime pay
  • $6,000 additional deduction for taxpayers 65+ (expires December 31, 2028)
  • SALT deduction cap raised from $10,000 to $40,000

The Statements

March 31, 2026:

“The average IRS tax refund is up 11% compared to last year thanks to the Working Families Tax Cut that expanded the standard deduction and child tax credit, eliminated taxes on overtime, tips and Social Security…and more. Government spending down / Americans keeping more of the money THEY rightfully earned.”

April 7, 2026:

“It’s called the Working Families Tax Cut, because that’s exactly what it delivers. More in the pockets of hardworking Americans who make our country run. #factsmatter”

  • “The top 1% will pay MORE in federal taxes than they did before TCJA – over 40% of all federal taxes.”
  • “The top 10% of earners’ share of federal taxes will INCREASE by 6.6% compared to what they paid before TCJA.”
  • “The tax cuts and economic growth from the Working Families Tax Cut increases the take-home pay for a family of four by $10,900.”

Early April 2026 (undated):

“Thanks to our Working Families Tax Cut, Americans’ IRS refunds are up on average of $3,400. 5.7 Million have filed no taxes on tips. 23 Million have filed no taxes on overtime.”

Claim 1: “Average IRS tax refund is up 11%”

Verdict: CONFIRMED

IRS filing season statistics confirm this. As of the week ending March 27, 2026, the average refund was $3,521, up 11.1% from $3,170 at the same point in 2025. The figure was corroborated by CBS News, The Hill, and CNBC.

The 11% figure is accurate.

Claim 2: “Eliminated taxes on overtime, tips and Social Security”

Verdict: MISLEADING (tips and overtime) / FALSE (Social Security)

Tips and overtime: deductions, not elimination

The OBBBA created deductions — not exemptions — for tip and overtime income:

  • Tips: Up to $25,000 deductible from federal income taxes
  • Overtime: Up to $12,500 (single) or $25,000 (married) deductible

What this means in practice:

  • Social Security (FICA) and Medicare payroll taxes still apply to all tip and overtime income — these are not eliminated
  • Income above the deduction cap remains fully taxable
  • Both provisions include income phase-outs
  • Calling this “eliminated taxes” overstates the scope of the deduction

The IRS itself describes these provisions as “deductions,” not eliminations. “Reduced” or “deducted” would be accurate. “Eliminated” is not.

Social Security: not eliminated — not close

This is the most significant inaccuracy. The OBBBA did not eliminate taxes on Social Security.

What it did: Created a $6,000 additional deduction for taxpayers age 65+, subject to income limits ($75,000 single / $150,000 married filing jointly).

What it did not do:

  • Remove the existing income thresholds under which Social Security benefits become taxable (unchanged since 1984 and 1994)
  • Eliminate Social Security taxes for seniors above the deduction cap
  • Create a permanent change — the provision expires December 31, 2028

The Tax Foundation, Tax Policy Center, and independent tax analysts have all noted that Social Security benefits remain taxable under the same rules as before for many seniors. LangworthyWatch previously fact-checked Langworthy’s July 2025 claim that “88% of seniors will no longer pay federal tax on their Social Security benefits” — the same false framing appears here.

See: Social Security “88%” Claim

Claim 3: Average refund “up on average of $3,400”

Verdict: ROUGHLY ACCURATE (slightly understated)

IRS data shows the average refund was $3,521 (week ending March 27) and $3,462 (week ending April 3). $3,400 is in the right range but slightly understates the actual figures. Not materially wrong.

Claim 4: “5.7 Million have filed no taxes on tips”

Verdict: OVERSTATED

IRS filing season statistics through early April 2026 show approximately 4.6 million filers claimed the tips deduction — not 5.7 million. The figure Langworthy cited overstates confirmed IRS data by approximately 24%.

Claim 5: “23 Million have filed no taxes on overtime”

Verdict: OVERSTATED

IRS data as of early April 2026 showed approximately 20 million filers claimed the overtime deduction — not 23 million. The figure overstates confirmed IRS data by approximately 15%.

Claim 6: “Top 1% will pay MORE in federal taxes than before TCJA — over 40%”

Verdict: SELECTIVELY FRAMED

The Tax Foundation confirmed the top 1% paid approximately 40.4% of all federal income taxes in recent data years. But the claim is misleading in two respects:

Wrong baseline: Comparing to “pre-TCJA (2017)” rather than to TCJA as extended is a deliberate rhetorical choice. The TCJA took effect in 2018 and has been operative law for eight years. The relevant question is what the OBBBA does relative to the law that was actually in place — not a 2017 counterfactual.

Income taxes vs. all federal taxes: The underlying data covers federal income taxes only. When Social Security and Medicare payroll taxes — which are regressive — are included, the top 1%’s share of total federal taxes is lower and the law looks less progressive.

The CBO’s distributional analysis found the OBBBA raises after-tax income for the top 10% by 2.7% by 2034, while the bottom 10% see incomes fall by 3.1% — partly because the bill’s Medicaid cuts fall disproportionately on lower-income households.

Claim 7: “$10,900 increase in take-home pay for a family of four”

Verdict: INFLATED — Republican projection, not independent estimate

This figure originates from the House Ways and Means Committee and explicitly incorporates projected macroeconomic growth effects, not just direct tax savings. Independent analysts — including Penn Wharton Budget Model — project more modest direct benefits for median-income families, with the largest gains concentrated at higher income levels. The $10,900 represents a best-case projection under optimistic growth assumptions, not a consensus estimate.

Missing Context: What’s Also Driving Refund Increases

Langworthy’s posts attribute the refund increase entirely to WFTC provisions aimed at working families. The Bipartisan Policy Center identified the SALT deduction increase (from $10,000 to $40,000) as a significant additional driver of larger refunds — a provision that disproportionately benefits higher-income taxpayers in high-tax states, not working families.

Additionally, a higher average tax refund indicates taxpayers overwitheld — they gave the government more than required during the year, interest-free. A larger refund is not the same as a tax cut.

Summary

ClaimVerdict
Average refund up 11%CONFIRMED
“Eliminated taxes on tips and overtime”MISLEADING — deductions with caps; FICA still applies
“Eliminated taxes on Social Security”FALSE — $6,000 deduction for 65+; expires 2028
$3,400 average refundROUGHLY ACCURATE (actual: ~$3,462–$3,521)
5.7 million tips filersOVERSTATED — IRS shows ~4.6 million
23 million overtime filersOVERSTATED — IRS shows ~20 million
Top 1% paying >40% of “federal taxes”SELECTIVELY FRAMED — income taxes only; wrong 2017 baseline
$10,900 family of fourINFLATED — includes growth projections; not independent

Sources

Last updated: April 13, 2026