WASHINGTON, March 30 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Monday that individual tax refunds during the 2026 tax ‌filing season are up more than 10% over last year, ‌with nearly half of filers claiming new deductions offered in the Republican tax cut ​law passed last year.

Bessent told Fox and Friends that 25% of the tax returns that the IRS has received so far have claimed a deduction for overtime premium pay earned in 2025, which he called "the ‌home run" of deductions. Filers ⁠also are claiming deductions for no tax income from tips, Social Security and auto loan interest for domestic ⁠cars.

According to the latest Internal Revenue Service filing data, as of March 20, the average individual refund amount this year was $3,571, up $350 or 10.9% ​from ​the same period of 2025.

He said ​that as a result of ‌the tax changes, which also include a $30,000 increase in deductions for state and local taxes, many taxpayers are reducing their withholding for 2026 earnings, adding: "They're getting automatic pay increases by changing their withholding."

Bessent also said that bank filings of "suspicious activity reports" related to potential fraud and ‌money-laundering activities are up 20% this year ​due to a crackdown on fraud activities ​involving federal healthcare and ​social benefits, which he said has reached into the ‌billions of dollars.

He encouraged the public ​to provide tips ​on a Treasury whistleblower website, through which tipsters can receive a reward of up to 30% of recovered funds that result ​from information that ‌they provide. Bessent said that this effort has provided 700 ​leads for the Treasury's Financial Crimes Enforcement Network investigators.

(Reporting by ​David Lawder, Editing by Franklin Paul)