Americans could get a big $2,000 tax refund in 2026 — see if you qualify

Americans may see more money in their bank accounts during the 2026 tax season, according to Treasury Secretary Scott Bessent. Scott Bessent said most Americans will get bigger-than-normal tax refunds next year. He explained this is because of tax cuts under President Donald Trump’s One Big Beautiful Bill Act, also called OBBA.

President Donald Trump signed the OBBA into law in July, and the tax changes will apply retroactively starting in the new year, as stated by The Mirror US. Because the law applies retroactively, many workers already paid more tax than needed during 2025. Most U.S. workers did not change their tax withholdings after the law passed, Bessent said.

Why refunds may be bigger

Since withholdings stayed the same, extra money was taken out of paychecks all year. That extra money could now come back as a refund when people file taxes in 2026. Scott Bessent said refunds could be very large for many households.


“I can see that we’re gonna have a gigantic refund year in the first quarter because working Americans did not change their withholdings,” Bessent said on the All-In Podcast. “I think households could see, depending on the number of workers, $1,000- $2,000 refunds,” he added, as stated by The Mirror US. The Tax Foundation also expects higher refunds in the next tax season.

Tax Foundation view

The Tax Foundation is a nonpartisan tax policy nonprofit group. In a report released on December 17, the group said refunds will be larger than usual because of OBBA tax cuts for 2025. The Tax Foundation estimates OBBA cut individual taxes by $144 billion in 2025. Other estimates suggest about $100 billion of that money could go toward tax refunds. The IRS did not update tax withholding tables after the law passed, the Tax Foundation said. Because of this, workers kept paying more tax from each paycheck than required under the new law.

The Tax Foundation explained that people did not see higher take-home pay during the year. Instead, taxpayers are expected to receive the benefit as one large refund when they file taxes. The group said higher refunds are linked to at least seven tax cuts in the OBBA, as stated by The Mirror US. These tax cuts include increases to the child tax credit. The standard deduction was also raised under the law.

What taxpayers should do

The SALT deduction cap was increased. New or expanded deductions were added for seniors. Deductions now include auto loan interest. Tip income received new tax relief. Overtime pay was also included in the tax changes. Americans must file their 2025 taxes by April 15, 2026, according to the IRS. The IRS advises people to start preparing early for tax filing. Taxpayers should gather bank account details before filing. Workers should also collect W-2 forms.

People with other income should prepare 1099 forms. Records of digital asset transactions should also be ready, the IRS said. The IRS warned that the new law could strongly affect taxes, credits, and deductions. “It is important for taxpayers to get ready now because the One, Big, Beautiful Bill can significantly affect federal taxes, credits and deductions,” the IRS said in late November, as stated by The Mirror US.

The IRS said it is working with the Treasury Department to apply the new law. This includes sharing details on new deductions like no tax on tips. It also includes no tax on overtime pay. No tax on car loan interest is part of the changes. A new temporary deduction for seniors is also included. Because of all these changes, many Americans could see refunds as high as $2,000 in 2026.

FAQs

Q1. Why could Americans get bigger tax refunds in 2026?

Because new tax cuts were applied retroactively and most workers paid more tax than needed during 2025.

Q2. Who may qualify for a $1,000–$2,000 tax refund in 2026?

Workers who did not change their tax withholdings after the new tax law was passed may qualify.