Scott Bessent, the Treasury secretary says households could see $1K-$2K refunds due to Trump’s retroactive tax cuts
By Catholics for Catholics
Come tax time, taxpayers may see a big refund check for 2026.
Scott Bessent, the nation’s Treasury Secretary projected that Americans will get “gigantic” refund checks in the forthcoming filing season, thanks to tax cuts in President Donald Trump’s One Big Beautiful Bill Act (OBBBA), according to a story by Fox News.
During a presentation on the “All-In Podcast,” Bessent, who also is the acting commissioner of the IRS, made the remarks. He told the hosts that the tax provisions in the act, which Trump signed in July, applied retroactively to the start of the year, and since most laborers did not change their withholdings, many can wait for considerable refunds in 2026.
“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 told the “All-In Podcast” hosts. “I think households could see, depending on the number of workers, $1,000- $2,000 refunds.”
The Tax Foundation, a nonpartisan tax policy nonprofit believes the same as Bessent. The group said that “refunds will be larger than typical in the upcoming filing season because of the One Big Beautiful Bill Act’s (OBBBA) tax cuts for 2025.”
The OBBBA reduced individual taxes by $144 billion for 2025, adding that exterior calculations suggest that up to $100 billion of that could go to higher tax refunds for Americans, according to the Tax Foundation. Though not everybody will get a big boost in their refunds, the savings from the OBBBA could push average refunds up by up to $1,000, said The Foundation.
“But because the IRS did not adjust withholding tables after the law passed, workers generally continued to withhold more taxes from their paychecks than the new law required. As a result, instead of gradually receiving the benefit of the tax cuts through higher take-home pay during the year, most taxpayers will receive it all at once when they file their returns,” the Tax Foundation wrote.
Factors like increases to the child tax credit and standard deduction, a higher SALT deduction cap, and new or extended deductions for seniors, auto loan interest, tip income and overtime pay could help to boost higher refunds, said the Tax Foundation.
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