Treasury Secretary Scott Bessent announced that many working Americans will receive unusually large tax refunds next year. He said that households could expect refunds of around $1,000 to $2,000, and he described these payments as one of the biggest and most direct benefits of President Donald Trump’s major tax law, known as the One Big Beautiful Bill Act.
Bessent explained that the refunds will show up early in 2026, likely sometime in the first three months of the year. He said that a large amount of money—somewhere between $100 billion and $150 billion—will be returned to Americans because of several changes in the tax laws. These changes include automatic deductions, and the removal of taxes on tips, overtime, and Social Security income. According to him, these adjustments were already passed in July, but most workers still haven’t changed the amount of tax taken from their paychecks. Because of that, many people have been overpaying all year and will now get that money back as refunds.
After receiving these big refunds, Bessent said Americans will likely update their withholding so that less money is taken out of each paycheck going forward. Once they make those adjustments, workers should start to notice a real increase in what they take home each month. In other words, first they get a lump-sum refund, and then they get higher paychecks afterward.
Kevin Hassett, the director of the White House National Economic Council, shared a similar prediction earlier in the week. He said that many workers—especially those who rely on tips or do a lot of overtime—might see an extra $1,600 to $2,000 next year. He said most of that would arrive as refund checks at the start of the year, with the rest showing up slowly through bigger paychecks.
Bessent described the law as a major win for regular workers. He said that because the bill was passed midway through the year, people have not adjusted their tax forms yet. This means the government has been withholding too much, and now it has to send that extra money back. He added that the scale of refunds is unusually large, something most Americans do not experience often.
The announcement arrives at a time when many families are struggling with high prices, and the administration hopes the refunds will give people some financial relief. Supporters of the law say it will help households catch up on bills, pay down debt, or simply have more spending money at a time when many feel squeezed. Critics, however, worry that large refunds and lower withholding might widen the federal budget deficit later.
Still, for now, the message from the Treasury Department is clear: working Americans should expect more money in their pockets early next year, with many families receiving one of the biggest tax refunds they have ever seen.
