President Trump promises a bigger tax refund in the 2025 tax year return because of the One Big Beautiful Bill tax changes. However, the bigger refunds would only be possible for people whose taxes are affected by the new provisions. Americans wondering about the larger refund and if they will receive it can find the full details here.
The Trump administration passed the OBBBA and made it law in July 2025, bringing many tax changes for the 2025 tax year, while some will be enacted from the 2026 tax year. The new legislation has brought many retroactive changes and others.
According to Karoline Leavitt, White House Press Secretary, this tax season will be the largest refund season ever. However, the refund amount will depend on the tax you have paid and the credits you claimed.
What will make your 2026 Tax refund larger?
Taxpayers receive refunds when they overpaid the taxes via estimated tax payments or withheld taxes, and they qualify for the refundable credits. The Trump administration is vouching for a larger tax refund season for 2026 due to the new legislation tax provisions, such as:
- The bill increases the Child Tax Credit to $2200, but the refundable portion, $1700, remains the same. The increases in CTC will help the eligible taxpayers to reduce their taxes.
- The bill introduces a new deduction of $6000 for seniors with the increase in the standard deduction for the 2025 tax year.
- The bill introduces new deductions on tips/overtime and paid interest on car loans for the employees, which will help in lowering the taxes.
- The bill also increased the state and local tax deduction cap to $40,000 for certain income thresholds.
- These changes can increase your refund, as the withheld taxes are collected without applying these changes, as the IRS did not update the withholding table when legislation was enacted in mid-July 2025, which can increase your overpayment and ensure a higher refund than before.
Who will benefit the most and have the biggest tax refund?
Taxpayers who qualified for the OBBBA changes and were affected will benefit most from the larger refunds. Let’s see who can expect the biggest tax refund in the 2026 tax season:
- People who qualify for the refundable credit, such as EITC/ACTC, though ACTC remains the same, the EITC credit is increased through the yearly inflation adjustment.
- Employees with withholding taxes were not updated, which led to overpaid taxes throughout the year.
- Families or individuals with middle and upper-middle income, as they can use the new deductions and get some tax relief.
- The individuals and households with low-to moderate income will benefit when they qualify for the refundable credits.
How much higher a refund can you expect in 2026?
According to the Trump Administration, the tax refund for Americans can be one-third larger than usual, around $1000 extra. The average refund in the 2025 filing season was $3,052, which was higher than in the 2024 filing season.
The workers’ families with children can expect higher refunds as they would receive more refundable credits with more children. According to reports, employees with withholding can expect their tax refund to go up from $500 to $1500 this tax season.
According to reports, the seven provisions introduced in the new legislation would reduce the individual’s income taxes in 2025 by $144 billion, which will eventually help the taxpayers to save their money. The tax refund will depend on the family situation and the tax benefits you qualified for, so file the return carefully.
How should you prepare for the tax return to claim the larger refunds?
As mentioned earlier, the 2026 tax refund depends on how you file your tax returns with the new tax changes, so when you prepare, keep the following things in mind:
- You should check if there are any new forms introduced to implement the new tax changes, such as the IRS-drafted Schedule 1-A, to calculate the four deductions in the OBBBA. It is not finalized yet, hence keep an eye on the IRS’s latest forms to use them later in your tax returns.
- You should check your withholding taxes or use the IRS Withholding calculator to see what you paid.
- You should check your past tax records, as most of the tax codes will be the same, and help you in claiming, as well as help the agency review it faster.
- You check all the OBBBA tax provisions and see if they apply to your business or individual tax return.
The tax cuts from the OBBBA can bring a larger tax refund for Americans in the 2026 tax season. Hence, to make the most of it, taxpayers should check if they are affected or not and calculate their tax refund.
Disclaimer: Claims about 2026 tax refunds being the “biggest ever” are for general awareness only. Actual refund amounts and eligibility are determined by the IRS and tax law.