Summary
A new tax law signed by President Donald Trump could result in large tax refunds for many Americans in early 2026. The One Big Beautiful Bill Act (OBBBA) might lead to refunds of $1,000 to $2,000 for households, partly because of changes to how taxes are calculated. However, experts warn that most benefits will go to higher-income individuals.
Key Facts
- The One Big Beautiful Bill Act (OBBBA) was signed into law by President Donald Trump in July.
- Treasury Secretary Scott Bessent said the law's retroactive effects mean many households could get $1,000 to $2,000 tax refunds.
- The refunds result from breaks in the law that apply retroactively to the start of 2025.
- Most Americans usually receive their tax refunds within 21 days of filing.
- The Congressional Budget Office reports that the richest 10% of households may benefit more, gaining $12,000 on average over eight years.
- Lower-income households might lose about $1,600 annually due to cuts to programs like Medicaid.
- Tax filing season begins in January, with many filing before the April 15 deadline.
- Economist Don Schneider said most people haven't changed their tax withholdings yet and may be surprised by the refunds.
