Summary
President Donald Trump's administration announced that Americans could see significantly larger tax refunds in 2026 due to new tax legislation called the One Big Beautiful Bill Act. This law includes changes like a bigger standard deduction and increases in child tax credits, which could result in refunds increasing by an additional $1,000 per household.
Key Facts
- President Trump's tax law, the One Big Beautiful Bill Act, was passed in July.
- The law could lead to tax refunds that are $1,000 to $2,000 higher per household in 2026.
- Americans won't pay taxes on tips, overtime, and Social Security, according to the new law.
- The average tax refund in 2026 might rise to about $3,800, up from $3,052 in 2025.
- Expanded bonus depreciation benefits business owners under this law.
- The increase in child tax credits is from $2,000 to $2,200.
- The government might collect less tax revenue due to these changes.
