Americans may soon find themselves with a financial boost come tax season.
Treasury Secretary Scott Bessent has announced that households should anticipate "very large refunds" during the upcoming tax filing period, a result of the One Big Beautiful Bill Act (OBBBA).
Bessent shared these insights in an interview with NBC10 Philadelphia, as he prepared for an event promoting the economic policies of the Trump administration.
According to Sean Hannity, the crux of this financial windfall lies in the retroactive nature of the bill. Passed in July, the legislation means many Americans did not adjust their tax withholdings, resulting in a significant impact when taxes are filed next year. "The bill was passed in July. Working Americans didnt change their withholding, so theyre going to be getting very large refunds in the first quarter," Bessent explained. He projected that refunds could total between $100 billion and $150 billion, translating to $1,000 to $2,000 per household.
Bessent also highlighted that the benefits extend beyond immediate refunds. "Then theyll change their withholding, and theyll get a real increase in their wages. So I think 2026 can be a very good year," he noted. This statement aligns with the Trump administration's focus on affordability, with tax relief under the OBBBA taking center stage.
In addition to these new provisions, the OBBBA extends the lower tax rates and higher standard deductions from the 2017 Trump tax cuts, which were set to expire this year. Without this extension, taxpayers would have faced a significant increase in 2026. President Donald Trump emphasized this point, stating that the upcoming filing season is "projected to be the largest tax refund season ever."
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