Millions of Americans may receive unprecedented tax refund checks starting in 2026, according to officials from the National Economic Council. As the tax filing season approaches, many taxpayers are preparing their documents and estimating their potential refunds. Kevin Hassett, the Council’s Director, indicated that the upcoming refund cycle could be the largest in history, with some families potentially receiving checks ranging from $11,000 to $20,000.
Hassett emphasized the scale of the refunds during an interview with Fox Business, stating, “We are going to see the biggest refund cycle ever in the history of America, and people are going to get massive refund checks.” This optimism also echoed in remarks made by President Donald Trump, who predicted the “largest tax refund season of all time” in a recent address.
Despite the positive outlook, a Fox News poll revealed that 44% of respondents feel financially strained, with 74% rating the economy as “bad” or “not so good.” In response, Hassett pointed to wage increases outpacing inflation, arguing that real wages are growing. He noted, “You saw in the jobs report that…wages for the typical worker were up 3.7%.” According to Hassett, blue-collar workers have already seen an increase of nearly $2,000 after accounting for inflation this year.
Hassett attributed the anticipated refunds to changes introduced by the One Big Beautiful Bill (OBBB) Act, which he said had not been reflected in tax forms filled out earlier in the year. He remarked, “We didn’t pass the ‘Big, Beautiful Bill’ until the middle of the summer, and so a lot of the tax changes, which affect last year, weren’t in any tax forms that people filled out at the beginning of the year.”
Changes Affecting Tax Filings
The IRS has also issued reminders regarding various changes that will impact taxpayers during the upcoming season. These include new deductions for qualifying seniors, who may deduct an additional $6,000 from their taxable income for the tax years 2025 through 2028. This deduction phases out for individuals with an adjusted gross income exceeding $75,000.
However, residents in certain areas, such as Washington D.C., should be aware that some local jurisdictions have opted to decouple from the OBBB provisions, meaning these benefits may not apply to them. Taxpayers are also encouraged to consider the implications of “no tax on tips, no tax on overtime, [and] no tax on car loan interest,” as these changes could lead to significant savings.
As the tax season approaches, the IRS cautioned that misreporting could lead to increased taxes for overtime workers and highlighted several common deduction errors that could trigger an audit. To mitigate these risks, taxpayers are advised to maintain thorough documentation of their income and deductions.
With the prospect of record-setting refunds on the horizon, many Americans are eager to see how these changes will affect their financial situations. As preparations for tax season begin, the emphasis remains on understanding the new regulations and maximizing potential benefits.
