Tax changes included in the One Big Beautiful Bill Act are expected to provide American households with $1,000 to $2,000 refunds next year, according to an article shared by White House Press Secretary Karoline Leavitt.
According to the New York Post article, Treasury Secretary Scott Bessent said the “very large” refunds would be going to working Americans in the first quarter of 2026. He added that provisions in the GOP-led legislation backed by President Donald Trump, including auto-deductibility and no tax on tips, are to thank for the payouts.
“President Trump’s tax cuts bill is the most pro-worker, pro-family legislation in a generation. It puts more money directly into the pockets of hardworking Americans through No Tax on Tips for dedicated service industry staff, No Tax on Overtime for linemen and factory workers, and a new tax deduction for seniors who depend on Social Security,” said the Treasury in a Wednesday news release. It also criticized “political obstructionism” of the legislation in liberal states.
Altogether, the refunds are expected to come to $100 billion-$150 billion in total, Bessent said Wednesday. That’s $1,000 to $2,000 per household.
Since Americans with jobs have not yet adjusted their tax withholding, many will receive refunds next year, he explained. Going forward, U.S. residents are expected to change their withholding status so less tax is taken out of their paycheck, the Post added.
Bessent said that should create a “real increase” in wages. That would come at a time when inflation has been outpacing wage growth for 40% of Americans, according to a July report from Forbes.
This news also comes as the public’s view of Trump’s administration is turning sour, particularly regarding the economy. Results of multiple polls released in recent weeks show that Americans have a negative view of the economy and reports also show that many have concerns about their finances as Americans deal with mass layoffs, persistent inflation, high interest rates, an expensive housing market, high childcare costs and more.
Previously, Audacy reported on Trump’s idea to send Americans $1,000 to $2,000 checks with revenue gained from various tariffs imposed this year. He’s also announced that the government will fund $1,000 contributions for savings accounts established for babies born during his administration.