Many Americans could see bigger tax refunds in 2026 thanks to changes enacted via President Donald Trump’s “big beautiful bill.”
“There’s so much good news in the new year because you’re going to see the biggest tax refund season of all time,” National Economic Council Director Kevin Hassett told Fox News Channel’s “Fox News Sunday” on Dec. 21. This echoed comments made by Trump earlier that week.
But your refund or taxes owed depends on which new provisions impact you and how much taxes you paid in 2025 via withholdings or estimated payments, experts say.
Enacted in July, Trump’s multitrillion-dollar legislation included several retroactive tax changes for 2025 that affect returns filed in 2026.
However, the IRS didn’t update withholding tables for employers, which dictate how much to take from workers’ paychecks. As a result, 2025 employee withholdings were based on taxes owed before Trump’s cuts.
