Christmas could be coming twice.
Working Americans are going to get “very large refunds” of $1,000 to $2,000 per household early in the new year, according to Treasury Secretary Scott Bessent.
The checks will come in the first quarter of 2026 as a result of tax cuts in President Donald Trump’s sweeping, budget-focused One Big Beautiful Bill Act, he said.
“I think we’re going to see $100-$150 billion of refunds, which could be between $1,000, $2,000 per household,” Bessent said Wednesday.
Bessent said working Americans could get household refunds of up to $2,000. REUTERS
Several provisions in the legislation, including auto-deductibility and no tax on tips, are to thank for the payday, he said.
Americans with jobs have not yet adjusted their tax withholding, so many will receive refunds next year, he said.
Refunds will likely arrive in the first quarter of 2026. Andy Dean – stock.adobe.com
After getting the refund, US residents are expected to change their withholding status so that less tax is taken from each paycheck.
Workers will then see a “real increase” in their wages, Bessent said.
On Monday, White House National Economic Council Director Kevin Hassett said Americans would likely receive an extra $1,600 to $2,000 next year, largely through tax refunds, according to CNBC.
The One Big Beautiful Bill Act passed in July, with critics arguing it favored the wealthy and cut programs like favored the wealthy and cut essential services like Medicaid and food stamps.