{"id":81984,"date":"2025-12-27T02:03:08","date_gmt":"2025-12-27T02:03:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/81984\/"},"modified":"2025-12-27T02:03:08","modified_gmt":"2025-12-27T02:03:08","slug":"scott-bessent-expects-gigantic-tax-refund-year-for-american-households","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/81984\/","title":{"rendered":"Scott Bessent expects ‘gigantic’ tax refund year for American households\u00a0"},"content":{"rendered":"

Refund checks<\/a> for Americans will be \u201cgigantic\u201d in the upcoming filing season because of the tax cuts included in President Trump\u2019s One Big Beautiful Bill Act, Treasury Secretary Scott Bessent predicted this week.\u00a0<\/p>\n

Bessent explained on the \u201cAll-In Podcast\u201d that the tax provisions in the July law signed by Trump were retroactive to the beginning of the year and most workers did not adjust how much was deducted from their paychecks after the provisions went into effect, meaning they can expect a big refund<\/a> when they file taxes in 2026.\u00a0<\/p>\n

\u201cI can see that we\u2019re gonna have a gigantic refund year in the first quarter because working Americans did not change their withholdings,\u201d said Bessent, who also serves as acting commissioner of the Internal Revenue Service (IRS).<\/p>\n

\u201cI think households could see, depending on the number of workers, $1,000- $2,000 refunds,\u201d the treasury secretary continued.\u00a0<\/p>\n

\"U.S.Bessent said Trump\u2019s \u201cbig, beautiful bill\u201d will result in larger tax refunds for many Americans next year. REUTERS<\/p>\n

Bessent\u2019s<\/a> prediction is in line with tax experts, who also say Americans can expect bigger refund checks.\u00a0\u00a0<\/p>\n

The nonpartisan Tax Foundation estimates<\/a> that in tax year 2025, the average refund check will be $3,800 \u2014 up from $3,004 in 2023 and $3,052 last year.\u00a0<\/p>\n

\u201cWhen taxpayers file their 2025 tax returns in 2026, many will see larger refunds than in recent years. That\u2019s due to the One Big Beautiful Bill Act (OBBBA), which reduced individual income taxes for 2025 by an estimated $144 billion,\u201d Tax Foundation\u2019s Erica York said in an analysis.\u00a0<\/p>\n

\u201cBut because the IRS did not adjust withholding tables after the law passed, workers generally continued to withhold more taxes from their paychecks than the new law required. As a result, instead of gradually receiving the benefit of the tax cuts through higher take-home pay during the year, most taxpayers will receive it all at once when they file their returns,\u201d she added.\u00a0<\/p>\n

\"U.S.Bessent signaled that some workers can expect \u201c$1,000-$2,000\u201d in tax refunds. Getty Images<\/p>\n

Bessent noted that he expects workers will adjust their withholdings next year, which combined with the large refund checks, will boost their spending power.\u00a0<\/p>\n

\u201cThey will change their withholding schedule at the beginning of the year and they will get an automatic increase in real wages,\u201d he said. \u201cSo I think that\u2019s going to be a very powerful combo.\u201d\u00a0<\/p>\n

Trump\u2019s One Big Beautiful Bill Act included several provisions aimed at cutting individual income tax burdens, including increasing the child tax credit, standard deduction, state and local tax (SALT) deduction cap and adding deductions for auto loan interest and\u00a0overtime and tip income.<\/p>\n","protected":false},"excerpt":{"rendered":"Refund checks for Americans will be \u201cgigantic\u201d in the upcoming filing season because of the tax cuts included…\n","protected":false},"author":2,"featured_media":81985,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[153,23410,9,11,10,87,16371,2780,58],"class_list":{"0":"post-81984","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-donald-trump","9":"tag-irs","10":"tag-new-york","11":"tag-new-york-headlines","12":"tag-new-york-news","13":"tag-politics","14":"tag-scott-bessent","15":"tag-taxes","16":"tag-us-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/81984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=81984"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/81984\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/81985"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=81984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=81984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=81984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}