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President Donald Trump’s “One Big Beautiful Bill” from last year has set in motion a slate of tax-relief actions that may benefit the American taxpayer tremendously this year, potentially saving them a sizeable amount of money.
“Tax Refunds this year, because of ‘THE GREAT BIG BEAUTIFUL BILL,’ are substantially greater than ever before. In some cases, estimates are that over 20% will be returned to the Taxpayer,” the president wrote on Truth Social on Tuesday.
The president’s OBBB Act, signed into law in July 2025, implemented several key campaign promises that may contribute to this potential tax relief, like deductions on tips, overtime pay, and Social Security.
The bill also upped the standard deduction and increased the child tax credit.
As reported by RSBN, the White House has predicted that tax refunds in 2026 could be the biggest in U.S. history, projecting a potential increase of $1,000 in refunds for filers.
“So, when you get your Tax Refund, think about what a wonderful President you have — NO TAX ON TIPS, NO TAX ON SOCIAL SECURITY FOR OUR GREAT SENIORS, NO TAX ON OVERTIME, INTEREST DEDUCTIONS ON CAR LOANS, AND MUCH MORE. Don’t spend all of this money in one place!” President Trump remarked in his statement.
Could tax filers receive up to a 20 percent increase in refunds? According to an economist with Morgan Stanley, it’s possible. As reported by CNBC, Heather Berger noted, “Overall, we’re expecting these changes to increase refunds by 15% to 20% on average.”
This year’s potential tax refunds will likely be a welcome relief for Americans who are seeking economic help after years of inflationary pressure sparked by Joe Biden’s administration.
In late December, President Trump foreshadowed the coming tax season at the White House, crediting his use of tariffs as a driving force behind the projected refunds, per RSBN.
“Next year’s projected to be the largest tax refund season ever, we’re going to be giving back refunds out of the tariffs because we’ve taken in, literally, trillions of dollars, and we’re going to be giving a nice dividend to the people in addition to reducing debt,” he said.
The president remarked at the time that he could envision a future without income tax, due to the tremendous wealth generated by tariff policies.
“Whether you get rid of it or just keep it around for fun or have it really low – much lower than it is now – but you won’t be paying income tax,” he stated.