Kevin Hassett, Director of the White House National Economic Council, Joins ‘Varney & Co.’ to discuss the November CPI report, tax refunds, an expected White House announcement on housing reform and more.
Treasury Secretary Scott Bessent predicted that Americans will see “gigantic” refund checks this coming tax season thanks to tax cuts in President Donald Trump’s One Big Beautiful Bill Act (OBBBA).
Bessent, who is also acting commissioner of the IRS, made the comment during an appearance on the “All-In Podcast.” The Treasury Secretary told the hosts that the tax provisions in the law, which Trump signed in July, applied retroactively to the beginning of the year, and because most workers did not change their withholdings, many can expect significant refunds in 2026.
FIVE KEY POLICY AREAS YOU NEED TO KNOW FROM THE ONE BIG BEAUTIFUL LAW
President Donald Trump speaks with Treasury Secretary Scott Bessent at the White House Digital Assets Summit at the White House on March 7, 2025 in Washington, DC (Anna Moneymaker/Getty Images/Getty Images)
“I see us having a huge refund year in the first quarter because working Americans haven’t changed their withholdings,” Bessent told the hosts of “All-In Podcast.” “I think households, depending on the number of employees, could see a refund of $1,000 to $2,000.”
Bessent’s prediction mirrors that of the Tax Foundationa non-partisan, non-profit tax policy organization. The group said in a Dec. 17 report that “refunds will be larger than normal in the upcoming filing season due to the One Big Beautiful Bill Act (OBBBA) tax cuts for 2025.”
President Donald Trump signs the sweeping spending and tax legislation known as the ‘One Big Beautiful Bill Act’ at the White House in Washington DC on July 4, 2025. (Ken Cedeno/Reuters/Reuters)
IRS UNVEILS 2026 TAX ADJUSTMENTS WITH CHANGES TO ‘BIG, BEAUTIFUL BILL’
The foundation reported its estimate that OBBBA has cut individual taxes by $144 billion by 2025, adding that outside estimates suggest up to $100 billion of that could go to higher tax refunds for Americans. While not everyone will see a huge jump in refunds, the Tax Foundation said the OBBBA’s savings could boost average refunds by up to $1,000.
“But because the IRS did not adjust the withholding tables after the law was passed, employees 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 throughout the year, most taxpayers will receive it all at once when they file their returns,” the Internal Revenue Service wrote.
The Trump administration expects the largest tax refund cycle “in history” this spring of 2026. (Getty Images / Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Tax Foundation lists seven major tax cuts enacted under the OBBBA that could help boost refunds, including increases to the child tax credit and standard deduction, a higher SALT deduction limit and new or expanded deductions for seniors, auto loan interest, tip income and overtime.
