"Tax filing season is in full swing, and while preparing your taxes can often be filled with stress, misplaced documents, and worries about proper filing, this year, there may be a silver lining. According to analysts, many Americans may get larger refunds in 2026 due to Trump's 2025 One Big Beautiful Bill legislation. Last year, the average refund was $3,167, but, given there are a number of new changes and deductions, experts say many Americans are looking to get back an additional $1,000 or more."
"One of the biggest changes hitting tax filers this year is that overtime hours won't be taxed. Under the newly signed legislation, there is now a deduction for up to $12,500 of qualifying overtime wages. According to the Tax Policy Center, the law will make for an average tax cut of $1,400. The change applies from this year through 2028."
Many Americans may receive larger tax refunds in 2026 because of the 2025 One Big Beautiful Bill. Average refunds previously were $3,167, and changes could yield an additional $1,000 or more, totaling roughly $90 billion in extra returns. Overtime wages have an up-to-$12,500 deduction, yielding an average tax cut of about $1,400 and applying through 2028. The Child Tax Credit rises from $2,000 to $2,200 per child with phaseouts for higher incomes. A temporary Senior Deduction provides $6,000 ($12,000 married) with income limits. Tips may be deductible up to $25,000 with restrictions.
Read at Fast Company
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