Bessent expects taxpayers will see 'very large' tax refunds early next year
Treasury Secretary Bessent says retroactive tax provisions in OBBBA will boost refund season
How the big, beautiful bill could deliver tremendous tax cuts
Rep. Jason Smith, R-Mo., discusses the Trump administration’s tax cuts and their impact on affordability on ’The Bottom Line.’
Treasury Secretary Scott Bessent said American households will see "very large refunds" in the tax filing season early next year following policy changes under the One Big Beautiful Bill Act (OBBBA).
Bessent spoke to NBC10 Philadelphia on Tuesday ahead of an event touting the Trump administration's economic policies and said American taxpayers could see sizable refunds following the enactment of the OBBBA.
The treasury secretary noted that the tax law included retroactive provisions for policies that will impact what taxpayers owe on this year's earnings, which could boost the size of refunds.
"The bill was passed in July. Working Americans didn't change their withholding, so they're going to be getting very large refunds in the first quarter," Bessent told NBC10. "I think we're going to see $100 [billion]-$150 billion of refunds, which could be between $1,000 and $2,000 per household."
IRS RELEASES GUIDANCE FOR TRUMP'S 'NO TAX ON TIPS' AND OVERTIME DEDUCTIONS: WHAT TO KNOW
Treasury Secretary Scott Bessent said tax refunds will be substantially larger when filing season opens next year. (Alex Wong/Getty Images)
"Then they'll change their withholding, and they'll get a real increase in their wages. So I think 2026 can be a very good year," Bessent added.
Bessent's comments come amid a broader push by the Trump administration to emphasize its efforts to improve the affordability of life for Americans, with tax relief under the OBBBA a key focus.
TRUMP PROMISES 'LARGEST TAX REFUND SEASON EVER' FOR AMERICANS COMING IN 2026
President Donald Trump said next year will be the "largest tax refund season ever." (Andrew Harnik)
Aside from creating the new tax relief Bessent discussed, the OBBBA extended lower tax rates and higher standard deductions implemented under the 2017 Trump tax cuts that were due to expire at the end of this year, which would've left taxpayers facing a tax hike in 2026.
The president said at a Cabinet meeting earlier this month that the upcoming tax filing season is "projected to be the largest tax refund season ever."
VOTERS EXPRESS ECONOMIC WORRIES OVER INFLATION AS COSTS RISE, FOX NEWS POLL FINDS
The IRS issued over $311 billion in tax refunds through October for the 2025 tax filing season. (Kayla Bartkowski/Getty Images)
A Fox News poll from November showed roughly three-fourths of respondents viewed economic conditions negatively, citing rising costs for groceries, housing and healthcare.
Larger tax refunds could help households shore up their finances. IRS data for the 2025 tax filing showed that as of early April, the agency paid out over $211 billion in refunds for an average of $3,116.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The most recent data from mid-October showed the total amount of refunds paid rose to $311 billion, with the average refund amount declining slightly to $3,052. Over 102 million refunds were issued in the 2025 filing season as of Oct. 17.