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Filing taxes in 2026? How new rules could mean bigger refunds

Average federal tax refunds are projected to rise to about $3,800 due to retroactive provisions in the Working Families Tax Cuts Act, boosting take-home pay nationwide.

  • Americans can expect an average increase of $1,000 in their tax refunds this year, according to the White House's projections of an additional $100 billion for the 2026 tax season, due to President Trump's tax legislation.
  • The Treasury Department projects that the total refunds will reach $429 billion this year, a significant increase from $329 billion last year.
  • Key provisions, including an increased state and local tax deduction cap, are expected to contribute to the larger refunds this season, according to the Tax Foundation.
  • Approximately 60% of U.S. households typically receive refunds, but those who do are projected to see markedly larger amounts, reflecting the impact of Trump's tax overhaul.
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The Independent (US) broke the news in United States on Monday, January 26, 2026.
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