Working Americans could be in for a major payday in 2026, thanks to a fresh round of tax refunds stemming from Donald Trump’s newly passed legislation.
Treasury Secretary Scott Bessent announced that households across the country should expect “very large refunds” ranging from $1,000 to $2,000 in the first quarter of the new year.
The reason is seemingly Trump’s sweeping One Big Beautiful Bill Act, a budget-centered tax overhaul packed with provisions aimed at giving earners more back from the IRS, per the New York Post.
“I think we’re going to see $100-$150 billion of refunds, which could be between $1,000, $2,000 per household,” Bessent revealed Wednesday.
Why workers will be seeing bigger checks in 2026
The One Big Beautiful Bill Act, passed in July, introduced several key changes that directly impact take-home pay.
Among them: auto-deductibility and the elimination of taxes on tips. Both, Bessent said, are responsible for the sizable refunds heading to households.
But it’s not just about the check in the mail - Bessent noted that Americans with jobs haven’t yet changed their tax withholding settings, which means many are still overpaying.
As a result, they’re likely to see a bigger refund next year before adjusting how much tax is taken from each paycheck going forward.
That change, he said, will lead to a noticeable improvement in wages. “Workers will then see a ‘real increase’ in their wages,” Bessent added.
Donald Trump has promised $2,000 to Americans. Credit: Mike Stobe / Getty
White House official confirms refund boost projections
On Monday, White House National Economic Council Director Kevin Hassett echoed similar expectations, saying that Americans could end up receiving an extra $1,600 to $2,000 next year, primarily through tax refunds, according to CNBC.
Still, the bill hasn’t come without controversy.
Critics argue that the legislation disproportionately benefits the wealthy while slashing vital social programs, including Medicaid and food stamps.
But that isn't all, as Trump has opened up the possibility of $2,000 checks thanks to tariffs.
What’s the $2,000 based on? One word: income
According to SSA expert and YouTuber Blind to Billionaire, it all comes down to a single detail: how much you earn.
“It is based on your income - that’s it. I’ll make it very clear here, is your income below $75,000 a year, as an individual, yes or no? That’s it - that’s all you need to know. If your answer is yes, you are most likely eligible for this.”
That income threshold also scales for couples. “Generally, the threshold they put in place for income is $75,000 as an individual, $150,000 dollars as a married couple,” he added.
This means employment status doesn’t matter - what counts is your annual income. For many Americans who don’t have a traditional job or who have seen their income drop, that’s been a reassuring message.
Trump has not revealed when the checks will come. Leon Neal / Getty
No paperwork yet - and a lot of unanswered questions
While the talk of $2,000 checks is generating excitement, the plan is still just that - talk.
As Blind to Billionaire pointed out, “the government do not have a written plan for this” right now, so everything could still change.
Trump himself hasn’t given many specifics.
Speaking aboard Air Force One, he confirmed only that the money wouldn’t arrive until next year.
“It will be next year... The tariffs allow us to give a dividend. We’re going to do a dividend, and we’re also going to be reducing debt,” he said.