2026 Tax Season Starts with Larger Refunds Expected

The 2026 federal tax filing season began on January 26, with the Internal Revenue Service anticipating about 164 million individual returns by the April 15 deadline. Taxpayers across the United States are preparing to file amid expectations of larger refunds this year, driven by provisions in the 2025 One Big Beautiful Bill Act that eliminated taxes on overtime pay and tips while reducing Social Security taxes and offering deductions for vehicles made in the United States.

Administration officials have highlighted the potential financial relief for many Americans. President Donald Trump stated during a January 29 Cabinet meeting that millions would receive record-setting refunds, with the average expected to exceed last year's by more than $1,000. A White House fact sheet indicated that the average taxpayer could see about $3,800 in total tax savings for 2026. Joseph Lavorgna, counselor to Treasury Secretary Scott Bessent, described the refunds as substantial, estimating private sector projections of over $100 billion nationwide. He noted particular benefits for workers earning overtime or tips, including those in service industries like waitstaff and bartenders, as well as gig...