US President Donald Trump previously announced that Americans may receive tax refund checks as a result of his landmark legislation also known as the 'One Big Beautiful Bill.' However, as tax season draws near for many working Americans, they may actually receive bigger refund checks than expected.
Most Americans filing taxes can expect bigger refund checks in the first tax season under the Trump administration's 'One Big Beautiful Bill' due to more deductions that would be made. Seen as Trump's signature legislation for his second term, the tax-and-spending bill acts as an extension of his 2017 tax cuts, resulting in a £2.9 trillion ($4 trillion) increase to the deficit. Experts also say that the legislation could potentially save US taxpayers hundreds or thousands of dollars.
'Biggest Tax Refund Season of All Time'
White House Economic Council Director Kevin Hassett told Fox News on Sunday that the US will see 'the biggest' tax refunds in 2026. Hassett's comments come amidst concerns amongst Americans about affordability. A poll by Fox News saw 42 per cent of registered voters saying that Trump should prioritise the issue of high prices.
MERRY CHRISTMAS, HOLIDAY TRAVELERS! pic.twitter.com/3BITIkzQKE
— The White House (@WhiteHouse) December 22, 2025
Increased Standard and SALT Deductions
Most American taxpayers will see an increase in the standard deduction due to the legislation.
- For a single filer, the increased standard deduction would be $15,750 (estimated £11,702) instead of £11,145 ($15,000).
- For married filers, the deduction would now be $31,500 (estimated £23,404) instead of £23,033 ($31,000).
The legislation also led to a new cap on State and Local Tax (SALT) deductions, quadrupling it to £29,720 ($40,000). However, this increase is temporary as it will go back down to £7,430 ($10,000) in 2029.
Thanks to the working families tax cuts, expect MASSIVE tax returns in 2026. pic.twitter.com/pankgbKXcl
— The White House (@WhiteHouse) December 22, 2025
Manhattan Institute for Policy Research fellow EJ MacMahon said that this new cap will especially benefit some more than others. MacMahon cited that single filers will especially benefit from the new cap, as married couples would have to share the hefty SALT deduction. MacMahon said that most middle and upper-middle-class families would benefit, citing those from the lower Hudson Valley and Long Island.
No Tax on Tips and Overtime
For Americans in the service industry, they will not need to include their tips and overtime pay. They can deduct up to £9,287 ($12,500) in tips annually. The same amount goes for overtime pay for single filers, while married filers can jointly file £18,930 ($25,500) for both tips and overtime.
'When the president was designing this bill, the intention was for everyone to get a tax cut, and I think generally speaking, that is what is going to happen, which I think you would expect from a tax bill that's this large,' said Tax Foundation senior economist Alex Durante. 'It's largely going to be the tipped workers, which I think the definition of what counts as a tipped worker itself was expanded by the IRS after the bill passed, so that could end up being a larger group than was anticipated.'
Our agenda is very simple: to drive down prices and drive-up wages.
— Secretary Chris Wright (@SecretaryWright) December 21, 2025
We are focused on affordability for all Americans. pic.twitter.com/R5gn038k87
Senior, Auto Loan, and Child Tax Credits
Taxpayers over 65 years old may also see an increase in deductions up to $6,000 (estimated £4,458). According to Durante, senior citizens can see a tax deduction that 'effectively wipes out most of their tax liability.'
Those eligible can also receive an auto loan interest deduction of up to $10,000 (estimated £7,430) on new qualified vehicles for the first time.
The child tax credit also gets a permanent increase of $2,200 per child (estimated £1,634). Parents can also open investment accounts also known as 'Trump Accounts' for children under 18 years old and have Social Security numbers.
US citizens born between 2025 and the end of 2028 will also receive $1,000 (estimated £743) in federal grants by the Treasury, to be disbursed to their Trump Accounts.
Tariffs are a discipline, not a press release.
— Peter Navarro (@RealPNavarro) December 22, 2025
They’re an instrument that reshapes bargaining leverage, investment math, and supply-chain location decisions.
The tariff debate remains distorted by two opposing misconceptions: that tariffs would instantly resurrect American…
Charitable Contributions Will Be Deducted
Starting in 2026, taxpayers who do not itemise their taxes may receive a charitable contribution deduction of £1,486 ($2,000). Those who do itemise, however, will be required to donate 0.5 per cent of their adjusted gross income before making deductions.
