Americans are about to see a hefty boost in their tax refunds, averaging an extra $1,000 for the 2026 season.

The increase, driven by President Donald Trump’s Working Families Tax Cuts Act—also dubbed the One Big Beautiful Bill Act—signed last year, is projected to push total refunds to $429 billion, up from $329 billion in the prior year, according to Treasury Department estimates, with typical payouts exceeding $4,000 per filer as the tax filing season opened this week.

Tax Cuts Fuel Refund Surge

Supporters contend that this historic legislation is a game-changer for working families, delivering much-needed relief after years of economic strain, the New York Post reported.

The law, retroactive to the 2025 tax year, kept IRS withholding tables static, meaning workers paid at higher rates all year only to receive the benefit as a lump-sum refund now.

It’s a clever move—some might say strategic—timed just before midterm elections to put real cash back into pockets.

Breaking Down the Tax Relief

The numbers are staggering: about 60% of filers get refunds, and this year’s payouts are significantly higher, building on last year’s average of $3,167 as reported by The Wall Street Journal.

Major components of the cuts include a new overtime deduction worth $38.7 billion, expanded standard deductions, a senior bonus deduction, a higher child tax credit, and even deductions for tips and auto loan interest.

Don’t forget the state and local tax deduction cap, now at $40,000, which accounts for a solid chunk of the individual relief, per the Tax Foundation.

White House Celebrates Big Win

The White House is crowing about the results, and they’ve got the quotes to match.

“President Trump delivered the largest tax cut in history for middle- and working-class Americans, lowering taxes in every county in every state across the nation,” said White House spokesperson Kush Desai in an interview with The Post.

While Desai’s enthusiasm is clear, let’s not ignore that this lump-sum approach isn’t how tax relief typically rolls out—more on that in a moment.

IRS Struggles Amid Success

On the flip side, the IRS is grappling with its own challenges, having slashed its workforce by 25% from over 100,000 employees due to layoffs and retirements.

With cuts hitting enforcement and call centers hardest, older filers who rely on phone help might find themselves in a bind, even as the agency insists it’s ready for 164 million returns.

Critics rightly point out that fewer staff handling more money is a recipe for headaches—hardly the seamless victory lap the administration might hope for.