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By Alia Shoaib
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Treasury Secretary Scott Bessent said working Americans would get "very large refunds" next year amounting to about $1,000 to $2,000 per household.
He said the refunds would come as a result of tax cuts in President Donald Trump's signature One Big Beautiful Bill Act.
Newsweek has contacted the Treasury Department for comment via email outside standard working hours.
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Why It Matters
The refunds outlined by Bessent could provide households with a significant boost in disposable income early next year and would represent one of the most tangible results of Trump's signature tax legislation.
What To Know
Bessent said working Americans would receive refunds in the first quarter of 2026.
"I think we're going to see $100-$150 billion of refunds, which could be between $1,000, $2,000 per household," he told a reporter in Pennsylvania on Wednesday.
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The treasury secretary pointed to provisions in the One Big Beautiful Bill Act, passed in July, including auto-deductibility and no tax on tips, overtime or Social Security.
According to Bessent, because working Americans have not yet adjusted their tax withholding, many will receive refunds next year.
After receiving the refunds, Americans are expected to change their withholding so that less tax is taken from each paycheck. Once that happens, Bessent said workers would see a "real increase" in their wages.
White House National Economic Council Director Kevin Hassett made similar comments when speaking to CNBC on Monday, telling the outlet that Americans would likely receive an extra $1,600 to $2,000 next year, largely through tax refunds.
What People Are Saying
Treasury Secretary Scott Bessent told a reporter on Wednesday: "The bill was passed in July, working Americans didn't change their withholding, so they're going to be getting very large refunds in the first quarter. So I think we're going to see $100-$150 billion of refunds, which could be between $1,000, $2,000 per household. Then, they'll change their withholding, and they'll get a real increase in their wages."
White House National Economic Council Director Kevin Hassett told CNBC on Monday: "We're going into next year, where the typical person who's got no tax on tips, no tax on overtime is probably going to see an extra $1,600 to $2,000. A lot of that will come as tax refunds in the beginning of the year."
What Happens Next
Bessent said Americans should expect the refunds in the first quarter of 2026.
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