The White House states that the Working Families Tax Cuts Act will produce the largest tax-refund season in U.S. history, with average refunds projected to be about $1,000 higher for many filers.
Several news outlets and economic firms cited — including USA Today, CBS News (citing Oxford Economics), The Wall Street Journal (citing Piper Sandler), Business Insider (citing the Tax Foundation), and CNBC (citing Morgan Stanley) — provide estimates of refund increases ranging from about 15% to 30% depending on the source.
CBS News’ summary of an Oxford Economics analysis is cited saying total taxpayer savings could amount to an additional $50 billion through bigger refunds or lower 2026 taxes.
The administration says the law will deliver nearly $4,000 in total tax savings for the average taxpayer in 2026 and highlights provisions like No Tax on Tips, No Tax on Overtime, No Tax on Social Security, and a deduction for auto loan interest on Made‑in‑America vehicles.
The White House directs taxpayers to IRS resources for details on the 2026 filing season and guidance about the new provisions.
Follow Up Questions
What exactly does the Working Families Tax Cuts Act change and who is eligible for each provision?Expand
The Working Families Tax Cuts Act (the 2025 reconciliation law often called the One Big Beautiful Bill / OBBBA) (P.L. 119‑21) makes multiple individual-tax changes for 2025 that in many cases are retroactive to Jan 1, 2025. Key changes (and typical eligibility):
Larger standard deduction and bonuses tied to income — increases apply to individual filers and joint filers; phaseouts/limits depend on AGI.
“No tax on tips” and a deduction/exclusion for certain tipped income — applies to employees with qualifying tipped earnings (rules and caps in statute/regs).
“No tax on overtime” (special exclusion/deduction for qualifying overtime pay) — applies to wages that meet statutory definition of overtime.
Elimination of tax on (some) Social Security benefits for eligible beneficiaries — applies to beneficiaries whose combined income otherwise would have made benefits taxable (the law changes the taxability rules).
Higher/special caps for SALT and other itemized deductions, and expansion or bonus amounts for child- and family-related credits — eligibility follows existing rules for itemizers and credit rules (income limits may apply).
New or expanded targeted deductions (for example, auto‑loan interest deduction for qualifying Made‑in‑America vehicles) — applies only to taxpayers who buy qualifying vehicles and meet the statute’s conditions.
Other provisions: preservation/extension of some TCJA items, inflation indexing, and changes to senior deductions.
Which taxpayers benefit depends on filing status, types of income (wages, overtime, tips, Social Security, itemized deductions), and AGI; many provisions exclude or phase down at higher incomes or apply only to filers who itemize. For exact statutory language, each provision’s eligibility is defined in the law and IRS guidance.
(Short authoritative sources listing the law and IRS summaries are below.)