Treasury Secretary Scott Bessent has projected that American households could receive “very large refunds” in the upcoming tax season, thanks to the One Big Beautiful Bill Act (OBBBA).
Speaking to NBC10 Philadelphia on Tuesday ahead of an event highlighting the Trump administration’s economic policies, Bessent said the new law would significantly impact refunds for the 2025 tax year. He emphasized that retroactive provisions would affect this year’s earnings, creating the potential for larger-than-usual returns.
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,” Bessent told NBC10.
“I think we’re going to see $100 to $150 billion in refunds, which could translate to between $1,000 and $2,000 per household.”
Refunds Could Translate to Higher Take-Home Pay
Bessent explained that after the first wave of refunds, taxpayers are expected to adjust their withholding for 2026. This adjustment could result in a tangible increase in take-home wages.
