Treasury Department Tax Refund Update: Extra $1,000 for Over 100 Million American Households
Earlier this week the Treasury Department posted an update as tax filings draw near for Americans across the country.
"With the opening of tax filing season last week, President Trump’s Working Families Tax Cuts are set to deliver the biggest refunds in American history," an update from the Treasury Department on social media read.
Americans can now to take advantage of the new "no tax on tips, no tax on overtime, no tax on Social Security, no tax on auto loans for American-made cars, the boosted child tax credit, doubled standard deduction and $1,000 for children’s Trump accounts."
Why The Change Matters
The IRS previously said it expects to receive 164 million individual tax returns this year, with Treasury Secretary Scott Bessent saying he expects “gigantic” and “very large” returns for many Americans.
“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 said. “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.”
Update From Treasury Department Teases Extra $1,000
The latest announcement from the Treasury Department promises an increase by an average of approximately $1,000 per household due to the Working Families Tax Cuts, with over 100 million households set to receive a refund.
With the opening of tax filing season last week, President Trump’s Working Families Tax Cuts are set to deliver the biggest refunds in American history. File now to take advantage of:
— Treasury Department (@USTreasury) February 2, 2026
NO TAX ON TIPS
NO TAX ON OVERTIME
NO TAX ON SOCIAL SECURITY
NO TAX ON AUTO LOANS FOR… https://t.co/OU2DNBBqRF pic.twitter.com/5K1wyJgnRn
7.5 million American families with two children are expected to receive a tax cut of $1,700 because of the enhanced child tax credit after the tax credit was increased to $2,200 and adjust for inflation.
The Treasury Department also announced it doubled the standard deduction, which impacts nearly 90% of American taxpayers, to make filing easier this year.
What Experts are Saying
"Many Americans could see heftier tax refunds next year when they file their 2025 tax returns, largely due to new provisions enacted through the Republicans’ ‘one big, beautiful bill’ act that are retroactive to the start of the current year, according to an analysis from Oxford Economics. Total taxpayer savings could amount to an additional $50 billion through bigger tax refunds or a cut in their 2026 taxes," CBS News previously wrote. "A $50 billion boost in tax refunds would represent an 18% increase from the $275 billion in refunds the IRS sent this year to nearly 94 million taxpayers who overpaid on their 2024 federal tax returns."
"Tax experts and analysts have agreed that many filers will see bigger refunds… ‘Overall, we’re expecting these changes to increase refunds by 15% to 20% on average,’ Heather Berger, a U.S. economist with Morgan Stanley said," CNBC noted.
The deadline for filing taxes is April 15.