As tax season approaches in the United States, American citizens might actually have something to look forward to. According to Kevin Hassett, the White House Director of the National Economic Council, next year’s tax filing will see taxpayers receive the “biggest refunds of all time.”
His bold prediction is based on a recent major legislative change. Due to the way new laws were passed, the Internal Revenue Service (IRS) ended up holding onto more of taxpayers’ money than it was supposed to. Now, the agency needs to give it all back.
### The New Law Behind Kevin Hassett’s Record-Breaking Refund Prediction
The main reason for this historic payout is a new bill called the **One Big Beautiful Bill Act (OBBBA)**, which was formally signed into law on July 4, 2025. While this legislation took effect immediately, providing substantial tax cuts right away, the timing of its passing—midway through the year—caused an issue with paperwork.
Since the OBBBA law was activated after the 2025 tax year had already started, the IRS did not have enough time to adjust its national withholding tables. As a result, most workers ended up paying their taxes at higher rates based on the old tax collection tables during the latter half of the year.
### Tax Adjustments to Expect in 2026
“There is so much good news in the new year because you are going to see the biggest tax refund season of all time,” Hassett told Fox News anchor Shannon Bream.
“The ‘big, beautiful bill’ was passed in July, and you know, the IRS did not have time to change all the forms, and so now everybody’s going to get huge tax refunds—if they were overtime workers, if they are seniors, if they had tip income.”
### Who Will Benefit Most?
One reason the economic advisor is confident in a historic tax refund in 2026 is the specific nature of the new deductions. The OBBBA law didn’t just reduce general rates; it also targeted particular groups of workers who are now eligible for significant payouts:
– **Service and Hospitality Workers:** Often earning income from tips, they benefit from the “No Tax on Tips” mandate, which gives them a deduction of up to £18,687 ($25,000) from their total earnings.
– **Hourly Employees:** The “No Tax on Overtime” law allows a major deduction on additional shifts, letting taxpayers deduct up to £9,000 ($12,500) of qualified overtime compensation.
– **Seniors:** Americans aged 65 and older can now deduct an additional £4,468 ($6,000) from their taxes. This change aims to provide older adults, many living on fixed incomes, with a quick financial boost.
### A Potential “Tariff Dividend” Cheque
On top of the regular tax refunds, the government is considering injecting more cash into the economy. Hassett and other White House officials have confirmed they are exploring the possibility of issuing a proposed £1,490 ($2,000) “tariff dividend” cheque.
Funded by extra revenue collected from trade tariffs, these cheques would be a separate payment intended to assist low- and middle-income households across the U.S.
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With these new laws and potential additional payments, 2026 is shaping up to be a year of substantial financial relief for many Americans. Be sure to review your tax situation carefully and prepare for what could be the most rewarding tax season ever.
https://www.ibtimes.co.uk/white-house-economic-advisor-kevin-hassett-predicts-2026-largest-tax-refund-us-history-1764663