Bigger Tax Refunds Expected in 2026

Brace for larger tax refunds in 2026! New analysis predicts an average refund of $4,151, up from the current $3,151, thanks to a new tax and spending law. This law introduces tax breaks like eliminating taxes on overtime and tipped income, and raising the SALT deduction cap from $10,000 to $40,000. The benefits are expected to mainly go to middle and upper-middle-income households, with the largest boost for those earning between $60,000 and $400,000 per year. Higher-income Americans may see a bigger impact, while lower-income households may see little benefit from certain parts of the new law.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.