(Daily Signal)—Taxpayers can expect “substantial refunds” due to tax cuts in President Donald Trump’s “One Big, Beautiful Bill,” Treasury Secretary Counselor Joseph Lavorgna said.
The bill’s provisions included no taxes on overtime pay, no taxes on tips, and reduced Social Security taxes.
“We think there could be substantial refunds coming,” Lavorgna, counselor to Treasury Secretary Scott Bessent, told The Daily Signal. “I’ve seen some private sector estimates that are well over a hundred billion dollars, so when people file their taxes, they’re gonna get substantial monies back.”
“That’s gonna help rejuvenate the economy,” he said.
Internal Revenue Service data shows that the average refund in 2025 was $2,939.
Refunds this year could be as much as 30% more than last year, according to some economists.
Lavorgna advised Americans to change their withholding allowance so that they can keep that extra money.
“They also want to change their withholding so they can get their money in 2026 and not have to wait for another refund to come in 2027,” he said, adding that people should talk to their tax adviser to make sure they can fully benefit from the refunds.
The refunds will particularly impact “those hardworking Americans that get paid overtime,” Lavorgna said, or those working in the service industry who are earning commission from tips.
“It could be waiters, waitresses, bartenders, other service type providers,” he said. “It could be YouTubers, podcasters, the gig economy type of workers that receive tips.”
“The numbers are gonna be sizable,” he continued, “and we wanna make sure people get their money and then adjust their withholding, as I said, to make sure they get the full amount in 2026.”
