Key Credits and Refunds That Could Increase by More Than $1,000 in the 2026 Tax Season

Recent tax changes could raise refund checks by more than $1,000 in 2026

Credits and deductions reduce the tax burden for millions of taxpayers

The 2026 tax season could bring higher-than-expected refunds

The 2026 tax season could make a significant difference for millions of people in the United States.

Changes stemming from the One Big Beautiful Bill (OBBBA) and adjustments announced by the Internal Revenue Service (IRS) open the door to higher refunds, at a time when many families are facing tight budgets due to the rising cost of living.

For some taxpayers, the impact will be reflected directly in a larger refund check.

Tax Credits and Refunds Boosted by the New Law

Credits and refunds are at the center of the recent tax changes.

According to the Tax Foundation, the One Big Beautiful Bill reduced individual taxes by $144 billion for 2025. External estimates indicate that up to $100 billion of that amount could be reflected as higher refunds during the filing season.

| Treasury Secretary Scott Bessent predicted that Americans will receive “huge” refund checks in the upcoming tax filing season thanks to the tax cuts from Trump’s One Big Beautiful Bill. pic.twitter.com/eJfhbICOT7

— La Derecha Diario Estados Unidos (@DerechaDiarioUS) December 28, 2025

According to IRS data, the average refund in 2025 was $3,151. With the new adjustments, that amount could rise to approximately $4,151 per taxpayer, representing an increase close to $1,000 and reinforcing expectations of a 2026 tax refunds increase.

Increase in the Standard Deduction

One of the factors behind the growth in credits and refunds is the increase in the standard deduction for the 2026 tax year.

Married couples filing jointly will be able to deduct $32,200.

For single filers or married individuals filing separately, the deduction will be $16,100, while heads of household may deduct $24,150. These amounts directly reduce taxable income and increase the likelihood of receiving a larger refund.

Federal Tax Benefits That Make a Difference

Among the most significant federal tax benefits is the enhancement of the employer-provided child care tax credit. The OBBBA raised the maximum credit from $150,000 to $500,000, and up to $600,000 for eligible small businesses.

The Earned Income Tax Credit was also increased. For taxpayers with three or more qualifying children, the maximum amount reaches $8,231 in the 2026 tax year, up from $8,046 the previous year.

Other Adjustments That Affect Tax Refunds in 2026

Beyond credits, other changes also influence the final refund amount.

The qualified transportation fringe benefit increases to $340 per month for 2026.

This is combined with the elimination of taxes on overtime pay and tips, as well as an increase in the SALT deduction cap from $10,000 to $40,000.

Taken together, these modifications could result in refunds increasing by around $90 billion nationwide.

Impact on the Latino Community

For millions of Latino families, an increase in credits and refunds represents tangible financial relief. This extra money is often used to pay down debt, cover overdue rent, handle car repairs, or address accumulated medical expenses.

2026 tax refunds increase – PHOTO: Shutterstock

However, the benefit will not be the same for everyone. Households with incomes between $60,000 and $400,000 are expected to benefit the most, while lower-income households may see a smaller increase.

What Analysts Are Saying

“When people file their tax returns, they will be surprised by sizable refunds,” said Don Schneider, an analyst at Piper Sandler.

He also noted that the total increase in refunds will be significantly higher than in a typical tax year, according to CBS News.

What’s Next

Tax returns for the 2025 tax year will be filed in early 2026. In most cases, refunds will arrive within 21 days of filing. Staying informed and reviewing withholdings in advance will be key to making the most of the available benefits and capturing the full potential 2026 tax refunds increase.