Tax Bill Changes May Impact 2026 Refunds for Select Workers
The One Big Beautiful Bill Act introduces retroactive tax cuts for 2025 that could boost refunds in 2026, particularly for tipped workers, overtime earners, and families claiming child tax credits. Withholding adjustments delayed until 2026 create potential overpayment scenarios.
While the legislation expands standard deductions and child tax credits, most taxpayers won't see dramatic changes. "The real beneficiaries are those with qualifying income streams that align with new deductions," notes Alex Muresianu of the Tax Foundation. The IRS's delayed implementation creates a unique one-year window for certain workers to benefit from the mismatch between tax liability and withholding rates.