Get excited for tax season: Historic refunds are on their way

by Julio Gonzalez

For years, Americans have asked a simple question: Why does Washington take so much and give back so little? This year, President Trump is shifting that balance.

The One Big Beautiful Bill Act, now known as the Working Families Tax Cut Act, was signed into law last July 4. Now that tax season is here, the benefits that apply to the 2025 tax year will represent a bonanza for the eponymous working families. They will benefit from the most significant expansion of taxpayer relief in modern history, felt by families, workers, seniors and small businesses across the country.

According to financial analysts, the average tax filer is expected to receive about $1,000 more in returns this year due to the new relief measures, contributing to $191 billion total in net new tax relief for American taxpayers. JP Morgan estimates that more than 100 million Americans will receive a tax refund, with the average refund totaling $3,743.

That’s real money going back into real households, thanks to Trump and the Republican-controlled Congress.

At its core, the 2025 tax cut builds on the success of the 2017 Tax Cuts and Jobs Act by extending the historic tax cuts passed during Trump’s first term and expanding relief in ways that directly benefit working Americans. The standard deduction has increased again, rising to $15,750 for single filers (up from $15,000) and $31,500 for married couples (up from $30,000). For millions of families who take the standard deduction, that increase alone translates into meaningful savings.

But the bill goes far beyond the standard deduction. The cap on the state and local tax deduction has been quadrupled, providing relief for taxpayers who have long felt punished for where they live. Workers in service industries and hourly jobs will benefit from “no tax on tips” and “no tax on overtime,” ensuring that hard work is rewarded rather than penalized. The vast majority of seniors receiving Social Security — 88 percent — will no longer pay federal taxes on those benefits.

Of course, working families benefit directly. The Child Tax Credit has been increased to $2,200 per child, up from $2,000, putting more money back into parents’ pockets at a time when families are still coping with the lingering effects of Biden-era inflation, especially in categories such as groceries, child care and housing costs.

In addition, the creation of $1,000 “Trump Accounts” gives families a chance for their children to start life with a financial foundation and a tangible stake in the American dream from Day 1. Notably, the Trump Accounts program is drawing a flood of private capital from some of America’s wealthiest citizens, including an astonishing $6.25 billion from Michael and Susan Dell. That’s a direct transfer of wealth from the “wealthiest 1 percent” to working families — without the need for tax hikes.

The new law also includes a major incentive for charitable giving. Beginning in 2026, taxpayers will be able to claim a $2,000 above-the-line charitable deduction, even if they don’t itemize. That means generosity is rewarded across the board, not just for higher-income filers, and America’s charitable organizations benefit in the process.

What makes this moment especially important is the philosophy behind it. The Trump administration has been clear: The goal is to put money back into the pockets of American taxpayers by cutting taxes and eliminating waste, fraud and abuse in government spending. This approach reflects a fundamental belief that Americans make better decisions with their money than bureaucrats in Washington.

As someone who advises taxpayers and businesses across the country every day, I can say without qualification that these changes will make a massive difference in the lives of working families and entrepreneurs. When families keep more of what they earn, they spend it on education, home improvements, starting businesses, saving for retirement and supporting their local communities. That fuels economic growth far more effectively than expanding government programs ever could or ever will.

This is ultimately about what’s right and fair for hard-working Americans, by recognizing that the American taxpayer has been overburdened for too long and deserves meaningful relief. By simplifying the tax code, expanding deductions and rewarding work, President Trump is delivering exactly that.

The coming tax season is shaping up to be historic — not because of accounting tricks or temporary rebates, but because of Trump’s commitment to letting Americans keep more of their hard-earned money. For millions of households, that extra refund will be proof that Washington can actually take less and give back more, if only our elected leaders have the will to change the ways of government.

Julio Gonzalez is a nationally recognized tax expert and the founder of Engineered Tax Services.

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