President Donald Trump announced that the 2026 tax refund season is projected to be the largest ever, with refunds potentially $1,000 higher than last year. The One Big Beautiful Bill Act, costing $3 to $4 trillion, includes new deductions and opportunities for workers, seniors, homeowners, and charity donors to maximize refunds.

Year-end tax planning is crucial for taking advantage of the new tax law. Self-employed workers and retirees can strategically delay income to qualify for tax breaks, while W-2 workers may need to increase contributions to lower taxable income. The new law offers tax breaks like the tip deduction, the senior bonus, and an increased SALT deduction that can benefit millions of households.

Taxpayers must consider whether to itemize deductions or take the standard deduction to reduce taxable income the most. Planning for the new $1,000 charitable deduction and SALT deduction is important, as changes in 2026 may limit their impact. Tax withholding changes could lead to larger refunds, but consulting a professional before adjusting withholdings is recommended to avoid potential penalties.

The new senior bonus deduction offers tax savings for seniors until 2028, providing an opportunity for Roth conversions. State income tax rules may or may not mirror federal changes, so workers should wait to file if their state is considering new tax breaks. Parents can open tax-deferred Trump Accounts for children under 18 starting in July, benefiting from employer contributions and tax-advantaged savings strategies.

Read more at Yahoo Finance: The year-end tax moves that can lower your tax bill and make your refund even bigger than Trump promised