Tax season is approaching, and many Americans are in for a big refund in 2026. Treasury Secretary Scott Bessent predicts refunds to be larger than usual, with the average refund estimated to be around $1,000 higher. This is due to generous tax cuts that were retroactively applied in 2025, resulting in more money withheld from paychecks than owed in taxes. Certain groups, such as parents and homeowners, will benefit from targeted tax breaks. It’s important to use this extra income wisely, whether by saving for retirement, paying off debt, or building an emergency fund. Make the most of this opportunity, as the tax changes are temporary and last only until 2028.

Read more at NASDAQ.: Your 2026 Tax Refund May Be Much Bigger Than You’d Think. Here’s Why.