The average 2026 tax refund for Americans is up by 11 percent, from 2025's $3,116, according to data from the IRS. However, this growth is below President Trump's expectations. The 'One Big Beautiful Bill' was signed into law last year, providing new tax breaks for Americans. The law includes language to block taxes on tips up to $25,000 and a senior deduction for those over 65 to avoid Social Security taxes. Over 53 million people have claimed at least one of the tax cuts, with refunds typically going towards everyday necessities such as rent and bills. The bill also made significant cuts to Medicaid and nutrition assistance, leading to about 16 million low-income Americans losing their health insurance by 2034.