Taxpayers are preparing to file their 2025 tax returns in the coming weeks, and many may receive larger refunds than they have in recent years.
Following the passage of President Donald Trump’s sweeping megabill, the One Big Beautiful Bill Act (OBBBA), over the summer, Americans will notice major changes when they file their taxes this year.
The legislation introduces several new tax cuts, including no tax on tips, no tax on overtime, no tax on car loan interest, and a new deduction for seniors. Based on eligibility and income levels, some taxpayers could see their overall tax burden drop significantly.
“Under these cuts, many families will be saving between $11,000 and $20,000 a year, and next spring is projected to be the largest tax refund season of all time,” the president said during his address to the nation last month.
The Tax Foundation — a leading nonpartisan tax policy nonprofit — estimates that seven new provisions under the OBBBA will reduce individual income taxes by $144 billion for 2025 tax returns.
In addition, the House Ways and Means Committee reported that tax refunds could rise by about $1,000 per filer during the upcoming tax season, putting even more savings directly into Americans’ pockets.
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Here’s everything you need to know about what Trump’s tax cuts could mean for a married couple with children this year:
How much can I save from Trump’s tax cuts?
The Tax Foundation outlines a scenario involving a married couple with two children earning a combined income of $85,000 to estimate how much they could save on taxes under Trump’s tax cuts.
In this example, the household claims the standard deduction and contributes $5,500 to a pre-tax 401(k). According to the Internal Revenue Service (IRS), the standard deduction for married couples filing jointly rises to $32,200 for the 2026 tax year. For this income range, married couples filing jointly face a top tax rate of 12% on income above $24,800.
Before the passage of the OBBBA, this married couple with two children would have owed $16,045 in taxes. With the new tax cuts in place, their tax liability drops to $13,365. That results in a $2,680 tax cut — a 3.55% increase in take-home pay — giving the family more disposable income to save or spend.
Actual tax savings vary based on factors such as income level, filing status, and eligibility for specific tax breaks. The Congressional Budget Office found that the tax cuts are expected to primarily benefit wealthier households, while lower-income families may be worse off.
Will Trump’s tax cuts benefit families in the long run?
The Trump administration has rebranded the OBBBA as the Working Families Tax Cuts, promoting the legislation as a source of financial relief for middle- and working-class Americans this year.
The Congressional Budget Office Joint Committee on Taxation released an analysis on how Public Law 119-21 — also known as the OBBBA — would affect federal deficits and publicly held debt. The committees estimate that between 2025 and 2034, “deficits will increase by $3.4 trillion for the legislation as enacted, excluding any macroeconomic or debt-service effects.”
As a result of the tax cuts, federal revenue is expected to decline during this tax season, and the OBBBA is projected to add roughly $700 billion in additional interest costs to the federal debt.
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