The year-end tax moves that can lower your tax bill and make your refund even bigger than Trump promised

President Donald Trump has announced that the upcoming tax season in 2026 is expected to bring in record-breaking refunds for American taxpayers. With the implementation of the One Big Beautiful Bill Act, signed into law last summer, projections show that refunds could be as much as $1,000 larger than in previous years.

The significant increase in tax refunds is attributed to the multitude of changes introduced in the One Big Beautiful Bill Act, which is estimated to cost between $3 and $4 trillion over the next decade. These changes include new deductions for workers receiving tips and overtime pay, as well as a bonus deduction for seniors. Additionally, homeowners, parents of young children, and charitable donors will also benefit from new tax breaks, creating more opportunities for tax planning.

As the end of 2025 approaches, individuals still have time to make year-end tax moves to take advantage of the changing tax laws and maximize their refunds. According to Mark Baran, a managing director at CBIZ, this year presents more opportunities than usual for tax planning due to the new legislation.

Key changes in the tax law include increased deductions for workers who qualify for tip and overtime deductions, as well as higher deductions for senior citizens and homeowners. The expansion of the state and local tax deduction to $40,000 will also impact millions of households, prompting more taxpayers to itemize their deductions.

To make the most of these tax breaks, individuals are advised to carefully consider their income levels and make strategic financial decisions. Self-employed workers and retirees have more control over when they receive income, allowing them to strategically manage their tax liability. However, W-2 workers may have limited options for lowering their taxable income, such as increasing contributions to retirement accounts.

Furthermore, the new law introduces a “senior bonus” deduction aimed at reducing taxable income for seniors. This presents an opportunity for individuals to convert pretax retirement savings to after-tax savings through Roth conversions.

It’s important to note that while federal income taxes are undergoing significant changes, state tax laws may not necessarily follow suit. State legislatures have varying timelines for adopting federal tax breaks, leading to a patchwork of laws across different states.

Parents and legal guardians also have the opportunity to open tax-deferred “Trump Accounts” for their children, with U.S. citizen babies born between 2025 and 2028 receiving a free $1,000 deposit. Philanthropists and employers are also allowed to contribute to these accounts, providing a tax-advantaged savings strategy for minor children.

Overall, the 2026 tax season will be a test of the real benefits of the One Big Beautiful Bill Act, offering taxpayers the opportunity to maximize their refunds through strategic tax planning and taking advantage of the new tax breaks introduced in the legislation.