Your tax refund isn't a windfall, it's cash the government holds for free. How to make this money work for you instead

Core Insights - The One Big Beautiful Bill Act (OBBBA) is expected to lead to the largest tax refund season in history, with Treasury Secretary predicting refunds between $100 billion and $150 billion [1] - The average tax refund is projected to increase by up to $1,000, depending on individual tax situations [2] Tax Landscape Changes - While some Americans may receive larger refunds, cuts to programs like SNAP and Medicaid could negatively impact overall household finances [4] - Households in the lowest income decile may see a reduction of about $1,200, or 3.1% of projected income, while those in the top decile could see an increase of approximately $13,600, or 2.7% of their projected income [5] Tax Breaks and Deductions - The maximum child tax credit will rise from $2,000 to $2,200, and a new seniors deduction of $6,000 (or $12,000 for married couples) will be introduced for those aged 65 and over [5] - Additional tax breaks include no tax on qualified tips up to $25,000, no tax on overtime up to $12,500 (or $25,000 for joint filers), and no tax on car loan interest up to $10,000 for qualified U.S.-built vehicles, with phase-outs at higher income levels [6]