WASHINGTON, D.C. — Congressman Jason Smith (MO-08), chairman of the House Ways and Means Committee, issued a statement this week following the Internal Revenue Service’s announcement that the 2026 tax filing season will open Jan. 26.
According to Smith, taxpayers in Missouri and across the nation are projected to receive larger refunds as part of an expected $370 billion refund season, which he attributed to provisions of the Working Families Tax Cuts. The IRS and tax analysts note that individual refunds can vary widely based on income, filing status and other factors, and projections are subject to change.
“Workers will see how the Working Families Tax Cuts put more money in their pockets when they receive their tax refunds this spring,” Smith said. “Families across southeast Missouri can expect an average of about $1,000 more in their refund compared to last year. For a family with two children earning $73,000, federal income tax liability could be reduced to zero.”
Smith said higher refunds may help families cover everyday expenses such as groceries, medical bills, school supplies and seasonal activities. He added that congressional Republicans have focused on policies they believe will improve affordability for working families.
The Working Families Tax Cuts include provisions that expand the standard deduction and Child Tax Credit, eliminate taxes on tips, overtime pay and Social Security benefits, and make lower tax rates permanent. Smith said the changes were made retroactive to 2025 income.
KEY FACTS
Smith said the Working Families Tax Cuts are expected to result in $91 billion in additional tax refunds over the coming months, contributing to what is projected to be the largest refund season in U.S. history — a 26 percent increase over last year.
According to Smith, Americans could receive an average tax refund of nearly $4,000, while a family of four with two children earning $73,000 and claiming the standard deduction and Child Tax Credit could owe no federal income tax.
PROVISIONS AFFECTING REFUNDS
Smith said the Working Families Tax Cuts include the following provisions:
• Makes permanent the doubled standard deduction, increasing it by about $1,500 per family.
• Makes permanent the lower tax rates enacted in 2017.
• Eliminates taxes on tips, overtime pay and Social Security benefits.
• Increases the Child Tax Credit to $2,200 and indexes it to inflation.
• Expands access to child care and makes permanent the paid leave tax credit.
• Expands 529 savings accounts to provide additional education options.
• Establishes a $1,000 savings account to support the future of each newborn child.
