Your Tax Refund Could Be $1,000 Higher in 2026: Here’s How and Why Tax Planning Matters
With 2026 just around the corner, American taxpayers may see a welcome boost to their tax refunds—potentially over $1,000 more, according to new projections. This anticipated change stems from a tax proposal dubbed the “OBBBA” (One Big Beautiful Budget Act), part of a broader bipartisan effort in Congress to extend key tax provisions from the Tax Cuts and Jobs Act (TCJA) of 2017. But unlocking these savings isn’t automatic—it requires proactive tax planning and strategic filing.
If you live in Temecula, San Diego, Riverside, or anywhere in Southern California, the team at The Law Office of Pietro Canestrelli, A.P.C. is here to help you maximize your return and avoid costly mistakes.
Why Your Refund Might Increase in 2026
Recent projections from Piper Sandler suggest that tax refunds could rise by over $1,000 for many Americans if Congress passes the proposed extension of TCJA provisions. Specifically, the child tax credit, standard deductions, and favorable income brackets could continue, preserving benefits for middle-income families and individuals.
According to CBS News, the changes are most beneficial to households earning between $50,000 and $200,000 annually. These households could see significant refund increases due to extended tax cuts.
For example, a family of four earning $90,000 a year could see substantial benefits from the extended child tax credit and standard deduction, both of which help lower taxable income. Meanwhile, single filers and retirees could also benefit from broader income brackets that reduce their effective tax rate.
Taxpayers with multiple dependents, large mortgage interest deductions, or self-employed income streams should be especially aware of how these proposed changes could amplify their refunds.
What Is the One Big Beautiful Budget Act (OBBBA)?
The OBBBA aims to prevent the scheduled expiration of many TCJA provisions in 2025. These include:
- Higher standard deductions
- Expanded child tax credit
- Lower individual income tax rates
- Larger estate and gift tax exemptions
These provisions, originally set to sunset after 2025, form the cornerstone of the financial advantage many families and businesses have enjoyed for years. If Congress passes the OBBBA, it could solidify these favorable tax rules into the future—but only for those prepared to take advantage.
In addition to preserving existing benefits, OBBBA may introduce adjustments for inflation, tweak certain credits to better reflect cost-of-living increases, and address tax simplification for small business owners and independent contractors.
Why Strategic Tax Planning Matters More Than Ever
While potential savings are on the table, they’re not guaranteed. The complexity of U.S. tax law means that even with favorable legislation, poor planning can reduce or even eliminate your benefits.
Strategic tax planning ensures you:
- Position your income and deductions for maximum impact
- Understand how new rules apply to your situation
- Avoid common filing mistakes
- Plan for life changes such as marriage, having children, or retirement
An experienced tax attorney can help identify hidden opportunities such as:
- Accelerating or deferring income to optimize bracket placement
- Maximizing qualified deductions, including business expenses
- Utilizing retirement contributions to reduce taxable income
- Leveraging advanced tools like trusts or gifting strategies to reduce estate taxes
Learn more about maximizing your tax benefits through proactive planning.
Key Tax Issues to Monitor Before 2026
As we head toward potential changes, taxpayers should keep an eye on:
- The fate of the OBBBA legislation in Congress
- Expiring TCJA provisions
- Inflation adjustments to brackets and deductions
- IRS enforcement and audit trends (see our IRS Audit page)
- State tax implications for Californians and how local deductions may interact with federal ones
Failing to anticipate these variables could mean leaving hundreds or thousands of dollars on the table.
Filing Early vs. Filing Strategically
Filing early may seem smart, but in times of tax reform, strategic filing is often more beneficial. Here’s why:
- Early filing locks you into rules that may change
- Late-year changes could impact deductions or credits
- Strategic delays may help if you’re waiting for updated legislation
For instance, if you’re a small business owner or investor, you might benefit from waiting until late in the year when tax clarity improves, especially if Congress votes on new tax laws.
Check our guide on unfiled taxes and their consequences if you’re unsure about timing.
How a Tax Attorney Helps You Maximize Your Refund
At The Law Office of Pietro Canestrelli, we help individuals and businesses with:
- Tailored tax planning based on the latest laws
- Filing strategies to reduce audit risk
- IRS representation and back tax resolution
- Tax relief services for those struggling with debt
- Navigating California-specific tax credits and property-related deductions
- Preparing for IRS notices or audits before they happen
Our experienced team in Temecula and across Southern California offers clear guidance and personalized legal strategies.
Working with a tax attorney also helps high-net-worth individuals and small business owners navigate complex rules involving capital gains, depreciation, real estate holdings, and multi-state income reporting.
FAQs About the 2026 Tax Refund Increase
Will everyone get $1,000 more in their refund?
No. The increase depends on income level, filing status, and the passage of the proposed legislation.
Is the OBBBA law yet?
As of now, it’s a proposal. Congress has not passed it into law.
Can I still get a larger refund without the new bill?
Yes—through proper planning, deductions, and credits, you may still boost your refund.
What if I owe back taxes?
Talk to a tax attorney about resolving back taxes before filing.
What can Californians do to prepare?
Review your state and federal deductions with a professional and ensure you’re in compliance with both sets of rules. California has its own unique tax landscape that interacts with federal policies.
Final Thoughts: Plan Now to Benefit Later
Whether or not the One Big Beautiful Budget Act passes, one thing is clear: proper tax planning is critical. With the help of a skilled tax attorney, you can ensure that you’re ready for changes in 2026 and beyond.
Taking steps now could mean a significantly larger refund, reduced tax liability, and greater peace of mind in a rapidly changing financial landscape.
Contact The Law Office of Pietro Canestrelli today to schedule your consultation and secure your financial future.
