Tax Season 2026: Rockford Experts Predict Record-Breaking Refunds Amid Sweeping Law Changes
ROCKFORD, Ill. — As tax season reaches its peak, local preparers are reporting a surge in refund amounts that could make 2026 a record-breaking year for many filers. The Internal Revenue Service reported an average refund of just over $3,000 last year; this filing season, that figure is projected to jump by an additional $1,000 on average, fueled by a series of major tax code revisions enacted last year.
"We're in the midst of the most significant refund season I've witnessed in my 20-year career," said Laura Pitrowski, owner of Trentik Tax Professionals. "The volume of changes is substantial, but the bottom line is clear: refunds are up dramatically across the board."
The catalyst is the "Big Beautiful Bill Act," signed into law by President Trump in 2025. The legislation introduced several high-impact deductions, including the exemption of overtime pay and tipped income from federal taxation. Thomas Prince, a lead expert with Jackson-Hewitt, noted that some clients are already seeing overtime-related deductions exceeding $12,000. "We're fielding countless questions about overtime. For those with substantial extra hours, the savings are major," Prince explained.
However, Illinois residents will not fully benefit from the new rules. The state opted out of the federal tip-income exemption, meaning service workers here will still pay state tax on gratuities at the regular rate.
Another lesser-known provision, referred to by some preparers as the "Trump account," provides a $1,000 federally funded investment account for any child born in 2025. "Many families aren't yet aware of this," Prince added. "It's a long-term benefit that starts with this year's filing."
Pitrowski described scenarios where multiple provisions combine for maximum impact. "Take a married couple where one works for tips and the other logs heavy overtime, plus they have three kids. That's a perfect storm for a dramatically higher refund. We're seeing exceptionally happy clients—people are genuinely pleased with these changes."
Voices from the Community
Michael Rodriguez, small business owner: "As someone who pays overtime, I'm glad my employees get to keep more of what they earn. It feels like a real, tangible boost for working families."
Sarah Chen, economics lecturer at Rock Valley College: "While larger refunds stimulate local spending in the short term, we should examine the long-term fiscal impact of these deductions. The revenue foregone could pressure future budgets."
David Miller, retail worker: "It's frustrating that Illinois didn't adopt the tip exemption. My coworkers in other states get the full break, but here we're still taxed on tips. It feels like we're being left behind."
Rebecca Hayes, nurse and mother of two: "The extra thousand dollars from the child investment account is a wonderful surprise. It's not just a refund—it's a seed for my newborn's future."
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