Scott Bessent announces 1 in 4 Americans have unlocked a ‘home run’ tax break — reveals ‘automatic pay increase’ tactic in 2026. Did you miss it?

Those include no tax on tips, no tax on overtime, reduced taxes for seniors on Social Security and deductions for auto loans on American-made cars.

But one provision stands out.

“The big one, the home run, has been no tax on overtime,” Bessent said. “25% of the tax returns the IRS has received, filers have claimed that deduction.”

According to the latest IRS update, 77.8 million returns had been processed as of March 20, 2026, with an average refund of $3,571 — a 10.9% increase from a year ago (2).

But refunds aren’t the only story — Bessent also pointed to another trend that could have a more lasting impact on workers’ finances.

“The other thing is taxpayers are going to or have changed withholding for 2026 and they are getting automatic pay increases by changing their withholding,” he said.

Withholding refers to how much tax is taken out of your paycheck throughout the year. By adjusting it, workers can reduce the amount withheld — effectively increasing their take-home pay in each pay period, rather than waiting for a refund at tax time.

The Tax Foundation has estimated that Trump’s “One Big Beautiful Bill” reduced individual taxes by $129 billion for 2025, noting that refunds “will undoubtedly rise for millions of taxpayers” (3).

Trump has also touted the size of this year’s refunds, saying they “are substantially greater than ever before” and even cautioning Americans: “Don’t spend all of this money in one place!” (4).

For many households, that raises an immediate question: What’s the smartest way to use a sudden cash infusion?

Whether you’re looking to shore up your finances, prepare for uncertainty, or put that extra money to work, here are a few ways Americans may consider investing their potential windfall.

‘The only thing that’s going up big’

The U.S. stock market has been a powerful engine of wealth creation — a point Trump has repeatedly emphasized. Recently, he said “the only thing that’s really going up big? It’s the stock market and your 401(k)s” (4).

The benchmark S&P 500 returned about 16% in 2025 and, despite a recent pullback, is up roughly 62% over the past five years.

Those gains have flowed through to retirement accounts. According to Fidelity, the average 401(k) balance climbed 11% from a year ago to $146,400 in Q4 of 2025 (5).

Still, not all stocks are the same. With markets near record highs, some experts are warning about froth and the risk of chasing momentum without doing the homework.

That’s where research tools can come in handy. Platforms like Moby aim to simplify the process. Their team of former hedge fund analysts does the heavy lifting — breaking down the market, flagging quality stocks and making the research easy to digest.

In fact, across nearly 400 stock picks over the past four years, Moby’s recommendations have beaten the S&P 500 by almost 12% on average. Their research keeps you up-to-the-minute on market shifts and takes the guesswork out of choosing investments.

Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes.

Build wealth through US real estate

Beyond stocks, real estate has long been another cornerstone of wealth-building in America.

In fact, investing legend Warren Buffett often points to real estate when explaining what a productive, income-generating asset looks like. In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check” (6).

Why? Because regardless of what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.

Real estate also offers a built-in hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.

Of course, you don’t need $25 billion — or even to buy a single property outright — to invest in real estate. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.

Mogul is another option. It’s a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.