Tariff Refund Act of 2026

The Tariff Refund Act of 2026 directs the IRS to issue refunds or credits to eligible U.S. citizens who meet specific income and residency criteria. To qualify, an individual must have an adjusted gross income below $200,000, $300,000 for heads of household, or $400,000 for joint filers, and cannot be incarcerated or claimed as a dependent on another's tax return. The bill treats these eligible taxpayers as having already paid a fixed amount of tax toward their 2025 liability, effectively refunding that sum if they have not yet paid it. Payments will be processed electronically to existing bank accounts or Treasury-sponsored accounts, with no interest applied to the refunds. The legislation also includes provisions to prevent duplicate payments and allows dependents of incarcerated individuals to receive funds if the primary earner is ineligible.