What you need to know about the expiration of Trump-era tax cuts in 2025 – NBC Boston

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The Future of Tax Cuts and Jobs Act Provisions: What to Expect in 2025 and Beyond

As the end of 2025 approaches, several key provisions from the Tax Cuts and Jobs Act of 2017 are set to expire, potentially impacting individual taxpayers across the country. Enacted by former President Donald Trump, the TCJA brought about lower tax brackets, a higher standard deduction, and an increase in the child tax credit, among other changes. However, the future of these provisions remains uncertain as control of the White House and Congress hangs in the balance.

The expiration of these tax breaks could have significant implications for Americans. The individual tax rates, which were lowered under the TCJA, are set to revert to pre-2017 levels if Congress does not take action. This would mean a return to higher tax rates for many individuals, potentially affecting their financial planning strategies.

Additionally, the standard deduction, which was nearly doubled under the TCJA, may fall back to 2017 levels after 2025. This could impact the way taxpayers choose to file their taxes, as the standard deduction plays a significant role in reducing taxable income.

The child tax credit, which was enhanced under the TCJA, is also at risk of reverting to previous levels without congressional intervention. This could have a direct impact on families who rely on this tax credit to help offset the costs of raising children.

For high-net-worth individuals, the looming changes to gift and estate tax exemptions are a major concern. The current higher exemptions allow for more tax-free transfers of assets, but these limits are set to decrease significantly in 2026 if new laws are not enacted. This has prompted some wealthy individuals to consider making lifetime gifts to reduce their tax exposure.

Overall, the expiration of these provisions from the TCJA presents a complex and challenging situation for taxpayers. The upcoming decisions from Congress will have a significant impact on the financial landscape for individuals and families across the country.