02-23-2024, 03:30 AM
It all goes out the window at the end of 2025, so don't get too comfortable… unless you're a corporation that is - they went from topping out at 35% to a permanent flat rate of 21%. Or did you forget? That was the idea…
At the end of 2025, almost all of the individual, estate, and pass-through provisions of the Tax Cuts and Jobs Act (TCJA) will expire. This looming expiration creates an important opportunity to improve tax policy along multiple dimensions at the same time that TCJA provisions are evaluated for possible extension… the legislation also eliminated the personal exemption and limited itemized deductions. Since the standard deduction was made so generous, this was less of a concern for many tax filers. If the changes sunset in 2026, the standard deduction will be essentially halved, and itemized deductions will make a comeback.
At the end of 2025, almost all of the individual, estate, and pass-through provisions of the Tax Cuts and Jobs Act (TCJA) will expire. This looming expiration creates an important opportunity to improve tax policy along multiple dimensions at the same time that TCJA provisions are evaluated for possible extension… the legislation also eliminated the personal exemption and limited itemized deductions. Since the standard deduction was made so generous, this was less of a concern for many tax filers. If the changes sunset in 2026, the standard deduction will be essentially halved, and itemized deductions will make a comeback.