Were going to review the TCJA tax provisions that are expiring on December 31, 2025.

Renewing them would require Congress passing a bill and the President signing it.

Without further legislation, they may go back to their 2017 levels.

A father has breakfast with his toddler while holding his newborn child.

Child Tax Credit

The Tax Cuts and Jobs Act doubled the value of the Child Tax Credit.

It also increased the refundable portion (the Additional Child Tax Credit) by 40%.

For the moment, these increases will expire at the end of 2025.

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But it doesnt do anything to extend these increases beyond the 2025 tax year.

That would still require a further act of Congress.

No Interest Til Almost 2027?

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You have to fully provide financially for the person in order for this credit to apply.

Currently, this credit is set to expire at the end of 2025.

ABLE Account Changes

Several changes toABLE accountswere included in the The Tax Cuts and Jobs Act.

(Assuming they earn at least $15,060 in 2024.)

Disabled individuals cant save in a traditional deposit account past $2,000 without losing disability benefits.

This provision is set to expire on December 31, 2025.

There are several advantages to rolling over a 529 account to an ABLE account.

Unless something changes between now and then, these tax-free rollovers will no longer be allowed after 2025.

The change was dramatic and had an impact on other line items further down your return.

Standard Deductions

Standard deductions nearly doubled under the TCJA.

Itemizing deductions then made a lot less sense for the vast majority of Americans.

(The deduction accounts for the base + inflation.)

Lets explore the ones most likely to hinge on the standard deduction.

This reduced your taxable income, and ended up serving essentially the same function as a deduction.

It made sense to claim this deduction back when standard deductions were lower.

The only exception is if youre in the Armed Forces.

If left untouched, everyone would be able to claim this deduction again starting in 2026.

Without further intervention, this practice will stop after December 2025.

The TCJA bumped that up to 60% of your AGI.

The $10,000 cap doesnt apply if youre paying taxes necessary to run a business.

The increase of the standard deduction also meant the number of claims on this deduction went down.

If the provision is allowed to expire, that requirement will disappear.

Gambling Deductions

The TCJA expanded the gambling losses you could claim as deductions on your taxes.

To claim a deduction like this, you must have moregambling winningsthan losses on your tax return.

Professional gamblers will only be allowed to deduct nonwager expenses.

Thats set to sunset on December 31, 2025, though.

Personal Income Tax Rates

Tax tables themselves changed under the Tax Cuts and Jobs Act, too.

Plus, the alternative minimum tax experienced significant transformation.

When we talk about tax rates, its important to note that we use a progressive tax system.

Marginal tax rates

Both income bands and marginal tax rates would change without a renewal of current rates.

Alternative Minimum Tax

The TCJA significantly reduced the number of people subject to the alternative minimum tax.

This reduction applied primarily to middle-income and upper-middle-income households.

If no new legislation is introduced, it will revert back, affecting 6.7 million taxpayers in 2026.

But the TCJA statutorily declared the Sinai Peninsula a combat zone as an act of Congress.

This provision is set to end on December 31, 2025.

In 2024, that adds up to $13,610,000.

This in turn lowers the individuals taxable income.

Without further legislation, this deduction will disappear starting January 1, 2026.

That may in part be due to the impacts of the pandemic on the labor market.

But it may also be in part due to a tax credit the TCJA gave employers.

This credit will disappear if its not included in future legislation between now and 2026 tax filings.

She is a regular contributor to The Penny Hoarder.

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