What Might Be Ahead as Many Tax Provisions are Scheduled to Expire?
Buckle up, America: Major tax changes are on the horizon. The reason has to do with tax law and the upcoming elections.
Our current situation
The Tax Cuts and Jobs Act (TCJA), which generally took effect in 2018, made sweeping changes. Many of its provisions are set to expire on December 31, 2025.
With this date getting closer each day, you may wonder how your federal tax bill will be affected in 2026. The answer isn’t clear because the outcome of this November’s presidential and congressional elections is expected to affect the fate of many expiring provisions. A new political landscape in Washington could also mean other tax law changes.
Corporate vs. individual taxes
The TCJA cut the maximum corporate tax rate from 35% to 21%. It also lowered rates for individual taxpayers, with the highest tax rate reduced from 39.6% to 37%. But while the individual rate cuts expire in 2025, the law made the corporate tax cut “permanent.” (In other words, there’s no scheduled expiration date. Tax legislation could still change the corporate tax rate.)
In addition to lowering rates, the TCJA revised tax law in many other ways. On the individual side, standard deductions were […]