The Sunset of The Tax Cuts and Jobs Act: Navigating the Changes Ahead
As we approach 2025, taxpayers nationwide face a significant shift in the tax landscape. The Tax Cuts and Jobs Act (TCJA) of 2017, which brought about sweeping changes to the tax code, is set to expire. This means that, without legislative intervention, many of the provisions that taxpayers have become accustomed to will sunset, reverting to the pre-TCJA tax structure.
What’s Changing?
Here’s a breakdown of the key changes that will occur if the TCJA provisions expire:
Individual Tax Rates: The lowered tax rates will revert to higher pre-TCJA levels.
Standard Deduction: The nearly doubled standard deduction will decrease, impacting
many who need to itemize deductions.Itemized Deductions: Caps on state and local tax (SALT) deductions will be lifted, and
mortgage interest deductions will return to previous limits.Child Tax Credit: The increased credit amount will revert to the lower pre-TCJA amount.
Personal Exemptions: The suspension of personal exemptions will end, allowing
taxpayers to claim them again.
Implications for Taxpayers
The expiration of these provisions could lead to a more complex and higher tax burden for many. Understanding how these changes may affect your tax planning and financial strategies is essential.
How Can Lamarre Law Group, P.A Help?
At Lamarre Law Group, P.A., we specialize in navigating complex tax laws to maximize benefits and minimize liabilities. Our expert team is well-versed in the intricacies of the TCJA and the impending changes. We can provide personalized guidance to prepare you for the tax shifts ahead.
Take Action Now
Don’t wait until the last minute to adjust your tax strategy. Contact us via our online form or Lamarre to schedule a consultation. Let us help you transition smoothly into the new tax era.
Disclaimer: This blog post is for informational purposes only and should not be considered legal advice. Always consult with a tax professional for personalized advice.