Taxpayers are revisiting the Tax Cuts and Jobs Act (TCJA) of 2017 as its temporary provisions expire in 2025. While some of the changes have been beneficial, others—like limits on deductions—have proven less favorable. Many wonder what changes could happen with a new administration and Congress on the horizon.

Key to this uncertainty is the status of the TCJA provisions. While some, like corporate tax cuts, were made permanent, others were designed to sunset at the end of 2025 due to the constraints of the reconciliation process. A Forbes contributor recently wrote about this topic: Which tax cuts and provisions are slated to expire, and how might that impact taxpayers?  

Standard Deduction  

Among the most widely embraced changes was the substantial increase in the standard deduction.

• Pre-TCJA: Lower standard deduction amounts.
• Post-TCJA: Nearly doubled standard deduction:
  • Individuals: $15,000
  • Heads of Household: $22,500
  • Married Couples Filing Jointly: $30,000  
• Potential Change: If the TCJA expires, the standard deduction could revert to pre-2017 levels (adjusted for inflation), significantly reducing your tax savings. For instance, married couples filing jointly might see a deduction around $16,525 in 2026.

Personal Exemption:

Potential Change: If the TCJA expires, personal exemptions could return, potentially around $5,275 per exemption.

Pre-TCJA: Personal exemptions reduced taxable income for individuals and dependents.

Post-TCJA: Personal exemptions were eliminated.

Individual Income Tax Rates (Marginal Rates)

Under the TCJA, individual income tax rates were reduced to 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These rates remain in effect today. (For details on 2025 thresholds, see here.)

What Could Change: If this provision expires as scheduled, marginal rates will revert to their pre-TCJA levels of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. Additionally, these rates will apply to income brackets different from those under the current TCJA structure.    

Child Tax Credit (CTC): A Closer Look

The Tax Cuts and Jobs Act (TCJA) significantly enhanced the Child Tax Credit (CTC), increasing it from $1,000 to $2,000 per qualifying child under 17. This increase was accompanied by an expansion of the refundable portion, known as the Additional Child Tax Credit (ACTC), which rose from $1,000 to $1,400 per child ($1,700 in 2025).

Potential Changes:

If the TCJA provisions expire, the CTC could revert to its pre-TCJA levels:

• Maximum Credit: $1,000 per qualifying child.
• Maximum Refundable Amount: $1,000 per qualifying child.

These amounts would not be adjusted for inflation, diminishing the credit’s value over time.

Credit for Other Dependents

The TCJA introduced a non-refundable credit of up to $500 for qualifying dependents who don’t meet the criteria for the Child Tax Credit. This credit, sometimes called a “family credit,” was designed to provide tax relief for taxpayers with dependents like elderly parents or disabled adult children.

Potential Change:

If the TCJA provisions expire, this credit will be eliminated.  

Exclusions from Income

Bicycle Commuting Expenses:

• Pre-TCJA: Employer reimbursements for bicycle commuting expenses were tax-free.
• Post-TCJA: These reimbursements became taxable income.
• Potential Change: If the TCJA provisions expire, up to $20 per month of employer-provided bicycle commuting reimbursements could once again be excluded from income.

Moving Expenses:

• Pre-TCJA: Eligible taxpayers could exclude qualified moving expenses from their income.
• Post-TCJA: Only members of the armed forces can now exclude moving expenses.
• Potential Change: If the TCJA provisions expire, all eligible taxpayers may again be able to exclude qualified moving expenses from their income.     

Itemized Deductions: A Closer Look

Charitable Deductions

Pre-TCJA: Taxpayers could generally deduct up to 50% of their Adjusted Gross Income (AGI) for cash contributions to qualifying charities.

Post-TCJA: The TCJA increased this limit to 60% of AGI.

Potential Change: If the TCJA provisions expire, the charitable deduction limit could revert back to 50% of AGI.

State and Local Taxes (SALT) Deduction

Pre-TCJA: Taxpayers could fully deduct state and local property taxes, income taxes, or sales taxes from their federal income tax.

Post-TCJA: The TCJA imposed a $10,000 cap on the total state and local taxes that can be deducted.

Potential Change: If the TCJA provisions expire, the SALT deduction could return to its pre-TCJA levels, allowing taxpayers to deduct these expenses fully.    

Mortgage Interest Deduction

Home Mortgage Interest

Pre-TCJA: Taxpayers could generally deduct interest on up to $1 million of mortgage debt for their primary and secondary homes.

Post-TCJA: The TCJA reduced the mortgage interest deduction limit to $750,000 for new mortgages incurred after December 15, 2017. However, existing mortgages were grandfathered in, allowing deductions on up to $1 million of debt.

Potential Change: If the TCJA provisions expire, the mortgage interest deduction limit could revert back to $1 million for all mortgage debt, regardless of when it was incurred.

Home Equity Debt

Pre-TCJA: Interest on home equity debt was generally deductible.

Post-TCJA: The TCJA eliminated the deduction for interest on home equity debt.

Potential Change: If the TCJA provisions expire, the deduction for home equity debt could be reinstated.

Miscellaneous Itemized Deductions

Pre-TCJA: Taxpayers could deduct certain miscellaneous itemized expenses, such as unreimbursed employee business expenses, home office expenses, and tax preparation fees if these expenses exceeded 2% of their adjusted gross income (AGI).

Post-TCJA: The TCJA eliminated the deduction for miscellaneous itemized expenses.

Potential Change: If the TCJA provisions expire, the deduction for miscellaneous itemized expenses exceeding 2% of AGI could be reinstated. This would include the deduction for employees from the home office.   

Overall Limitation on Itemized Deductions

Pre-TCJA: The Pease Limitation capped itemized deductions for high-income taxpayers.

Post-TCJA: The TCJA eliminated the Pease Limitation, allowing taxpayers to deduct their itemized expenses fully.Potential Change: If the TCJA provisions expire, the Pease Limitation could be reinstated. This would reduce the total amount of itemized deductions for high-income taxpayers. 

Other Provisions

Alternative Minimum Tax (AMT)

• Pre-TCJA: The AMT imposed a minimum tax rate on taxpayers with high incomes, even if they paid little or no regular income tax.
• Post-TCJA: The TCJA increased the AMT exemption amounts and phase-out ranges.
• Potential Change: If the TCJA provisions expire, the AMT could become a more significant tax burden for high-income taxpayers.

Small Business Deduction (Section 199A)

• Post-TCJA: The TCJA introduced a 20% deduction for qualified business income from pass-through entities like S corporations and partnerships.
• Potential Change: If the TCJA provisions expire, this deduction will be eliminated, increasing the tax burden on small business owners.

Business Loss Limitations

• Pre-TCJA: Businesses could generally carry back net operating losses to offset past income.
• Post-TCJA: The TCJA limited the amount of business losses that could be deducted in a given year.
• Potential Change: While the CARES Act temporarily suspended these limitations, they could be reinstated after 2028, potentially limiting tax benefits for businesses with losses.

Expensing

• Pre-TCJA: Businesses generally had to depreciate assets over their useful lives.
• Post-TCJA: The TCJA allowed businesses to immediately expense a significant portion of the cost of certain assets, known as bonus depreciation.
• Potential Change: If the TCJA provisions expire, businesses must return to the traditional method of depreciating assets over time, reducing their immediate tax benefits.

Estate Taxes

• Pre-TCJA: The federal estate tax exemption was significantly lower.
• Post-TCJA: The TCJA substantially increased the estate tax exemption.

Potential Change: If the TCJA provisions expire, the estate tax exemption will be significantly reduced, potentially subjecting more estates to federal estate tax.   

Corporate Provisions

Most of the TCJA changes affecting corporations, such as the lower corporate tax rates, are permanent and will not expire in 2026 or beyond.