TCJA IS ENDING: PREPARE FOR THE CHANGES

The Tax Cuts & Jobs Act (“TCJA”) was passed & signed into law on December 31, 2017.  Many key provisions of the TCJA are expected to expire on December 31, 2025.  Tax planning is important to ensure your wealth stays in the family.

The goal of the Tax Cuts & Jobs Act (TCJA) was to help the US economy by simplifying taxes and encouraging consumers to spend more money.  For businesses, it aimed to help US companies compete on a global scale.  The parts of this act that impact individual taxpayers include lower tax rates, increased standard deductions, increased the Child Tax Credit, and some changes to certain deductions and tax rules.  

Though the business-related provisions in the TCJA will continued, individuals will need to prepare for changes. 

You can expect that most of the TCJA will sunset on December 31, 2025, unless Congress extends the act.  Therefore, be mindful of the provisions that will expire, and how this could affect your tax liabilities.  To help clarify these details, our ATLAS Tax Manager, Denise Marotta, of Westminster, CO, put together a chart (below) of the rules under TCJA, and the changes that will come once it expires.  

As you can see, when the TCJA ends, it is anticipated that taxpayers will experience higher tax rates, a lower standard deduction, and smaller child tax credits.  This could mean middle to high-income families owing more in taxes than in recent years.  One good change to come of this, however, is the return of personal exemptions, which could help lower your taxable income. 

If you think that you or your family’s finances could change with the end of this act, now is the time to have a discussion with your ATLAS tax advisor, or other tax professional, to plan. 

 Why This Matters to ATLAS CPAs & Advisors 

At ATLAS, we believe in sharing helpful tax information with our clients and communities.  We want you to feel confident that you are receiving timely tax updates from us, so that you, your business, and your family are prepared for tax law changes.  

Remember – it is important to review your tax strategy every year – to stay on track with your financial health, and keep yourself in the best tax position.  Changes to income, circumstances, and especially tax law changes, can upset the balance of your financial plan. 

ATLAS can help you with financial planning and advisory anywhere in the US.  Curious which ATLAS location is closest to you?  Click here to see a list of our office addresses.