4 Expiring Tax Provisions in 2025

Potential Expiring Tax Provisions in 2025

Individual Income Tax Rate Reductions

The TCJA temporarily lowered income tax rates across various brackets. Without extension, these rates will revert to pre-2018 levels, increasing tax liabilities for many individuals in nearly all income brackets.

Below, you’ll find the tax rates for single filers based on 2025 tax brackets:

• $11,925 or less: 10%
• $11,925 to $48,475: 12%
• $48,475 to $103,350: 22%
• $103,350 to $197,300: 24%
• $197,300 to $250,525: 32%
• $250,525 to $626,350: 35%
• $626,350 or more: 37%

Should this TJCA provision sunset at the end of 2025, tax rates would increase in 2026 to the following:

• $11,925 or less: 10%
• $11,925 to $48,475: 15%
• $48,475 to $103,350: 25%
• $103,350 to $197,300: 28%
• $197,300 to $250,525: 33%
• $250,525 to $626,350: 35%
• $626,350 or more: 39.6%

(Keep in mind that tax brackets are subject to change each year.)

Increased Standard Deduction

The standard deduction was nearly doubled under the TCJA, increasing between 2017 and 2018 from:

• $6,500 to $12,000 for individual filers
• $13,000 to $24,000 for joint returns
• $9,550 to $18,000 for heads of household

The standard deduction has always been indexed annually for inflation (even prior to TJCA). For 2025, the standard deduction is:

• $15,000 for single filers
• $30,000 for joint filers
• $22,500 for heads of household

If this tax provision expires at the end of 2025, the standard deduction will revert to approximate pre-TJCA levels (adjusted for inflation), meaning taxpayers who do not itemize deductions could be looking at a higher tax liability.

Expanded Child Tax Credit

The Child Tax Credit is a tax break for families with qualifying dependents. The Tax Cuts and Jobs Act doubled the value of the Child Tax Credit — from $1,000 to its current maximum credit of $2,000. Additionally, TCJA made the credit available to earners higher up on the income ladder, from its previous limit of $110,000 to up to $400,000 for married couples.

If this tax provision expires, the tax credit and income caps will revert to its previous limits.

To be able to claim the Child Tax Credit, the dependent must:

• Be under 17 at the end of the tax year
• Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
• Not provide more than half of his or her own support for the tax year
• Have lived with you for more than half the tax year (time at college counts as living with you if they meet the other listed factors)
• Be claimed as a dependent on your return
• Not file a joint return for the year (or filed the joint return only to claim a refund of taxes withheld or estimated taxes)
• Be a U.S. citizen, U.S. National or a U.S. resident alien
• Must have a Social Security Number that is valid for employment and is issued before the due date of your tax return (including extensions)

Increased Estate Tax Exemption

The TCJA increased the federal estate tax exemption, allowing beneficiaries to receive up to $13,990,000 in tax year 2025 without paying an estate tax. Ranging from 18% – 40%, the estate tax was previously triggered at $5 million prior to the passing of TCJA. If this tax credit expires with no other legislation passed, the estate tax exemption will return to $5 million, adjusted for inflation.

Stay up to date on expiring tax provisions with Landmark CPAs

We stay up to date with changing tax laws, so you don’t have to. When you work with a Landmark CPA for tax planning and management, we’ll help you make the best choices to maximize your tax savings.