🌐 Tax Changes & the 2025 Sunset Provision
2026 Tax Changes Are Coming. Are You Ready?
Big changes are on the horizon for U.S. taxpayers. Unless Congress acts, the Tax Cuts and Jobs Act (TCJA)—which delivered significant tax breaks in 2017—is set to expire after December 31, 2025.
This “sunset provision” means many current income tax benefits will automatically roll back to pre-2018 levels.
🔍 What Will Change in 2026?
Here’s what you need to know:
-
Individual Tax Rates Will Rise
Most brackets will increase by 1–4%, with the top rate jumping from 37% back to 39.6%. -
Standard Deduction Will Shrink
The standard deduction will drop by about half, meaning more people may itemize again. -
Personal Exemptions Return
The old exemption of ~$4,050 per person may return, adding complexity to filings. -
Child Tax Credit Will Shrink
The credit could be cut from $2,000 per child to $1,000, with lower income phase-outs. -
Business Owners Lose Pass-Through Deduction
The valuable 20% deduction for qualified business income (QBI) may disappear for S corps, LLCs, and sole proprietors. -
Estate & Gift Tax Exemptions Will Be Cut in Half
From ~$13.61 million (2024) to ~$6.8 million per person.
📊 Who Will Be Affected?
Almost everyone. But especially:
-
High earners facing higher marginal tax rates
-
Business owners who rely on pass-through deductions
-
Families with multiple children or large estates
-
Investors with long-term capital gains or large retirement balances
💡 Planning Opportunities Before 2026
Take advantage of the current tax law while you still can:
✅ Lock in lower tax brackets with Roth IRA conversions
✅ Use today’s higher gift and estate tax exemption
✅ Restructure business income and optimize pass-through entities
✅ Consider life insurance and annuities to shelter and transfer wealth tax-free
✅ Leverage charitable giving under favorable deduction rules
🕒 Act Now—The Window Is Closing
The 2025 sunset provision could reshape your financial future. Whether you’re a business owner, investor, or retiree, now is the time to review your tax plan and make strategic moves before rates rise.
📞 Let’s Talk Tax Strategy
Protect your income. Preserve your legacy. Beat the tax sunset.
👉 [Schedule Your 2025 Tax Strategy Session]
🌐 Tax Changes & the 2025 Sunset Provision
2026 Tax Changes Are Coming. Are You Ready?
Big changes are on the horizon for U.S. taxpayers. Unless Congress acts, the Tax Cuts and Jobs Act (TCJA)—which delivered significant tax breaks in 2017—is set to expire after December 31, 2025.
This “sunset provision” means many current income tax benefits will automatically roll back to pre-2018 levels.
🔍 What Will Change in 2026?
Here’s what you need to know:
-
Individual Tax Rates Will Rise
Most brackets will increase by 1–4%, with the top rate jumping from 37% back to 39.6%. -
Standard Deduction Will Shrink
The standard deduction will drop by about half, meaning more people may itemize again. -
Personal Exemptions Return
The old exemption of ~$4,050 per person may return, adding complexity to filings. -
Child Tax Credit Will Shrink
The credit could be cut from $2,000 per child to $1,000, with lower income phase-outs. -
Business Owners Lose Pass-Through Deduction
The valuable 20% deduction for qualified business income (QBI) may disappear for S corps, LLCs, and sole proprietors. -
Estate & Gift Tax Exemptions Will Be Cut in Half
From ~$13.61 million (2024) to ~$6.8 million per person.
📊 Who Will Be Affected?
Almost everyone. But especially:
-
High earners facing higher marginal tax rates
-
Business owners who rely on pass-through deductions
-
Families with multiple children or large estates
-
Investors with long-term capital gains or large retirement balances
💡 Planning Opportunities Before 2026
Take advantage of the current tax law while you still can:
✅ Lock in lower tax brackets with Roth IRA conversions
✅ Use today’s higher gift and estate tax exemption
✅ Restructure business income and optimize pass-through entities
✅ Consider life insurance and annuities to shelter and transfer wealth tax-free
✅ Leverage charitable giving under favorable deduction rules
🕒 Act Now—The Window Is Closing
The 2025 sunset provision could reshape your financial future. Whether you’re a business owner, investor, or retiree, now is the time to review your tax plan and make strategic moves before rates rise.
📞 Let’s Talk Tax Strategy
Protect your income. Preserve your legacy. Beat the tax sunset.
👉 [Schedule Your 2025 Tax Strategy Session]
