The Tax Cuts and Jobs Act of 2017 (TCJA) is due to expire at the end of 2025. If the tax cuts are extended, lawmakers will be looking for ways to offset the expenditures. Some of the tax breaks that may be targeted are tax-deferred contributions to pensions, retirement plans and accounts, the tax rate on qualified dividends and capital gains, the child tax credit, charitable contribution for taxpayers itemizing on Schedule A of the 1040, and the 20% qualified business income deduction on pass-through income.
This will no doubt come to the forefront of tax legislation, and we will highlight it in future newsletter issues as more information becomes available.