FUTURE of the Tax Cuts and Jobs Act (TCJA).
At the end of 2025, a sizable portion of the TCJA is set to expire. While uncertainty remains, Republicans favor a broad extension of the sunsetting provisions. Here are some of Trump’s policy proposals:
- Extension of the Qualified Business Income (QBI) deduction. The 20% deduction for certain QBI is currently set to expire at the end of 2025.
- Reinstate the 100% bonus depreciation. The bonus depreciation has been decreasing over the past years and is 40% for 2025 and will be fully phased out starting 1/1/2027.
- Individual income tax rates (10%,12%, 22%, 24%, 32%, 35%, 37%) will expire at the end of 2025 and revert to higher pre TCJA rates of 10%, 15%, 25%, 28%, 33% 35% and 39.6%, unless made permanent.
- Unless Congress acts, the lifetime gift and estate tax exemption will take a drastic drop in 2026, reverting to near 2017 levels of $7 million. Unless it is changed with legislation, the 40% rate is permanent. Trump has proposed to extend the TCJA exemption amount increase and maintain the 40% rate.
- Trump has also proposed to eliminate the $10,000 cap on state and local deductions (SALT) that was enacted with the passage of TCJA. If eliminated, it would allow more tax clients to itemize deductions, thus lower their taxable income.
Other campaign promises:
- Eliminate taxes on Social Security Income. This would require at least 60 Senate votes. Too soon to factor in when doing financial planning.
- No taxes on tips. No details available.
How to get the information to me:
- Mail to: Just Taxes, 136 Vinecrest Circle, Windsor, CA 95492.
- Electronically: I encourage you to use my link to Dropbox.com to upload your documents securely. If you do not yet have a link from a prior year, please request one. You don’t have to purchase the program.
- If you have your own program to securely send me your documents, please provide me with the necessary link.
- Drop off at the secured lockbox by my front door.
- Make an in-person appointment. Day, evening, weekend appointments available, to fit your schedule.
- For some of my older clients who no longer drive and would like a pick-up at their place, I could arrange such an option.
Call for an appointment: 707-291-4135.
The IRS has adjusted the tax brackets for 2024 to reflect inflation. They will bump up each tax bracket by 5.4%. You can look at your last year’s tax return and see what tax bracket you were in. Email me if you want to see the tax brackets as they currently apply to tax-payers and I will send you a printout.
How to get the information to me:
- Mail to: Just Taxes, 136 Vinecrest Circle, Windsor, CA 95492.
- Electronically: I encourage you to use my link to Dropbox.com to upload your documents securely. If you do not yet have a link from a prior year, please request one. You don’t have to purchase the program.
- If you have your own program to securely send me your documents, please provide me with the necessary link.
- Drop off at the secured lockbox by my front door.
- Make an in-person appointment. Day, evening, weekend appointments available, to fit your schedule.
- For some of my older clients who no longer drive and would like a pick-up at their place, I could arrange such an option.
Call for an appointment: 707-291-4135.
Refund Schedule for IRS
1099 filings, W-2 filings, 1098 filings
Need W-9 Form
Call for an appointment: 707-291-4135.