The tax revisions enacted in 2017, often referred to as the Tax Cuts and Jobs Act (TCJA), included numerous provisions scheduled to expire at the end of 2025. Therefore, 2026 marks the year when significant changes in tax law are slated to take effect unless legislative action is taken to extend or modify them. These changes encompass individual income tax rates, deductions, and credits, potentially impacting a broad spectrum of taxpayers and businesses.
The scheduled expiration of these provisions carries considerable weight due to the potential effects on the economy and individual financial planning. Businesses may face altered tax liabilities, influencing investment decisions and employment strategies. Individual taxpayers could see changes in their after-tax income, affecting spending and savings patterns. Understanding the future of these tax policies is essential for informed economic forecasting and personal financial management.