As we head into 2025 with a new administration—and a new Congress—one of the questions on the minds of many taxpayers is what sort of changes might be on the horizon. Key to that question is what might happen to the various provisions in the Tax Cuts and Jobs Act (TCJA) of 2017. The sweeping legislation made some changes permanent—like corporate tax cuts—but others are set to expire at the end of 2025, thanks to reconciliation (you can read more about that here).
So, what cuts and changes, exactly, are scheduled to go? Here’s a look.
The Basics
Standard deduction. One of the most popular changes was a near-doubling of the standard deduction. In 2025, the standard deduction amounts will be $15,000 for individuals and married couples, heads of household will hit $22,500, and married couples filing jointly will see a deduction of $30,000.
What would change: If this provision under the TCJA expires, the standard deduction would drop to its pre-2017 levels—while still being indexed for inflation—resulting in a lower deduction. For example, the standard deduction for married couples filing jointly would be in the range of $16,525 for 2026.
Personal exemption. A personal exemption used to be an easy way to reduce your taxable income—if you were not claimed as someone else’s dependent, you could claim a personal exemption. Married persons who file jointly could claim two personal exemptions. Additionally, you could claim a personal exemption for each of your dependents. The TJCA brought the personal exemption amount to zero, basically eliminating the provision.
What would change: If this provision under the TCJA expires, the personal exemption amount would return to around $5,275.
Individual income tax rates (marginal rates). The individual income tax rates took a dip under the TCJA. Today, those marginal rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. (You can see where those kick in for 2025 here.)
What would change: If this provision under the TCJA expires, marginal rates will revert to the earlier rates of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. Notably, the rates apply at different dollar amounts than the TCJA rates.
Child tax credit (CTC). The child tax credit allows taxpayers to reduce their federal income tax liability by up to $2,000 per qualifying child. That’s the result of a provision in the TCJA that increased the tax credit for each child under 17 from $1,000 to $2,000. Additionally, after the TCJA, the “old” additional child tax credit, which was refundable, merged into the revised version of the child tax credit, meaning that the child tax credit is essentially one credit that includes a refundable piece—that refundable piece is referred to as the additional child tax credit. The maximum credit that can be refunded increased from $1,000 to $1,400 per child under the TCJA ($1,700 in 2025). The TCJA also increased the income thresholds at which the credit phases out.
What would change: If this provision under the TCJA expires, the maximum credit will be $1,000 per child, and the maximum refundable piece (the ACTC) will be $1,000 per child. These amounts are not adjusted for inflation. (A bipartisan effort to expand the CTC died in the Senate.)
Credit for other dependents. Tax reform also introduced the credit for other dependents. It’s a nonrefundable credit of up to $500 for qualifying dependents other than qualifying children. In other words, it’s intended to cover dependents who can’t be claimed for the CTC. It is sometimes referred to as a “family credit.”
What would change: If this provision under the TCJA expires, the credit will no longer exist.
Exclusions From Income
Bicycle expense reimbursements. Under the TCJA, employer reimbursements for bicycle commuting expenses are considered income and subject to tax.
What would change: If this provision under the TCJA expires, up to $20 per month for qualified employer reimbursements for bicycle commuting expenses will be excludible from income and not subject to tax.
Moving expense reimbursements. Currently, only members of the armed forces can exclude employer reimbursements for moving expenses due to a change in employment—the previous rule that allowed all eligible taxpayers to claim the exclusion was eliminated under the TCJA.
What would change: If this provision under the TCJA expires, all eligible taxpayers can exclude qualified moving expenses from income.
Above-the-line Deductions
Moving expense deduction. Currently, only members of the armed forces can claim an above-the-line deduction for moving expenses due to a change in employment—the previous rule that allowed all eligible taxpayers to claim the deduction was eliminated under the TCJA.
What would change: If this provision under the TCJA expires, all eligible taxpayers would be able to claim an above-the-line deduction for moving expenses related to a change in employment.
Itemized Deductions
Charitable deduction. The amount you can deduct for charitable cash contributions is generally limited to no more than 60% of your AGI—that’s the result of the TCJA.
What would change: If this provision under the TCJA expires, cash contributions to public charities will again be limited to 50% of the taxpayer’s AGI.
State and local tax (SALT) deduction. The TCJA imposed a $10,000 cap on state and local taxes (SALT) deductibility.
What would change: If this provision under the TCJA expires, all state and local property taxes and income taxes (or sales taxes in states without income taxes) will again be deductible. (A bill that would have doubled the SALT deduction—but just for one year—didn’t make any progress earlier this year.)
Mortgage interest deduction. Under the TCJA, taxpayers may deduct interest paid on the first $750,000—or $375,000 for married taxpayers filing separately—of home mortgage debt for loans incurred after December 15, 2017. As a nod towards mortgages in effect before the change, taxpayers with mortgage debt incurred on or before December 15, 2017, may deduct interest on the first $1 million—or $500,000 for married taxpayers filing separately—of combined mortgage debt. Importantly, the deduction for interest on home equity debt (meaning re-fis not related to improving your home) was eliminated.
What would change: If this provision under the TCJA expires, the $750,000 limitation will revert to $1 million of combined (first and second homes) acquisition debt regardless of when the debt was incurred. And those re-fis? They would again be deductible.
Personal casualty and theft loss deduction. Under the TCJA, taxpayers can only claim person casualty and theft losses in a federally declared disaster area. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 changed the rules again, providing tax relief to certain individuals in qualified disaster areas. The relief included eliminating the requirement that casualty losses must exceed 10% of adjusted gross income (AGI), requiring losses to exceed $500 per casualty to be deductible, and allowing taxpayers to claim the casualty loss deduction “above the line,” i.e., without itemizing their deductions. (A proposal that would have extended the 2020 rules retroactively died in the Senate.)
What would change: If this provision under the TCJA expires, all eligible taxpayers could deduct person casualty and theft losses, no matter where they were incurred.
Gambling loss deduction. Under the TCJA, eligible taxpayers can deduct gambling losses to the extent they do not exceed their winnings (winnings must be reported as income)—they can also deduct related expenses.
What would change: If this provision under the TCJA expires, gambling losses will no longer include related expenses for casual gamblers (pros will still be able to deduct ordinary and necessary expenses).
Miscellaneous itemized expenses. Under the TCJA, deductions were eliminated for miscellaneous itemized expenses, including unreimbursed employee expenses, home office expenses, and tax preparation expenses.
What would change: If this provision under the TCJA expires, the deduction for those miscellaneous expenses that exceed 2% of your adjusted gross income (AGI) will return—that includes the home office deduction for employees.
Overall limitation on itemized deductions. The so-called Pease limitations are named after former Rep. Don Pease (D-OH) and cap or phase out some itemized deductions once AGI reaches certain limits (deductions not subject to the limitation include medical and dental expenses, charitable contributions, casualty and theft losses, and gambling losses). Under the TCJA, there is no overall limitation on itemized deductions.
What would change: If this provision under the TCJA expires, taxpayers with AGI above certain thresholds must reduce the total amount of itemized deductions will be reduced by 3% of the amount by which their AGI exceeds the threshold. (The total reduction will be capped at 80% of the applicable deductions.)
Other Provisions
Alternative minimum tax (AMT). The TCJA increased the AMT exemption amounts and raised the income levels at which the exemptions phase out. For 2025, the AMT exemption amount for single filers is $88,100 and begins to phase out at $626,350, and for married couples filing jointly, it’s $137,000 and begins to phase out at $1,252,700.
What would change: If this provision under the TCJA expires, the AMT exemption and exemption phaseout will revert to pre-TCJA levels (adjusted for inflation). That means the 2026 AMT exemption for married couples filing jointly will be about $110,075.
Deduction for small business income (section 199A deduction). The TCJA provided a 20% deduction for the owners of qualified pass-through entities to counter the gap created by lowering corporate tax rates.
What would change: If this provision under the TCJA expires, the deduction will no longer be available. That means that pass-through business income would be taxed to the owners according to ordinary individual income tax rates (with no additional deduction).
Limitations on losses. Under the TCJA, deductions for excess business losses (those over $250,000, or $500,000 in the case of a joint return, indexed for inflation) are disallowed for taxpayers other than C corporations and are instead treated as a net operating loss (NOL) carryover to the following year. Noteworthy: The CARES Act suspended this rule for the 2018, 2019, and 2020 tax years.
What would change: If this provision under the TCJA expires, businesses will generally be permitted to carry over an NOL to past and future years. Noteworthy: This provision will not expire at the end of 2025 but at the end of 2028.
Expensing. Businesses must generally write off the costs of assets over their “useful life”—a number of years based on the kind of asset. With bonus depreciation, businesses can immediately deduct those costs, subject to certain limits. Under the TCJA, 100% bonus depreciation was only allowed through 2022, subject to a phaseout that would allow a deduction for 80% of costs in 2023 and 60% in 2024.
What would change: If this provision under the TCJA expires, businesses will again generally capitalize the cost of property used in a trade or business over time—no bonus depreciation.
Estate taxes. Under the TCJA, the federal estate and gift tax exemption amount significantly increased. In 2025, the federal estate tax exclusion for decedents is $13,990,000 per person or $27,980,000 per married couple.
What would change: If this provision under the TCJA expires, the exemption in 2026 would revert to the pre-2017 numbers, indexed for inflation. That means it will be about half of the current exemption, or $14.3 million, for married couples.
Corporate provisions. Except otherwise noted, most of the TCJA changes affecting corporations, including those lower rates, will not expire.
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