Article Highlights:Estate and Gift TaxPersonal ExemptionsStandard DeductionsHome Mortgage Interest DeductionLimitation on Tax Deductions (SALT)Suspension of Tier 2 Miscellaneous Itemized DeductionsSuspension of the Limitation on Itemized DeductionsIndividual Tax RatesChild Tax CreditSpecial Rule for Certain Discharges of Student LoansEmployer Payments of Student LoansMoving ExpensesBicycle CommutingDischarge of Indebtedness on Principal ResidencePremium Assistance CreditCasualty LossesAchieving a Better Life Experience (ABLE) AccountsPaid Family and Medical Leave CreditNew Markets CreditWork Opportunity CreditBonus DepreciationEmployer De Minimis Meals and Related Eating FacilitiesBack in late 2017 Congress passed the Tax Cuts & Jobs Act of 2017 (TCJA) that made enormous changes to income tax laws as outlined below. However, most of the provisions of TCJA were only temporary changes that will expire after 2025. During the Covid pandemic Congress made other tax law changes that will also soon expire. So far Congress has not addressed these expiring tax provisions. Will they extend them, let them just expire and return to old law, or address them individually with new legislation? With the potential for significant tax changes on the horizon, taxpayers should begin thinking more urgently about their estate and income tax planning.What Congress might do is up in the air, especially with2024being an election year. It is expected these expiring issues will not be addressed until after the elections. However, to give taxpayers a heads up to the TCJA and other legislation provisions expiring after 2025 the following list has been compiled of the more significant expiring provisions compared to pre-TCJA tax law.Estate and Gift Tax – Probably the most significant of expiring provisions is the exemption from estate and gift tax, which was about doubled under TCJA and is $13.61 million for 2024. Under pre-TCJA law the exemption would have been approximately $5.49 million adjusted for inflation in 2024. How Congress deals with the exemption amount will mean significant estate planning issues for the more well to do.Personal Exemptions – Prior to TCJA, taxpayers were allowed an exemption deduction for everyone included in the family. The exemption amount adjusted for inflation is $5,050 for 2024. As an example, if a married couple filing jointly had 2 children dependents and the exemption deduction was allowed for 2024, they would have an income deduction of $20,200 (4 x $5,050). However, TCJA suspended the exemption deduction through 2025. Standard Deduction – Under TCJA the deduction for taxpayers not itemizing their deductions, termed the standard deduction, was approximately doubled from the pre-TCJA amounts. As an example, the 2024 standard deduction for a married couple filing jointly is $29,200. Under pre-TCJA law it would have been approximately $14,950 adjusted for inflation. The higher standard deduction under TCJA has allowed more taxpayers to skip having to itemize their deductions.Home Mortgage Interest Deduction – TCJA limited the itemized deduction for home mortgage interest on a taxpayer’s principal and second homes to the interest on a combined acquisition debt of $750,000 ($375,000 for married individuals filing separately) and eliminated the deduction for interest on $100,000 of equity debt. Since that time, homes have soared in value, and correspondingly the amount of mortgage loans, and interest rates have increased significantly. Pre-TCJA law allowed an interest deduction on up to $1 million of home acquisition debt and $100,000 of equity debt. The real estate market will feel the effects of how the deduction for home mortgage interest is treated after 2025.Limitation on Tax Deductions (SALT) – SALT is the acronym for state and local taxes. Pre-TCJA taxpayers who itemized their deductions were allowed an unlimited deduction on their federal return for property taxes and state and local income tax. TCJA imposed a $10,000 limit on that deduction, which generally impacted higher income taxpayers and those who reside in states with high state income taxes such as CA, NJ, and NY. Many states developed workarounds.Suspension of Tier 2 Miscellaneous Itemized Deductions – Tier 2 miscellaneous itemized deductions are those which are deductible to the extent they exceed 2% of a taxpayer’s income (AGI). TCJA prohibited these expenses from being deducted. They include legal expenses, which, when not deductible, can be a substantial hardship for someone who wins a taxable lawsuit and then must pay taxes on the entire award or settlement without being able to deduct the amount paid for legal services, which in many cases are 40% of the award or settlement. Tier 2 miscellaneous deductions also include employee business expenses, and not being able to deduct these costs can also be a hardship for employees who must supply their tools, uniforms, supplies or have unreimbursed work-required vehicle or other transportation expenses. Also included are investment fees, job-search expenses, home office for employees, and other work-related expenses.Suspension of the Limitation on Itemized Deductions – Pre-TCJA itemized deductions were subject to a phaseout that generally affected higher income taxpayers. That provisionlimited itemized deductions to the lesser of 3% of income (AGI) or 80% of those otherwise allowable deductions for the year.Individual Tax Rates – TCJA not only reduced the top tax bracket for individuals from 39.6% to 37% (this generally only impacts higher income taxpayers), but also reduced the tax rates at almost every level, and adjusted the bracket thresholds.