As we look ahead to 2025, it’s important to be aware of significant tax changes on the horizon. Many provisions of the Tax Cuts and Jobs Act (TCJA), enacted in 2017, are set to expire at the end of 2025. Here’s what you need to know: First, individual income tax rates will revert to their 2017 levels. This means higher tax rates for many taxpayers. Additionally, the standard deduction will be cut roughly in half, and the personal exemption will return. The child tax credit will decrease, impacting families with children. The estate tax exemption will also be reduced, potentially affecting estate planning strategies. For small business owners, the 20% tax deduction for pass-through businesses will be eliminated. Another significant change is the removal of the cap on the state and local tax (SALT) deduction. This could provide some relief for taxpayers in high-tax states. For corporations, several temporary provisions will expire, including limits on deducting research and equipment costs and certain interest expenses. If these provisions are not extended, they will revert to pre-TCJA rules. It’s important to note that there will likely be legislative changes between now and then, which could alter these provisions. Staying informed and consulting with your tax advisor will help you navigate these changes and plan accordingly.