The Tax Cuts and Jobs Act (TCJA) of 2017 aimed to stimulate economic growth. Key provisions from the TCJA are set to expire on December 31, 2025 that will impact individuals. These provisions include capped deductions for state and local taxes (SALT) at $10,000, doubled standard deductions, expanded child tax credit, and many more.
Below is a summary of what the current law is due to TCJA and what the new law will be starting in 2026.
Income
| Topic | Current Law | 2026 Law after TCJA Sunset |
| ABLE Accounts | 529 Plan funds can be rolled over into an ABLE account if the beneficiary is the same for both or a member of the beneficiary’s family. Beneficiary is allowed to contribution additional amounts to their own account in excess of the gift tax exclusion and take the Saver’s Credit. |
These rollovers will no longer be allowed. Also, the beneficiary is no longer allowed to contribute over the gift tax exclusion and claim the Saver’s Credit. |
| Student Loans | Debt cancellation of student loans due to the student’s death or disability is non-taxable. | This debt cancellation will now be included in gross income. |
| Qualified Principal Residence Debt | Exclusion for cancelation of qualified principal resident debt is not part of TCJA but has been extended repeatedly through other legislation. | The debt cancellation will no longer be excluded from income. |
Adjustments
| Topic | Current Law | 2026 Law after TCJA Sunset |
| Moving Expenses | Moving expenses are deductible for active members of the Armed Forces and their spouse/dependents, who have moved due to a military order and incident to a permanent change of station. | The limitation to activity duty military members no longer applies. Moving expenses are deductible for any taxpayer if incurred due to work as an employee or self-employed individual at a new principal place of work. Other conditions may apply to deduct moving expenses. |
Deductions
| Topic | Current Law | 2026 Law after TCJA Sunset |
| Personal Exemption Deduction | Deduction for personal exemptions provision was suspended. | Personal exemption for the taxpayer, spouse, and dependents will be allowed. The 2026 amount will be adjusted for inflation. |
| Standard Deduction | Due to the suspension of the personal exemption deduction, the standard deduction is increased to offset the disallowance. | The standard deduction amounts will revert back to 2017 tax year amounts and will be adjusted for inflation. |
| Itemized Deductions | Phase-out of the itemized deductions provision is suspended. | Itemized deductions will begin to phase-out for high income taxpayers. |
| Taxes Paid – Itemized Deductions | Capped deductions for state and local property taxes of up to $10,000. | This cap of $10,000 will no longer apply. |
| Home Mortgage Interest Deduction | Home mortgage interest is subject to an acquisition debt limit of $750,000 if acquired after December 31, 2017. | The acquisition debt limit will be increased to $1 million and will be limited to $100,000. |
| Charitable Contributions | Cash contributions to public charities are limited to 60% of AGI. | AGI limitation for contributions to public charities will be decreased to 50%. |
| Casualty Loss | Personal casualty loss is deductible if loss is due to a federally-declared disaster area. | Personal casualty loss are deductible if it consists of property losses. This is only if they exceed $100 per casualty/theft and exceed 10% of AGI. |
| Miscellaneous Itemized Deductions Subject to the 2% AGI Limitation | Miscellaneous itemized deductions that are subject to the 2% AGI limit prior to 2018 are not deductible. | Miscellaneous itemized deduction are deductible as long as the combined total exceeds 2% of AGI. |
Credits
| Topic | Current Law | 2026 Law after TCJA Sunset |
| Child Tax Credit | The Child Tax Credit is $2,000 per qualifying child under 17 and phased out at $400,000 MFJ and $200,000 MFS. | The Child Tax Credit is $1,000 per qualifying child and will be phased out at $110,000 MFJ and $55,000 MFS. |
Business Deductions
| Topic | Current Law | 2026 Law after TCJA Sunset |
| Qualified Business Income (QBI) Deduction | A taxpayer can generally deduct 20% of QBI subject to limitations. | This deduction will no longer apply. |
