The Tax Cuts and Jobs Act (TCJA), passed in 2017, put into place a series of tax changes that are set to expire at the end of 2025. In a recent blog post, Bryan Strike, director, financial planning research & education, Mercer Advisors goes into detail on the implications of the TCJA phasing out.
2026 will see tax increases for millions of Americans as the TCJA goes out of effect, as well as deduction reductions and child-tax credits lowering. The estate tax exemption will also be cut in half, noted Strike.
Strike shows projections that say the income levels required to hit the various levels of tax brackets will be lower in most cases, except for brackets one and two.
The child-tax credit will fall back to $1,000 per qualifying dependent under the age of 17, from $2,000, unless the government passes new child-tax legislation in the meantime.
The federal estate tax exemption is set to drop from $13.61 million to $7 million in 2026. Strike writes that