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From Tighter Clothes to Healthier Hearts page 1
Remembering the Great French Mustache Strike
Respect Starts Here page 2
How to Spot a Manipulator Before It’s Too Late
One-Pot Chicken Noodle Soup page 3
Big Tax Changes May Be Coming in 2025 page 4
WILL THE TCJA BE EXTENDED? IF NOT, HERE’S WHAT YOU NEED TO KNOW
While some people have benefited from lower tax payments due to recent legislation, much of that help may start decreasing soon. This upcoming year, many provisions of the Tax Cuts and Jobs Act (TCJA) of 2017, which included significant changes to our tax code, are due to expire. However, since the Republican party gained control of the House and Senate in November, it’s likely the Act will be extended. Since we don’t know yet, here is what you need to know about how potential changes may impact your income tax season. DEDUCTIONS If the TCJA expires, it will lead to large differences in deductions for many. Married couples will be particularly impacted. For instance, the standard deduction for a married couple is set to be $16,525 in 2026, but if the TCJA stays in effect, that deduction will be $30,725. However, the personal exemption was eliminated through the TCJA and will be brought back if it expires. That means the personal exemption
will go from $0 in 2025 to $5,275 in 2026. The child tax credit was doubled under the TCJA from $1,000 to $2,000 and would decrease to pre-2017 levels. The TCJA also set a $10,000 cap on the maximum state and local taxes that could be deducted each year. If this expires, it will benefit high-income taxpayers in certain states. MARGINAL TAX BRACKETS For many taxpayers, their marginal tax bracket rate was heavily affected by the TCJA. Before 2017, the marginal tax bracket rates were 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. These were changed to 10%, 12%, 22%, 24%, 32%, 35%, and 37%, respectively, when the TCJA went into effect. If the TCJA expires, depending on your tax bracket, you may be paying anywhere from 3%–6% more every year. It is important to understand the full breadth of changes possibly coming your way and budget accordingly. Depending on what happens, you may end up paying more (or, fingers crossed, less) in taxes.
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