Some tax policies are set to expire in 2025

When Donald Trump first became president in 2017, one of his signature legislative victories came from passing the Tax Cuts and Jobs Act. Pump the brakes It's important to realize that even if no new legislation comes about, there generally won't be any changes until 2026, as the TCJA runs through tax year 2025. "We were operating in an atmosphere of kind of a sense of urgency to do all these things before the end of 2025, and I think that landscape's changed, where most likely there's probably room to rethink and to take a longer time period" to make tax planning moves, said Kat Grier, wealth manager at Merit Financial Advisors. It's possible that some tax rates may lower, like the top tax bracket going from 37% to 35%, and maybe removing or raising the cap on state and local tax deductions, said Edwin G. Oswald, a former legal advisor to the U.S. Treasury during the Clinton administration and co-author of "From Ronald to Donald: How the Myth of Reagan Became the Cult of Trump." Although those effects generally wouldn't be felt until 2026 — or perhaps even 2027 when filing for tax year 2026 — there still might be moves to make during calendar year 2025.