Overview
- Lower TCJA-era individual tax brackets are now permanent, with the CBO estimating roughly $2 trillion in added federal debt over the next decade from these changes.
- Taxpayers age 65 and older receive an additional $6,000 standard deduction that phases out above $75,000 of income for singles or $150,000 for joint filers and expires in 2028.
- The SALT deduction cap rises to $40,000 for households earning under $500,000, leaves higher earners unchanged, and sunsets in 2029.
- The federal estate tax exemption is permanently lifted to about $15 million per person, prompting reviews of trusts, gifting plans, and legacy documents.
- Financial planners recommend coordinating withdrawals across taxable, tax-deferred, and Roth accounts and building flexibility for potential policy shifts.