What Happens as the Tax Cuts and Jobs Act of 2017 Expires?

The Tax Cuts and Jobs Act of 2017 is set to expire at the end of 2025. This expiration will lead to some serious tax changes, some of which are being transitioned into during the 2024 tax year. One of the most helpful provisions of the Tax Cuts and Jobs Act of 2017 that will be fully expiring in 2025 is the 199A pass-through deduction. This provision allows for households that have pass-through business income (ex: Partnerships, S corporations, etc.) to deduct 20% of that qualified business income from their taxes. Many business owners and political figures alike have begun to speculate on what will come next as provisions of the Tax Cuts and Jobs Act of 2017 like the 199A pass-through deduction come close to the expiration date. The National Federation of Independent Business has plans to lobby for the permeance of these provisions, but whether these efforts will be successful is unknown. Three potential interest rate cuts are being proposed by the Federal Reserve in 2024. Another tax issue being decided in 2024 is Moore v. United States, in which the Supreme Court is facing the constitutionality of the mandatory repatriation tax on foreign income that was a part of the Tax Cut and Jobs Act of 2017. As the Tax Cuts and Jobs Act of 2017 ends, a lot of consequent changes are beginning to arise. It is hard to predict what will come from these changes, but it is important to stay informed and up to date.