In 2017, President Donald Trump launched a sweeping bulk of legislation known as the Tax Cuts and Jobs Act (TCJA). It raised the standard deduction to historical levels, increased the maximum child tax credit, and provided an abundance in gift and estate-planning benefits. But many key provisions in the TCJA are set to expire on Dec. 31, 2025, if Congress doesn’t make a move to keep the plan as is.
Still, Trump has said he intends to make many of these provisions permanent in addition to unveiling new tax cuts. So it’s important to understand how the tax law works today as you file your 2024 tax return.
The Standard Deduction
The standard deduction can help individuals and couples pay less in taxes or receive larger refunds. This is because the standard deduction lowers your taxable income. Essentially, the larger the standard deduction, the more taxpayers stand to benefit.The TJCA raised the standard deduction. This is how the standard deduction works for 2024 and 2025.
For tax year 2024, the standard deduction is $14,600 for single filers and $29,200 for those filing jointly.
Those who are single filers and are blind or over age 65 can take an additional $1,950. And for those who are married filing jointly or separately and blind or 65 or older, the additional standard deduction is $1,550 per person who falls into one category.
For tax year 2025, the standard deduction for single filers will be $15,000. For married couples filing jointly, it will be $30,000.
But if the TCJA expires, the standard deduction will shift back to pre-TCJA levels. This basically means it would shrink to $8,350 for single filers and $16,700 for joint filers, according to the Tax Foundation.
Child Tax Credit
The TCJA increased the maximum child tax credit to $2,000 and extended the phase-out range. Plus, it allows for a nonrefundable $500 credit per other dependants.But should the TCJA expire, the child tax credit maximum would revert to $1,000.
So how exactly does the child tax credit work? First, it’s important to know what tax credits are. A tax credit is a dollar-for-dollar amount taxpayers could claim on their tax return to reduce the income tax they owe. The child tax credit was designed to help lower-income families with qualifying children claim a tax break.
You can claim a child tax credit of up to $2,000 for each child under the age of 17. However, the credit is reduced by 5 percent of adjusted gross income (AGI) over $200,000 for single parents or $400,000 for married couples filing jointly.
If the tax credit exceeds the taxes you owe, you can get up to $1,600 of the difference as a refund. This is known as the Additional Child Tax Credit (ACTC) or refundable child tax credit.
Taxpayers can also claim a nonrefundable tax credit of up to $500 for other dependants. These include full-time college students aged 19–24. But because it is nonrefundable, you won’t get it in the form of a refund if it reduces taxes owed to the negative.
The thresholds for these rates would also be different if the TCJA expires. Here’s a closer look.
Overall, some fillers will end up paying more in taxes due to shifts caused by the expiration of the TCJA. The Tax Foundation estimates that if the TCJA expires, 62 percent of filers would experience tax increases.
Tax Brackets
A major component of the TCJA was the lowering of five of the seven tax bracket rates and the adjusting of the widths of the tax brackets. Here’s a look at how these rates could change, according to the Tax Foundation.| Bracket | TCJA rates | Expired TCJA rates |
| 1 | 10 percent | 10 percent |
| 2 | 12 percent | 15 percent |
| 3 | 22 percent | 25 percent |
| 4 | 24 percent | 28 percent |
| 5 | 32 percent | 33 percent |
| 6 | 35 percent | 35 percent |
| 7 | 37 percent | 39.6 percent |
| Rates | Single filer Threshold under TCJA | Single filer Threshold if TCJA expires |
| First rate | $0 | $0 |
| Second rate starts at | $12,250 | $12,200 |
| Third rate starts at | $49,750 | $49,600 |
| Fourth rate starts at | $106,100 | $120,100 |
| Fifth rate starts at | $202,550 | $250,450 |
| Sixth rate starts at | $257,200 | $544,550 |
| Seventh rate starts at | $642,950 | $546,750 |
But with the help of a Republican-led Congress, Trump could theoretically make many key provisions permanent.
The Bottom Line
The TCJA opened the door to major tax cuts for many Americans. But some key provisions are set to expire and not carry over into 2026. But the president has said he plans to make these provisions permanent. Still, that would depend on Congress’s actions.You have until April 15 to file your 2024 taxes.
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