Tax Cuts And Jobs Act Could Expire At End Of 2025 Without Congressional Extension: What This Means For You

Donald Trump and the Republicans won control of the presidency, the House of Representatives and the Senate in the 2024 election. With Republican control, an extension of the 2017 tax bill was expected to be a priority, but it is moving slowly.

What Happened: Many Americans want to know what the impact of tariffs from President Donald Trump means for their future finances.

Americans should also be bracing for the potential end of the Tax Cuts and Jobs Acts (TCJA), which passed in 2017.

The TCJA expires on Dec. 31, 2025, and without an extension from Congress, it would revert some tax cuts and laws to 2018, as reported by Kitces.  

What this means for the average American is that tax brackets could change, and the Child Tax Credit and other common tax breaks could also go away. These are items currently operated under the TCJA.

More importantly, this would mean a moderate tax increase for most households, according to the report.

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What's Next: Congress has been making slow progress in the extension of the TCJA, according to the report. The House and Senate also have differing versions when it comes to tax cuts.

The House of Representatives’ version includes $4.5 trillion of tax cuts over the next 10 years. This would mostly cover the $4.6 trillion needed to extend the TCJA, but would leave little room for additional tax cuts.

This means the House would have to change the number of years or make changes to keep all current tax cuts in place and add items Trump campaigned for, such as no taxes on tips.

The Senate's version of tax cuts includes $1.5 trillion in tax cuts done with an accounting tactic that places $0 value on the existing TCJA, according to the report. This means the Senate version would see TCJA rules permanent and add room for additional tax cuts.

Congress still has time to figure things out, but without enacting an extension of the TCJA before the December deadline, things could look much different for Americans in 2026.

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