Here's when the tax overhauls in Trump's mega bill take effect, and how every 2017 Trump tax cut will be impacted

On July 4, 2025, President Trump signed the One Big Beautiful Bill into law, marking the most significant overhaul of federal tax policy since the 2017 Tax Cuts and Jobs Act (TCJA). The new legislation arrives just as nearly all of the TCJA’s temporary provisions are scheduled to expire at the end of 2025, triggering a major reset of tax rates, deductions, and credits for individuals and businesses.

Below, we outline the key provisions of the TCJA that were originally set to sunset and explains how the new law extends, modifies, or allows those policies to phase out. From income brackets and personal exemptions to business incentives and tax exclusions, the One Big Beautiful Bill redraws the post-2025 tax landscape while introducing new elements of its own.

The timeline and policy implications are especially important for taxpayers, financial planners, and policymakers preparing for the transition between the expiring rules and the new framework that takes effect beginning in 2026.

Expiration Dates for All Tax Provisions

The table below outlines every major federal tax provision set to expire under prior law, including those originally enacted or modified by the Tax Cuts and Jobs Act (2017) and later extended or updated through additional legislation. While most of these provisions were scheduled to expire on December 31, 2025, the One Big Beautiful Bill addresses a portion of the expirations—extending some provisions, modifying others, and allowing several to phase out as planned.

This list provides a full view of the tax changes originally set to sunset, including income tax brackets, deductions, credits, employer incentives, and savings-related exclusions. It also includes longer-dated changes, such as capital gains deferrals through Qualified Opportunity Zones, which expire at the end of 2026.

Expiring TCJA Provisions for Individuals and Families

Marginal Tax Rates

Under the Tax Cuts and Jobs Act (TCJA), marginal income tax rates were lowered to seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. These brackets apply to taxable income after deductions and are adjusted annually for inflation. The TCJA did not change tax rates on capital gains or qualified dividends.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Brackets revert to pre-TCJA rates of 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%, applied to different income ranges.
• Budget Impact:
  • Original JCT score: -$1.2 trillion (FY2018–FY2027)
  • If extended permanently: -$2.2 trillion (FY2025–FY2034)

Relevant Law: Section 11001 of P.L. 115-97

IRC Section: 1(j)

Standard Deduction

The TCJA nearly doubled the standard deduction beginning in 2018, with amounts indexed for inflation:

• 2018 levels under TCJA:
  • $12,000 (single), $18,000 (head of household), $24,000 (married joint)
• 2024 levels (adjusted):
  • $14,600 (single), $21,900 (head of household), $29,200 (married joint)
• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Deductions revert to pre-2018 levels and resume inflation adjustments:
  • $6,500 (single), $9,550 (head of household), $13,000 (married joint)
• Budget Impact:
  • Original JCT score: -$0.7 trillion (FY2018–FY2027)
  • If extended permanently: -$1.3 trillion (FY2025–FY2034)

Relevant Law: Section 11021 of P.L. 115-97

IRC Section: 63(c)(7)

Personal Exemptions

Before the TCJA, taxpayers could claim a personal exemption for themselves and each dependent. The TCJA set the exemption amount to $0, effectively suspending it for the duration of the law’s applicability.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Personal exemptions return, adjusted for inflation.
  • 2018 (pre-TCJA) reference amount: $4,150
• Budget Impact:
  • Original JCT score: +$1.2 trillion (FY2018–FY2027)
  • If extended permanently: +$1.7 trillion (FY2025–FY2034)

Relevant Law: Section 11041 of P.L. 115-97

IRC Section: 151(d)(5)

Child Tax Credit (CTC)

The TCJA doubled the child tax credit and expanded refundability through the Additional Child Tax Credit (ACTC), while increasing income thresholds:

• Current Parameters under TCJA:
  • Max credit: $2,000 per child
  • Max ACTC (2024): $1,700
  • Refundability formula: 15% of earnings above $2,500
  • Phaseout thresholds: $200,000 (single) / $400,000 (married joint)
  • SSN required for qualifying children
• Expiration Date: December 31, 2025
• Post-TCJA Reversion:
  • Max credit: $1,000 per child
  • Max ACTC: $1,000
  • Refundability formula: 15% of earnings above $3,000
  • Phaseout thresholds: $75,000 (single) / $110,000 (married joint)
  • Acceptable ID expands to include ITIN
• Budget Impact:
  • Original JCT score: -$543 billion (FY2018–FY2027)
  • If extended permanently: -$735 billion (FY2025–FY2034)

Relevant Law: Section 11022 of P.L. 115-97

IRC Section: 24(h)

Credit for Other Dependents (ODC)

The TCJA created a nonrefundable credit of $500 per dependent not eligible for the CTC. This includes older children, dependents without an SSN, and qualifying relatives.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The ODC expires entirely.
• Budget Impact: Included in CTC estimates

Relevant Law: Section 11022 of P.L. 115-97

IRC Section: 24(h)(4)

Above-the-Line Deductions

Moving Expense Deduction

Under the TCJA, the above-the-line deduction for moving expenses was limited to members of the Armed Forces who move due to military orders. For all other taxpayers, the deduction was effectively repealed.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The deduction will be restored for all eligible taxpayers, not just active-duty military personnel. Eligibility will again be determined by employment-related conditions, including:
  • Distance between the old and new workplace
  • Duration of employment at the new location
• These conditions do not apply to members of the Armed Forces.
• Budget Impact:
  • Original JCT score: +$8 billion (FY2018–FY2027)
  • If extended permanently: +$10 billion (FY2025–FY2034)

Relevant Law: Section 11049 of P.L. 115-97

IRC Section: 217(k) (expires), reverts to general provisions under IRC Section 217

Itemized Deductions

Charitable Contributions Deduction

The TCJA raised the limit on cash donations to public charities from 50% to 60% of adjusted gross income (AGI). Other deduction limits for property donations and gifts to private foundations remained unchanged.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The AGI limit for cash donations to public charities returns to 50%.
• Budget Impact: Included in the aggregate itemized deduction estimates
  • JCT (original): +$668 billion (FY2018–FY2027)
  • CBO (extension): +$1.244 trillion (FY2025–FY2034)

Relevant Law: Section 11023 of P.L. 115-97

IRC Section: 170(b)(1)(G)

State and Local Tax (SALT) Deduction

The TCJA capped the deduction for state and local income, sales, and property taxes at $10,000. Foreign income taxes were also included in the cap, but foreign real property taxes were excluded entirely.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The $10,000 cap is lifted. Taxpayers can deduct all eligible state, local, and foreign taxes, including foreign real property taxes.
• Budget Impact: Included in the aggregate itemized deduction estimates

Relevant Law: Section 11042 of P.L. 115-97

IRC Section: 164(b)(6)

Mortgage Interest Deduction

Under the TCJA, interest was deductible on the first $750,000 of acquisition debt (or $375,000 if married filing separately) for homes purchased after December 15, 2017. Interest on home equity loans was not deductible unless the debt was used to improve the home.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion:
  • Limit increases to $1 million of combined acquisition debt.
  • Up to $100,000 of home equity debt becomes deductible, regardless of use.
• Budget Impact: Included in the aggregate itemized deduction estimates

Relevant Law: Section 11043 of P.L. 115-97

IRC Section: 163(h)(3)(F)

Personal Casualty and Theft Loss Deduction

Currently, taxpayers may deduct losses only if the event was part of a federally declared disaster.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Taxpayers may deduct noncompensated casualty and theft losses regardless of federal disaster declaration status, subject to AGI and per-event thresholds.
• Budget Impact: Included in the aggregate itemized deduction estimates

Relevant Law: Section 11044 of P.L. 115-97

IRC Section: 165(h)(5)

Wagering Losses Deduction

Under current TCJA rules, all expenses associated with gambling (for both professional and recreational gamblers) are deductible, but only up to the amount of gambling winnings.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Expenses incurred in the gambling activity will no longer count toward the deduction cap. However, professional gamblers may deduct necessary business expenses separately.
• Budget Impact:
  • JCT (original): +$0.1 billion (FY2018–FY2027)
  • CBO (extension): +$47 million (FY2025–FY2034)

Relevant Law: Section 11050 of P.L. 115-97

IRC Section: 165(d)

Miscellaneous Itemized Deductions (2% AGI Floor)

The TCJA repealed the itemized deduction for miscellaneous expenses (such as unreimbursed employee expenses, tax prep fees) that previously were deductible only when they exceeded 2% of AGI.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: These expenses once again become deductible above the 2% of AGI threshold.
• Budget Impact: Included in the aggregate itemized deduction estimates

Relevant Law: Section 11045 of P.L. 115-97

IRC Sections: 62, 67(g), 212

Overall Limitation on Itemized Deductions (Pease Limitation)

The TCJA removed the Pease limitation, which previously reduced itemized deductions for high-income taxpayers.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The Pease limitation returns, reducing total itemized deductions by 3% of AGI above a threshold, capped at 80% of total deductions.
  • 2018 thresholds (pre-TCJA, inflation-adjusted): $320,000 (married joint), $267,700 (single)
• Budget Impact: Included in the aggregate itemized deduction estimates

Relevant Law: Section 11046 of P.L. 115-97

IRC Section: 68(f)

Exclusions

Bicycle Commuter Reimbursement

The TCJA required that employer-provided bicycle commuting reimbursements be included in wage income, making them subject to income and payroll taxes.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Up to $20/month in qualified reimbursements will be excluded from income and payroll taxes.
• Budget Impact:
  • JCT (original): Revenue increase < $50 million
  • CBO (extension): +$160 million (FY2025–FY2034)

Relevant Law: Section 11047 of P.L. 115-97

IRC Section: 132(f)

Moving Reimbursement Exclusion

The TCJA limited the exclusion of employer-paid moving expenses to active-duty military personnel on official orders. For others, such reimbursements were treated as taxable wages.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Employer-paid qualified moving expenses will once again be excluded from wage income for all eligible employees.
• Budget Impact:
  • JCT (original): +$5 billion (FY2018–FY2027)
  • CBO (extension): +$7 billion (FY2025–FY2034)

Relevant Law: Section 11048 of P.L. 115-97

IRC Section: 132(g)(2)

Combat Zone Tax Benefits for Sinai Peninsula Service

The TCJA designated the Sinai Peninsula as a statutory combat zone, allowing members of the Armed Forces serving there to qualify for existing combat zone tax benefits, including:

1. Tax exclusion on combat pay
2. Income tax forgiveness for those who die in combat
3. Special estate tax and filing deadline rules
4. Benefits for surviving spouses

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The Sinai Peninsula will no longer be considered a statutory combat zone unless re-designated via executive order.
• Budget Impact:
  • JCT (original): Revenue loss < $50 million
  • CBO (extension): -$7 million (FY2025–FY2034)

Relevant Law: Section 11026 of P.L. 115-97

IRC Sections: 112, 3401(a)(1), 692, 2201, 2(a)(3), 6013(f)(1), 7508, 4253(d)

Alternative Minimum Tax (AMT)

AMT Exemption and Phaseouts

The Alternative Minimum Tax (AMT) is a parallel tax system intended to ensure that higher-income individuals pay a minimum level of tax, even if they benefit from various deductions and credits under the regular tax system.

Under current law, a 26% AMT applies to alternative minimum taxable income (AMTI) up to a certain threshold, with a 28% rate applying to AMTI above that level. The AMTI is calculated by adjusting regular taxable income to include specific "preference items"—such as state and local taxes, net operating losses, and certain depreciation—before subtracting an AMT exemption.

• 2024 AMT Exemption Levels:
  • $85,700 for single filers and heads of household
  • $133,300 for married couples filing jointly
• Phaseout Thresholds (2024):
  • Begins at $578,150 for single/HOH filers
  • Begins at $1,156,300 for married joint filers

These exemption amounts and thresholds are indexed annually for inflation.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: AMT exemption amounts and phaseout thresholds will return to lower, pre-TCJA levels, subject to prior law's inflation adjustments.
• Budget Impact:
  • Original JCT score: -$0.6 trillion (FY2018–FY2027)
  • If extended permanently: -$1.4 trillion (FY2025–FY2034)

Relevant Law: Section 12003 of P.L. 115-97

IRC Section: 55

ABLE Accounts (Achieving a Better Life Experience)

ABLE Account Contribution Limit (Additional Contributions for Earned Income)

ABLE accounts are tax-advantaged savings vehicles for individuals with disabilities. These accounts allow beneficiaries to save for qualified disability expenses without jeopardizing eligibility for means-tested federal benefits like Medicaid.

Under general law, annual contributions to ABLE accounts are limited to the annual gift tax exclusion amount—$18,000 in 2024.

The TCJA temporarily allowed employed designated beneficiaries to contribute an additional amount above the standard limit. This additional contribution was capped at the lesser of:

• The federal poverty level for a one-person household (prior year), or
• The beneficiary’s earned income for the year

This extra contribution was only allowed if no retirement plan contribution was made on the beneficiary's behalf that year.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The additional contribution rule is eliminated. Designated beneficiaries may only contribute up to the annual gift tax exclusion limit.
• Budget Impact:
  • JCT (original): Revenue loss < $50 million (FY2018–FY2027)
  • CBO (extension): Revenue loss < $500,000 (FY2025–FY2034)

Relevant Law: Section 11024(a) of P.L. 115-97

IRC Section: 529A(b)(2)(B)

ABLE Accounts and the Saver’s Credit

The TCJA allowed designated beneficiaries to claim the Saver’s Credit (a nonrefundable credit of up to $1,000) for contributions made to their own ABLE accounts.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: Designated beneficiaries will no longer be eligible to claim the Saver’s Credit for ABLE contributions.
• Note: This provision would have been overtaken by SECURE 2.0, which replaces the Saver’s Credit with a Saver’s Match starting January 1, 2027, under IRC Section 6433.
• Budget Impact:
  • JCT (original): Revenue loss < $50 million
  • CBO (extension): -$2 million (FY2025–FY2034)

Relevant Law: Section 11024(b) of P.L. 115-97

IRC Section: 25B(d)(1)(D)

529-to-ABLE Account Rollovers

The TCJA allowed for tax-free rollovers from 529 education savings accounts to ABLE accounts, as long as:

• The rollover plus other contributions does not exceed the annual ABLE contribution limit, and
• The accounts have the same beneficiary or beneficiaries from the same family

Amounts exceeding the contribution limit are subject to income tax.

• Expiration Date: December 31, 2025
• Post-TCJA Reversion: 529-to-ABLE rollovers will no longer be allowed.
• Budget Impact:
  • JCT (original): Revenue loss < $50 million
  • CBO (extension): -$4 million (FY2025–FY2034)

Relevant Law: Section 11025 of P.L. 115-97

IRC Section: 529(c)(3)(C)(i)(III)

Other Provisions

Estate and Gift Tax Exclusion

The estate and gift tax applies to transfers of wealth above a statutory exclusion amount. The TCJA temporarily doubled the base exclusion amount:

• 2024 exclusion amount: $13.61 million per decedent (indexed for inflation from $10 million)
• The tax rate remains 40%.
• Expiration Date: December 31, 2025
• Post-TCJA Reversion: The exclusion reverts to $5 million per decedent, adjusted annually for inflation.
• Budget Impact:
  • JCT (original): -$83 billion (FY2018–FY2027)
  • CBO (extension): -$167 billion (FY2025–FY2034)

Relevant Law: Section 11061 of P.L. 115-97
IRC Sections: 2001, 2010(c)(3)(C)

Employer Credit for Paid Family and Medical Leave

The TCJA created a temporary credit for employers who provide paid family and medical leave beyond what is legally required.

• Credit value: Ranges from 12.5% to 25% of wages paid, depending on the wage replacement rate provided
• Eligibility:
  • Employer must offer at least two weeks of paid leave
  • Leave must be separate from vacation/sick time
  • Employee must have worked at least one year and earned under a threshold amount in the prior year
• Expiration Date: December 31, 2025 (following extensions via P.L. 116-94 and P.L. 116-260)
• Post-TCJA Reversion: The credit will no longer be available.
• Budget Impact:
  • JCT (original): -$4 billion (FY2018–FY2027)
  • CBO (extension): -$5 billion (FY2025–FY2034)

Relevant Law:

• TCJA: Section 13403 of P.L. 115-97
• Extensions: Section 142 of Division Q of P.L. 116-94, Section 119 of Division EE of P.L. 116-260
  IRC Section: 45S

Qualified Opportunity Zones

The TCJA established Opportunity Zones to incentivize investment in economically distressed areas by offering three tax benefits:

1. Deferral of capital gains tax if reinvested in a Qualified Opportunity Fund
2. Step-up in basis for investments held 5 or 7 years
3. Permanent exclusion of capital gains on investments held at least 10 years

• Deadline for Election: No new deferrals allowed after December 31, 2026
• Budget Impact:
  • JCT (original): -$2 billion (FY2018–FY2027)
  • CBO (extension): -$70 billion (FY2025–FY2034)

Relevant Law: Section 13823 of P.L. 115-97

IRC Sections: 1400Z-1 and 1400Z-2

In Conclusion

The signing of the "One Big Beautiful Bill" on July 4, 2025, marks a pivotal moment in federal tax policy. As we've detailed, this legislation arrives just in time to address the widespread expiration of the 2017 Tax Cuts and Jobs Act provisions, ushering in a significant recalibration of the nation's tax landscape starting in 2026. From marginal rates and standard deductions for individuals and families to targeted incentives and exclusions impacting businesses and specific financial planning tools, this new law extends, modifies, or allows prior policies to phase out, creating a definitive post-2025 tax framework.

The implications of this bill are far-reaching. For millions of taxpayers, understanding these changes is not merely an academic exercise but a critical step in preparing their financial strategies. The shift from temporary rules to the new statutory framework necessitates careful review by individuals, financial planners, and businesses to optimize tax positions and ensure compliance. As the new era of U.S. tax policy takes effect, staying informed and proactive will be paramount to navigating the evolving financial terrain for years to come.