In my last article I attempted to highlight some of the 2017 tax act (Tax Cuts and Jobs Act or TCJA) changes that are scheduled to expire after 2025. Below, I have added to the list of changes that could be made without Congressional Action. The TCJA made extensive changes that has affected both individuals and businesses.  Most provisions were effective for 2018.  Many individual tax provisions are scheduled to sunset and revert to pre-existing law after 2025 unless Congress acts.  Some key provisions of the Act scheduled to sunset are discussed below.  Comparisons below are generally for 2025 and 2026 as currently scheduled if Congress does not act.
For 2025 the maximum child tax credit is $2,000.  A nonrefundable credit of $500 is available for qualifying dependents that are not qualifying children.  The maximum refundable amount of the credit is $1,700.  The amount at which the credit begins to phase out is fairly high, and the earned income threshold is $2,500.  For 2026 the maximum child tax credit would be $1,000.  The child tax credit will be phased out if modified adjusted gross income exceeds certain much lower amounts.  If the credit exceeds the tax liability, the child tax credit would be refundable up to 15% of the amount of earned income in excess of $3,000 (the earned income threshold).
The alternative minimum tax (AMT) exemptions and exemption phaseout would remain but are fairly high.  In 2026, the AMT exemptions and exemption phaseout threshold would be much lower.  Many more taxpayers would be subject to AMT.
In 2025 the gift and estate tax basic exclusion amount and the generation-skipping transfer tax exemption is $13,990,000.  For 2026 it is estimated these amounts would be reduced by one-half.
There are special provisions for business income of individuals.  An individual taxpayer can deduct 20% of domestic qualified business income (excludes compensation) from a partnership, S corporation, or sole proprietorship.  The benefit of the deduction is phased out for specified service businesses with taxable income exceeding $197,300 ($394,000 for married filing jointly).  The deduction is limited to the greater of (1) 50% of W-2 wages of the taxpayer, or (2) the sum of (a) 25% of the W-2 wages of the taxpayer plus (b) 2.5% of the unadjusted basis immediately after acquisition of all qualified property (certain depreciable property).  This limit does not apply if taxable income does not exceed $197,300 ($394,000 for married filing jointly), and limit is phased in for taxable income above those thresholds.  For 2026, there would be no deduction for qualified business income.
       Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.  To the extent this material concerns tax matters, it is not intended or written to be used by a taxpayer for purposes of avoiding penalties that may be imposed by law.