Key Insights on Future Tax Provisions After TCJA Expiration

In this video interview, CJ Miller, a financial planner with Sensible Money, discusses potential changes following the expiration of key provisions from the Tax Cuts and Jobs Act (TCJA) set for 2025.

Miller emphasizes how different political dynamics may affect whether tax cuts will be extended or modified as they navigate through complex reconciliation processes in Congress without 60 Senate votes.

Miller highlights popular provisions such as state and local tax (SALT) deductions relief and corporate tax rates which are likely permanent but complicate extending personal tax benefits due to budget constraints imposed by rules like Byrd Rule—limiting deficits over ten years. He suggests taxpayers may need strategic adjustments in their financial planning regarding Roth conversions due to uncertain future tax rates.

The conversation also touches upon loopholes created by businesses restructuring as S-corporations for tax advantages under SALT elimination rules while considering implications for tipped workers regarding taxation policies—raising concerns about unintended consequences affecting wages and service quality.

Miller concludes by expressing hope for simplification in future tax legislation while acknowledging uncertainty surrounding specific provisions’ fate amid political negotiations.