TCJA Permanency Act

Key Points

• This bill would make permanent the lower individual income tax rates from the 2017 Tax Cuts and Jobs Act, which are currently set to expire after 2025. Without this bill, rates would revert to higher pre-2017 levels for all tax brackets.
• Families would permanently keep the $2,000 child tax credit per qualifying child and the $500 credit per other dependent, with income phaseouts starting at $400,000 for joint filers. The refundable portion stays at $1,400 per child.
• The nearly doubled standard deduction ($24,000 for married couples, $12,000 for singles) becomes permanent, meaning most filers will continue to skip itemizing and take the simpler standard deduction instead.
• The $10,000 cap on the deduction for state and local taxes (SALT) becomes permanent. This is especially costly for taxpayers in high-tax states who used to deduct much more before the 2017 law.
• The 20% deduction for qualified business income earned by pass-through entities like partnerships and S-corporations becomes permanent, keeping tax rates for these businesses closer to the corporate rate.
• Parents can permanently use 529 savings accounts for homeschool costs, tutoring, curriculum materials, educational therapies, and K-12 expenses at public, private, or religious schools.

Votes

No votes have been recorded for this legislation yet.