The Tax Cuts and Jobs Act (TCJA), known as the Trump tax cuts, altered individual tax rates until 2025.
After 2025, without congressional action, tax rates will revert to previous levels.
Retirees face financial decisions as deductions return to pre-TCJA levels in 2026.
TCJA led to more people using the standard deduction, affecting itemized deductions for state and local taxes.
In 2023, standard deductions are $13,850 for singles, $27,700 for married couples, and $20,800 for heads of household.
Seniors over 65 or blind can claim an additional deduction of $1,850.
The TCJA simplified deductions but reduced the standard deduction after 2025.
Estate tax exemption increased under TCJA, benefiting those with sizable estates.
Estate tax exemption for seniors rises to $12.92 million in 2023, but 2026 depends on political changes.
TCJA's impact on charitable contributions reduced deductions, affecting both retirees and nonprofits.