2. The Future of the 2017 Tax Cuts Remains Uncertain
One of the biggest question marks heading into 2026 involves provisions of the Tax Cuts and Jobs Act (TCJA) passed in 2017. Many of its individual tax provisions are scheduled to expire after 2025 unless Congress extends them.
If no legislative action is taken:
-
Standard deductions may decrease.
-
Marginal tax rates could increase.
-
Personal exemptions may return, but overall tax liability could shift.
For seniors, this could mean higher taxable income in 2026 compared to 2025—especially for middle-income retirees.
Retirees relying on withdrawals from IRAs or 401(k)s should consider whether 2025 presents a strategic window for tax planning, such as Roth conversions or accelerated withdrawals under current lower rate
