TCJA Tax Provisions Extended in 2025: What Families and Businesses Need to Know

The U.S. tax code just saw a big update. The Tax Cuts and Jobs Act (TCJA), first passed in 2017, was one of the most important tax laws in recent history. It changed how families, workers, and businesses pay taxes.

Now, the new law called the One Big Beautiful Bill (OBBB) has extended many parts of TCJA. Some tax breaks will stick around for years to come, while other benefits are shrinking or rolling back. The price tag for keeping these tax cuts is also huge—about $4.5 trillion over the next decade.

So, what does this mean for everyday taxpayers, families, and businesses? Let’s break it down in simple terms.

A Quick Look Back: What Was the TCJA?

The Tax Cuts and Jobs Act (TCJA) was passed in December 2017. It was designed to lower taxes for both individuals and companies. Some of the biggest changes included:

• Bigger child tax credit – Families with kids received more money back on their taxes.
• Higher standard deduction – Most people no longer needed to itemize their deductions because the standard deduction was doubled.
• Lower corporate tax rate – Businesses saw their tax rate drop from 35% to 21%.
• Changes to deductions – The state and local tax (SALT) deduction was capped at $10,000, which hurt some high-tax states.

Many of these provisions were set to expire by 2025, which meant big changes for taxpayers in just a few years. That’s where OBBB comes in.

What the New Bill Does: Key Provisions Extended

The One Big Beautiful Bill (OBBB) extends many parts of the TCJA. Here’s what it keeps in place:

1. Bigger Child Tax Credit

Families can breathe a little easier. The child tax credit, which was raised under TCJA, will continue. This gives parents more relief when filing their taxes.

2. Higher Standard Deduction

The doubled standard deduction remains. That means most taxpayers won’t need to itemize deductions. This keeps filing simple for millions of households.

3. Corporate Tax Cuts

Businesses will still benefit from a lower corporate tax rate. The 21% rate is staying in place, which helps large and small businesses plan ahead.

4. SALT Deduction Cap Raised

The $10,000 cap on state and local tax (SALT) deductions has been raised. This is a win for taxpayers in high-tax states like New York, California, and New Jersey, who had been limited under TCJA.

5. Estate Tax Exemption Inflation-Adjusted

The estate tax exemption—how much wealth you can pass on without paying federal estate tax—will now be adjusted for inflation. This allows wealthy families to pass on more assets over time without a heavy tax burden.

What Didn’t Make the Cut: Provisions Rolling Back

Not everything from TCJA was saved. Some benefits are being scaled back or removed:

• Alternative Minimum Tax (AMT) relief reduced – The higher phase-out levels for AMT that were in place under TCJA are reverting back to earlier amounts. This means more high-income households could face AMT in the future.
• Some deductions restored to pre-2017 levels – Certain business deductions and credits that TCJA had changed are rolling back, which may affect specific industries.

The Big Price Tag: $4.5 Trillion

Extending these provisions doesn’t come cheap. The estimated cost of keeping these tax breaks is $4.5 trillion over 10 years.

This raises big questions:

• Will the government cut spending to cover the cost?
• Or will the national debt grow even more?
• Could new tax hikes be introduced later to balance the budget?

These are concerns not just for lawmakers but also for taxpayers who may see changes down the road.

Who Benefits the Most?

Here’s a quick breakdown of who gains the most from the OBBB extensions:

Families with Children

The bigger child tax credit means more money back during tax season. Parents will continue to see direct financial relief.

Middle-Class Households

The higher standard deduction helps middle-class taxpayers by making filing easier and lowering taxable income.

High-Income Earners in High-Tax States

With the SALT deduction cap raised, wealthy taxpayers in states with high property and income taxes benefit significantly.

Business Owners

The corporate tax cut staying at 21% allows businesses to save money, invest, and potentially grow faster.

Who Could Lose Out?

While many people benefit, not everyone comes out ahead:

• High-income households could pay more due to AMT changes.
• Future taxpayers may face higher taxes if the government needs to offset the $4.5 trillion cost.
• Industries losing deductions may feel the impact of rollbacks.

How This Impacts You

So, how do these changes affect your own tax bill?

• If you’re a parent, expect to keep receiving strong credits for your kids.
• If you don’t itemize deductions, the higher standard deduction continues to work in your favor.
• If you’re a business owner, the lower tax rate remains a big plus.
• If you’re in a high-tax state, you’ll finally see some relief with the raised SALT cap.

But if you’re a high-income earner, watch out for AMT rules that could bring back extra tax liability.

Planning Ahead: What You Should Do

With major tax provisions extended, now is the time to plan. Here are a few smart steps:

1. Review your tax withholding – Make sure you’re not overpaying or underpaying.
2. Work with a tax professional – Rules are complicated, and having a CPA or tax advisor helps you maximize benefits.
3. Plan for the long term – Even though many provisions are extended, tax laws can change again. Stay flexible.
4. Consider estate planning – With higher exemptions, it’s a good time to review your estate strategy.

Final Thoughts

The extension of TCJA provisions through the One Big Beautiful Bill gives taxpayers some stability. Families, businesses, and individuals can keep enjoying many of the benefits they’ve had since 2017.

However, the massive cost of $4.5 trillion means there could be ripple effects in the future. That’s why staying informed and planning ahead is key.

For now, most taxpayers can expect lower bills, simpler filing, and more breathing room when tax season rolls around.