In 2017, former President Donald Trump's Tax Cuts and Jobs Act (TCJA) lowered tax obligations for millions of Americans.

While the legislation was controversial to some degree, it was well received by millions who appreciated the break. However, the lowered taxes were not meant to last forever, and will expire at the end of 2025.

According to The Hill, the TCJA "increased the standard deduction, lowered the corporate and estate tax rates and increased the child tax credit, among other things," and will end on Dec. 31, 2025.

The TCJA could remain in effect depending on whether or not Congress and the next president approve it. It will likely hinge on what party controls what by that date.

Experts weigh in

Experts like Tax attorney Adam Brewer with AB Tax Law weighed in on the situation and helped explain what might happen if rates return to pre-TCJA levels.

"As crazy as it may sound, December 31, 2025, will be here soon," Brewer told Nexstar. "If Congress doesn’t take action to extend the cuts or pass new tax cuts, then the average American can expect to see their tax bill increase slightly in tax year 2026."

Brewer added, "When we have the results of the presidential election, hopefully in November or December of this year, then a clearer picture of future tax rates may begin emerge."

Joshua Youngblood, senior tax adviser with the Youngblood Group, went into detail regarding how most Americans will be affected if the TCJA expires.

The Hill noted:

“Those married filing a joint return in a 12% tax bracket ($22,001 to $89,450) will increase to 15%,” Youngblood said, citing one example. “Those in a 22% tax rate ($89,451 to $180,000) will increase to 25% from 22%.”

Perhaps the most impactful for many families will be the change in the child tax credit, which under the TCJA is $2,000. If the bill expires, it will revert back to $1,000 per child.

Small businesses affected

Millions of small business owners will also feel the impact of the changes if the TCJA expires at the end of next year.

The TCJA enabled the qualified business income (QBI) deduction, which "is a deduction of up to 20% for pass-through businesses such as partnerships and S corporations."

The Hill noted:

Self-employed people who might qualify for the deduction include gig economy workers, artists, Etsy sellers, contractors, restaurateurs, freelancers and various small business owners, according to tax services company Jackson Hewitt.

If Trump wins in November and Republicans control Congress, the tax cuts will more than likely stay as they are.