How Much Will You Pay in Taxes? It Depends on Trump’s Tax Bill Changes

New York: Americans are bracing for potential changes to their tax bills as Trump’s 2017 tax cuts are set to expire this year. The Tax Cuts and Jobs Act (TCJA) made significant changes, lowering rates and shifting brackets for many filers.

If the TCJA expires, about 62% of Americans could see their taxes go up. The GOP, however, is likely to push for an extension of these cuts since they control the White House and Congress.

A spokesperson for Trump emphasized the administration’s commitment to reducing the tax burden on Americans, aiming to keep more money in their pockets.

To understand the potential impacts, experts have projected what tax rates might look like for single filers in 2026, depending on whether the TCJA is extended or not.

Higher earners would face the largest tax increases if the TCJA expires. For example, someone making $1 million could see their tax bill rise by over $12,000.

Interestingly, middle-income earners would experience the highest percentage increase. A filer with a $50,000 income could see nearly a 20% hike, while someone earning $700,000 would only see about a 2% increase.

The TCJA also expanded the Child Tax Credit, so if it expires, parents might owe more or receive smaller refunds. Additionally, the cap on local tax deductions could mean bigger breaks for those in high-tax states like New York and New Jersey.

Republicans are gearing up to prioritize tax policy, with plans to tackle these issues once they regain control. They might even consider more drastic measures, like eliminating taxes on tips and overtime.

However, with slim majorities, any tax changes could spark debates. The chair of the House Ways and Means Committee is already collaborating with Trump on a comprehensive bill to address these concerns.

Are you worried about how these changes might affect your tax bill? Reach out to the reporter for more insights.