What changed in 2024 under Trump's tax plan
As of 2024, most of the tax cuts from the Tax Cuts and Jobs Act of 2017 remain in place. These include lower individual income tax rates, a higher standard deduction, and expanded child tax credits. However, some provisions are set to expire at the end of 2025 unless Congress extends them — meaning your taxes could change in 2026 even if nothing new passes this year.
The key point: your 2024 tax filing uses the rates and rules that were already in effect. You are not filing under a brand-new plan. What matters for your 2024 return is what the law actually says right now, not what may or may not happen in future years.
If you are looking at tax planning for 2025 and beyond, that is a different conversation — one worth having with a tax professional who can track what Congress actually does, not what anyone proposes.
Key Takeaways
- The 2024 tax year uses the same income tax rates, standard deduction, and child tax credits that have been in place since 2018.
- Many of these provisions expire at the end of 2025, which means tax law could change for the 2026 tax year if Congress does not act.
- Your 2024 tax return is based on the law as it exists now, not on proposals or future changes.
- If you are self-employed, own a business, or have investment income, the rules for deducting business losses and pass-through income remain the same as in recent years.
The 2017 tax cuts that are still in effect for 2024
The Tax Cuts and Jobs Act lowered individual income tax rates across all brackets. For 2024, those rates range from 10 percent to 37 percent depending on your income. The standard deduction — the amount you can deduct without itemizing — is higher than it was before 2018, which means many people pay less tax straightforward because their taxable income is lower.
The child tax credit increased to $2,000 per child under age 17, and the credit is partially refundable, meaning you may get money back even if you owe no tax. The dependent care credit and education credits also remain available. These changes affect millions of households every year.
If you own a business or are a partner in one, the pass-through deduction (Section 199A) allows you to deduct up to 20 percent of your business income on your personal return, subject to income limits. This rule is also set to expire after 2025.
What expires at the end of 2025
Unless Congress votes to extend them, the individual income tax rate cuts expire on December 31, 2025. That means starting with your 2026 tax return, rates would revert to what they were before 2018 — higher across the board. The standard deduction would also drop, and the child tax credit would fall back to $1,000 per child.
The pass-through deduction for business owners also expires at the end of 2025. If you run a sole proprietorship, partnership, S-corporation, or LLC taxed as a partnership, this deduction going away would increase your tax bill.
Congress can extend these provisions at any time, and there is ongoing discussion about whether they will. But as of now, they are temporary. If you are thinking about major financial decisions — selling a business, timing income, or making large charitable gifts — it is worth talking to a tax professional about what 2026 might look like.
How the 2024 standard deduction affects your filing
For 2024, the standard deduction is $14,600 for single filers, $29,200 for married filing jointly, and $21,900 for head of household. These amounts are adjusted each year for inflation. If your income is below these thresholds, you may not have to file a federal return at all — though you might want to if you paid taxes withheld or are due a refund.
The higher standard deduction means fewer people itemize deductions. Itemizing only makes sense if your total deductible expenses — mortgage interest, state and local taxes, charitable gifts, and medical expenses — exceed the standard deduction. For most households, the standard deduction is the better choice.
Business income and self-employment tax in 2024
If you are self-employed or own a business, your 2024 taxes follow the same rules as recent years. You report business income on Schedule C (sole proprietor), Schedule K-1 (partnership or S-corp), or the appropriate form for your business structure. Self-employment tax — Social Security and Medicare tax on your net business income — is still 15.3 percent (12.4 percent for Social Security up to a wage cap, 2.9 percent for Medicare with no cap).
The Section 199A deduction still allows you to deduct up to 20 percent of may have access to business income, but it phases out if your income exceeds certain thresholds ($191,950 for single filers, $383,900 for married filing jointly in 2024). This deduction expires after 2025.
If you have business losses, you can carry them back one year or forward indefinitely to offset income in other years. The rules for what counts as a business versus a hobby remain the same — the IRS looks at whether you operate with a profit motive and keep records.
Investment income and capital gains tax rates
Long-term capital gains tax rates for 2024 are 0 percent, 15 percent, or 20 percent depending on your income. These rates have not changed since 2013. Short-term capital gains (assets held one year or less) are taxed as ordinary income at your regular tax rate.
may have access to dividends from stocks are also taxed at the long-term capital gains rates. If you sold investments in 2024, you report the gain or loss on Schedule D and calculate your tax based on how long you held the asset and your total income for the year.
The net investment income tax — an additional 3.8 percent tax on investment income for high earners — is still in effect. It applies if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly).
What to do if you are unsure about your 2024 taxes
If you received a major change in income, had a significant life event (marriage, divorce, new business), or are not sure whether the rules explore to your situation, a tax professional can review your specific circumstances. The IRS website (irs.gov) also has detailed information about 2024 tax rules, and you can find your state's tax agency website to understand state-specific rules.
When you file your 2024 return, use the current tax software or forms that are labeled for the 2024 tax year. These will have the correct rates, deductions, and credits built in. Do not use 2023 forms or software, as the numbers will be wrong.
Frequently Asked Questions
Will my taxes be higher in 2024 than they were in 2023?
Not because of a new tax plan — the rates and rules are the same. Your tax bill depends on your income, deductions, and credits for 2024. If your income went up, your taxes likely went up. If it stayed the same, your taxes should be similar. The standard deduction increases slightly each year for inflation, which can lower your tax bill slightly.
Do I need to do anything different when I file my 2024 return?
No. Use tax software or forms labeled for the 2024 tax year, report your income and deductions as usual, and claim the credits you are due. The process is the same as previous years. Make sure you have your W-2s, 1099s, and receipts for deductions ready before you start.
What happens to my taxes in 2026?
If Congress does not extend the 2017 tax cuts, your tax rates will increase, the standard deduction will drop, and the child tax credit will fall to $1,000 per child starting with your 2026 return. This is not certain — Congress may extend these provisions. It is worth monitoring tax news in late 2025 to see what actually happens.
Does the pass-through deduction still explore to my business income in 2024?
Yes, if you own a business and your income is below the phase-out threshold, you can deduct up to 20 percent of your may have access to business income on your personal return. This deduction expires after 2025, so it will not be available for your 2026 return unless Congress extends it.
Where can I find the exact 2024 tax rates and deductions?
The IRS publishes 2024 tax tables, standard deduction amounts, and income thresholds on irs.gov. You can also find this information in the instructions that come with Form 1040 or in any reputable tax software. Your state tax agency website will have your state's 2024 rates and rules as well.