Sponsor spotlight Tax uncertainty requires preparedness

Taxpayers could see increased tax bills if Congress fails to extend vital tax credits and deductions before year’s end. Individuals expecting income growth in 2025 should prepare for potential changes in marginal tax rates set to take effect in 2026. Taxpayers who previously itemized deductions may need to adjust their expense planning, particularly if they face high state and real estate taxes. The estate exemption will drop from $13. 99 million for single taxpayers to $5 million in 2026, prompting estate holders to consider gifting strategies.

Investors should review their portfolios for tax efficiency, utilizing options like municipal bonds and tax-deferred accounts. Tax-loss harvesting may also be a useful strategy to offset future gains, especially if tax rates are lower in 2025. Small business owners should assess how the potential loss of the Qualified Business Income deduction affects their overall tax strategy. Engaging in proactive tax planning sessions is essential as these changes loom.