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VIEWPOINT: Navigating the 2025 Tax Cut and Jobs Act Expiration
What you need to know from a financial advisor Each year, a new legislative cycle brings potential changes to the tax landscape that every individual, family, and business owner should be aware of. One major factor to look out for in 2025 is the expiration of key provisions included in the Tax Cuts and Jobs […]
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Each year, a new legislative cycle brings potential changes to the tax landscape that every individual, family, and business owner should be aware of. One major factor to look out for in 2025 is the expiration of key provisions included in the Tax Cuts and Jobs Act (TCJA) of 2017. Unless legislative action is taken this year, many significant tax benefits will end, potentially altering financial-planning strategies in substantial ways.
When first passed in 2017, the TCJA made sweeping changes to corporate and individual income taxes and the way your estate and charitable giving is taxed. The Act nearly doubled the standard deduction, eliminated the personal exemption and 2 percent miscellaneous itemized deductions, doubled the child tax credit, limited state and local tax (SALT) deductions to $10,000, and tightened limits on mortgage and home-equity interest deductions.
In terms of charitable giving, the TCJA raised the ceiling for charitable contributions by 10 percent of adjusted gross income, roughly doubling the lifetime estate and gift-tax exemptions. If the Act sunsets in 2025, the projected estate and gift-tax exemptions would return to the levels of 2017, adjusted for inflation.
• One of the most notable changes involves the individual lifetime estate and gift-tax exemption. If the TCJA expires, this exception could be cut in half — from around $14 million per individual to about $7 million. The timing of gift and estate transfers could have a significant impact on what your beneficiaries would ultimately receive. High-net-worth individuals should evaluate their estate-planning strategies now to ensure they maximize their tax efficiency and avoid unnecessary tax burdens.
• In the same way, charitable giving flourished under the Act; its expiration will have a significant impact on philanthropy. Under the TCJA currently, taxpayers can deduct up to 60 percent of their adjusted gross income for charitable contributions. However, this limit will revert to 50 percent if/when the TCJA sunsets. For individuals who rely on tax deductions to maximize their giving potential, it is recommended to connect with your financial advisor to explore strategies to optimize your tax benefits while supporting charitable causes: donate appreciated assets, utilize qualified charitable distributions, or set up donor-advised funds or charitable gift annuities.
These are just two everyday examples of how the expiration of the TCJA will impact Americans. The possibility of many changes on the horizon illustrates a broader point: tax planning should be proactive, not reactive. A thoughtful approach can help navigate uncertainties ahead. Whether it’s updating your estate plan, restructuring charitable contributions, or exploring other tax-saving opportunities, having a conversation with your financial team sooner rather than later can make all the difference.
By taking the necessary steps today, you can better position yourself and your family for financial success in the rest of 2025 and beyond.
Tami Amici is fiduciary tax services manager at Tompkins Financial Advisors, Central New York.
Ask Rusty: Did We Make a Mistake Starting My Wife’s SS now?
Dear Rusty: I hope we haven’t made a mistake. My wife just applied for her Social Security (SS) benefit. She was born in May 1962, and the estimated amount of her benefit is $1,280 per month. Her work income last year was $5,616; however, mine was about $65,000. I do not plan on taking my
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Dear Rusty: I hope we haven’t made a mistake. My wife just applied for her Social Security (SS) benefit. She was born in May 1962, and the estimated amount of her benefit is $1,280 per month. Her work income last year was $5,616; however, mine was about $65,000. I do not plan on taking my SS benefit until the age of 70 in July 2027.
My worry now is about the penalty for earning too much. We figured that since my wife’s income was so low, we wouldn’t have to worry about that penalty, so we signed her up, and then it hit me: what if the IRS looks at my income, especially since our tax return is filed as married filing jointly. Do we have a problem, or are they just going to look at her income to determine if there is a penalty? I hope I haven’t messed this up. Also, I think I read that any penalty you are assessed for earning too much is returned to you once you reach full retirement age (FRA); is that true?
Signed: Uncomfortable Senior Citizen
Dear Uncomfortable Senior: First, let me ease your anxiety — you haven’t “messed this up.” While it’s true that your income will be included when the IRS determines how much of your wife’s Social Security benefits are taxable, changing your IRS filing status is usually not wise. However, considering your combined income and your “married/jointly” IRS filing status, up to 85 percent of the SS benefits your wife receives during the tax year will be included as part of your overall taxable income as a married couple. Your wife’s monthly SS benefit is about $1,280, so about $13,000 (annually) will be included in your adjusted gross income (AGI) when you file your taxes. You can have income tax withheld from your wife’s SS benefit by filing IRS Form W-4V at your local SS office (you can have 7 percent, 10 percent, 12 percent or 22 percent withheld). Note your wife’s tax obligation for this year will be less because she will not get SS benefits for all of 2025.
The other thing you are concerned about is whether your income will be counted when determining if your wife will be subject to Social Security’s “annual earnings test” (AET), and the answer to that is “no.” At her current earnings level (about $5,600), your wife is well below the annual earnings limit ($23,400 for 2025) for those collecting early Social Security benefits. So, the AET will not apply and will not reduce your wife’s monthly Social Security benefit. FYI, if her earnings did exceed the annual earnings limit, it is true that some of the resulting penalty would be recovered after she reaches her FRA of 67.
Note the distinction between “taxation of SS benefits,” and the “annual earnings test” for those collecting early benefits. Taxation of benefits is always based on your joint income when filing married/jointly, but the AET looks only at your wife’s personal work earnings until she reaches her FRA.
As I expect you already know, by claiming now (at age 62-plus), your wife’s monthly SS retirement benefit will be permanently reduced (by about 26 percent). Until you later claim your SS benefit, your wife will receive her reduced personal SS retirement amount. But, when you claim, her benefit amount will be reassessed to see if she is also entitled to an incremental amount as your wife. If her SS entitlement at her FRA (even though she claimed at 62-plus) is less than 50 percent of your FRA entitlement, then her benefit will increase. However, she will not get the full 50 percent of your FRA entitlement because she claimed her own SS retirement benefit before her FRA (more likely, she will get about 34 percent of your FRA entitlement).
In the end, you really did not make a mistake by filing for your wife’s Social Security to start now. By the time you personally apply at age 70, your wife will have collected about $46,000 in Social Security benefits which, I’m sure, will be helpful. And you will pay only a relatively modest amount of income tax on her Social Security benefits.
Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4-million-member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org.
Author’s note: This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained, and accredited by the National Social Security Association (NSSA). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity.
AmeriCU Credit Union prepares to open relocated North Utica branch
UTICA, N.Y. — AmeriCU Credit Union is relocating its North Utica location from the Aspen Dental Plaza on North Genesee St. to 401 Herkimer Road
Kickboxing studio formally opens on March 24
UTICA, N.Y. — Renegade Kickboxing will celebrate its formal grand opening with the Greater Utica Chamber of Commerce on Monday, March 24. The event, at 310 Broad St. in Utica, will include a ribbon-cutting ceremony at 3:30 p.m., a live class demo at 5 p.m., tours, and refreshments. The kickboxing and fitness studio offers a
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UTICA, N.Y. — Renegade Kickboxing will celebrate its formal grand opening with the Greater Utica Chamber of Commerce on Monday, March 24.
The event, at 310 Broad St. in Utica, will include a ribbon-cutting ceremony at 3:30 p.m., a live class demo at 5 p.m., tours, and refreshments.
The kickboxing and fitness studio offers a variety of group fitness and yoga classes and will add Pilates this summer. The studio also offers personal training.
Renegade Kickboxing owner and lead instructor Bre Rauscher holds a doctor in physical therapy degree. She’s joined by certified fitness trainer Brittney Roberts.
Binghamton business-plan competition has April 2 submission deadline
BINGHAMTON, N.Y. — Binghamton entrepreneurs still have a few weeks to make their submissions for this year’s Binghamton business-plan competition. Applications are due April 2.
Oneida County Tourism honors Utica Coffee at annual meeting
UTICA, N.Y. — Oneida County Tourism (OCT) is honoring Utica Coffee Roasting Company owners Frank Elias and Heather Delia with the 2025 Christopher P. Destito
Willow Point Rehabilitation & Nursing Center boosts salaries for several health-care roles
VESTAL, N.Y. — Willow Point Rehabilitation & Nursing Center in Vestal says it has significantly increased the pay scale for several health-care roles at the
MVHS and Wynn Hospital generate $2 billion economic impact
UTICA, N.Y. — Mohawk Valley Health System (MVHS) and Wynn Hospital generated more than $2 billion in economic activity in the region, according to an analysis conducted by the Healthcare Association of New York State (HANYS). The HANYS analysis shows that MVHS and the hospital generated 6,400 jobs as a result of employees purchasing goods
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UTICA, N.Y. — Mohawk Valley Health System (MVHS) and Wynn Hospital generated more than $2 billion in economic activity in the region, according to an analysis conducted by the Healthcare Association of New York State (HANYS).
The HANYS analysis shows that MVHS and the hospital generated 6,400 jobs as a result of employees purchasing goods and services locally, had a $332 million payroll to compensate MVHS employees, and generated $151 million in tax dollars by MVHS spending and payroll.
“The Wynn Hospital provides much needed medical care to the community,” MVHS President/CEO Darlene Stromstad contended in a statement. “But it also supports the economic health of the region. In fact, MVHS is one of the top private-sector employers in the county, but our contributions extend far beyond our role as employer.”
Stromstad continued, “The purchasing power of our nearly 3,600 employees supports area businesses, such as restaurants and coffee shops, neighborhood supermarkets, retailers, and service providers throughout the community.”
The report also showed that MVHS invested $134 million in community initiatives including subsidizing care and services to those in need and supporting community health-improvement activities with both financial and human resources.
Stromstad added that MVHS had 489,000 annual outpatient visits, with 74,000 treated in the emergency room, 20,000 admitted to the hospital, and 1,200 babies delivered.
The HANYS’ analysis examined the economic activity and community benefits of hospitals across the state. To view the MVHS report, visit https://www.hanys.org/government_affairs/community_benefit/ and select Wynn Hospital under the hospital tab.
New York manufacturing index plummets back into negative territory in March
The Empire State Manufacturing Survey general business conditions index fell 26 points to -20 in March. In the past couple months, the index rose 18
Pulaski, Chittenango, and Marathon win millions in state’s DRI, NY Forward programs
SYRACUSE, N.Y. — New York State has awarded the Village of Pulaski $10 million as the Central New York winner of the eighth round of
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