January is often associated with fresh starts, and when it comes to taxes, it’s also a smart time to step back and review the rules currently in place, the changes already scheduled under existing law, and the planning opportunities available today. Understanding what is already written into law, and what remains unchanged for now, can help individuals and families plan more confidently over the coming year. 

The goal in January isn’t to rush decisions, but to ensure your financial strategy reflects the current environment and keeps future flexibility in mind. 

• What We Know Today About the Tax Landscape: Under current law, many individual tax provisions established by the Tax Cuts and Jobs Act (TCJA) were set to expire at the end of 2025. These include changes to tax brackets, the standard deduction, and estate and gift tax thresholds. According to the Congressional Research Service, these provisions remain in effect for tax years 2018–2025 unless modified by future legislation. ¹ Importantly, nothing has changed yet and there is no requirement to act immediately. However, January is a practical time to review how these scheduled expirations may intersect with your longer-term goals. Key areas to be aware of include: 

• Individual Income Tax Brackets: Current marginal income tax rates remain unchanged for 2025, with the top rate at 37%. If the TCJA provisions expire as written, rates would revert to their pre-2018 structure beginning in 2026, adjusted for inflation.² For now, taxpayers continue to benefit from the existing bracket structure, making this a useful time to evaluate income timing strategies, especially for those with variable compensation, business income, or retirement distributions. 

• Standard Deduction Levels: The standard deduction remains historically high for the 2025 tax year: $15,750 for single filers and $31,500 for married couples filing jointly³. January is a good opportunity to revisit whether itemized deductions or the standard deduction are most likely to benefit your household over the next several years. 

• Estate and Gift Tax Exemptions: The federal estate and gift tax exemption is $13.61 million per individual for 2024 and is indexed for inflation in 2025.⁴ While estate planning decisions are highly personal and complex, January can be a helpful time to ensure documents are up to date and that beneficiary designations, trusts, and gifting strategies align with current rules. 

• Funding Options Beyond Traditional Insurance: Even without immediate changes, January offers something valuable: time. Reviewing tax considerations early in the year allows for thoughtful coordination between investment planning, charitable giving, retirement contributions, and cash-flow decisions without the pressure of year-end deadlines. Rather than reacting later, proactive discussions now can: 

• • Help identify strategies that may benefit from spreading actions over multiple years 

• • Avoid rushed decisions if rules eventually change 

• • Ensure your financial plan remains adaptable regardless of future policy outcomes 

Tax planning works best when it’s integrated into a broader financial strategy. January is not about predicting the future — it’s about understanding the rules as they exist today and positioning yourself to respond thoughtfully as clarity evolves. 

Your Wedbush Financial Advisor can work alongside your CPA or tax professional to review your current situation, highlight planning considerations worth monitoring, and help you stay aligned with your long-term goals, whatever the tax landscape may bring. 

Sources: 

[1] https://www.congress.gov/crs-product/R47846 

[2] https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025 

[3] https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill 

[4] https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax 

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