Overview

Tax law has shifted in several high-impact ways since 2017. Major acts and rule updates that affect individuals include the Tax Cuts and Jobs Act (TCJA, 2017), the American Rescue Plan (ARP, 2021) temporary changes, the Inflation Reduction Act (IRA, 2022) energy and credit updates, and SECURE 2.0 (2022) retirement changes. Each law targeted different taxpayer groups and planning areas; some provisions are permanent, others temporary. For official guidance, see the IRS summaries for each law (IRS).

Key recent changes and why they matter

  • Tax Cuts and Jobs Act (TCJA, 2017)

  • Increased the standard deduction and eliminated personal exemptions, changed many itemized deduction rules, and capped the state and local tax (SALT) deduction at $10,000. These changes altered whether many taxpayers itemize and shifted planning toward timing deductions and charitable bunching (IRS: TCJA overview).

  • American Rescue Plan Act (ARP, 2021)

  • Expanded the Child Tax Credit (CTC) for 2021 and made advance payments that year; most of the ARP’s CTC expansions were temporary and reverted after 2021. Taxpayers should confirm current CTC rules and refundability limits when filing (IRS: Child Tax Credit).

  • Inflation Reduction Act (IRA, 2022)

  • Expanded and extended many clean-energy tax incentives for residential and commercial taxpayers (for example, the Residential Clean Energy Credit). If you’re planning home energy improvements, the IRA changed available credits and eligibility rules (IRS: Energy Credits).

  • SECURE 2.0 (2022)

  • Phased in higher required minimum distribution (RMD) ages and changed retirement-plan catch-up rules (including Roth treatment for certain catch-up contributions for higher earners). These changes affect retirement timing, taxable income in retirement, and Roth conversion strategy (U.S. Congress summary / IRS guidance).

How these changes typically affect individual taxpayers

  • Filing and withholding: Broader standard deductions and bracket indexing change whether you owe at filing time. Review withholding after major rule changes to avoid underpayment penalties (IRS: Withholding).
  • Deductions vs itemizing: Because the standard deduction rose under TCJA, many taxpayers who previously itemized no longer do. Consider “bunching” deductions or reviewing charitable giving timing. See our guide on choosing itemize vs standard: Choosing Between Itemizing and the Standard Deduction in 2025.
  • Credits: Temporary boosts (like the 2021 CTC changes) can expire or revert—confirm eligibility each year. For family credits and claim rules, see Federal Tax Credits for Families: Child Tax Credit & Beyond.
  • Retirement planning: Higher RMD ages and new Roth/catch-up rules change required distributions and can make Roth conversions or contribution choices more attractive. Work with a planner to model long-term tax effects.

Real-world examples (typical situations I’ve seen in practice)

  • Middle-income couple: After TCJA raised the standard deduction, clients who once itemized shifted to the standard deduction. We reallocated tax planning toward retirement savings and 529 contributions to preserve tax-advantaged growth.
  • Homeowner pursuing energy upgrades: Clients using IRA credits reduced out-of-pocket cost for solar installations and improved the project’s payback when they claimed the expanded Residential Clean Energy Credit.
  • Near-retiree impacted by SECURE 2.0: A client delayed an RMD strategy after the RMD age rose, allowing additional tax-deferral years and a staged Roth conversion when tax brackets were favorable.

Who is most affected

  • Households that previously itemized (high SALT states, mortgage interest, large medical expenses).
  • Families with children—credits and refundability rules can change the after-tax value of benefits.
  • Retirement savers and older taxpayers subject to RMD changes.
  • Homeowners planning energy or efficiency improvements who can claim IRA credits.

Practical planning tips

  1. Review withholding and estimated payments after big rule changes; update Form W-4 or estimate payments to avoid surprises (IRS: Tax Withholding).
  2. Re-evaluate standard vs itemized deductions annually—use multi-year planning or bunching for charitable gifts (see our itemizing guide above).
  3. When laws expand credits that benefit you (clean energy, education, childcare), document eligibility and supporting receipts before filing.
  4. Coordinate retirement and tax strategies: model the impact of higher RMD ages and Roth-catch-up rules with a financial planner.

Common mistakes to avoid

  • Assuming temporary changes are permanent: many pandemic-era enhancements (like 2021 CTC changes) were time-limited and require re-checking each tax year.
  • Not updating withholding after law changes or life events—this can create large unexpected tax bills.
  • Missing documentation for credits and deductions—keep receipts and contemporaneous records.

Short FAQs

  • How often do tax laws change? Major changes come from Congress irregularly; smaller changes and annual inflation adjustments happen every year. Check IRS and trusted financial sources each filing season.
  • Should I change my investment or retirement plan because of one law change? Don’t react to a single headline—use long-term modeling. I often run two- to five-year scenarios for clients before recommending Roth conversions or large allocation shifts.

Authoritative sources

Internal resources

Professional disclaimer

This article is educational and reflects general rules and commonly used planning approaches as of 2025. It is not individualized tax, legal, or investment advice. For advice tailored to your situation, consult a CPA, enrolled agent, or financial planner.

In my practice I run scenario-based models for clients after any major tax law change; if you’d like a practical checklist for your situation, consider scheduling a review with a tax professional before year-end planning.