TCJA Permanency Act

This proposal, called the TCJA Permanency Act, would lock in many tax rules from the Tax Cuts and Jobs Act for people, families, and small businesses. It raises the standard deduction and keeps an expanded child tax credit of $2,000 per child plus $500 for other dependents, with phase‑outs at higher incomes. It keeps the $10,000 cap on state and local tax write‑offs and disallows foreign real property tax write‑offs , and it maintains tighter limits on the home mortgage interest write‑off for newer loans while preserving higher limits for older loans.

The bill also broadens what 529 education savings can cover, adding many K–12 and homeschool costs. Student loans forgiven because of a borrower’s death or total and permanent disability would not be taxed for discharges after 2024, including certain private education loans. It removes personal exemptions but keeps the definition of who counts as a dependent in the tax code. Moving‑expense tax breaks would be limited to active‑duty service members with permanent change‑of‑station orders , and the bicycle‑commuting reimbursement exclusion would end. The plan raises the cap on cash gifts to charities to 60% of income with a five‑year carry‑forward for any extra amount , limits large business losses for individuals , and tightens rules on writing off gambling losses. It also raises the estate and gift tax exemption and increases the Alternative Minimum Tax exemption for individuals, with inflation adjustments , and keeps a deduction for certain pass‑through business income.

• Who is affected: Individuals and families who file federal taxes; small business owners; military families; homeowners; parents using 529 plans; people with student loans; donors to charity; and gamblers .
• What changes: Higher standard deduction and an ongoing child tax credit; a $10,000 cap on state/local tax write‑offs; stricter mortgage interest limits; broader 529 uses; no tax on certain death/disability student‑loan discharges; moving breaks limited to active‑duty military; end of the bike‑commuting exclusion; higher charity cash gift cap; limits on big business losses for individuals; higher estate/gift and AMT exemptions; and a deduction for certain pass‑through income .
• When: In most cases, changes would apply to tax years after the bill becomes law . The student‑loan discharge rule would apply to discharges after December 31, 2024.