Last Updated: April 2026
One of the most impactful but least-discussed provisions of the Tax Cuts and Jobs Act (TCJA) was the near-doubling of the standard deduction. Before TCJA, millions of Americans itemised their deductions (mortgage interest, state taxes, charity, etc.). After TCJA, the higher standard deduction meant that about 90% of taxpayers found the standard deduction more advantageous, massively simplifying tax returns for most households. If TCJA expires at the end of 2026, the standard deduction reverts to pre-TCJA levels — and tens of millions of Americans will need to dust off their Schedule A and start tracking deductible expenses again. This guide explains what the 2027 standard deduction will be, who is affected, and how to prepare.
If TCJA expires, preparing to itemise in 2027 requires knowing what you can deduct. Start tracking these categories in 2026 to be ready:
Form 1098 from your lender shows deductible mortgage interest. Under pre-TCJA law (post-sunset): interest on up to $1 million in mortgage debt is deductible (TCJA reduced this to $750K for new mortgages after Dec 14, 2017 — post-sunset, the $1M limit may return, benefiting homeowners with mortgages between $750K and $1M). Home equity loan interest: deductible for loans used to buy, build, or substantially improve the home (up to $100K limit under pre-TCJA law). Track every mortgage statement — lenders issue Form 1098 in January for the prior year.
If SALT cap expires: deductible includes state income taxes paid (from W-2 withholding + estimated tax payments + prior year state tax paid in current year); real property taxes on your home and investment properties; personal property taxes on vehicles (in states that charge this). Keep all state tax payment receipts, property tax bills, and vehicle registration records.
Cash donations: deductible up to 60% of AGI; need acknowledgement letter for donations over $250. Non-cash donations (clothing, furniture to Goodwill): use thrift store fair market value guides; Form 8283 for non-cash donations above $500. Stock donations: deduct fair market value of appreciated stock donated to charity; avoid capital gains. All charitable deductions require documentation — no documentation = no deduction.
Medical expenses above 7.5% of AGI are deductible (not changed by TCJA sunset). For a household with $100,000 AGI: deductible threshold = $7,500; expenses above that are deductible. Trackable: insurance premiums (if paid out of pocket, not pre-tax employer plan), prescription drugs, dental, vision, unreimbursed medical procedures. Medical expense deduction is rarely useful except for households with very high medical costs or unusually low income in a medical year.
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. Learn more about our affiliate partnerships
★ 4.8 verified reviews · 3,758 reviews
The 2026 TCJA expiry creates planning windows — bunching deductions, Roth conversions, and income acceleration — that require forward-looking tax strategy. TaxHub connects you with CPAs who specialise in proactive tax planning.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get TCJA Sunset Tax Planning Help →The individual income tax provisions of the TCJA expire after December 31, 2026 — meaning tax year 2027 (filed in spring 2028) would be the first year under post-TCJA rules, IF Congress does not extend them. Tax year 2026 (filed in spring 2027) is the last year under current TCJA rules. Note: some TCJA provisions (like the 21% corporate tax rate) are permanent and do not expire. The expiring provisions include: standard deduction; income tax brackets and rates (37% top rate reverts to 39.6%); child tax credit ($2,000 reverts to $1,000); SALT cap ($10,000); personal exemption elimination; AMT exemption thresholds; estate tax exemption ($13.61M reverts to ~$7M).
This is an active legislative question. As of April 2026, Congress is debating various TCJA extension proposals. Full extension ('TCJA 2.0') would keep all provisions in place. Partial extension is possible — e.g., extending some provisions (standard deduction, rates) while letting others expire (SALT cap, estate tax). The political dynamics: Republicans generally favour full extension; Democrats are divided; the fiscal cost of full extension is approximately $4–5 trillion over 10 years (CBO estimate). Year 2026 is a deadline-driven planning year: even if extension is likely, plan for expiry and adjust if extended — the cost of not planning is higher than planning conservatively.
Only if your itemisable deductions exceed the post-sunset standard deduction (~$8,300 single / ~$17,000 married). Start by estimating your potential Schedule A deductions: mortgage interest, state taxes paid (if SALT cap also expires), charitable contributions, significant medical expenses. If your itemisable total exceeds the estimated post-sunset standard deduction, you'll benefit from itemising. For most renters in low-tax states with no significant deductions: the post-sunset standard deduction will still be the better choice even at lower levels. For homeowners in high-tax states with mortgages: itemising will likely become beneficial again.