How taxes can rise during retirement (Part II): Tax brackets and the ways they can change
SHREVEPORT, La. (KSLA) - Many people are thinking about their retirement plans.
Jennifer Delcomyn, a financial adviser with Evans Financial Group in Shreveport, spoke with KSLA on Wednesday, Oct. 12 to continue a five-part series on ways taxes can rise while you’re in retirement. The second part of the series focuses on tax brackets and the ways they can change.
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Tax brackets change around the person. Even if someone’s filing status stays the same in retirement, tax brackets could change around them. This occurs when Congress passes new laws impacting tax brackets. For example, in 2017, Congress passed and the president signed into law comprehensive tax reform, sometimes known as the “Trump tax cuts.”
This legislation temporarily lowered tax bracket rates for many Americans. But this law, and its lower bracket rates, will expire in 2025. That means in 2026, tax bracket rates will revert back to their older, higher levels. Those who are evaluating their retirement assets based on today’s tax rates should remember those rates will likely be higher starting in 2026, even if their income needs stay the same.
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