Anyone Mocked Up a 2026 1040 Yet?

[Sandi_k]

So, we plan to pull the plug in Q4 of 2025. And we are currently converting DH's SEP into a Roth. I am not able to do in-service conversions, so I have moved my contributions to the Roth option from my employer.

I know that the TCJRA changes are set to revert in 2026, and was wondering if anyone had modeled a reverted 1040 yet. With the SALT tax cap removed, and perhaps itemized deductions worthwhile again, there's a lot to consider.

Has anyone done a simplified forecast of what that reversion would look like yet? Tax brackets, standard deduction, personal exemptions, etc.?

[terran]

I haven't but I have taken a crack at what the brackets might be. Below is copy and pasted from another thread where I posted it. Also consider that ACA subsidies are scheduled to go in 2026 too, unless congress does something to extend them (also discussed in that thread).

My estimates for what the 2017 tax brackets would be for Married Filing Jointly if still in effect in 2024 are below. These will go up with inflation by 2026, but as long as you're using inflation adjusted return assumptions in your spreadsheet you should be using current tax brackets anyway. The way I've calculated this is by scaling the brackets with the Personal Exemption ($4050 in 2017) which was the same as the Qualified Disability Trust exemption that's still published ($5000 in 2024).

$0 - $23,000 10.00%
$23,000 - $93,700 15.00%
$93,700 - $189,000 25.00%
$189,000 - $288,050 28.00%
$288,050 - $514,400 33.00%
$514,400 - $581,100 35.00%
over $581,100 39.60%

Standard deduction  $15,650
Personal exemption  $5,000
Personal exemption phaseout $387,400

The personal exemption phaseout subtracted 2% of the personal exemption for every $2500 you were over the phaseout amount. The $2500 didn't increase with inflation, so I don't know if it would be any higher in 2026.

[MDM]

Has anyone done a simplified forecast of what that reversion would look like yet?

Here's one: no change for anyone with income <$400K, regardless of the 2024 election results.  If Trump wins, he won't want a rollback of the "Trump tax cuts".  If Biden wins, he has much invested in "no tax increase if you make <$400K."

The actual 2026 tax law will likely be something nobody (other than by dumb luck) is predicting now....

[Much Fishing to Do]

Aren't they still arguing over the SALT cap for LAST year? .... I can't imagine trying to guess more than 1 year out.