Election outcome may affect taxes, says local financial expert

MILWAUKEE (CBS 58) -- Tom Neumann of Drake & Associates joined us on Tuesday, Nov. 5 to chat about how the presidential election could impact taxes. Both candidates have proposed changes that may alter tax rates and deductions for individuals and businesses.

The Tax Cuts and Jobs Act, enacted in 2017, is set to expire at the end of 2025 unless lawmakers intervene. Neumann says this could result in increased tax rates for an estimated 60% of taxpayers.

Changes may also occur in the child tax credit, which could decrease from $2,000 to $1,000 per child if the act expires. Some deductions might return, such as those for work-from-home expenses and higher mortgage interest deductions.

Neumann noted that taxpayers should consider planning strategies like Roth conversions before potential rate increases.