Financial planners are weighing in on the potential impact of any changes in federal tax policies, according to the results of a new survey reported by ThinkAdvisor.
The recently released 2025 CFP® Professionals Taxes Survey, taken during January and February, was conducted by the Certified Financial Planner Board of Standards and brought responses from 312 CFP professionals.
The main topic was the Tax Cuts and Jobs Act (TCJA) of 2017, enacted during President Trump’s first term, that is due to expire at the end of the year unless its provisions are renewed. 88% of the financial planners surveyed believe the financial objectives of their clients face substantial risk if the tax cuts expire.
The TCJA cut the corporate tax rate to 21%, capped deductions for state and local taxes (SALT) at $10,000, doubled standard deductions, doubled the lifetime estate and gift tax exemption, and expanded the child tax credit.
More than half of the respondents in the CFP Board survey said their clients’ retirement income and legacy plans were vulnerable to any upcoming tax changes. Other financial planning goals thought to be at risk include charitable giving strategies, cited by 18% of planners, business succession (16%) and real estate investment plans (8%).
Amid the uncertainty over the federal tax cuts, CFPs are recommending specific strategies for 2025, including Roth conversions (64%), increased retirement plan contributions (64%) and tax-loss harvesting (61%).
If the TCJA tax provisions are not amended or renewed, individual filers will see a rise in their income tax rates, a lower standard deduction, changes to itemized deductions, and a rollback of the child tax credit. Congress and the Trump administration are working towards legislation that would renew the TCJA.
The CFP Board said financial professionals are implementing comprehensive approaches to improve tax efficiency for this year’s filing, with three in four using strategic timing of capital gains and tax-efficient retirement income strategies.
The survey found that the recommendations of planners address clients’ top concerns, which include retirement account taxation (61%), current income tax exposure (59%) and the impact of potential tax rate changes (55%). 71% of CFPs are maximizing tax-deferred accounts to help protect client wealth before the TCJA provisions expire.
Another topic of the survey was the elimination of tax deductions for financial advice under TCJA. 52% of respondents said this has had a negative impact on consumer access to professional guidance. Half of respondents believe restoring these tax incentives would help more Americans afford professional financial advice.
Many CFPs advocate for an above-the-line tax deduction (46%) or the implementation of a tax credit system (39%) to help more people afford financial planning services, which are deemed as especially important in light of any upcoming tax policy changes.
“As we approach the expiration of TCJA later this year, restoring and expanding tax incentives for financial advice could help ensure that more Americans have access to the professional expertise they need to navigate these significant changes and build the future they envision,” noted Erin Koeppel, Managing Director of Government Relations and Public Policy Counsel at CFP Board.
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