How your tax bracket could change under the Senate's tax plan, in two charts

  • Income tax brackets could change in 2018 if tax reform legislation is enacted under President Donald Trump.
  • The Senate's tax plan proposes keeping seven tax brackets but changes the income ranges.
  • The bill proposes eliminating the personal exemption and increasing the standard deduction.

Senate Republicans appear to be inching closer to passing their huge tax overhaul.

The most concrete sign that Republicans were making progress came in the Senate Budget Committee on Tuesday, where the bill passed on a party-line vote of 12 to 11. Two GOP senators on the committee, Ron Johnson and Bob Corker, ended up voting for the bill after saying on Monday they would vote against it.

But political and procedural stumbling blocks remain as Republicans try to clear their bill through the full Senate.

In the meantime, Business Insider put together two charts showing how the Senate's tax plan could change federal income-tax brackets in 2018 compared with those in 2017.

First, for single filers:

single filers senate tax plan brackets(Andy Kiersz/Business Insider)

And second, for joint filers:

married filers senate tax plan brackets(Andy Kiersz/Business Insider)

Under the Senate's plan, there would still be seven federal income brackets but at slightly lower rates and adjusted income ranges. The brackets proposed are 10%, 12%, 22%, 24%, 32%, 35%, and 38.5%.

About 70% of Americans claim the standard deduction when filing their taxes, and their paychecks will almost certainly increase — albeit slightly — if tax reform passes.

In 2017, the standard deduction for a single taxpayer is $6,350, plus one personal exemption of $4,050.

The Senate proposal would combine those into one larger standard deduction for 2018: $12,000 for single filers and $24,000 for joint filers.

More from Business Insider:

Should I Include a Dependent's Income on My Tax Return?

It may be easier and less expensive to include dependents' income on your tax return rather than have them file their own return—in certain circumstances.

Read More

Brought to you by TurboTax.com

Great Ways to Get Charitable Tax Deductions

Generally, when you give money to a charity, you can use the amount of that donation as an itemized deduction on your tax return. However, not all charities qualify as tax-deductible organizations. While there are many types of charities, they must all meet certain criteria to be classified by the IRS as tax-deductible organizations. There are legitimate tax-deductible organizations in many popular categories, such as those listed below.

Read More

Brought to you by TurboTax.com

Tax Tips After January 1, 2019

TurboTax gives you ten tax saving tips for the new year. Find strategies to lower taxes, save money when preparing your tax return, and avoid tax penalties.

Read More

Brought to you by TurboTax.com

Should You and Your Spouse File Taxes Jointly or Separately?

Married couples have the option to file jointly or separately on their federal income tax returns. The IRS strongly encourages most couples to file joint tax returns by extending several tax breaks to those who file together. In the vast majority of cases, it's best for married couples to file jointly, but there may be a few instances when it's better to submit separate returns.

Read More

Brought to you by TurboTax.com
Read Full Story