The Senate Tax Bill: How Will It Affect You?
(GREENSBORO, N.C.) -- On Monday, we were on the phone with tax experts at DMJ in Greensboro all day to break down this monster of a bill.
So let's take it step by step here, and check out some of the big things that are going to affect how much you pay in taxes if portions of this senate bill hold up.
Here's what they told me happens.
Personal exemptions, that's the $4,000 you get to claim for yourself or anyone else in your household, they go away.
To make up for that, standard deductions almost double.
For example, a married couple used to get $12,000 in deductions, but the Senate Bill would make it $24,000.
So, lets do the math in a real life situation.
Currently if you are a single person making $75,000 dollars a year, you're going to pay about $12,000 in taxes. With the senate bill that goes down to about $10,000.
If you are married with two kids you're paying nearly $4,000.
Under the new Senate Bill, that would go down to just less than $1,800.
However, there is a catch.
Most people are going to pay less, at least until 2025 because then this whole tax plan reverts back to what it currently is, but only for you and me.
All the business cuts and breaks will remain in effect permanently.
This has some people wondering why, and we are going to work on explaining that later this week.