Here's what the GOP tax plan could mean for you

PHOTO: Surrounded by Republican Senators and House Representatives, President Donald Trump speaks about the passage of tax reform legislation on the South Lawn of the White House, December 20, 2017.PlayBrendan Smialowski/AFP/Getty Images
WATCH Congress set to pass sweeping tax overhaul

Once President Trump signs the GOP tax plan just passed by Congress--millions of Americans will feel the impact.

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The bill includes deep tax cuts for corporations, tax breaks for the wealthy, and what experts say are more limited benefits for middle-class Americans.

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Proposed Changes to Tax Brackets

Here's what's in the bill:

FOR BUSINESS

-- Corporate rate to 21%, down from 35% under current law. Takes effect in 2018.

--- Eliminates Corporate Alternative Minimum Tax - Had been “rolled back” but not repealed in previous versions, according to Sen. John Cornyn.

--- Pass-through deduction rate set at 20% for first $315,000 of joint income

FOR THE WEALTHY

-- Top individual rate to 37%, down from 39.6% under current law.

-- Individual Alternative Minimum Tax exemption increased to $500k for individuals, $1 million for couples filing jointly.

-- Doubles the amount of the current exemption from the Estate Tax (currently $5.5 million)

FOR THE MIDDLE CLASS

-- Standard deduction increased from $12,700 to $24,000 (had been previously reported as $24,400) for joint returns and from $6,350 to $12,000 for individuals. According to the Tax Policy Center, more than two-thirds of Americans take the standard deduction when filing taxes.

-- Tax brackets: 7 brackets + a 0% rate 10%, 12%, 22%, 24%, 32%, 35%, 37%

For those who ITEMIZE instead of take the standard deduction

-- State and local tax deduction capped at $10,000 combined from any/all categories (property/income/sales taxes). Current law caps property tax deduction at $1 million. There are no current caps on state/local income tax deduction.

-- Mortgage interest deduction capped at $750k, down from $1 million under current law.

-- Graduate school stipend deduction (tax-free tuition waivers) preserved.

-- Student loan interest deduction preserved.

--- Medical expense deduction is preserved. It allows Americans to deduct medical expenses not covered by insurance that exceed 10 percent of adjusted gross income.

-- Child Tax Credit preserved. Expanded from $1,000 to $2,000 and refundable up to $1,400 – had previously been refundable up to $1,100 but Rubio got it raised

--- Adoption tax credit is preserved

--- Charitable giving tax deduction is preserved

--- Repeal of individual mandate requiring health insurance. According to CBO, repealing Obamacare’s individual mandate insurance could lead to 13 million more Americans without health insurance, while saving the government $338 billion in federal health insurance subsidy payments over the next decade.

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