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How your tax bracket could change in 2018 under Trump's tax plan, in two charts

Tech Insider logo Tech Insider 12/2/2017 Elena Holodny

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Video by Wochit

- Income tax brackets could change in 2018 if tax legislation is enacted under President Donald Trump.

- The Senate's bill proposes keeping seven tax brackets but changing the income ranges, while the House's version of the bill would reduce the number of tax brackets to four.

- Both plans propose eliminating the personal exemption and increasing the standard deduction.

House and Senate Republicans have taken two different approaches in their attempt to overhaul the US tax code by releasing separate proposals with sweeping changes.

The House previously passed their version of the Tax Cuts and Jobs Act, and Senate Republicans voted to pass their own tax legislation early Saturday.

GOP leaders have the said the next step is to bring both bills to a conference committee, where they will combine the two versions into one final bill. President Donald Trump has said he wants tax reform on his desk by Christmas.

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

First, for single filers:

a screenshot of a cell phone: 11 15 17 single tax brackets current house senate © Provided by Business Insider Inc 11 15 17 single tax brackets current house senate

And second, for joint filers:

a screenshot of a cell phone: 11 15 17 married jointly tax brackets current house senate © Provided by Business Insider Inc 11 15 17 married jointly tax brackets current house senate Under the House's plan, there would be four federal income-tax brackets rather than the seven we have today. The brackets proposed are 12%, 25%, 35%, and 39.6%.

The Senate's version would keep seven 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 House plan would combine those into one larger standard deduction for 2018: $12,200 for single filers and $24,400 for joint filers.

Under the Senate proposal, these would be slightly lower, at $12,000 for single filers and $24,000 for joint filers.

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