Tax plans: What you need to know on the bills to overhaul how Americans pay taxes

COLUMBIA, SC (WIS) - The U.S. Senate is debating a tax overhaul plan that will have an impact on your bank account. Republican leaders in the Senate say they now have the votes to approve their version of a tax reform bill. But what does it mean for you?

Ronny Burkett has been crunching numbers for his customers, unsure of what change may lie ahead, next tax season.

"It's hard for me to tell them what to do at this point," CPA Burkett says.

Tax reform is still on the table in Washington. It leaves some uneasy, others hopeful. A standard deduction would be increased, and so returns could nearly double for some.

"So if you take a standard deduction, the government allows you a certain amount to deduct against your income before you pay your taxes," Burkett says.

People like single, young adults who typically don't count personal, or itemized deductions, could do well. It's the itemized deductions that could make people worse-off. Both bills would do away with them. Those are the write-offs like medical bills, state and local taxes, interest on homes…and student loans.

"It does away with the deduction for student loan interest," Burkett says.

Some graduate students have concerns—aside from loan deductions they could miss-out on after school.

"Any additional expense would just be that much more of a burden," PhD student Jennifer Mandelbaum says. "My biggest concern is that the potential that our tuition waivers may be taxed," she says.

"We will be taxed on money we are not getting ourselves, so this will minimize our- will decrease our stipend," PhD student Clint Saidy says.

Burkett is still crunching scenarios and running numbers, based on the customers he helps file income tax each year.

"Some people are going to be disappointed, and some people are going to be happy when that time rolls around," he says.

The Senate is still debating their version of the bill. If they vote and it passes, they would then have to compromise on one final bill with the House.

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