The Republican-heavy U.S. Senate voted early Saturday morning (2amEDT) to pass a tax overhaul bill.  The final vote was 51-49, with every Democrat in the Senate and one Republican, Bob Corker (TN) voting against the legislation.

So now there is a House bill that has passed, and a Senate bill that has passed.  The next step in the process starts Monday when key members of the House and Senate will meet and negotiate a final bill to be presented to the president for a signature.   If it happens, it will be the first big legislative victory for Trump since taking office in January.    (See Trump’s tweets below).

Here is what you need to know about the bill:

 Property Deductions: The Senate bill does away with federal deductions for state and local income and sales taxes, but allows deductions of up to $10,000 in local property taxes.

Personal deductions: The Senate bill nearly doubles the standard deduction level to $12,000 for individuals and $24,000 for couples.

Other deductions: The Senate bill retains the current limit for the home mortgage interest deduction to interest paid on the first $1 million of the loan. It also preserves the deduction for medical expenses not covered by insurance (the House bill does not), but ends deductions for moving expenses and tax preparation.

Why does the Senate bill allow deducting medical expenses not covered by insurance?Because the Senate bill also repeals ObamaCare’s individual mandate, while the House bill does not. If ObamaCare’s mandate is repealed, thousands of people are expected to drop their health insurance, raising the cost for those who decide to keep it.

Personal exemption: The Senate and House bills both eliminate the $4,050 personal tax exemption.

Tax brackets: The Senate bill keeps seven tax brackets, but reduces them to 10, 12, 22, 24, 32, 35 and 38.5 percent. (The current brackets are 10, 15, 25, 28, 33, 35, and 39.6 percent.) The House measure condenses seven brackets to four: 12, 25, 35 and 39.6 percent.

Small Businesses: The Senate bill allows owners of so-called “pass-through” businesses (that is, businesses that aren’t incorporated) to deduct 23 percent of their earnings, and then pay at their personal income tax rate on the remainder.

Corporate tax rates: The Senate bill cuts the current 35 percent rate to 20 percent, but the Senate bill calls for a one-year delay in dropping the rate.

When will tax reform take effect? President Trump and congressional Republicans have vowed to make tax reform law before the end of the year. If that happens, most of the provisions would come into force on Jan. 1.

Will tax reform affect my returns for this year? The changes will not have any impact on your taxes for 2017.

So when will the differences in the bills be hashed out? The House will vote on a motion to go to conference on the tax bills on Monday evening. The Senate is expected to vote on a similar measure soon after. Congress is scheduled to adjourn for its Christmas break on Dec. 15, but House Speaker Paul Ryan has said he will keep the House in session beyond that date if necessary to get tax reform passed.

President Trump tweeted about the Senate vote after it was complete:  “We are one step closer to delivering MASSIVE tax cuts for working families across America. Special thanks to  Mitch McConnell and Chairman  for shepherding our bill through the Senate. Look forward to signing a final bill before Christmas!”

In a second tweet hours later, Trump wrote: “Biggest Tax Bill and Tax Cuts in history just passed in the Senate. Now these great Republicans will be going for final passage. Thank you to House and Senate Republicans for your hard work and commitment!”

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