Financial expert explains how the new tax overhaul would impact us

- Republicans and Democrats are going head to head in the tax reform battle over the $1.4 trillion tax overhaul. 

Senate Republicans say they have enough votes to pass tax plan. The tax reform bill being debated in the capitol will affect your bottom line. 

Republicans say it will help spur the economy, Democrats say it only helps the wealthy. A Bloomfield Hills financial advisor says it's not that simple. 

"As far as the individual goes it's going to impact everybody in a range of ways," said James Studinger.

Regardless of where you are on that range this will be true for everyone. The standard deduction for individuals will go up come tax time. It will grow to $12,000 for individuals and to $24,000 for couples. 

Here are other ways you'll notice a difference if the bill passes.

First - college debt: student loans. The House version of the bill would stop you from being able to deduct interest on student loans. For grad students, they could now be taxed if universities waive or lessen tuition costs.
 
Then there's health care deductions. Before you could deduct high cost procedures. That could change under the new bill. 

FOX 2: "If someone has a big surgery that's coming up, a really massive surgery with lots of rehab how would that impact someone like that?"

"On the immediate front, they have very little time to plan for something like that and they may lose the ability to deduct the cost of that surgery," Studinger said.

He says it may encourage more people to pay into an HSA or Health Savings Account. Another way this could affect you, is how you give - and what you get back may change. 

You'll no longer be able to deduct charitable donations. Charities across the country worry that could take a bite out of their ability to give. 

"One thing I can say for sure is that if you take away incentive for people to donate and then nobody does anybody else but take it away you're likely to say donations go down," said Gerry Brisson of Gleaners Detroit Community Food Bank. "The primary reason people give is because they want to make positive change or they want to get back or they feel privileged and they know they should be doing something for others."

Corporations will see a huge boon in the Republicans tax reform bill. The hope to make them make their products here in the us rather than overseas by giving tax breaks. 

"If it took affect this year for this year, I would get with your accountant and do a mock return with them," Studinger said. "And see does it impact you and if it does is there anything different you should do this year before the end of the year to benefit from it?"

Both the Senate and the House have differences in their tax reform plans. The child tax credit would double in the Senate version and go up significantly in the House version.
 

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