Congress passed an $858 billion bill late Thursday night approving two-year, tax-cut extensions. The bill is now on its way to get signed by Obama.

This bill has been hotly debated between Republicans and Democrats and finally reached a settlement when the house voted 277-148 passing an agreement on the tax cuts. There was an added pressure on the Democrats to accept the deal as rumors of a double-dip recession flew due to high taxes flew about the floor.

AP Raw Video: House Passes Tax Cut Bill

Who Will It Benefit?

Individual Income Tax Payers: Had the extension not been approved, the 10% tax bracket would see their would have seen their 10% tax rate increased to 15%. Similarly, the 25%, 28%, 33% and 35% Tax Bracket will continue paying the top tax rate of 35% (for households making over $379,150 annually) as opposed to 39.6% without the tax cut extension.

Teachers: Elementary and Secondary school teachers will be able to get a $250 deduction for out-of-pocket expenses put towards the classroom.

Commuters: Those who use mass transit will be able to enjoy tax breaks for their commute.

Child Care: There is a $1,000 child tax credit.

Scholars: There is a deduction for education expenses including tuition.

To read a full summary of the tax-cut extension bill check out the CBS News Guide to the Extensions.

This vote will bring an end to the debate over what to do about the Bush-era expiring tax cuts. To catch the live streaming video of Obama signing the bill check back with at 3 p.m.

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  • Gbhs1996

    Teachers need more support than just $250.00. Teachers (and VA state employees) may end up with pay cuts next year after enduring a 3 year pay freeze. Tell the governor of VA he needs the pay cut not us!