In the Black: September 2024

Kamala’s Plan for Tax Policy and the Economy

Now that we have a new candidate on the scene, let’s dig into changes she’d like to make to the tax code. Kamala Harris’s focus is on family and cost of living issues. Trump’s proposed changes focus more on corporate tax rates and a trickle down approach. She’s revived and expanded some of Biden proposals (the Child Tax Credit and limits on prescription drug prices) with a focus on affordable housing. Voters keep bringing up rising housing prices in poll after poll, and she’s the first candidate to roll out policies to address the issue.

Summary below, Full policy here.

First the tax policy:

  • Restoring the Child Tax Credit that provided $3,600 per child aimed at middle and working class families; and adding an additional $6,000 tax credit for families with children less than one year (KIDS ARE EXPENSIVE and babies especially so);

  • Cutting taxes to help Americans afford health insurance on the Affordable Care Act marketplace (details not available); and

  • Providing $25,000 in down-payment support for first generation homeowners and a $10,000 tax credit

Other proposed policies:

  • Capping the cost of insulin at $35 and out-of-pocket expenses for prescription drugs at $2,000 for everyone;

  • Calling for the construction of three million new homes to end the housing shortage in four years (this is the most exciting in my book); and

  • Lowering grocery costs with a federal ban on price gouging on food and groceries.

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Summer camps are crazy expensive, but you might be able to write them off.

The Child and Dependent Care tax credit can help offset summer day camp expenses. Save those receipts because we may be able to use those overpriced soccer camps on your taxes this winter. We’ll need the name, address and EIN of the camp.

You’ll need earned income to claim this credit. The credit is calculated based on income and a percentage of expenses incurred for the care while parents or caregivers are at work, looking for work or attending school. Depending on your income, you can get a credit worth up to 35% of qualifying child care expenses. At a minimum, it’s 20% of those expenses.

For 2024, the maximum eligible expense for this credit is $3,000 for one child and $6,000 for two or more.

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Time’s up!

If you are on extension, time’s up! 2023 Partnership and Scorp returns final deadline is September 16th. And personal returns are due October 15th. We’ll need everything at least two weeks before this deadline so we can get them finished and have a review call. If you don’t have everything in, consider this your invitation to get started!

Berit Bailey