Welcome back to Ned’s Blog Spot, where you can find all your tax tips and tricks. Our tax deadline is quickly approaching, and we want to make sure we provide you with all the information we can, for your filing to be as quick and painless as possible. Below you’ll find a few quick tidbits about he upcoming tax season.
Election Day is quickly approaching, and taxes are on the ballot. Kamala Harris is sticking with this pledge: no tax hikes if you make less than $400,000. This would mean she would be extending the tax breaks in the 2017 law to people earning less than $400,000, which are most tax payers. Some of her ideas for taxes are new, while others are revamped. If Harris gets her way, she would bring back the top 39.6% income tax rate for people making $400,000 or more and hike the 3.8% net investment income surtax to 5%.
The next proposal by the Harris/Walz administration would have the wealthy paying more in capital gains tax. Long-term capital gains tax would be imposed at ordinary tax rates up to 39.6% for taxpayers with taxable incomes over $1 million. Similar to Biden, she has proposed taxing unrealized gains upon death. This proposal would treat death as a realization event for income tax purposes, with capital gains and losses reported on the deceased final income tax return… with a $5 million lifetime gain exclusion.
On the issue of families, first-time home buyers, tipped workers, these are for you. The child tax credit will be raised from $2000 to $3600 per child, with monthly payments and full refund ability. And more than that, she would give taxpayers a one-time child credit of $6000 to be claimed on the parent’s tax return for the first year of the child’s life. For first time homebuyers, she has proposed a credit of up to $10,000. And for our tipped workers, she plans to make tipped income, tax free.
In the area of business taxes, Harris wants to raise the 21% corporate tax rate to 28%. She would increase the 15% alternative minimum tax on very big corporations to 21%. She’d do away with what she and many Democratic lawmakers see as a tax loopholes, while keeping the green-energy tax subsidies enacted in the Inflation Reduction Act. There has been radio silence on what she plans to do with the state and local tax deductions that itemizers claim on their schedule A. Lastly, it’s been reported that some Capitol Hill lawmakers from high-tax states are pressuring leadership to get rid of the current $10,000 cap on SALT write-offs.
We hope you find this information helpful as you begin to prepare for the upcoming tax season. If you have ny questions, the information for our downtown office will e listed below and don’t forget to check back for more!
Ned Jackson Downtown Office
Address
255 N Liberty Street
Jacksonville FL, 32202
Phone
(904)356-0349
Info@nedjacksontax.com
