ADOPTION TAX CREDIT: I propose increasing the existing credit under IRS Topic 607 ( https://www.irs.gov/newsroom/understanding-the-adoption-tax-credit ) to $15,000 and doing away with the income limit and instead putting in a Max life time limit of 2 children on the adoption tax credit. Additionally Monlux believes in changing it from NON refundable to 50% refundable. Example: said person/couple spend $7,000 on adoption expenses between attorneys, fees, court cost and travel to bring the child home. If there tax bill was $14,000 they would then owe $7,000. If there tax bill was $7,000 they would then owe nothing. If they were to get a refund of $100 then it would now be a $3,600 refund.
BABYSITTING TAX CREDIT DEDUCTION: Monlux believes those with children ages 7-14 should be able to claim a non refundable tax break of up to $300 per year in babysitting tax credit deductions with no income cap.
CHILD TAX CREDIT: In 2021the Child Tax Credit was raised from $2,000 per year to $3,600 per year. Additionally for the first year instead of filing taxes at the end of the year and waiting for a lump refund, families could be sent up to $300 per month per child depending upon age. Biden's Build Back Better Plan calls to permanently extend that. David feels that doesn't go far enough and calls to push it up to $4,800 per year ($400 per month) per child of ages 2-17. Additionally Monlux believes in putting a lifetime cap on no more than four (4) kids per tax payer/couple with a cap of no more than 15 years per child.
DAY CARE: For singles who have children and are making less than $100,000 a year, I propose a $2,500 a year day care subsidy so the parent/guardian can work. For married/filing jointly couples making less than $250,000 a year, I propose a $2,500 per subsidy for day care so the parents can continue to work. The limit cap is $2,500 per year, regardless if the family has 1 or 10 children and will be prorated per child ages birth-5. If one child then that child gets all $2,500 for day care. If 2, each child gets $1,250. If 3 then $833.33. If four, then $625 per child. If five, then $500 each. If six then $416.66 per child toward day care. If 7, then $357.14 per child toward day care. If 8 then it is $312.50 per child toward day care. If 9 then it is $277.99 per child toward day care. If 10 its $250 per child toward day care and so on. Their is a life time cap of 7 years of benefits to be claimed. HOWEVER due to loss or incarceration if a relative or grandparent ends up having to raise the child under a court order then they are eligible for an additional 7 years of benefits and the age is raised from birth to age 7 instead of 5.
GREATER FSA/HRA/HSA FLEXIBILITY: Monlux proposes making Baby Sitting, Day Care, Music Lessons, Nanny, Private School and Sports allowed/count as a qualified expense to help people offset the cost of Child Care.
The adoption tax credit, baby sitting tax credit, child tax credit, day care subsidy and greater FAS/HRA/HSA flexibility can all be combined and claimed/used in the same year.