Net investment income tax (NIIT)

The NIIT on income over $400,000 would include all flow-through business income not otherwise covered by self-employment taxes or the NIIT. The new 2024 tax plan would also increase both the NIIT rate and the additional Medicare tax rate by 1.2%.

Therefore, the NIIT rate would be 5% for investment income over $400,000, and the Medicare tax rate would be 5% for earnings over $400,000.

Child tax credit (CTC)

This new tax plan would expand the child tax credit and make it fully refundable, so it can be paid in advance on a monthly basis. For qualifying parents, the CTC would go up from $2,000 to $3,000 for kids age six and above and $3,600 for kids under age six.

The proposal would also establish “presumptive eligibility” for deciding when a taxpayer is eligible to receive a monthly advance child payment or claim a monthly specified child allowance.

Once a taxpayer proves presumptive eligibility for a child, that child would be treated as the taxpayer’s specified child for each month that that taxpayer is presumptively eligible.