Kamala Harris' tax records show a "basic" approach that may have resulted in missed savings, according to her advisor.

• Vice President Kamala Harris' financial records are being closely examined as the presumptive Democratic nominee.
• Craig Hausz, CEO and managing partner at CMH Advisors, described her tax returns as "fairly basic."
• Experts suggest that her conservative approach may be missing out on potential tax savings opportunities.

Kamala Harris' financial records are being closely examined as she campaigns for president.

Recent tax filings reveal that Vice President Kamala Harris and her husband, Second Gentleman Douglas Emhoff, have maintained relatively straightforward finances throughout her time as vice president.

Craig Hausz, a certified financial planner and certified public accountant, who is CEO and managing partner at CMH Advisors in Dallas, stated that her returns are fairly basic.

The couple may have missed out on additional tax savings and other financial strategies by not taking a different approach.

Unlike most Americans, Harris and Emhoff can afford to overlook the financial disclosures that may raise red flags in her career in public office.

The presidential election could have implications for Social Security and Medicare. Harris aims to strengthen the middle class as a key goal. Her latest financial disclosure provides insight into her investment portfolio.

As an ex-vice president, she will always have a steady stream of income, even if she doesn't win the presidency, according to Carolyn McClanahan, a CFP and founder of Life Planning Partners in Jacksonville, Florida.

McClanahan, a member of the CNBC FA Council, stated that since they will never be short of funds, they don't need to worry much about being tax-efficient or saving a lot.

By press time, Harris' office had not responded to a request for comment.

Catherine Valega, founder of Green Bee Advisory in Boston, states that the couple's recent tax filings are typical of millions of other Americans.

"Valega stated that they adopted a cautious strategy, which was the appropriate course of action. "They are not attempting any innovative measures to minimize their tax burden," he added."

What tax savings Harris may have missed

Experts suggest that Harris could have been more aggressive in his return to reduce tax liability.

Hausz explained that someone in her position could likely make more deductions, specifically regarding her book income.

In 2023, Harris reported $7,272 in gross book income, with a single business deduction of $1,273 for "commissions and fees." In contrast, her 2021 book earnings were $452,664, with the same deduction worth $65,951.

"If I were advising her, I would suggest keeping things simple to avoid any contentious discussions," Hausz said. "She has done an excellent job of that."

'A little too conservative' with cash

Experts say that Harris' bank account interest for 2023, at $50,603, is up from $6,054 in 2022, indicating higher bank account yields due to interest rate hikes from the Federal Reserve. However, the significant increase in interest could mean that Harris has conservative cash allocations, which may be "a little too conservative," according to Hausz. Additionally, experts believe that Harris has missed out on growth in the stock market.

Valega suggested that the cash allocation could be suitable, considering their short-term financial objectives and other investments.

As the Federal Reserve considers cutting interest rates again, earning $50,000 on Federal Insurance Deposit Corporation-protected cash is currently a "pretty good deal," she stated.

According to McClanahan, whether Harris and Emhoff are getting the best returns on their cash depends on where that money is invested, either in certificates of deposit or a lower-yield savings account.

Having a large amount of cash on hand may provide them with the financial flexibility they require, especially since Emhoff reduced his salary to become Second Gentleman, McClanahan stated.

Having a substantial amount of money as a politician can help avoid financial difficulties and potential scandals, according to McClanahan.

More money toward retirement

Harris could increase her tax savings by contributing more of her income to tax-deferred retirement accounts.

McClanahan stated that although she had the option to contribute to retirement plans, she didn't feel the need to do so.

McClanahan said that hopefully, Harris is fully utilizing the Thrift Savings Plan, a retirement savings and investment plan for federal employees.

She could also contribute to a simplified employee pension plan, or SEP, to increase her retirement savings, she stated.

Harris's contributions may help her save on taxes, but she already has retirement security through pensions from her previous positions as vice president, senator, and attorney general of California, and she will also receive Social Security benefits based on her payroll tax contributions.