Smart TaxesSmart Taxes

Obamas paid $453,770 in federal taxes

First family paid 26% of adjusted gross income, and the Bidens paid 23%. The Obamas are expecting a refund of $12,334.

By MSN Money Partner Apr 19, 2011 11:34AM

This article is by Tom Raum of The Associated Press.

 

President Barack Obama is making less money than he used to, though it's still a lot: He and wife Michelle reported income of $1.73 million last year, mostly from the books he's written, according to his tax return. That was down from the $5.5 million of a year earlier.

 

The president, who has been campaigning to raise taxes on the wealthy, paid the government $453,770 in federal taxes, about a quarter of the income. Just last week, he renewed his push to end Bush-era tax cuts for households with annual incomes above $250,000 -- noting that that would include him.

 

The White House released tax returns for the Obamas and for Vice President Joe Biden and his wife on Monday, the deadline for Americans to file.

 

The president for the first time drew his full $400,000 salary in 2010, since in 2009 he didn't start drawing pay until after his inauguration in late January.

 

Through withholding and estimated tax payments during the year, the Obamas paid $466,104 to the Internal Revenue Service. That was an overpayment, so they are getting a $12,334 refund.

 

The first family's adjusted gross income for 2010 was $1.728 million. Their taxable income after deductions was $1.34 million.

 

The income for both years was mostly driven by royalties from books written earlier by Obama. They included his 1995 memoir "Dreams From My Father" and his 2006 political book, "The Audacity of Hope." Those were followed by a children's book last year, "Of Thee I Sing: A Letter to My Daughters."

 

Obama is a former law school professor and U.S. senator. His book sales slacked off some from 2009, when they surged after his inauguration. But last year they still netted him nearly $1.4 million.

 

The president and first lady donated $245,075 -- about 14.2% of their adjusted gross income -- to 36 different charities. The largest was a contribution of $131,075 to the Fisher House Foundation, which provides humanitarian support to members of the U.S. Armed Forces and their families.

 

They also made a $15,000 contribution to the Clinton-Bush Haiti Fund and a $10,000 gift to the Boys and Girls Club of America.

 

Their contributions were below the $329,100 they gave to charities in 2009. That year, Obama also donated his entire $1.4 million Nobel Peace Prize award, which wasn't counted as income since it went directly to 10 charities.

 

Although the White House released the returns on the deadline day, Obama signed his 1040 form last Tuesday. Michelle Obama signed it last Wednesday.

 

The first family also released their Illinois income tax returns showing they paid $51,568 in state taxes.

 

On their federal return, the Obamas claimed itemized deductions of $78,269 for state and local taxes and $49,945 for home mortgage interest on their home in Chicago.

Vice President Biden and his wife, Jill, reported more modest earnings, a combined adjusted gross income of $379,178, on which they paid $86,626 in federal taxes for 2010.

 

Withholding from their salaries came to just $79,446 -- so they had a tax bill of $7,180 to settle.

 

In all, the Obamas paid 26% of their adjusted gross income in federal income taxes. The Bidens paid 23%.

 

The Bidens paid $14,479 in Delaware income taxes and $3,515 in Virginia income taxes. Jill Biden is an adjunct professor at Northern Virginia Community College. The Bidens contributed $5,360 to charities.

 

Obama last week revived his campaign to attempt to end the Bush tax cuts of the early 1990s back to the levels of the 1990s, although he would leave them intact for joint fillers earning under $250,000 a year and individuals earning below $200,000.

 

The top income rate now is 35%. Recent studies show that the wealthiest Americans pay a lot less in taxes than they did two decades ago, and that about 45% of U.S. households pay no taxes because the nation's tax laws are packed with breaks for people at every income level.

 

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

More from MSN Money:

VIDEO ON MSN MONEY

5Comments
Apr 22, 2011 2:36PM
avatar
'tell what you think' has a good point, though, because books are outrageously expensive now and I doubt any book by a politician is worth the price you pay for it...
Apr 22, 2011 2:30PM
avatar

In response to tell what you think's questions:

"How else does a administrator of social programs, in the city of Chicago (one of the most Liberal and corrupt cities in the country), rise to the position of President? Who propped him up to be elected and why? Most of all, where are all those books going?"

I am no rocket scientist, so I can only guess that he could "rise to the position of President" because somebody voted for him... 

Apr 22, 2011 2:25PM
avatar
It might just be that just a fraction of the millions of people who voted for him are buying the books. Since there are so many more who voted for him than for his opponent, it wouldn't take that big of a percentage...a lot of people are just going to buy it because he's the President...just like they gobbled up Bush's memoirs or whatever it was he was peddling when he left office. Gotta take into account international sales, too--there's a lot of politicians in the world who would buy it just to add to their collections.
Apr 22, 2011 11:29AM
avatar
Another thought has struck me.  Could the reason, behind all those book sales of O'bamas, be two fold.  The book buyers could be doing what I said in my first post, while at the same time donating those books to schools and libraries, to progress the Liberal agenda and line of thinking to others?
Apr 21, 2011 10:45PM
avatar
I wonder who is buying all of those books?  He has written 3.  I cannot imagine that many people wanting to read his book to begin with.  His voters were mostly lower income class.  Where are they getting the money to buy those new high priced books?  I would not be at all surprised if someone is not buying those books, by the truck load, and simply throwing them away in order to pay him kick backs for services rendered.  How about it fellow O'bama haters?  Anyone out there up to the challenge?  If you could prove this out, it would be huge to expose him, for what he probably is.  How else does a administrator of social programs, in the city of Chicago (one of the most Liberal and corrupt cities in the country), rise to the position of President?  Who propped him up to be elected and why?  Most of all, where are all those books going?
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.