Obamas’ total income in 2013 was less than their 2012 and 2011 income
Ended up paying a higher tax rate, however, because they paid 18.4% in 2012 when their income was $662,076
President Obama’s book sales dropped to less than half of what they were
Gave less to charity as a result but they still gave 12.3%
Avoided the ‘millionaire’s tax’ that he implemented because his taxable income of $333,239 was less than the $450,000 cut off
President Barack Obama and First Lady Michelle have paid $98,169 in taxes on their $481,098 income for the 2013 fiscal year, according to tax returns the White House released Friday.
They paid an effective federal income tax rate of 20.4 per cent.
The couple’s 2013 federal income tax return was posted on the White House website four days before the tax filing deadline.
Forbes notes that sales of the President’s book dropped from $258,722 in 2012 down to $104,000 this past year.
By comparison, the Obamas reported income of $662,076 and paid $112,214 in federal taxes at a rate of 18.4 percent for 2012.
In 2011, they earned $844,585 while paying $162,074 in federal taxes. After deductions, the couple’s adjusted gross income was $608,611 in 2012 and $789,674 in 2011.
Obama’s annual presidential salary is $400,000. He had planned to return 5 percent of his pay in 2013 as a gesture of solidarity with federal government workers who faced unpaid leave amid deep spending cuts.
Obama reported $394,796 in 2013 wages, and it was not immediately clear if or how he returned any portion of those earnings.
Because his overall taxable income this year came in at $333,329 that keeps him well below the $450,000 mark where individuals begin being taxed at the raised 39.6 per cent rate that the President boosted in the ‘millionaire’s tax’ that his administration put into effect not long ago.
The 42-page document shows the Obamas reported donating $59,251 to 32 charities which equates to 12.3 per cent of their adjusted gross income.
That figure is $90,000 less than the couple donated to charity last year, which may be a result of his falling book sales.
Their largest charitable gift, $8,751, went to the Fisher House Foundation, which supports military families.