Obama’s tax returns show income drop
WASHINGTON (CNNMoney) — President Obama and the first family saw their income drop slightly in 2012, according to tax returns released by the White House on Friday.
The returns show the president and First Lady Michelle Obama earned $608,611 last year, and paid $112,214 in taxes. Sales from his best-selling books slowed even further in 2012, bringing his overall gross adjusted income down 30% compared to 2011.
Obama’s effective tax rate in 2012 was about 18.4%. He overpaid taxes last year to the tune of $16,815, according to the return. But instead of a refund, the president chose to apply the overpayment to his 2013 tax bill.
The president earns a salary of $400,000 for his day job. His total earnings are higher because his books — “Dreams From My Father,” and “The Audacity of Hope” — continue to attract buyers.
The Obamas donated $150,000, or 24% of their income, to 33 different charities.
Obama is donating the proceeds from his latest book, “Of Thee I Sing,” to a Fisher House scholarship fund for children of fallen and disabled soldiers. In 2012, the contribution was $103,871.
The Obamas also paid $29,450 in state income taxes to Illinois.
Vice President Joe Biden and his wife Jill reported income of $385,072, paying $87,851 in taxes, according to their returns.
They paid $13,531 in Delaware income tax and $3,593 in Virginia income tax. The Bidens contributed $7,190, or 2% of their earnings, to charity in 2012.
The release of the first family’s tax statement comes three days before the April 15 federal deadline for taxes to be filed.
The Obamas and the Bidens are among the top 3% of filers who face higher taxes from new proposals pitched this week for the 2014 federal budget.
Under that plan, families making more than $250,000 would face new limits on itemized deductions, such as those on charitable contributions, and other exclusions that exist in current tax law.