On tax day the White House released the President and First Lady's 2009 federal and state income tax returns. The Obamas had an adjusted gross income of $5,505,409, almost $5,175,000 of which was business income from book sales, and paid $1,713,212 in taxes, for an effective tax rate of 31%. They did not owe any alternative minimum tax, which is typical of very high income earners. This is because the maximum regular marginal tax rate is higher than the 28% maximum AMT rate. Tax laws allow Nobel Prize money that is donated to charities to be excluded from income, and the President took advantage of this provision to donate his $1.4 million Nobel Prize money to 10 different charities. The Obamas deducted an additional $329,100 in charitable contributions from their income. The Obamas were hit by the phase-out of itemized deductions and personal exemptions, losing about 9.5% of their itemized deductions and 1/3 of their personal exemptions. The Obamas also paid $163,303 in Illinois income taxes, for an effective state income tax rate of just under 3%. Vice President Biden's federal and state income tax returns were also released. The Bidens had an adjusted gross income of $333,183, federal income tax liability of $71,147, state income tax liabilities of $12,420 in Delaware and $1,477 in Virginia, and charitable deductions of $4,820. The Bidens had a $5,829 alternative minimum tax liability. Their tax liability also included $709 of household employment tax. This is just a summary. Spend some time looking through the their tax returns, you might find something interesting.
