- ORIGINAL NEWS
What everyday taxpayers can learn from the Biden, Harris 2023 tax returns
- SUMMARY
President Biden and Vice President Harris have released their 2023 tax returns, offering insights into their financial situations and valuable lessons for average Americans.
Biden and his wife, Jill, reported an adjusted gross income of $619,976, a 7% increase from 2022.
They paid $146,629 in federal taxes, resulting in an effective tax rate of 23.7%.
Harris and her husband, Douglas Emhoff, had an adjusted gross income of $450,299, slightly lower than their previous year’s earnings.
Their federal taxes amounted to $88,570, resulting in an effective tax rate of 19.7%.
Experts emphasize that investors should closely monitor taxable activities, such as dividend income, to avoid surprises at tax time.
Additionally, taxpayers with self-employment income need to consider how lower wages could affect their future Social Security benefits.
Both couples paid extra taxes but incurred estimated tax penalties due to underpayments during quarterly deadlines.
The Bidens’ penalty was $285, while Harris and Emhoff paid $451.
One important takeaway for average Americans is the importance of filing returns accurately and aiming for a tax liability of “plus or minus $500” for a refund or balance.
If you have complex financial situations or multiple sources of income, consider consulting with a tax professional to ensure accuracy and maximize benefits.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“President Joe Biden and Vice President Kamala Harris released their annual tax returns Monday, and there are lessons within for average Americans, according to tax experts.”
“Both couples also had interest income, which can cause a “big surprise” at tax time, without increased paycheck withholdings or quarterly estimated tax payments, explained David Silversmith, a certified financial planner and senior tax manager at Eisner Advisory Group in New York.”
Negative
“While both couples made extra tax payments, they each incurred a small estimated tax penalty, based on underpayments from each quarterly deadline and interest.”
“The Bidens paid a penalty of $285, while Harris and her husband owed $451.”