President Obama and first lady Michelle Obama together earned $436,065 and paid $81,472 in federal taxes in 2015, the White House reported Friday in releasing the Obamas’ tax return.
The Obamas paid an effective federal tax rate of 18.7 percent. They donated $64,066 to charities, about 14.7 percent of their income.
The first family’s income, and the taxes they paid, are down from 2014, when they paid a 19.6 percent effective tax rate.
In previous years, Barack Obama has earned millions of dollars from sales of his books. That income, however, has tapered off as his presidency nears its close.
The bulk of the family’s income came from Obama’s $400,000 presidential salary. Obama had only $60,745 in business income in 2015, compared to more than $5 million in 2009 during his first year as president, when his books were in high demand. Investments made up a negligible part of the familys income.
The family was able to lower their taxable income by claiming more than $145,000 in itemized deductions, including for their charitable contributions, state and local taxes, and $36,500 in mortage interest. Their taxable income would have been enough to place them in the 33 percent tax bracket, but their taxes were lower because of capital gains losses that subtracted from the total.
The White House said the Obamas were hit by tax increases from legislation that he signed into law, including the 2012 “fiscal cliff” legislation.
Obama has called for higher taxes on high earners, including through limitations on the tax breaks they can claim. He also has advocated the “Buffett Rule” ensuring that top earners pay at least 30 percent of income. He would not have been affected by such a rule in 2015, however, because it would apply only to households making more than $1 million.
The tax returns provide a glimpse of the Obamas’ priorities for charity, as they outlined their contributions in itemizing deductions. The biggest donation they made, more than $9,000, was to the Fisher House Foundation, a group that provides housing for families of veterans who are undergoing medical treatment. They also gave $5,000 to the Beau Biden Foundation, the nonprofit set up in the wake of Vice President Joe Biden’s son’s death to honor his legacy by preventing abuse of children. The Obamas also gave to a number of Chicago and Washington-area charities and $5,000 to Sidwell Friends school, which Sasha and Malia attend.
The White House also published the tax returns for Biden and his wife, Jill. Together, they earned $392,233 and paid $91,546 in federal taxes, for an effective tax rate of 23.3 percent.
The Bidens donated $6,620 to charity, less than 2 percent of their income.
