Buffett Rule wouldn’t hit Obama, whose 2011 tax rate is lower than his secretary’s

April 14, 2012

The president and vice president released their 2011 tax returns and yes, the Commander in Chief's 20.5 percent tax rate is lower than what his secretary pays.

But while he's in the same situation as the man for whom the Buffett Rule is named, it wouldn't affect Obama, at least not this year, because his income is under $1 million.

Obama 2011 tax return

Barack and Michelle Obama's income last year dropped substantially, from $1.7 million in 2010 to $789,674 in adjusted gross income for 2011.

Since itemized deductions are no longer phased out, they got the full value of the $278,498 from their Schedule A.

The First Couple's personal exemptions and those for their two daughters brought their taxable income to $496,376.

On that, the Obamas owed $143,603 in regular income tax plus alternative minimum tax (AMT) of $12,491. But there total tax bill was lessened a tad by a foreign tax credit of $5,841.

That brought their tax bill to $150,253 but then they then had to add $11,821 in self-employment tax for the president's book earnings.

When all the 40-plus forms were finished, the Obamas' tax bill was $162,074. They had $100,255 withheld and paid $86,344 in estimated taxes so they are getting a refund of $24,515.

But they won't be spending that refund. The Obamas instructed the IRS to apply it to their 2012 estimated taxes.

Vice President Joe Biden and his physician wife Jill reported adjusted gross income in 2011 of $379,035 and a tax bill of $86,892. That means their effective tax rate is almost 23 percent.

The Obama and Biden tax filings also included state tax returns.

What about Mitt? The man who will challenge Obama for the White House is still working on his taxes. Mitt Romney filed for an extension on Friday. He estimated that his 2011 tax liability will be $3.2 million.

While Romney's personal tax situation no doubt involves a lot of documents that are traditionally late arriving, such as K-1s, the political cynics will say that the soon to be official GOP presidential nominee just didn't want his 1040 going head to head with Obama's.

Of course, if Romney waits until October — the extension gives him until Oct. 15 to get his tax paperwork done — it will be a campaign home stretch issue.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments