Biden’s $579K Tax Return: How It Compares to the Average Taxpayer
Written by
David Nadelle
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
As far as first couple wealth goes, President Joe Biden and First Lady Jill Biden are among the most moderate that we’ve seen in years. Compared to the average American wage earner, however, what the president makes and what he pays in taxes far exceeds typical numbers.
On April 18, tax deadline day for Americans, the Biden’s released their 37-page 2022 tax return showing the couple earned $579,514 in 2022 and paid $137,658 in federal income taxes at an effective rate of 23.8%, per CBS News.
Tax rates depend on an individual’s income level and different types of income are taxed differently. There are also countless credits and deductions that can reduce income and how much taxes are owed, so averages can deviate throughout the seven ordinary income tax brackets.
Per the latest available IRS data, the average federal income tax payment was $16,615, per Business Insider. Americans in the most common tax bracket ($50,000-$75,000) paid an average income tax of $4,567 for the 2020 tax year. Those in the Biden’s adjusted gross income level of $500,000 to $1 million paid an average of $157,578 in 2020.
What is more easily identified is how much Americans get back in tax refunds. According to IRS statistics, as of March 31, the IRS has issued roughly 63 million tax refunds worth about $183 billion. The average refund was $2,910, down from $3,226 at the same time last year. Over 90 million total returns had been received by the end of March.
The average refund was $3,745 in tax year 2020 — about 3% higher than the $3,651 average refund in tax year 2019 and 2% from 2018, when the average was $3,660, per Lending Tree.
The majority of the Bidens’ income comes from their salaries: His $400,000 as president and her $82,335 as an English professor at Northern Virginia Community College. They also paid $29,023 in Delaware income tax and $3,139 in Virginia and donated $20,180 to charities and churches, per USA Today.
Vice President Kamala Harris and her husband, Doug Emhoff, paid over $93,000 in federal income taxes in 2022 on total income of about $456,000, according to their tax return disclosure. They reported paying $17,612 in California income tax, and Mr. Emhoff, a lawyer and visiting professor at Georgetown, paid $9,697 to the District of Columbia. This is less than half of the $1.7 million the couple reported in 2021.
At the end of December, the IRS conducted routine audits for the Bidens’ 2020 and 2021 federal income taxes, something it was unsuccessful in accomplishing during Donald Trump’s tenure as president. Past audit oversights moved House Democrats to speedily pass the Presidential Tax Filings and Audit Transparency Act of 2022, sanctioning yearly audits and tax return disclosures for sitting presidents. According to CBS News, for the 2021 tax year, the IRS found that the Bidens owed an extra $13, which they paid promptly.
More From GOBankingRates
