Donald Trump, the 45th President of the United States, paid very little or no income tax throughout his time in office. This article examines the tax yield income of the former president, including charitable contributions, foreign tax payments, and income tax refunds.
The 2018 return showed a rosier picture for the Trumps' finances: they declared $24.4 million in total income, and $22.9 million in taxable income. Trump made no charitable contributions in 2020. Those payments left him with the potential for a large income tax refund from the government — the very same government he has derided for not doing enough to help the middle class.
The returns also show that Trump paid more in foreign taxes than in US federal income taxes in 2017, the first year of his presidency. In 2017, Trump paid $750 in federal income taxes and $145,400 in foreign taxes — almost a 200-fold difference.
The new tax adjustments apply to tax returns filed in 2024, so the president will not be affected this year. However, the tax changes could mean that some people could be pushed into a higher income tax bracket without an increase in real income.
The report reveals that Trump on his federal tax returns declared negative income in 2015, 2016, 2017 and 2020, and that he paid a total of $1.4 million in federal income taxes over that period.
According to the complaint, defendants filed fraudulent federal tax returns that included the following schemes: reporting false income and inflating deductions and credits. The IRS has established rules that limit the amount of income tax deductions and credits that can be claimed.
Use your year-end income statements (e.g., Form W-2/1099), not your pay stub, to verify your income. Your income figures must match what is reported on your tax return.
In addition to income tax, other taxes such as payroll taxes, self-employment taxes, and capital gains taxes also apply to the Trump family. The Trump family paid a total of $6.4 million in taxes in 2018, including $3.5 million in federal income taxes and $2.9 million in payroll taxes.
It's also beneficial to use IRAs and take advantage of their tax benefits. An IRA can provide financial security and a steady stream of income. For example, if you invest $10,000 in an IRA that averages 8% annual returns and a 3% dividend yield over 25 years, you can expect to earn $2.2 million in total returns.
In conclusion, Donald Trump paid very little or no income taxes during his time in office. The new tax adjustments apply to tax returns filed in 2024, so the president will not be affected this year. However, the tax changes could mean that some people could be pushed into a higher income tax bracket without an increase in real income. It's also beneficial to use IRAs and take advantage of their tax benefits.
