Home / US / Trump paid $ 750 in federal income taxes in 2017. Here’s the math.

Trump paid $ 750 in federal income taxes in 2017. Here’s the math.

The small amount of federal income taxes paid by President Trump in both 2016 and 2017 – just $ 750 each year – has become the focus of much attention since it was revealed in a New York Times investigation. The following figures, drawn from Trump’s tax return data for 2017, show how his accountants came up with that figure for one of those years.

Although Mr. Trump donates his salary to the government, he is subject to income tax along with his other earnings. But because Mr. Trump̵

7;s overall income was negative, he owed no regular income tax.

It was, however, still subject to the Alternative Minimum Tax, a parallel tax system that reduces the benefit of some deductions, preventing the wealthy from writing off their tax liability altogether. Above all, the A.M.T. formula turned down $ 45 million in losses that Mr. Trump had reported from previous years.

But the tax laws have given him an extra line on which to reduce the A.M.T. Mr. Trump had $ 22.7 million in general trade receivables, many of them carried over from previous years, which he could apply. The credit is a smorgasbord of tax incentives and entrepreneur refunds, and in Mr. Trump’s case they ranged from credits of $ 322,926 for Social Security and Medicare taxes paid on employee tips to at least $ 1.5 million related to rehab the old man. post office in Washington.

Corporate credit cannot be used to obtain a refund; it can only be applied against taxes due. Mr. Trump had more than enough to clear his $ 7,435,857 tax bill. But on the 3800 General Trade Credit Form, his accountants subtracted $ 750 from his allowable credit. Why they did it is unclear. But the result was a total federal tax debt of $ 750.

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