The small amount of federal income taxes paid by President Trump in both 2016 and 2017, at just $ 750 each year, has become the focus of much attention since it was revealed in a New York Times investigation. The figures below, taken from Mr. Trump’s 2017 tax returns, show how his accountants came up with that figure in one of those years.
The income of Donald J. Trump in 2017
Although Mr. Trump donates his salary to the government, it is subject to income tax along with his other income. But because Mr. Trump̵
However, it was still subject to the alternative minimum tax, a parallel tax system that reduced the benefits of certain deductions, preventing the rich from completely deleting their tax liabilities. Most importantly, AMT’s formula banned the $ 45 million in losses that Mr. Trump had carried over from previous years.
But tax laws gave him another line to reduce AMT, with Mr. Trump having $ 22.7 million in total business credit, much of which was carried over from previous years that he could apply for. The credit is a small amount of tax incentives and rebates to business owners, and in Mr. Trump’s case, they range from $ 322,926 in social security and Medicare taxes paid on employee advice to at least $ 1. $ 5 million related to the restoration of the Old Post Office in Washington.
Business credit cannot be used for repayment; can only be applied against taxes due. Mr. Trump had more than enough to cancel his $ 7,435,857 tax bill. But on Form 3800 for the Total Business Loan, his accountants withdrew $ 750 from his eligible loan. Why they did it is not clear. But the result was a total $ 750 federal income tax liability.
Mr. Trump’s tax bill in 2017