Palin's Tax Records

[HuskyCaucasian]

Palin's Tax Return Mystery: Where Are The Per Diems?

 

In typical news-dump fashion, the McCain campaign put out the last two years of Sarah Palin's tax returns late Friday afternoon.

 

The information contained a few interesting revelations in what was, otherwise, a fairly mundane filing. Palin, it appears, did not pay taxes on the more than $60,000 of travel reimbursements that she and her family members reportedly billed the state during her 18 months as governor. There is a fairly wonky debate over whether she should have been charged for these trips or whether it was accounted for in her salary. John Bogdanski, a tax professor at the Lewis and Clark Law School, told the Huffington Post's Seth Colter Walls that they did qualify as taxable income.

 

Overall, the Palins reported a gross income of $127,869 in 2006, and paid taxes amounting to $11,944 (an effective rate of 9.3 percent). In 2007, the family reported earning a gross income of $166,080 ($107,987.00 of which came from Gov. Palin) and paid taxes totaling $24,738, for a rate of 14.9 percent.

 

But there is some discrepancy with the latter number. According to an accompanying 2007 personal financial disclosure report, Palin's "income" as governor of Alaska was $196,531.50, well above the $107,987.00 that was noted on her W2 form from that same year. An email was sent to the McCain campaign for clarification. And this story will be updated should aides reply.

 

Palin's personal financial disclosure form also showed a moderate amount of assets. The family has ownership or interest in several properties, including tracts on several Alaska fishing spots. And Todd made between $50,000 and $100,000 from British Petroleum's retirement plan.

[clyons]

Palin's Tax Return Mystery: Where Are The Per Diems?

I'm no CPA, nor am I any fan of Palin's, but how is this tax thing even an issue? I don't see how travel reimbursements can be deemed taxable income. By definition, aren't reimbursements "make wholes" rather than earnings? Furthermore, I realize that her receipt of travel reimbursements for staying at home is at odds with her reformer, anti-earmark image, but I don't recall there being any question as to whether they were permissible under Alaska law. For this to morph into an income tax issue seems to require some legal and logical leaps.

[Steff]

I'm no CPA, nor am I any fan of Palin's, but how is this tax thing even an issue? I don't see how travel reimbursements can be deemed taxable income. By definition, aren't reimbursements "make wholes" rather than earnings? Furthermore, I realize that her receipt of travel reimbursements for staying at home is at odds with her reformer, anti-earmark image, but I don't recall there being any question as to whether they were permissible under Alaska law. For this to morph into an income tax issue seems to require some legal and logical leaps.

 

 

It looks like she double dipped. She got paid for the travel - the comments above seems to indicate that travel was included in her salary - and she also claimed a reimbursment which the state should have caught, but once they didn't it is then considered income. Honestly if that's what she did (knowingly put in for reimbursments that she knew she was already getting paid for) and it's pressed further she could be in a lot more trouble than just not declairing income, IMO.

[kapkomet]

I haven't read the details, I'm just commenting on the comments in the thread so far.

 

If it's a per diem then it's not income.

 

I seriously doubt that the accounting firm that did her taxes is not going to do something that will put her in jeapordy. That's just common sense.

 

 

[NorthSideSox72]

Per Diems are not taxable income. And in fact, if your salary is considered inclusive of travel expenses, then that part of your income is also non-taxable.

 

I can't comment on the W-2 difference there, but as for the travel expenses, I see zero issue with this. Looks to me like the writer of the article needs to brush up on tax law.

 

[BigSqwert]

Does this really need a separate thread?

[NorthSideSox72]

Does this really need a separate thread?

Probably not.

 

By the way, your sig is great. When Palin did that in the debate I almost spit out my drink. What have we come to that people actually like the idea of someone who thinks that cute winks and exaggerated country bumpkinisms are appropriate for a national VP debate?

 

[HuskyCaucasian]

The part that stands out to me is "According to an accompanying 2007 personal financial disclosure report, Palin's "income" as governor of Alaska was $196,531.50, well above the $107,987.00 that was noted on her W2 form"

[BigSqwert]

Probably not.

 

By the way, your sig is great. When Palin did that in the debate I almost spit out my drink. What have we come to that people actually like the idea of someone who thinks that cute winks and exaggerated country bumpkinisms are appropriate for a national VP debate?

 

I'm just amazed at how low the expectations have become for so many people in this country. Not completely falling on your face is good enough. There's no need for exceptionalism (is that even a word?).

Edited October 4, 2008 by BigSqwert

[kapkomet]

I'm just amazed at how low the expectations have become for so many people in this country. Not completely falling on your face is good enough. There's no need for exceptionalism (is that even a word?).

Well, without regards to naming names, you're exactly right - in so many ways.

 

[BigSqwert]

Well, without regards to naming names, you're exactly right - in so many ways.

I understand your point but with regards to Obama it's pretty obvious he is a highly intelligent individual. You may not agree with his positions or think he's lacking in some areas of experience but Palin is literally leaps and bounds above her head (edit: I seem to make up knew sayings by the day - LOL ). She can't even answer basic questions from Katie Couric. Let me repeat that. Katie Couric.

Edited October 4, 2008 by BigSqwert

[Balta1701]

I understand your point but with regards to Obama it's pretty obvious he is a highly intelligent individual. You may not agree with his positions or think he's lacking in some areas of experience but Palin is literally leaps and bounds above her head (edit: I seem to make up knew sayings by the day - LOL ). She can't even answer basic questions from Katie Couric. Let me repeat that. Katie Couric.

So, here's my thinking on this. Take a look at the top 4 people and imagine them in a crisis. A Tom Clancy book level crisis, where a presidential decision actually could be important. Do I tell them to launch missiles or not. Do we keep the bombers running. Whatever.

 

You may not agree with all of the people, you may not agree with their decision making process, you may not agree with the decision they come to. But with 3 of them, I think we would all have enough confidence in them that if they were put in that situation on January 21st, they'd at least make what they thought was the best decision they could possibly make based on the information they had.

 

I seriously though can't imagine what would happen if you had to come to Governor Palin on January 21st, tell her that she's the president and that we're facing a major crisis that she has to make a decision on. I don't trust her judgement, I don't trust her understanding of any of the issues that might come up, and I think there's a distinct possibility she'd just crack under the pressure or would panic and make an idiotic move.

[kapkomet]

So, here's my thinking on this. Take a look at the top 4 people and imagine them in a crisis. A Tom Clancy book level crisis, where a presidential decision actually could be important. Do I tell them to launch missiles or not. Do we keep the bombers running. Whatever.

 

You may not agree with all of the people, you may not agree with their decision making process, you may not agree with the decision they come to. But with 3 of them, I think we would all have enough confidence in them that if they were put in that situation on January 21st, they'd at least make what they thought was the best decision they could possibly make based on the information they had.

 

I seriously though can't imagine what would happen if you had to come to Governor Palin on January 21st, tell her that she's the president and that we're facing a major crisis that she has to make a decision on. I don't trust her judgement, I don't trust her understanding of any of the issues that might come up, and I think there's a distinct possibility she'd just crack under the pressure or would panic and make an idiotic move.

I've alluded to this many times, and I'll say it here more clearly. Palin *cound* be effective, but right now, she's not. I'll just leave it right there.

 

[lostfan]

I've used thousands of dollars of per diem, and never once have I reported it as income, or even thought to.

[EvilMonkey]

So, here's my thinking on this. Take a look at the top 4 people and imagine them in a crisis. A Tom Clancy book level crisis, where a presidential decision actually could be important. Do I tell them to launch missiles or not. Do we keep the bombers running. Whatever.

 

You may not agree with all of the people, you may not agree with their decision making process, you may not agree with the decision they come to. But with 3 of them, I think we would all have enough confidence in them that if they were put in that situation on January 21st, they'd at least make what they thought was the best decision they could possibly make based on the information they had.

 

I seriously though can't imagine what would happen if you had to come to Governor Palin on January 21st, tell her that she's the president and that we're facing a major crisis that she has to make a decision on. I don't trust her judgement, I don't trust her understanding of any of the issues that might come up, and I think there's a distinct possibility she'd just crack under the pressure or would panic and make an idiotic move.

The only one of those four that has HAD to make any kind of life altering decisions like that is McCain. You have no basis to guess from for any of the remaining three, as none of them has had to make decisions even remotely close. Can Obama, who has probably never fired a gun, have what it takes to launch a missle if needed? We will never know until you are put into that situation, as his experience to date gives you zero insight. For your question posed above, i do not see what it is in Obama's, or Biden's experience, that lets you believe that they would make the correct choice and not crack.

[Steff]

I've used thousands of dollars of per diem, and never once have I reported it as income, or even thought to.

 

 

It can't be per diem $. If it was there wouldn't be the variance on the W2.

[Rex Kickass]

I've used thousands of dollars of per diem, and never once have I reported it as income, or even thought to.

 

I think the reason the Per Diem needs to be declared is because her residence for tax purposes is the Governor's residence in Juneau. So any per diem or reimbursement she would receive for travel to and from her family home from her tax home is not deductible and therefore considered income, if I understand it right. Because you can't claim a deduction on traveling from one residence to another.

[Texsox]

it appears, did not pay taxes on the more than $60,000 of travel reimbursements that she and her family members reportedly billed the state during her 18 months as governor.

 

I think y'all missed this part in the report. Her family member's travel would be taxable income if paid by the company. Been there, done that, have the audit results.

[Cknolls]

I've used thousands of dollars of per diem, and never once have I reported it as income, or even thought to.

 

 

Criminal.

[EvilMonkey]

I think y'all missed this part in the report. Her family member's travel would be taxable income if paid by the company. Been there, done that, have the audit results.

If they are reimbursements, doesn't that imply that they are paying them back for money they spent? That would not be taxable then.

[Texsox]

If they are reimbursements, doesn't that imply that they are paying them back for money they spent? That would not be taxable then.

 

Right. And the state should not be paying for the travel of her spouse and children unless they had some official function. Her travel is a legitimate business expense, her family's is not.

 

Any of your employees could submit receipts for any expense and you could reimburse them, that doesn't make those expenses tax free.For example, you have to send someone to a training conference (legit business expense). He mentions his wife had family in the area who they have not seen in years, and you, being the compassionate conservative, tell him to take the whole family and give you the receipts. The babies travel is not deductible and the income is taxable to him. If not, think about all the income we could shield from taxes. Cut my salary $3,000 but let me submit vacation costs.

[Rex Kickass]

If they are reimbursements, doesn't that imply that they are paying them back for money they spent? That would not be taxable then.

 

But reimbursements are only not taxable if the expense is tax deductible.

[Texsox]

But reimbursements are only not taxable if the expense is tax deductible.

Correct, and only to the limits allowed, above that again, they would be taxable. An example would be a car. You could, as an owner, agree to reimburse $3.00 per mile for a car. Anything above the allowable limit would be income.

[Rex Kickass]

I think the argument about Palin's per diem that's being made is that if you are shuttling between residences to do your work, you can't be reimbursed for any per diem expenses without declaring it as income, because you can't deduct expenses brought about from living at home.

[HuskyCaucasian]

Experts: Palin Owes $25K In Backed Taxes On Per Diems

 

Several tax experts said they believe Republican vice-presidential nominee Sarah Palin is required to pay federal taxes on $25,000 in reimbursements from the state of Alaska for her children's travel expenses.

 

The Alaska governor released her 2006 and 2007 tax returns on Friday, sparking a lively debate on tax blogs and among tax professionals over whether reimbursements and per-diem meal payments from the state should be subject to federal taxes. Since taking office in December 2006, Gov. Palin, whose state salary is $125,000 a year, received reimbursements totaling $43,500 for travel and lodging for her family in connection with state business. Of that total, $25,000 was for her children's travel and the rest was for her husband, Todd, the Washington Post reported.

 

While several tax experts have raised serious questions about whether the payments to Gov. Palin are taxable income, they said the case was clearer cut for treating the reimbursements for the children's expenses as taxable income. "The kids are a slam dunk problem," said Robert Spierer, a partner with the accounting firm Perelson Weiner LLP in New York City. "The husband you could make an argument that he had to be there because it was required for spouses to be there."

 

But not the children, he said. "I don't think I would ever claim that on my clients' returns. I can't think of a real strong argument for it."

 

Gov. Palin also accepted $17,000 in per-diem meal payments for nights spent at her home in Wasilla, 40 miles from the governor's office she used in Anchorage, Alaska's largest city. Gov. Palin often used that office rather than traveling to the state capital of Juneau, more than 800 miles away. Several tax experts have argued this should be counted as taxable income.

 

The McCain-Palin campaign released an opinion letter from Washington, D.C., criminal tax lawyer Roger M. Olsen, concluding that Gov. Palin complied with Alaska law in not reporting the reimbursements and meal payments as income.

 

A spokesman for the McCain campaign said Gov. Palin relied on the W2 wages form from the state of Alaska in filing her tax return, which was prepared by H&R Block. The W2 did not include the travel reimbursements as income.

 

"The state believes it is interpreting IRS policy correctly. It has no indication to believe that it is misinterpreting that policy," said Brian Jones, a McCain campaign spokesman.

 

So, Palin and her husband want to secede Alaska from the US and reinterpret the IRS tax code. odd.

Edited October 7, 2008 by Athomeboy_2000