President Joe Biden and Vice President Kamala Harris deliver remarks about healthcare in Raleigh, North Carolina on March 26, 2024.
While both couples made extra tax payments, they each incurred a small estimated tax penalty, based on underpayments from each quarterly deadline and interest.
Tax planning for self-employment incomeOver the years, the Bidens have reduced self-employment taxes by receiving some wages through their companies, which are structured as S corporations.
After paying "reasonable compensation" to shareholders, S corporation owners can take distributions without paying 15.3% for Social Security and Medicare taxes.
Work with a tax professionalTypically, filers get a tax refund when they overpay levies throughout the year.
Persons:
Joe Biden, Kamala Harris, Peter Zay, David, Harris, Catherine Valega, filers
Organizations:
Anadolu, Getty, Eisner Advisory, Social Security, Boston, Bee Advisory
Locations:
Raleigh , North Carolina, New York