President Joe Biden and Vice President Kamala Harris released their annual tax returns Monday, and there are lessons within for average Americans, according to tax experts. The president and first lady Jill Biden reported a joint adjusted gross income of $619,976 for 2023, which was 7% higher than in 2022. They paid federal income taxes of $146,629, and their effective tax rate was 23.7%. Vice President Kamala Harris and her husband, Douglas Emhoff, showed an adjusted gross income of $450,299, which was slightly lower than their 2022 earnings. Their federal taxes were $88,570, and their effective tax rate was 19.7%. – Interest income can be a ‘big surprise’ – In 2023, both couples earned most of their income from salaries, with federal and state taxes withheld from employers. Both couples also had interest income, which can cause a “big surprise” at tax time, without increased paycheck withholdings or quarterly estimated tax payments, explained David Silversmith, a certified financial planner and senior tax manager at Eisner Advisory Group in New York. That’s why investors need to track taxable activity — such as dividends or fund distributions — in brokerage accounts, said Silversmith, who is also a certified public accountant. While both couples made extra tax payments, they each incurred a small estimated tax penalty, based on underpayments from each quarterly deadline and…Read more