Obamas pay 19.6 percent income tax rate in 2014 as earnings decline

(Bloomberg) — President Barack Obama and his wife, Michelle, reported adjusted gross income of $477,383 for 2014, down 0.8 percent from last year, according to tax returns released Friday by the White House.

The Obamas paid $93,362 in federal taxes for an effective income tax rate of 19.6 percent. They made most of their income from the president’s salary, plus about $16,000 in interest and $88,000 in book royalties.

In his sixth year in office, Obama’s earnings continued to decline and the couple reported their lowest income since 2004, before he was elected to the U.S. Senate.

Obama’s tax bill includes the cost of some of his own policies, including higher tax rates on wages and investment income for top earners. He also checked a box on the tax return that wouldn’t exist without his Patient Protection and Affordable Care Act (PPACA), verifying that he had health insurance for 2014.

The Obamas paid $39,566 in mortgage interest. They have chosen not to refinance or pay off the mortgage on their home in Chicago, even though they could probably save money that way.

The Obamas overpaid their federal taxes throughout 2014. They will get a $20,641 refund and direct another $5,000 to their 2015 taxes.