Sarah Palin's Tax Return

Last week, Sarah Palin released her recent income tax returns.  While the media had a few little stories about how much she made, etc., looking at the returns themselves was more interesting. They looked, at first, like regular tax returns filled out by a middle class family not planning on releasing them to the world, but it also provided some interesting information about the family that McCain wants to be a heartbeat away from the White House.  

The Palins had their taxes done for $178 by H & R Block.  Their total income of $150,000 was mostly from her income running Alaska, but Todd earned $43,000 from his work at BP Exploration Alaska for his oilfield work.  Their taxable interest and dividends were too small to require itemization, suggesting that they don't have alot of savings outside of their home.

Sarah has tried to make a big deal of not only her extensive executive experience running Alaska and Wasilla, but also of her role owning small businesses.  The Palins, in fact, do own two "businesses" although they appear to be the work of Todd.  The first is his fishing "business" which he uses to get deductions for his trucks, boats, and fishing supplies.  His other, and more interesting, "business" was his Snow Machine Racing "business."  Although he earned $17,000 in income, presumably in winnings, he had $27,000 in expenses, allowing them to deduct $10,000 against the family's real income.  The expenses that he used for this tax break include depreciation on his Arctic Cat machine, fuel for the snowmobile, and his cell phone.  

As of result of these "businesses" the Palins also claimed a deduction for the portion of their $357,000, 3,600 square foot Wasilla home that was used exclusively for the business.  This deduction is generally used by people who operate businesses out of their home, but the Palins were not required to state how a part of their home was needed to compete in snowmobile races.  

The Palins also made an even $2,500 in charitable contributions to "various" charities (this was allowed since no single contribution was more than $250), and ,on the last day of the year they dropped off $825 worth of used clothes at the Wasilla Salvation Army.