Romney releases tax returnsMitt Romney made $13.7 million last year and paid $1.94 million in federal income taxes (FP)
Fri, September 21, 2012 - 5:19 PM
NEW YORK (CNNMoney) -- Mitt Romney made $13.7 million last year and paid $1.94 million in federal income taxes, giving him an effective tax rate of 14.1%, his campaign said Friday.
His effective tax rate was up slightly from the 13.9% rate he paid in 2010.
The majority of the candidate's income came from his investments, said Brad Malt, a lawyer who presides over Romney's blind trust, in a blog post.
His 2011 income was considerably lower than the $21 million estimated by the campaign in February.
The Romney campaign, in a statement to CNNMoney, explained that his "income can vary significantly from year to year, depending primarily on what investments are sold and how much they have appreciated or depreciated."
The majority of the candidate's income last year came from his investments: capital gains ($6.8 million), taxable interest ($3 million) and dividends ($3.7 million).
In addition, Romney reported $450,470 in business income.
Romney took $4.7 million in itemized deductions and $102,790 in foreign tax credits, which likely represents taxes paid on foreign investments to other sovereign governments.
Romney and his wife, Ann, gave just over $4 million to charity, the campaign said.
The charity includes more than $1 million in cash to the Church of Jesus Christ of Latter Day Saints and more than $200,000 to the Tyler Foundation, which serves families of children undergoing treatment for epilepsy. They also reported more than $900,000 in noncash contributions.
In addition, tax and accounting giant Pricewaterhouse Coopers, which prepared the Romneys' taxes from 1990 through 2009, issued a letter stating they paid 100% of the federal and state income taxes owed during those 20 years.
The firm also said their average annual effective federal tax rate was 20.2% for the period. And annually, they never paid an effective rate below 13.66%.
PwC did not detail how much Romney made in income during that period or how much he paid in taxes.
Romney has been criticized by both Democrats and even some Republicans for not releasing more than two years' worth of tax returns.
Criticism reached a crescendo when Senate Majority Leader Harry Reid, repeatedly claimed, without identifying the source of his information, that Romney hadn't paid federal income taxes for a decade.
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