What Did Trump Do With His Presidential Salary in 2020? Tax Returns Provide Limited Insight

When former President Donald Trump's tax returns were issued publicly Dec. 30, some news reports suggested he didn't donate his salary in 2020 — thereby breaking a campaign pledge.

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The reason is that Trump reported a negative adjusted gross income in 2020, his last year in office. He didn't pay federal income tax because he didn't have any taxable income.

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Trump's adjusted gross income for 2020 was largely the result of $15.7 million in reported business losses from sources like real estate, partnerships, and S corporations, according to the tax returns. The House Ways and Means Committee released six years of Trump's returns - 2015 to 2020 - after a lengthy fight to make them public.
According to Personal Finance, Trump may have sidestepped the $10,000 cap on SALT deductions by 12 million people. Trump's tax returns show no Social Security benefit income.

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If you itemize your tax deductions, you may be able to get a tax break for your charitable contributions. However, if you have negative income and don't pay income tax, you won't be able to get a tax deduction.

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Taxpayers can "carry forward" unused tax breaks to future years, effectively using past charitable donations to reduce their tax bill later.
It's unclear whether Trump did this in 2020, but it's possible. This type of tax maneuver is usually reported on a separate statement from the Schedule A form that outlines annual itemized deductions, according to accountants.

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The statement - typically a supporting document attached to the tax return - was not among the publicly released tax forms, said Hal Terr, a certified financial planner and tax partner at accounting firm Withum, Smith and Brown.

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It is unclear whether Trump reported a charitable deduction in 2020 and plans to use the associated tax benefit in future years without that form.
According to Terr, you can't determine whether someone did or didn't without looking at the carryforward schedule.

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A spokesperson for Trump did not respond to a request for comment on this story. In previous years, Trump had donated his $400,000 annual salary while in office.
The IRS has limits on the value of tax deductions for charitable donations, depending on the type of gift and the organization you give it to. For example, you can typically deduct the value of cash gifts to a public charity up to 60% of your AGI. The limit is 30% for noncash assets, like stocks, held for more than a year.
Taxpayers can use any unused tax benefits for up to five years.

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The way carryforwards show up on tax returns may vary depending on the tax preparer and tax return software, accountants said.
For example, in 2017, Trump reported a negative adjusted gross income of -$12.9 million. That year, his Schedule A notes $1.86 million of charitable gifts made by cash or check. He couldn’t deduct these gifts due to his negative income, but the tax return references “STMT 16” — an apparent reference to an attached statement outlining a carryover of those donations.

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There is no mention of a carryover from a previous tax year on Trump’s 2020 return. However, this does not mean that the carryover did not occur.
According to Terr, the main difference between the two tax providers is how they prepare the return.