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April 11, 2003
Vice President Dick Cheney and Mrs. Cheney Release 2002 Income Tax Return
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of Williams & Connolly LLP
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Vice President and Mrs. Cheney filed their federal income tax return for 2002 today.
The income tax return shows that the Cheneys owe federal taxes for 2002 of $341,114 on a taxable income of $945,051. During the course of 2002 the Cheneys paid $436,972 in taxes through withholding and estimated tax payments. The Cheneys elected to apply $20,000 of the resulting $95,858 tax overpayment to their 2003 estimated tax payments.
The wage and salary income reported on the tax return includes $190,134 in government salary for the Vice President. In addition, the tax return reports the payment of deferred compensation from Halliburton Company, in the amount of $162,392. In December 1998, the Vice President elected to defer compensation earned in calendar year 1999 for his services as chief executive officer of Halliburton. This amount is to be paid in fixed annual installments (with interest) in the five years after the Vice President's retirement from Halliburton. That election to defer income became final and unalterable before Mr. Cheney left Halliburton. The amount of deferred compensation received by the Vice President is fixed and is not affected by Halliburton's current economic performance or earnings in any way. It would not be affected even if Halliburton were to become unable to make the deferred compensation payments since the Vice President, before assuming office, purchased an insurance policy that guarantees he will receive the amount owed to him.
The tax return reports Mrs. Cheney's wage and salary income from her continuing work at the American Enterprise Institute, as well as compensation from Reader's Digest and American Express Mutual Funds (Board Services Corporation) on whose boards of directors she served in 2002. The Cheneys donated $121,983 to charity in 2002, primarily from a donation of Mrs. Cheney's royalties from Simon & Schuster on her book America: A Patriotic Primer and her forthcoming book tentatively titled A is for Abigail.
The Cheneys terminated the Cheney Defined Benefit Pension Plan in 2002. Upon the Plan's termination, the Vice President and Mrs. Cheney each made a tax-free rollover of their respective shares of the Plan to separate Individual Retirement Accounts. The Plan was entirely funded over the past several years by contributions from self-employment income. The Vice President also made a tax-free rollover of the remaining balance in his 401(k) plan at Halliburton Company to his IRA, in the amount of $2,141.