http://www.huffingtonpost.com/2008/10/07/experts-palin-owes-25000_n_132538.htmlSeveral tax experts said they believe Republican vice-presidential nominee Sarah Palin is required to pay federal taxes on $25,000 in reimbursements from the state of Alaska for her children's travel expenses.
The Alaska governor released her 2006 and 2007 tax returns on Friday, sparking a lively debate on tax blogs and among tax professionals over whether reimbursements and per-diem meal payments from the state should be subject to federal taxes. Since taking office in December 2006, Gov. Palin, whose state salary is $125,000 a year, received reimbursements totaling $43,500 for travel and lodging for her family in connection with state business. Of that total, $25,000 was for her children's travel and the rest was for her husband, Todd, the Washington Post reported.
While several tax experts have raised serious questions about whether the payments to Gov. Palin are taxable income, they said the case was clearer cut for treating the reimbursements for the children's expenses as taxable income. "The kids are a slam dunk problem," said Robert Spierer, a partner with the accounting firm Perelson Weiner LLP in New York City. "The husband you could make an argument that he had to be there because it was required for spouses to be there."
But not the children, he said. "I don't think I would ever claim that on my clients' returns. I can't think of a real strong argument for it."