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Heinz Kerry Tax Return Shows She Is Due Refund

THE RACE FOR THE WHITE HOUSE

October 16, 2004|Ralph Vartabedian | Times Staff Writer

Teresa Heinz Kerry released a portion of her 2003 federal income tax return Friday, indicating that she was due a tax refund of a quarter million dollars from the Internal Revenue Service.

Kerry, wife of Democratic presidential nominee Sen. John F. Kerry, provided more details about her income and taxes after a preliminary estimate was disclosed in May.

The first two pages of her 1040 form show that she had taxable income of $2.8 million and income from tax-exempt municipal bonds of $2.2 million -- a total of $5 million.

The income represents just a portion of the investment income generated by Heinz family trusts, which are taxable entities. The returns of those trusts were not released.

Heinz Kerry incurred $628,401 in federal taxes, but overpaid her taxes by $247,933. She elected to apply the overpayment to this year's income tax, rather than getting a refund check sent in the mail.

Heinz Kerry listed her occupation as "philanthropist," reflecting her control of more than $1.3 billion in assets in various Heinz family foundations.

In a press statement, Heinz Kerry said she also paid state income tax of $171,670. The 1040 form shows Heinz Kerry took itemized deductions on her federal return of $267,541, probably including her state income tax and a large property tax bill on her five mansions.

Also, the press statement indicated she made more than $4.6 million in charitable contributions in 2003, which reflected payouts from the Teresa and H. John Heinz III Charitable Trust.

The Times estimated this year that Heinz Kerry controls about $1 billion in personal assets, separate from the $1.3 billion in foundation money. The estimate of her wealth is consistent with the disclosures Friday.

Heinz Kerry files a separate return from Kerry. The 1040 also shows that she paid Social Security taxes of $1,251, meaning she had some form of wages separate from her investment income. Based on the IRS formula for self-employment Social Security tax, her gross wage income was about $8,300. The income was related to her investments in a limited partnership.

On her 1040, Heinz Kerry lists her name as Teresa Heinz, her legal name. She adopted the Heinz Kerry name during the election.

Among other tidbits on the return, Heinz Kerry elected to contribute $3 of her taxes to help fund the presidential election campaign, benefiting equally her husband and President Bush.

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