Blended Tax Rate Higher than Expected

[ashley0259]

Hello,

I am trying to understand why my Blended Tax rate is 22% instead of 10%. I thought that tax rates go off of your taxable income (after deductions). Even at that, if it were based on my total income before deductions, it isn't high enough for the 22% bracket. I am filing Single, no dependents with Turbo Tax Online Self Employed

• Total Income : $16,698 broken down into self employment ($1,448) and Other ( Grants/Scholarships not used for school expenses $15,250)
• Total Deductions: $14,972
• Total Taxable Income: $1,726
• Blended Tax Rate: 22%

These are the 2024 tax rates for single filers

10%	$0 to $11,600
12%	$11,601 to $47,150
22%	$47,151 to $100,525

The only thing I can figure is I am being taxed 10% on my Self Employment income and 12% on my Other income BEFORE deductions since those numbers fall within different tax brackets.

Am I misunderstanding something? Any explanations are helpful, thank you!

[DaveF1006]

Yes, there is the self-employment tax to consider on $1448 self-employed income. The self employment tax is computed as follows. ($1448)(.153).9235)=$205. Your tax based on your income is ($1726)(.10)=$173. These are ball park figures.

Now your total tax liability is $205 + $173 = $378  After applying the credit, your Tx Due is $277. I  know this differs from Turbo Tax by $1 and this may be attributed to a rounding difference.