On page 1 our tax return shows an "Effective Tax Rate" of 8.19%. This looks totally wrong.
Look for yourselves:
Adjusted Gross Income $111,173
Taxable Income $83,873
Total Tax $15,669
Total Payments/Credits $7,085
Payment Due: $8,584
Penalty/Interest $261
Balance due with Penalty/Interest $8,845
Effective tax Rate 8.19%
There is no way our effective tax rate is 8.19% when the Adjusted Gross Income is $111,173 and the Tax liability is $15,669.
The only way to get to the 8,19% effective tax rate is to base it on the outstanding yet to be paid tax liability. This does not make sense. If IRS owed us money, then the effective tax rate would be negative.
I tried to call Intuit/Turbotax - there is absolutely no possibility to talk to a person and ask this question.
Does anyone else have this problem? What else did TurboTax mess up?
Thank you.
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Your total tax of $15,669 could include non-income taxes, such as self-employment tax or penalties on early withdrawal of retirement plan contributions, or a host of other additional charges. So, the 8.19% may be based on a smaller income tax than is reflected in your numbers here. I suggest you look at your schedule 2 of your Form 1040 (Additional Taxes) to see what additional taxes you may have. Also, included in your payments/credits of $7,085 there may be credits that would reduce the $15,699 number.
You can view your form 1040 and schedules 1 to 3 while working in the online version of TurboTax by following these steps:
Your total tax of $15,669 could include non-income taxes, such as self-employment tax or penalties on early withdrawal of retirement plan contributions, or a host of other additional charges. So, the 8.19% may be based on a smaller income tax than is reflected in your numbers here. I suggest you look at your schedule 2 of your Form 1040 (Additional Taxes) to see what additional taxes you may have. Also, included in your payments/credits of $7,085 there may be credits that would reduce the $15,699 number.
You can view your form 1040 and schedules 1 to 3 while working in the online version of TurboTax by following these steps:
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