It says we were in 10% tax bracket for 2024 with taxable income $17892 on our federal return. But we were asked to pay 21.9% blended tax on TurboTax? Can we get refund?

[jaswudeans]

Income Analysis Your income in 2024 came from $134,105 of wages, $278 of dividend income, $6,330 of pension income, $42,034 of taxable Social Security benefits, and $134,105 of other losses. Tips to maximize your income You were in the 10% tax bracket for 2024. This means that the next dollar of income beyond $17,892 gets taxed at 10% on your federal return. It's important to note that certain items, for example, long-term capital gains from the sale of stocks, are taxed at different rates than your tax bracket rate.

[LindaS5247]

TurboTax is not charging you the blended tax rate. It is not the same as your tax bracket or your tax rate. TurboTax does not use the blended rate to calculate your taxes.

The blended tax rate is arrived at by considering various factors such as earned income, unearned income, stocks, bonds, interest, dividends, and self-employment. The blended tax rate is not used to calculate taxes, but is strictly just informational.  It really is not reflective of what tax rate you are paying. It confuses a lot of people.

Your tax rate comes from schedules that are published by the IRS and they are based on your taxable income. 

You can use these tools for more helpful information about your tax rate : TaxCaster tax calculator and Tax bracket calculator

 A tax bracket is a range of taxable income that is subject to a specific tax percentage or tax rate.

The brackets used to calculate your income tax depend on your filing status. For the 2024 tax year, there are seven tax brackets. Each one has a different tax rate, ranging from 10% to 37%.

Your tax rate comes from schedules that are published by the IRS and they are based on your taxable income. 

Click here for "Federal income tax rates and brackets"

Click here for "What is my tax bracket?"

[jaswudeans]

I appreciate your response. I was on IRS tax bracket yesterday for 1040tt, the link is below. What I found what our federal tax should be $1788. https://www.irs.gov/pub/irs-pdf/i1040tt.pdf 

I used both tools you mentioned Tax Calculator that got me $1790; Tax Bracket calculator got me 10% bracket. 

What I am quite confused and annoyed with Turbox is: why you don't explain/show me how do you get to my

tax to the number you got? Please allow me illsurate myself better. In our married filing 1040-SR form:

line 15- taxable income we got $17892 was clear.

line 16- tax $ 3925

I looked at different sources. We think it should be $1788 or $1790 is acceptable. But how do you get $3925? Why this process is not transparent? We are paying you doing us a service. Why Turbox doesn't listen to millions of customers dissatisfaction and frustration with your process. Don't we have the rights to know how do you get us to the tax amount we owe while using Turbox? Thank you. 

[jaswudeans]

 

[ThomasM125]

Your tax computation may be more complicated than simply taking your taxable income and applying a tax rate to it. For instance, your taxable income may include capital gains that are taxed at capital gain tax rates, which may differ from normal tax rates.  You may be subject an alternative minimum tax. It is also possible you have other taxes besides income taxes included in your tax.

When you print out your return and associated forms and schedules, you will see a Tax Smart Worksheet that you can review that will tell you what table or worksheet was used to calculate your tax. There are various potential nuances that come in to play to calculate your tax, based primarily on the sources and amount of your income. You would have to review those worksheets to get a firm understanding of how your tax was calculated.

[jaswudeans]

Thanks a lot. 

How can we access to these associate forms and schedules, and how do we see Tax Smart Worksheet? All I have is tax return. 

[DawnC]

If you want to get all of the supporting schedules and worksheets, you need to click on ADD a State in your last screenshot.   That unlocks your return and allows you to go to the Print Center (Tools menu).   From the print center, ask to print your return with ALL CALCULATION WORKSHEETS.   

If you print the PDF from the TaxHome page - you don't get all of the worksheets - - Add a State to print from the Print Center.