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Get your taxes done using TurboTax
Thanks for your thoughts.
Actually, it just means the average of all tax liabilities could average 10%
Assuming the tax year is 2022 and you are Single and your Taxable Income is $100,000:
The 1st income tax bracket of $0 to $10,275 is taxed 10%
The 2nd income tax bracket of $10,275 to $41,775 is taxed at 12%
The 3rd income tax bracket of $41,775 to $89,075 is taxed at 22%
The 4th income tax bracket of $89,075 to $170,000 is taxed at 24%
So....
$10,275 = $1,028
$31,500 =$3,780
$47,300 = $10,406
$10,925 = $2,622
Total Tax Liability = $17,836
Taxable Income = $100,000
Effective Tax Rate = 17.84%
So....
$10,925 of your taxable income falls within the 24% income tax bracket
That's how you would explain it using Taxable Income
If you use the Adjusted Gross Income for a Single Person, add back the Standard Deduction of $12,950 and your AGI becomes $112,950.
Your Effective Tax Rate then becomes 15.79% with, $10,925 of your taxable income falls within the 24% income tax bracket
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