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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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