Blended tax rate is an accounting term. They added it to TurboTax this year and caused a lot of confusion.
It really is not the tax rate that you or your parents are paying. It is just information and really means nothing to most TurboTax users.
Here is a definition:
A blended tax rate is a net percentage of your total tax compared to your total income. It takes into account the different tax rates you are taxed at for different income levels. 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 simply informational. The blended tax rate may be used to recalculate tax due in certain situations.
