I just noticed this issue on the summary page for my 2023 tax return.
Oddly, TT's own website here:
https://turbotax.intuit.com/tax-tips/general/is-it-possible-to-lower-my-effective-tax-rate-what-are-...
says, "Your effective tax rate is the average percentage of your taxable income that you owe in federal taxes. In order to calculate this rate, you simply divide your tax liability (what you owe) by your total taxable income.
In an example on that page, they have a couple that has a total federal tax burden of $12,615 with a taxable income of $100,000. They calculate their effective tax rate as 12.6%. That makes sense to me and matches the definition they provide for Effective Tax Rate.
But my summary page shows Taxable Income as ~$115K with Total Tax as ~$40K (I'm self-employed so I pay both parts of FICA tax), but they have calculated my effective tax rate as 5.57%. According to their own definition, my Effective Tax Rate should be approximately 35%. Even if they used the Adjusted Gross Income (which would be in contrast to their own website definition above), my AGI was ~$170K, so $40K of federal taxes would equate to approximately 24%. 5.5% is a significant departure from that.
