The Blended tax rate is not used anywhere on your tax return, and it can be a little deceiving.
The Blended Tax rate is:
- Tax liability (Including SE tax, capital gain and special taxes),
- Divided by
- Taxable income (Total income minus deductions, but before credits).
(All line numbers are on form 1040).
The Blended is your
- Total income (line 9)
- Deductions (Line 12) This is Itemized or Standard
- Taxable Income (Line 9 – Line 12)
- Blended Tax Rate (Tax Liability [below] / Taxable Income [above])
- Tax Liability (Line 16 + Line 23)
Taxes Paid (line 25d)
Credits (Line 21)
Total Tax Paid (Line 21 + Line 25d)
Refund/Due (Line 34 or Line 37)
Please contact us again with any additional questions or to provide some additional details.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
