Take a look at this article that explains the marginal and effective tax rates; they are more useful and commonly used in the financial arena.
Blended tax rate = tax liability / taxable income. TurboTax generates this number and it is not used by anyone else. The effective and marginal tax rates are the more meaningful rates.
More detailed, 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).
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