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Is effective tax rate calculation misleading or just wrong?
In the Tax History report, Turbotax calculates an effective tax rate, but does not include 'Other Taxes' in that calculation. The 3.8% Net Investment Income Tax happens to be lumped into 'Other Taxes' on the IRS forms, hence is not used in TurboTax's effective tax calculation.
Since the additional 3.8% is an income tax on investment income, shouldn't it be included in the effective tax rate calculation?
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‎June 3, 2019
4:48 PM