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Get your taxes done using TurboTax
On the Fed Review screen, the Tax Liability is defined as: [Taxable Income (x) Blended Tax Rate]=Tax Liability. The value used for the Blended Tax Rate is significantly higher than the overall "composite" tax rate given the bracket that I am in. It is also much higher than the "effective tax rates" that appear on prior years filings even though my situation is similar. There is no explanation how this Blended Rate is derived. When I use the Taxable Income from my TurboTax information and use the Tax Formula (link below) the resulting Tax amount is much lower, and gives an effective tax rate comparable to prior years. https://ttlc.intuit.com/community/income/help/what-are-the-federal-tax-rates/00/27403
‎July 6, 2020
5:32 PM
1,148 Views