Hi - I need some help. I am reviewing my 2023 Jt Return for NJ. We have a Taxable Income of $76,713, which should put our Effective Tax Rate somewhere between 10 & 12%, using the progessive taxing method (Our taxable income falls within the 12% bracket). However, the Effective Tax Rate on our return shows only 6.15%. Our Total Tax was $6520.00. If you divide that by the taxable income, you get 8.5%...still doesn't make sense because it's below 10%. I am confused!
All figures are here:
Taxable Income - 76,713
Total Tax - 6520
Total Payments/Credits - 2169
Payment Due - 4351
Penalty/Int - 93
Bal Due w/ Penalty/Int - 4,444.00
Effective Tax Rate - 6.15%
Again, if our Taxable Income is 76,713 and we fall in the 10-12% bracket, how is TT calculating 6.15%??
Thank you in advance for helping me understand how the numbers are calculated.
Ultimately, I am trying to calculate our Estimated 2024 income.
