Hello,
I am trying to understand why my Blended Tax rate is 22% instead of 10%. I thought that tax rates go off of your taxable income (after deductions). Even at that, if it were based on my total income before deductions, it isn't high enough for the 22% bracket. I am filing Single, no dependents with Turbo Tax Online Self Employed
- Total Income : $16,698 broken down into self employment ($1,448) and Other ( Grants/Scholarships not used for school expenses $15,250)
- Total Deductions: $14,972
- Total Taxable Income: $1,726
- Blended Tax Rate: 22%
These are the 2024 tax rates for single filers
| 10% | $0 to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
The only thing I can figure is I am being taxed 10% on my Self Employment income and 12% on my Other income BEFORE deductions since those numbers fall within different tax brackets.
Am I misunderstanding something? Any explanations are helpful, thank you!
