TurboTax is not charging you the blended tax rate. It is not the same as your tax bracket or your tax rate. TurboTax does not use the blended rate to calculate your taxes.
The blended tax rate is arrived at by considering various factors such as earned income, unearned income, stocks, bonds, interest, dividends, and self-employment. The blended tax rate is not used to calculate taxes, but is strictly just informational. It really is not reflective of what tax rate you are paying. It confuses a lot of people.
Your tax rate comes from schedules that are published by the IRS and they are based on your taxable income.
You can use these tools for more helpful information about your tax rate : TaxCaster tax calculator and Tax bracket calculator
A tax bracket is a range of taxable income that is subject to a specific tax percentage or tax rate.
The brackets used to calculate your income tax depend on your filing status. For the 2024 tax year, there are seven tax brackets. Each one has a different tax rate, ranging from 10% to 37%.
Your tax rate comes from schedules that are published by the IRS and they are based on your taxable income.
Click here for "Federal income tax rates and brackets"
Click here for "What is my tax bracket?"
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