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My taxable income for 2023 is $26,000 but turbotax has my blended tax rate at 28.7%, anyone know why?

 
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1 Reply
maglib
Level 11

My taxable income for 2023 is $26,000 but turbotax has my blended tax rate at 28.7%, anyone know why?

@lucina-perez   Did you complete the TT interview?  The rate is not final till your return is completed.

 

The amount on line 15 of your form 1040 would be your taxable income on which these rates would be applied. Line 16 is a blended rate. It will be shown in the 1040/1040SR Wks form. It is made up of  Foreign Earned Income Tax Worksheet Line 6 Form 8615 Line 18 Schedule J: Farm Income Averaging Line 23 Schedule D Tax Worksheet Line 47 Qualified Dividend and Capital Gain Tax Line 25 . 

 

You may have capital gain income that could be taxed at lower rates or other taxes such as an investment income tax that would affect your income tax as well.  Self Employment tax is also added to the rate.  You may not have had taxes withheld at the source.  This is a public board, we can not see your return.    WIthout seeing your return, I cannot advise to the makeup of the tax rate. 

 

https://turbotax.intuit.com/tax-tips/irs-tax-return/video-how-to-find-your-tax-bracket/L4R7kvOlr

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