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New Member
posted Mar 25, 2023 9:59:46 AM

Self employed and paying 38.3 blended tax rate?

Hello Everyone,

 

I am self-employed and paid my estimated taxes this year (not shown on chart). When I finished on turbo tax I see that there is a 38.7% blended tax rate- I am not sure how this number was arrived at.  Does the below info look correct? 

 

Your Tax Breakdown2022

Total Income$145,004
Deductions- $47,556
Taxable Income$97,448
Blended Tax Ratex 38.7%
Tax LiabilityThis is how much you were supposed to pay in taxes.$37,706

0 1 1464
1 Best answer
Level 15
Mar 25, 2023 10:10:18 AM

The blended tax rate simply appears to be a percentage of the taxes you pay on that $97,448 figure (note that would include your self-employment taxes since you mentioned you are self-employed).

 

If you can possibly locate the particular form TurboTax generates, it is more instructive to look at your effective tax rate (look for your 2022 Federal Tax Return Summary).

1 Replies
Level 15
Mar 25, 2023 10:10:18 AM

The blended tax rate simply appears to be a percentage of the taxes you pay on that $97,448 figure (note that would include your self-employment taxes since you mentioned you are self-employed).

 

If you can possibly locate the particular form TurboTax generates, it is more instructive to look at your effective tax rate (look for your 2022 Federal Tax Return Summary).