Skip to main content
Level 2
March 9, 2022
Question

Effective Tax Rate

  • March 9, 2022
  • 1 reply
  • 8 views

When I finished my taxes there is a summary page in which is said my Effective Tax Rate is

-39.9%, How is that possible?

    1 reply

    Level 15
    March 9, 2022

    The effective tax rate is the tax divided by the income. Because of the refundable credits, the resulting net tax could be negative if the amount of these credits is greater than the tax liability. As a result, a negative effective tax rate is possible.

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"