If my taxable income is 13,238 and my effective tax rate is 6.44%, what are the total taxes I should pay for the year? By my calculations, it should be 854, but TT calculates it as 1520. Please explain where they got this number?
You are mixing apples and oranges and getting grapefruit. The Effective that rate that Turbotax shows is your calculated tax divided by your Adjusted Gross Income, NOT your taxable income. So if you multiply your taxable income by your effective tax rate, you will get a garbage answer. The Turbotax calculation of your tax owed is correct.
You are mixing apples and oranges and getting grapefruit. The Effective that rate that Turbotax shows is your calculated tax divided by your Adjusted Gross Income, NOT your taxable income. So if you multiply your taxable income by your effective tax rate, you will get a garbage answer. The Turbotax calculation of your tax owed is correct.
Jerry, your second sentence doesn't make sense to me. Me and TT both agree on what my taxable income is and what my ETR is. Why doesn't multiplying these values get me my taxes owed?