I am self employed. My taxable income is $17,950 and I am married filing separately. My SE tax rate is 15.3% and my 2024 tax rate is 10%. But TT applied a 42.1% blended

[keithsciacca]

Why is this rate so high? My liability is $7,556. It should be $4541. I do have an underpayment penalty of $325.

[SteamTrain]

@keithsciacca 

1) TTX does not APPLY a blended tax rate....it just tells you what it was.  And it's also, just a kind-of genmeric handwaving figure and not exact.

2)  The SE tax is applied to your net SE $$$ gain BEFORE yoru Std or Itemized deductions are applied. 

....2a)   Thus, the 15.3% was applied to a much higher amount, and not to your eventual "taxable" income.  BUT

...2b) The 10% regular income tax was applied to just that "taxable" income amount.