Not that I want to complain, but can you confirm if you've updated the federal tax bracket for married filing jointly? The current Turbotax Delux 2021 has me at a bracket of 16%.
Per https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2021 ,
It shows:
I don't see a 16% rate. I calculated the rate by taking the Tax Due (1040 Line 16) and dividing it by the taxable income (1040 Line 15).
Yes, this is the second time I've posted it because I have not received a reply to the question.
The tax calculation in TurboTax is correct.
Your effective tax rate will be different from 12 or 22%, as your income is taxed at a blend of 10%, 12% and 22% or more. The lowest tax bracket is 10%, so your income will be a taxed at 10% until you move into the 12% bracket, so your income above the 10% bracket will be taxed at 12%, and so on.
For instance, if you were single and had taxable income of $20,000, the first $9,950 would be taxed at 10%, or $995. The remainder of $10,050 will be taxed at 12%, or $1,206. So your total tax is $2,201, which is 11% of your income, even though you are in a 12% marginal tax bracket.