Hi, my taxable Income, filing jointly with my spouse, is $14,488. And the TurboTax is states my Blended Tax Rate is 34.7%. Shouldn't it be only 12%?
IF you are self-employed, They may be including Self-employment tax (SS and Medicare) that is just at 15.3% of your SE profit.
That SE tax is applied before your personal deductions are used to reduce your AGI to the "taxable income" level.
Thus, a married couple could have all Self-employment income of 38,500
~15% of that is $5775 SE tax
...then 38,500 - 24,000 std Ded for MFJ = 14,500
...tax on that is ~$1450
Total tax : 5775 + 1450 = 7225
= 50% of taxable income
= 19% of AGI
(50% + 19%) / 2 =34.5% blended? a WHOLE LOTTA Handwaving there
You gotta decide what number you want to focus on...not sure the "blended" number is meaningful, but then I'm just guessing as to how they calculated it. A simple % of AGI would be more meaningful to me.