The effective rate shown does not agree with simply dividing taxes owed by income (total or adjusted). How does TurboTax calculate effective tax rate?

[DaveF1006]

The effective rate is not based on taxes owed, but rather on the tax liability based on your taxable income for the year. Also there are different tax rates involved especially if you report long-term capital gains in your return.

To determine your effective tax rate, you can look on your 1040 and the divide line 17 by line 16 to get your effective tax rate for the year. Your tax due amount is the amount on line 16 minus any credits and withholding taxes paid throughout the year.