The marginal tax rate displayed in the summary doesn't make sense. It shows 24%, but if I add $1000, the total tax increases by 38%, which matches tax tables.

[mobimich]

Without going into personal details, let's say my taxable income is in the second tax bracket. In Canada, it's from $46K to $93K and in Quebec (I pay both) it's from $43K to $86K. For argument sake, let's says $50K. According to the tax tables, the rates are respectively 20.5% and 20% for 2018, for a total of 40.5%. Yet when I add $1000 of income, TurboTax adds around $380 or 38% to the total tax amount, therefore close to the amount predicted according to the tax table.

The definition of the marginal tax rate is the rate charged on the next dollar. Clearly, in my case, it's 40.5% or 38%. But TurboTax says it's 24% and the average is 22%. This is clearly wrong. I checked my 2017 return, and the same situation applies.

[MichaelL1 · Accepted solution]

You are on the US site and you are talking about Canadian taxes.

Go to this link

in comment below by Volvogirl (I had wrong link)

[mobimich]

Okay thanks. Quick question, in the US version, if the marginal tax rate is display as 24% and I add $1000 income, won't the tax increase by $240?

[MichaelL1]

Yes, unless the change impacts a credit or increase something being taxable like Social Security (which depends on how much other income is on the return)

[VolvoGirl]

This is the USA forum.  Do you need Canada?
Here is the Canada forum  https://turbotax.community.intuit.ca/tax-help

Or Contact TurboTax Canada Support  https://support.turbotax.intuit.ca/contact/