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Turbo Tax is calculating a much higher blended tax rate than the IRS website. How can we correct this?

 
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2 Replies
JohnB5677
Expert Alumni

Turbo Tax is calculating a much higher blended tax rate than the IRS website. How can we correct this?

The Blended tax rate is not used anywhere on your tax return, and it can be a little deceiving.

 

The Blended Tax rate is:

  • Tax liability (Including SE tax, capital gain and special taxes),
  •  Divided by
  • Taxable income (Total income minus deductions, but before credits).

(All line numbers are on form 1040).

The Blended is your 

  • Total income (line 9)
  • Deductions (Line 12) This is Itemized or Standard
  • Taxable Income (Line 9 – Line 12)
  • Blended Tax Rate (Tax Liability [below] / Taxable Income [above])
  • Tax Liability (Line 16 + Line 23)

Taxes Paid (line 25d)

Credits (Line 21)

Total Tax Paid (Line 21 + Line 25d)

Refund/Due  (Line 34 or Line 37)

 

Please contact us again with any additional questions or to provide some additional details.

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Turbo Tax is calculating a much higher blended tax rate than the IRS website. How can we correct this?

each uses a different formula and different amounts to compute the blended tax rate. ignore them 

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