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A blended tax rate may be applicable for fiscal year filers that do not use a calendar year-end for tax reporting purposes or if there are different rates during the calendar year.
Beginning in 2018, you may pay federal income tax using what is called a blended tax rate. This is the proportional tax amount based on the number of days in the taxable year when the different rates were in effect
IRS has a description of the blended tax rate that generally applies to corporate returns. Please click this link for more information. Definition of blended tax rate
But 195%? I think something is wonky in TurboTax
Are you sure there is no decimal point in that number?
Yes, I’m sure. In fact my first go at my taxes the numbers were all really weird, and my blended tax rate on that round was 150%. I spoke with an agent who advised me to delete and start over. I did that with the exact same information, and my tax liability came out different with the 195% blended tax rate. Something is wrong with TurboTax this year. Specifically TurboTax self-employed.
I was wondering the same thing. Ours is not as high but still at 79% it seems a high number to us. Not sure what it means.
@kirstenbarroso It looks like you using TurboTax Self-Employed. If this is the case, the self-employment tax can do strange things to the marginal tax rate calculations. It's impossible to say for sure since I can't see what's in your tax return, but if you are paying self-employment tax, and have deductions that reduce your income and credits that minimize or eliminate your income tax, that could explain a blended tax rate of 150%.
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