Why is my Blended Tax Rate 195%?

[LindaB1993]

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

[kirstenbarroso]

But 195%? I think something is wonky in TurboTax

[KrisD15]

Are you sure there is no decimal point in that number?

[kirstenbarroso]

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.

[Kntysmom]

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. 

[DavidD66]

@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%.