The effective tax rate is
- Total Tax line 24 of your 1040
- divided by
- Taxable income line 15 of your 1040
Are you referring to the Blended tax rate?
Blended tax rate will fluctuate based on income, but also based on how certain income is taxed.
- If you had Capital gains, a home business or other special taxes, they would be a factor.
- Also, tax credits are not deducted from the total tax for the calculation.
The Blended tax rate is calculated under Federal / Federal Review
- To access it, all questions must be answered in the Federal Review.
- At the end of the questions. Look at the bottom of the screen
- It will say Get a detailed view of your numbers
The Blended Tax rate is: 1040 Line 18 divided by Line 15
- Tax liability, Total Tax Line 18
- Including SE tax, capital gain and special taxes
- Taxable income, Line 15
- Total income minus deductions, but before credits
To compare Blended rates from previous years you will need the earlier tax returns.
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