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February 14, 2022
Question

Why is turbo tax using a flat 22.5% blended tax rate to calculate my tax liability instead of following the brackets (ie: $9328 22% of the amount over $81,050)?

  • February 14, 2022
  • 1 reply
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1 reply

February 14, 2022

The blended rate shows your effective tax rate. It represents the income tax as a percentage of your income. Your tax bracket tells you how much of your next $1 of earnings will go to taxes. 

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