Question

Turbotax is saying that all of my family $13K taxable income increase this year should go to taxes moving my effective rate from 17.7% to 23.5%. But that's not right.

Forum|Forum|5 years ago
March 12, 2021
1 reply
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According to calculations based upon 2020 brackets I should only go to 18.0% and about $3K. How do I get help on that from TurboTax?

TurboTax Premier Online

S

SweetieJean

Employee

In addition to moving you into a higher tax bracket, any increase in income can lower or eliminate some deductions and credits (such as EIC). Is any of your income from self-employment? That is subject to additional tax of approx 15%.

But what TT is calling an Effective Tax rate may not be what you describe. The following is old, but may be helpful:

Solved: How turbotax calculated my effective tax rate (ETR). It divides line 63 amount by line 43 amount on the 1040 form?Line 63: $40,305, Line 43 $120,516 So, why ETR is 14.51% (intuit.com)

Turbotax is saying that all of my family $13K taxable income increase this year should go to taxes moving my effective rate from 17.7% to 23.5%. But that's not right.

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