How is TurboTax calculating the marginal tax rate shown on its Summary table? Have you checked your math? The result appears to be grossly incorrect when compared to a manual calculation of added tax for an additional $1000 of income. For example, Turbo Tax shows a marginal tax rate of 18% on a reurn where the actual marginal tax rate is closer to 30%. There is a long history of this product defect as shown at the following link:
Given the fact that the defect in the Turbox calculation of marginal tax rate has been known for several years, the fact that it has not been corrected by Intuit and that there is no ETA for when it will be corrected, is Intuit sending users a “signal” that it is either discontinuing support (ie. no longer investing in this product) or is going to discontinue the product altogether? It is well known that there are other competing products on the market.
Unbelievable! Turbotax answer for a problem with their program is to calculate it yourself by going to the CRA website? This is a very easy thing to calculate, but it seems beyond Turbotax capabilities. Meanwhile giving WRONG information out is worse than giving no information at all concerning the Marginal Tax Rate.
I have just noticed this too. This should be such an easy fix. I went back to my previous returns and noticed in the 2016 summary the Marginal Tax rate calculation in the summary was missing. If you go into the help there is an article on how to calculate it manually. (see below).
I used this method in other years' returns including 2022 and they all do not match up. Please fix this!
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The marginal tax rate helps you understand the impact of claiming deductions to your bottom line - such as contributing more to your RRSP or claiming additional medical expenses. As you enter each piece of tax information, this rate changes.
TurboTax shows your Refund/Balance Due information at all times, so you can immediately see how each entry or change affects your return.
However, if you want to know your marginal tax rate, you can calculate it in the following way:
Enter all your tax information in TurboTax.
Write down your Refund or Balance Due amount.
While in EasyStep, this amount is shown in the upper left corner of the interview screen. If you are creating a coupled return, the amount shows the net benefit to both spouses. Under REVIEW, click Detailed Tax Summary to see each spouse's individual amount.
While in Forms mode, click the Summary icon to see the Quick Graphs. Click Detailed Tax Summary to see more information.
While in EasyStep, in the Other income section of the Interview, add $100.00 of income to your tax return.
In the Income section of the Find window, select Other Income Sources.
While in Forms, add $100.00 of income to your tax return at line 130, Other income.
Double-click in line 130 to open the Other Income worksheet, and scroll down to line Other.
Write down your new Refund or Balance Due amount.
The difference between the two numbers is your marginal tax rate, which is the rate at which your next dollar of income will be taxed.
Example: Your refund before entering the $100 of other income is $500. After entering $100 of other income your refund changes to $470. Your marginal tax rate would be 30%; the difference between $500 and $470.
Important: Remember to delete the additional $100 you entered before completing and filing your return."
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