Marginal tax rate calculation

I am pretty certain that Turbo Tax Premier 2014 is incorrectly calculating and displaying the true marginal tax rate on the tax summary panel.

Manually calculating the marginal gives correct results.

I checked my software and returns from last year - in 2013 version of TT Premier, all seems fine.

I would suggest that you have a bug somewhere in 2014 version.

Answer

1 person found this helpful

Hi twospruce, 

There is no known bug at this time. If you are calculating things manually it may be incorrect. Marginal tax rate is the $ you will play on your next taxable dollar. Effective tax rate is the % of your total income that went towards taxes. This is calculated by dividing tax paid by income.  Please confirm which rate you are calculating and what is displayed in Turbotax. 

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