ExFlyBoy5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
The definition from Investopedia:
"The effective tax rate for individuals is the average rate at which their earned income is taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed. An individual's effective tax rate is calculated by dividing total tax expense by taxable income."
I just figure total tax owed/total income and go with that which is
5.0% Federal
3.45% State
8.45%. Total
Using the 43 line/63 line it's:
10.6% Federal
7.2% State
17.8% Total
I also don't line the 63/43 number because it leaves out some credits that I was able to use.
For me, MY effective tax rate is the percentage of taxes I have to pay from my TOTAL income.
"The effective tax rate for individuals is the average rate at which their earned income is taxed. The effective tax rate for a corporation is the average rate at which its pre-tax profits are taxed. An individual's effective tax rate is calculated by dividing total tax expense by taxable income."
I just figure total tax owed/total income and go with that which is
5.0% Federal
3.45% State
8.45%. Total
Using the 43 line/63 line it's:
10.6% Federal
7.2% State
17.8% Total
I also don't line the 63/43 number because it leaves out some credits that I was able to use.
For me, MY effective tax rate is the percentage of taxes I have to pay from my TOTAL income.
