Why does ProSeries calculate the 1040 effective tax rate using Tax divided by Total Income instead Tax divided by Taxable Income, when every outside source I can find uses Taxable Income?
I find the effective tax rate based on AGI useful for clients who are adjusting withholding. They can watch their paystubs to be sure the correct percentage of tax is being withheld. Easier than accounting for deductions.
Most places seem to use taxable income, but thanks for finding one that uses total. It is odd that there's not a standard though. (Although it's just an informational, so I know it doesn't matter, but I had a client with the question.)
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.
