I have been using HR Block, and the software calculated my tax return, which is kind of surprising to me. I used a free tax estimator and the results are similar:
- Taxable income $80,600
- Effective tax rate 2.87%
- Estimated federal taxes $3,449
- Federal taxes withheld $12,000
- We estimate you will get back $8,551
My taxable income is $80600, and with filing status "married file jointly", the tax rate I(we) pay is not 22%?
Why is the federal tax so low?