federal tax tables

[Bob]

I can't seem to get the formula right on this. Here is the example: I have a
field for gross wage and a field for federal tax. The year to date field
increases with each pay period. The YTD spans 2 tax brackets i.e.; <$15,100
is taxed at 10%, > $15,100 at 15%. I have been trying to work with the "if"
function. Everything is fine until I hit the threshold then all previous
numbers reset to the higher rate. I'd like to be able to use this as a
template so I really don't want to lock the value in each cell. Should I be
approaching this with a different function?

 

[JE McGimpsey]

This may be useful:

http://www.mcgimpsey.com/excel/variablerate.html

 

[rsenn]

Yes, a different method is probably better. (Not paying taxes would b
even better.)


At each cutoff point the tax is some number (X), plus a percentage o
income above the cutoff point.

So, you probably want a lookup table for the base amount, plus
percentage calculation for the income above the base amount.

For example

col A col B col C
col D
Income Range Tax at Bottom of Range
Incremental %
Low High

20,000.01 25,000.00 500.00 15%

25,000.01 30,000.00 1,250.00 20%



Assume the taxable income is in cell Z99.

Tax can be found by
=Vlookup(Z99,A,3,TRUE) + ' tax a
bottom of range Vlookup(Z99,A,4,TRUE)*
' incremental rate
(Z99-VLOOKUP(Z99,A,1,TRUE))
incremental taxable incom

 

[Roger Govier]

Hi Bob

With gross wages in A1
=MIN(15100,A1)*10%+MAX(0,A1-15100)*15%

Regards

Roger Govier