Comments on: excel income tax calc help
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Comments on Ask MetaFilter post excel income tax calc helpSat, 13 Oct 2012 18:00:39 -0800Sat, 13 Oct 2012 18:10:15 -0800en-ushttp://blogs.law.harvard.edu/tech/rss60Question: excel income tax calc help
http://ask.metafilter.com/226613/excel-income-tax-calc-help
Excel help: I'm trying to input a dollar value into a cell and have the output be the federal income tax for that amount (just using the brackets). Federal income tax is calculated such that the first x dollars are taxed at rate R, the next y dollars are taxed at rate S, and up through several different rate brackets. I can do this calculation with a simple IF statement using multiple cells by summing the result of 5 separate bracket calculations. I'm not sure if I can cram it into one giant formula. Suggestions? <br /><br /> alternatively, is there any way to ask excel to put value x is cell c, and then to output the result of cell d? eg, if cell c = value in cell x, return value of cell d that would result? (assuming changing cell c affects value of cell d).post:ask.metafilter.com,2012:site.226613Sat, 13 Oct 2012 18:00:39 -0800leotrotskyexceltaxincomeBy: beyond_pink
http://ask.metafilter.com/226613/excel-income-tax-calc-help#3279092
Here's one solution: <a href="http://www.mcgimpsey.com/excel/variablerate.html">http://www.mcgimpsey.com/excel/variablerate.html</a>comment:ask.metafilter.com,2012:site.226613-3279092Sat, 13 Oct 2012 18:10:15 -0800beyond_pinkBy: leotrotsky
http://ask.metafilter.com/226613/excel-income-tax-calc-help#3279171
thanks!comment:ask.metafilter.com,2012:site.226613-3279171Sat, 13 Oct 2012 20:03:55 -0800leotrotskyBy: gjc
http://ask.metafilter.com/226613/excel-income-tax-calc-help#3279172
You can do it, but you have to include the time period as a factor, since the brackets are based on yearly earnings. The employers guide to wages and withholding (or something like that) has the right brackets and percentages. <br>
<br>
You can do a nested if statement, but it gets tricky getting it right in Excel. You can do your method of different calculations for each bracket, but you still have to be careful. It would be best to use if statements there too.<br>
<br>
The logic is this (made up numbers):<br>
<code><nbsp><br>
if INCOME > $350000 then tax is $50000 + 0.38 * (INCOME - $350000)<br>
else if INCOME > $125000 then tax is $12000 + 0.25 * (INCOME - $125000)<br>
else if INCOME > $60000 then tax is $5000 + 0.15 * (INCOME - $60000)<br>
else if INCOME > $12000 then tax is 0.1 * (INCOME - $12000)<br>
else tax is 0<br>
</nbsp></code>comment:ask.metafilter.com,2012:site.226613-3279172Sat, 13 Oct 2012 20:04:07 -0800gjcBy: yclipse
http://ask.metafilter.com/226613/excel-income-tax-calc-help#3279674
I have done it, and found that it was a little more instructive to have five (or so) different rows, one for each marginal rate. Each row has an IF statement so that it displays a value only if greater than 0.comment:ask.metafilter.com,2012:site.226613-3279674Sun, 14 Oct 2012 13:56:38 -0800yclipse