I am working on creating an excel sheet using tax brackets. Can you please assist me with an excel formula to calculate the federal income tax as well as the tax bracket? For example, what if the income were $95,000? I would pay $10,294 in taxes and 22% on the remaining $5,550 (the difference between $95,000 and $89,450). I am trying to figure out the formula so I can determine tax based on different income levels.
A B C D E F G H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Income Rate Cumulative Tax Less than 22,000 10% 22,000 12% $2,200 89,450 22% 10,294 190,750 24% 32,580 364,200 32% 74,208 462,500 35% 105,664 693,750 37% 186,602
Scenario 1 Gross Pre-Tax Retirement Standard Deduction Taxable Income Federal Income Tax Net Income Tax Bracket Effective Rate 100,000 0 27,700 72,300 72,300 0 Filing Status Single Married filing Jointly Head of Household Deductible Amount 13,850 27,700 20,800