computing taxes

Assuming a progressive/variable tax rate, have a look here...

Hope this helps!

almost......there are still a few other factors that need to be included. I need to compare to two different tables (single and married), as well as the standard deductions for exemptions. Also, in the example, A1 I'm guessing is the yearly wages. It worked when my A1 was (H8*12) (H8 being monthly wages). But I also need to add and subtract some other numbers. I tried to add H14 (also taxable) and subtract H32 (reduces taxable income) so it looked like this:

((H8+H14-H32)*12) - it gives the same answer, but using a calculator I get a totally different result.

Sorry to make this a hassle.

Can you provide the tax table for both 'single' and 'married', along with a few examples?

SINGLE
OVER/ UNDER/ WITHHELD/ OF EXCESS OF/
$0.00 $2650.00 $0.00 $--------
$2650.00 $10120.00 $0.00 + 10% $2650.00
$10120.00 $33520.00 $747.00 + 15% $10120.00
$33520.00 $77075.00 $4257.00 + 25% $33520.00
$77075.00 $162800.00 $15145.75 + 28% $77075.00
$162800.00 $351650.00 $39148.75 + 33% $162800.00
$351650.00 AND UP $101469.25 + 35% $351650.00

MARRIED
OVER/ UNDER/ WITHHELD/ OF EXCESS OF/
$0.00 $8000.00 $0.00 $--------
$8000.00 $23350.00 $0.00 + 10% $8000.00
$23350.00 $70700.00 $1535.00 + 15% $23350.00
$70700.00 $133800.00 $8637.50 + 25% $70700.00
$133800.00 $203150.00 $24412.50 + 28% $133800.00
$203150.00 $357000.00 $43830.50 + 33% $203150.00
$357000.00 AND UP $94601.00 + 35% $357000.00

STANDARD DEDUCTIONS ARE $3400.00 PER DEDUCTION

Example:
wages are $30000.00/yr, claiming S-03
Computation should be as follows:
$30000.00-$10200.00=$19800.00
$19800.00-$10120.00=$9680.00
$9680.00*15%=$1452.00
$1452.00+$747.00=$2199.00 for yearly taxes

Example:
wages are $60000.00/yr, claiming M-05
Computation should be as follows:
$60000.00-$17000.00=$43000.00
$43000.00-$23350.00=$19650.00
$19650.00*15%=$2947.50
$2947.50+$1535.00=$4482.50 for yearly taxes

Hope this clarifies things, and again thanks for your help.

Let F1:I8 contain the following...


Let A2 contain either Single or Married, indicating the table to use.

Let B2 contain the taxable income, after taking into account any additions and/or deductions.

Then try the following formula...


Hope this helps!

hmmmm, not yet. In example 1 the total is $2199.00, but the formula gives me $396.00. I retyped the formula a few times just to be sure, but it gives me the same answer every time. For the B2 line (taxable income) I have ((H8-H32)*12)-(D25*3400)). H8 being monthly pay minus H32 (reduces taxable income) times 12 for yearly taxes. Then minus D25 (exemptions) times $3400.00.

With regards to the first example, this is my understanding...

Wages ---> $30,000

Deductions ---> $10,200

Taxable Income (the amount in B2) ---> $19,800

Taxes Payable ---> $2,199

Am I missing something?

no, that's correct, but the formula doesn't give me that.

Can you post the exact formula you're using?