Formula for a homework question

[Bmaho]

If net income is at least $15,000 and at most $35,000, taxes paid are 28% of income above $15,000,
else, If net income is less than $15,000 then taxes paid are 15% of income above $8,000.
else, If net income is greater than $35,000, taxes paid are 33% of income above $35,000
B22 is cell reference for net income
Below is my formula, what am I doing wrong?
IF(AND((B22<=15000,B22>=35000), 0.28*(B22-15000), IF(B22<15000), 0.15*(B22-8000), IF(B22>35000), 0.33*(B22-35000))

Thank you for any advice!

 

[Swapnil Shah]

Couple of points

1) Your first condition in formula is checking for value which is less than 15000 and greater than 35000 simultaneously which will never hold true
2) For second and third if you have closed brackets prematurely
3) You have not taken in to consideration what if the income is less than 8000 , In such case your formula will show -ve values as outcome. Assuming on income less than 8000 there will be no tax , I have modified your formula as below

=IF(AND(B22>=15000,B22<=35000), 0.28*(B22-15000), IF(B22<15000,MAX( 0.15*(B22-8000),0), IF(B22>35000, 0.33*(B22-35000),"")))

Just let me know if you are getting the desired result or not.

Thanks
Swapnil Shah

 

[SyedUsman]

Try This

=MAX(IF(AND(B22>=15000,B22<=35000),0.28*(B22-15000),IF(B22<15000,0.15*(B22-8000),IF(B22>35000,0.33*(B22-35000)))),0)

 

[oldbrewer]

OP is a learner - this is his/her homework, they should sketch out the scenarios on paper and build a formula from there. They learn little if they just copy post #3 .
Have they ever used the "AND" function. Are they familiar with "IF". I assume so from OP's first attempt.

 

[oldbrewer]

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[TD="align: right"]37000[/TD]
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[TD="colspan: 11"]If net income is at least $15,000 and at most $35,000, taxes paid are 28% of income above $15,000,[/TD]
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[TD="colspan: 10"]else, If net income is less than $15,000 then taxes paid are 15% of income above $8,000.[/TD]
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[TD="colspan: 10"]else, If net income is greater than $35,000, taxes paid are 33% of income above $35,000[/TD]
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[TD="colspan: 4"]B22 is cell reference for net income[/TD]
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[TD="align: right"]0[/TD]
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[TD="align: right"]8000[/TD]
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[TD="align: right"]0%[/TD]
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[TD="align: right"]8001[/TD]
[TD]to[/TD]
[TD="align: right"]14999[/TD]
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[TD="align: right"]15%[/TD]
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[TD]max[/TD]
[TD]6999*.15[/TD]
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[TD="align: right"]1049.85[/TD]
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[TD="align: right"]15000[/TD]
[TD]to[/TD]
[TD="align: right"]35000[/TD]
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[TD="align: right"]28%[/TD]
[TD="colspan: 2"]plus line above[/TD]
[TD]max[/TD]
[TD]20001*.28[/TD]
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[TD="align: right"]5600.28[/TD]
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[TD="align: right"]35001[/TD]
[TD]to[/TD]
[TD]unlimited[/TD]
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[TD="align: right"]35%[/TD]
[TD="colspan: 2"]plus both lines above[/TD]
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[TD="align: right"]6650.13[/TD]
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[TD="colspan: 5"]so the formula now is simple and understandable[/TD]
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[TD="colspan: 2"]so for 37000 in A1[/TD]
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[TD="align: right"]7310.13[/TD]
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[TD="colspan: 11"]=IF(A1<8001,0,IF(A1<15000,(A1-8000)*0.15,IF(A1<35000,1049.85+(A1-15000)*0.28,6650.13+(A1-35000)*0.33)))[/TD]
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[Bmaho]

Thank you for your help with this question, and I'm sorry it took so long to get back to you. I didn't realize that there were so many solutions that would come up with the correct answer, which makes understanding excel that much more confusing. I tried all of the formulas and advice people gave me and they all worked. Thanks again everyone!

Brian