Tax IF formulas?

[rescueraven]

Hey,
I need help figuring out an IF formula that would allow me to calculate the tax owed. The tax rates are 20%, 25% and 30% and the full bracket total for 20% is 4,000$ and for 25%, 11,500$.
In D14, I have as a taxable income, 20,000$ and In E14, I would need a IF formula that calculates that... but I would need to copy only one formula down the E column to be used on varying taxable incomes...
Thanks in advance,
Raven

 

[konew1]

I didn't know you needed IF, I thought you just needed the calculation

Try this
=IF(B11 > 50000,B11*0.3-3500,IF(B11 > 20000,B11*0.25-1000,B11*0.2))
The "-3500" and "-1000" are for the difference in the rates on the lower income
20,000 at (25%-20%) =1,000 and
20,000 at (30%-20%) + 30,000 at (30%-25%) = 3,500

 

[rescueraven]

great, the formula works for most of them but for a taxable income of 5,000$, it shows that the tax owed is 11,500$. I dont know what to do to fix it...
Im so sorry for asking all these questions...

 

[rescueraven]

great, the formula works for most of them but for a taxable income of 5,000$, it shows that the tax owed is 11,500$. I dont know what to do to fix it...
Im so sorry for asking all these questions...

Actually, nevermind. I figured it out. We we using the wrong cell address.
=IF(D14 > 50000,B11*0.3-3500,IF(D14 > 20000,D14*0.25-1000,D14*0.2))
Thanks so much.

 

[rescueraven]

Ok, now Im getting frustrated. The formula works for a taxable income of 5,000$ but not for 100,384$ which is supposed to give 26,615$ of tax owed. This also happens with two other incomes: 70,000 and 52,405. This formula needs to be the same for the entire column... ah!

 

[konew1]

My formula gives tax on 100384 at 26,615.50
It gives tax on 70000 at 17,500
Tax on 52405 at 12,221.50

I'm not going to do your homework for you, else you will never learn. I suggest you check that when you copied it down the column that it points at the right constant cells. Funny that all 3 problems for you are greater than 50,000 that is a tax break level. You should have noticed that.

 

[rescueraven]

I didn't mean for it to sound like I'm looking for an easy way out of doing my homework, I just don't understand. Its one o'clock where I live, and this is for tomorrow. I probably will never understand this anyway so I'm giving up. Thank you for all your help thus far.

 

[AusSteelMan]

Be sure to let konew1 how many marks he gets...

ASM

 

[drsarao]

If IF is must then try:
=IF(B1 > 50000,(B1-50000)*30%+11500,IF(B1 > 20000,(B1-20000)*25%+4000,B1*20%))