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Tax Calculator

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  1. #1
    Registered User
    Join Date
    07-23-2010
    Location
    dayton, ohio
    MS-Off Ver
    Excel 2007
    Posts
    2

    Arrow Tax Calculator

    I'm trying to make a module to determine federal income tax owed based on annual income. I have a drop down list to select filing status, "Single"
    "Married Filing Jointly"
    "Married Filing Separatley"
    "Head of Household", and an annual income calculator to determine income, but I can't figure out how to tie those two inputs together to calculate tax owed.
    I could do an extremely long if(and( nested statement but I would like to make the module updatable for future years, and a nested statement like that would be a pain to change.
    I have entered each tax schedule into the workbook, and I'm thinking some formula with vlookup would be my only bet, but I just can't figure it out.
    I have attached the workbook, and any help would be greatly appreciated. Thanks
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  2. #2
    Forum Contributor
    Join Date
    08-11-2009
    Location
    USA
    MS-Off Ver
    Excel 2003
    Posts
    149

    Re: Tax Calculator

    Most tax tables say "x% of the amount over $x plus $n". Your table is missing the "plus $n" (which is the sum of what the preceeding rows would be) so a compound VLOOKUP() would be nasty if not impossible. Therefore it's easier to do the calc on your "tax schedule" worksheet itself. I've inserted some rows at the top of your schedules and then used a VLOOKUP() and CHOOSE() to get the right numbers from below.

    (I'm in Excel 2003 so it's been saved back to that version)
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  3. #3
    Registered User
    Join Date
    07-23-2010
    Location
    dayton, ohio
    MS-Off Ver
    Excel 2007
    Posts
    2

    Re: Tax Calculator

    Masteff, thanks what you did works perfectly. Any idea how I could incorporate the allowances input into the federal tax withholding? I'm just not too familiar with how the allowances work.

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