Hi Clint,
It sounds like you're trying to create a formula that will calculate the appropriate federal tax withholding amount based on the
gross income figure in cell
D6. You've already figured out the formulas for each income range, so now we just need to combine them into one formula using
IF statements.
Here's how you can do it:
- Start by typing the following formula into the cell where you want the withholding amount to appear:
Code:
=IF(D6<=389,0,IF(D6<=1289,((D6-130.77)-389)*.15+28.70,IF(D6<=2964,((D6-130.77)-1289)*.25+163.70,IF(D6<=6262,((D6-130.77)-2964)*.28+582.45,((D6-130.77)-6262)*.33+1591.65))))
- This formula uses nested IF statements to check which income range the gross income figure in cell D6 falls into, and then applies the appropriate formula to calculate the withholding amount.
- The first IF statement checks if the gross income is less than or equal to $389. If it is, the withholding amount is zero.
- The second IF statement checks if the gross income is less than or equal to $1289. If it is, the formula for that income range is applied.
- The third IF statement checks if the gross income is less than or equal to $2964. If it is, the formula for that income range is applied.
- The fourth IF statement checks if the gross income is less than or equal to $6262. If it is, the formula for that income range is applied.
- If the gross income is greater than $6262, the formula for that income range is applied.
- Once you've entered the formula, press Enter to calculate the withholding amount based on the gross income figure in cell D6.