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Ron Rosenfeld Ron Rosenfeld is offline
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Default Federal tax withholding calculations - using IF statements..?

On Sun, 08 Jul 2007 20:18:20 -0700, joeu2004 wrote:

Of course, your formula works for the federal tables because the tax
computed for the lowest limit of one tax bracket is the same amount
computed for the highest limit of the previous tax bracket. For
example, (389-389)*15%+28.70, which your formula computes, is the same
as (389-102)*10%, which is the correct formula to use. (And
(102-102)*10% is the same as (102-0)*0%.)

IMHO (and I'm sure you would agree), that should be true of any
"reasonable" tax table. So it is easy to become complacent.

But a year or two ago, I discovered that the Georgia tables did not
have that nice property. Arrgghh!


I just looked at the Georgia Tax Rate Schedule for 2006 and your notion that it
is constructed differently then the Federal Tax Table does not seem to be the
case.

What am I missing?

Single

$- $- 1%
$750.00 $7.50 2%
$2,250.00 $37.50 3%
$3,750.00 $82.50 4%
$5,250.00 $142.50 5%
$7,000.00 $230.00 6%

MFJ or HoH

$- $- 1%
$1,000.00 $10.00 2%
$3,000.00 $50.00 3%
$5,000.00 $110.00 4%
$7,000.00 $190.00 5%
$10,000.00 $340.00 6%

MFS

$- $- 1%
$500.00 $5.00 2%
$1,500.00 $25.00 3%
$2,500.00 $55.00 4%
$3,500.00 $95.00 5%
$5,000.00 $170.00 6%

--ron