On Sat, 6 Dec 2008 21:11:01 -0800, Scoober
wrote:

Thanks Ron,

I understand what you have discribed to do, but have no understanding of
setting up a tax table, sorry?

Cheers Scott

Sorry, I thought it would be obvious.

The table contains the values from which the tax is computed.

You "set it up" by entering those values in a range of cells in the manner in
which I posted.

You could have pasted it directly into your spreadsheet.

To be more specific:

Set up this table and NAME it TaxTbl (or use the absolute address reference):

$ 0 0.00 12.5%
$17,500 $2,187.50 21%
$40,000 $6,912.50 33%
$75,000 $18,462.50 39%

The middle column is the cumulative tax paid on the amount in the first column,
so can be given by a formula:

Assume table is in H1:J4

I1: 0
I2: =J1*(H2-H1)+I1

and fill down to I4

So you would make the following entries:

H1: $0
I1: $0
J1: 12.5%
H2: $17,500
I2: 2187.5
J2: 21.0%
H3: $40,000
I3: 6912.5
J3: 33.0%
H4: $75,000
I4: 18462.5
J4: 39.0%

OR, you could use formulas in column I:

H1: $0
I1: $0
J1: 12.5%
H2: $17,500
I2: =J1*(H2-H1)+I1
J2: 21.0%
H3: $40,000
I3: =J2*(H3-H2)+I2
J3: 33.0%
H4: $75,000
I4: =J3*(H4-H3)+I3
J4: 39.0%

OR, you could just copy/paste the table I posted in my initial response to you.

With regard to the formula in A2, you could use either the one I posted
previously:

=VLOOKUP(A1,TaxTbl,2)+
(A1-VLOOKUP(A1,TaxTbl,1))*
VLOOKUP(A1,TaxTbl,3)

Or, if you can't figure out how to NAME a range in Excel by using HELP, you can
substitute the actual cell references:

=VLOOKUP(A1,H1:J4,2)+
(A1-VLOOKUP(A1,H1:J4,1))*
VLOOKUP(A1,H1:J4,3)

If you put your Tax Table someplace else, you will need to adjust the range
references to reflect that new location.
--ron