Frequent budget adjustments when the gross amount of the adjustment is know.
I need to calculate backwards for the tax burden to come up with the net

To calculate gross income:

1. Determine the tax rate.
2. Subtract any deductions from the net amount.
3. Divide by the after-tax percentage.

Here's an example:
Let's say your net income is and the tax rate is 20%. You also have a retirement contribution of .
1. Subtract the retirement contribution from the net income: $50,000 - $5,000 = $45,000.
2. Divide by the after-tax percentage: $45,000 / 0.8 = $56,250.

To calculate net income:
Subtract any taxes and deductions from the gross amount.

To adjust your budget:
1. Determine the tax rate and any deductions.
2. Divide the net amount by the after-tax percentage to calculate the gross amount of the adjustment.
3. Subtract the taxes to determine the net amount.

Here's an example:
Let's say you need to adjust your budget by . The tax rate is 25% and there are no other deductions.
1. Divide the net amount by the after-tax percentage: $1,000 / 0.75 = $1,333.33.
2. Subtract the taxes: $1,333.33 * 0.25 = $333.33.
3. Determine the net amount: $1,000 - $333.33 = $666.67.

Hi,
I am lost here usually you have your gross less your taxes = Your net

assuming gross is in a1, tax in b1(calculated based on 10% taxes) in c1 the
net will be

=a1-b1

Now if you know your net to get your gross will be

=c1/0.90

0.90 comes from 1-0.10 taxes



"placerpone" wrote:

Frequent budget adjustments when the gross amount of the adjustment is know.
I need to calculate backwards for the tax burden to come up with the net

Well, it depends what your tax rate is. Suppose it is 10% (i.e. 0.1),
then:

Net * 1.10 = Gross

Hence,

Net = Gross / 1.10

or:

Net = Gross / (1 + tax_rate)

Hope this helps.

Pete

On Dec 18, 5:21*pm, placerpone
wrote:
Frequent budget adjustments when the gross amount of the adjustment is know.
I need to calculate backwards for the tax burden to come up with the net

Net = Gross * (1 - TaxRate)
Net / (1 - TaxRate) = Gross

Regards,
Fred

"placerpone" wrote in message
...
Frequent budget adjustments when the gross amount of the adjustment is
know.
I need to calculate backwards for the tax burden to come up with the net