In case anyone was wondering the little piece of code below was modeled after a line from an example in the Excel help file of the IF function. This is a nested IF statement (four actually, so is that three nested and one statement?) that looks at tax backets in the referenced cells and calculates Federal tax based on taxable income input.
Two reasons this is valuable (if you do your own taxes or tax planning) -
1. You don't have to do visual table searches of the Tax Tables (actually a final lookup would be required since the tables are the standard and I think it's $50 steps)
2. More importantly, since the calculation is in Excel you can use Solver and/or Goal Seek to find answers to 'what if' scenarios
Finally, the references in the forumula make it relatively easy to update the process as the tax brackets change every year (at least the dollar amounts that define the boundaries of the brackets).
Posted by Jeremy Showalter at July 21, 2004 08:03 AMWhy are you doing your taxes in July?
Posted by: Jacob at July 21, 2004 01:45 PMJacob,
You raise a very good question. And my answer became so long I decided to post again.