User talk:Alesander
Income Tax Table
[edit]
*These brackets are the taxable income plus the standard deduction for a joint return. That deduction is the first bracket. For example, a couple earning $88,600 by September owes $10,453; $1,865 for 10% of the income from $12,700 to $31,500, plus $8,588 for 15% of the income from $31,500 to $88,600. Now, for every $100 they earn, $25 is taxed until they reach the next bracket.
After making $400 more; going down to the 89,000 row the tax is $100 more. The next column is the tax divided by 89,000. The new law is the next column. This tax equals 10% of their income from $24,000 to $43,050 plus 12% from $43,050 to $89,000. The singles' sets of markers can be set up quickly. The brackets with its tax are cut in half.
Itemizers can figure the tax without moving the scale by taking the difference off the top. The couple above, having receipts for $22,700 in deductions, means that the last $10,000 of their income is tax free. After seven years the papers can be destroyed; if unchallenged.
Source and Method
This is a spreadsheet. To replicate; write the standard deduction in cell B2 and name it ak_1. Write and name the taxable income brackets plus 12,700 each in this column. In cells D2 to D8, write and name the marginal interest (ar_1 to 7). Starting at cell B14, write the income column. Copy this formula:
=IF(B14>ak_7,(B14-ak_7)*ar_7,0)+IF(B14>ak_6,(IF(B14>ak_7,ak_7,B14)-ak_6)*ar_6,0)+IF(B14>ak_5,(IF(B14>ak_6,ak_6,B14)-ak_5)*ar_5,0)+IF(B14>ak_4,(IF(B14>ak_5,ak_5,B14)-ak_4)*ar_4,0)+IF(B14>ak_3,(IF(B14>ak_4,ak_4,B14)-ak_3)*ar_3,0)+IF(B14>ak_2,(IF(B14>ak_3,ak_3,B14)-ak_2)*ar_2,0)+IF(B14>ak_1,(IF(B14>ak_2,ak_2,B14)-ak_1)*ar_1,0)
At cell C14, paste the formula. Ctrl-C that cell, and down arrow. Ctrl-V and down arrow fourteen times. Repeat this Ctrl-V function at cell C2.
"IRS 1040 '17" p. 104" https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
"Tax Cut and Jobs Act" https://www.documentcloud.org/documents/4330092-Tax-Cuts-and-Jobs-Act-2017.html
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