Tax Brackets Explained using Excel's awesome XLOOKUP function

[@ChrisMenardTraining]

This is one of my personal finance videos on understanding tax brackets. For more videos covering personal finance, visit Microsoft's playlist - Learn Personal Finance with Microsoft Creators - where many of my videos are featured. kzbin.info/aero/PLXPr7gfUMmKw2RWTyxZzlv3Uf1viRq-1Y

[@DrewDBum]

Hi Chris, exactly what I was looking for.

[@ChrisMenardTraining]

Glad to help. Thank, Andy.

[@sarahherskovics8]

Thank you so much for this video, so clear and to the point, keep it up!!

[@ChrisMenardTraining]

Thanks, will do!

[@rarespace123]

This helped out tremendously, thank you so much!

[@ChrisMenardTraining]

You're very welcome!

[@ronalddaggett3581]

Great video for Finance and Excel. Thank you

[@ChrisMenardTraining]

Glad you enjoyed it! Thanks, Ronald.

[@n.bcritical9819]

Bless you sir ty so much instant subscrib

[@ChrisMenardTraining]

Thanks for the sub!

[@H87-u5o]

Thank you - this was exactly I was looking for!

[@ChrisMenardTraining]

You're welcome!

[@williamthompson86]

Thank you for this! Extremely helpful material!

[@ChrisMenardTraining]

William, you're very welcome!

[@waltdesiderio9581]

Excellent video! Just one point of clarification. The video correctly shows the IRS’s tax table and corresponding tax rates by using taxable income which is defined as adjusted gross income less the standard or itemized deductions. However, the effective tax rate, by definition, is the income tax as a percentage of adjusted gross income and not as a percentage of taxable income as demonstrated. What is shown in the video is a “blended” marginal tax rate and not the taxpayer’s effective tax rate. In other words, the effective tax rate is the actually tax rate on every dollar received before any deductions are applied. Just thought it was worth mentioning to avoid any confusion.

[@Countrylifecitywife]

Thank you.

[@ChrisMenardTraining]

You're welcome!

[@flyinghighfilms]

Very helpful, thank you!

[@ChrisMenardTraining]

You're welcome!

[@ukaszsotkiewicz3879]

Hi, maybe I'm wrong, but shouldn't you change the parameter [match_mode] to 1 instead of -1 in last XLOOKUP because you want to get the tax % for the amount exceeding last found (not bigger) tax rate. So for your 50 000 example the last 9 475 should be taxed with 24% and not 22% as you mentioned. Please correct me if I'm wrong.

[@YourHaloCreations]

Thank you! Very helpful

[@ChrisMenardTraining]

You're welcome!

[@natelee6197]

Great video, what a lifesaver!

[@ChrisMenardTraining]

Great to hear!

[@asmaaembaby5581]

Do you have a video on how you set up the functions/formula for the tax rate?

[@ChrisMenardTraining]

I'm not sure what you are asking. I used XLOOKUP to find out the tax bracket rate.

[@jamesbeattey3992]

Chris - in your video you showed the IRA standard deduction, but did not subtract that from income in your calculations. I assume you'd make that adjustment if you were really trying to dial this in?

[@ChrisMenardTraining]

My video is based on Taxable income, line 15 of form 1040. Form 1040, line 11 is your Adjusted Gross Income (AGI) and the next line, line 12, is where you subtract the standard dedcution. At 4:52 in the video, when I show 50,000, that would be line 15 (After standard deduction). Line 11 would be 62,400 (not shown in the video), and line 12 would be the 12,400 standard deduction for Single. Jump to 10:15 and the tax owed on the 50k is 6,748.50 (line 16 on 1040). Make sense?

[@jamesbeattey3992]

@@ChrisMenardTraining Yes - so if I was working from Gross Income - I'd need to make the subtraction. If I'm working from AGI - it's already included. No need to respond unless I have it wrong. Great video - appreciate the patient detail. Thanks.

[@paulhofmeister1547]

Hi Chris, The formula does not seem to work for an income in the lowest bracket; say USD 5,000

[@brisasimmons3620]

Thanks!

[@ChrisMenardTraining]

Glad to help! Thank you! Much appreciated.

[@emmadkareem5247]

Thank you for the video but it is very confusing. The mathematical concept needs good explanation before introduction of Vlookup. I am yet to see anyone explain the subject in a real good way!

[@waynejennings9092]

how to show horizontal grid lines

[@biblestoriesandbibleverses5612]

1st like 1st view😉

[@ChrisMenardTraining]

Thank you!

[@delbatchio]

Nice work