Excel VLOOKUP for Tax Brackets Year 2021 with Examples

How to calculate progressive tax with tax brackets and VLOOKUP in Excel, with examples. Tax brackets show you the tax rate you will pay on each portion of your income.
The United States has a progressive tax system based on your Taxable income, not Gross income or Net Income. There are seven tax brackets and your income is taxed at different rates with a progressive tax system. The more you make, the higher the rate for that bracket.
For example, if you are single in 2021, the lowest tax rate of 10% is applied to your income's first $9,950. The next portion of your income is then taxed at 12%, and then 22%.
Blog post on 2021 tax brackets with VLOOKUP
chrismenardtraining.com/post/...
Example of Progressive Tax System
***********
If you are single in 2021, and your taxable income is 86,375, you would be taxed at the rates below.
10% for the first 9,950 = $950 in tax
12% for the next $30,575 = $3,669 in tax
22% for the next $45,850 = $10,087 in tax
Those three income numbers total $86,375 and the tax would be $14,751 (950+3,669+10,087).
Notice the more you make the higher the percentage.
Taxable Income
***********
Taxable income is your Adjusted Gross Income (AGI) minus either the Standard deduction or itemized deductions. Screenshot of IRS form 1040 for 2020 showing AGI and Taxable Income. AGI is line 11 and Taxable Income is line 15
drive.google.com/file/d/1v21p...
Chris Menard's Blog Post on Tax Brackets & XLOOKUP
chrismenardtraining.com/post/...
Learn Personal Finance with Microsoft Creators
• Playlist
Seven tax brackets for 2021
***********
For 2021, there are seven different tax brackets with tax rates of 10, 12, 22, 24, 32, 35, and 37 percent. The amount of tax you owe depends on both your taxable income and your filing status.
Standard deductions for 2021:
***********
Single and married filing separately $12,550
Married filing jointly $25,100
Head of household $18,800
Excel file for tax brackets and XLOOKUP
***********
chrismenardtraining.com/Files...
IRS Website with Tax Brackets and Standard Deductions for 2021
***********
www.irs.gov/newsroom/irs-prov...
Other Excel VLOOKUP videos:
-----------------------------------------------
XLOOKUP vs VLOOKUP & MATCH:
• XLOOKUP vs VLOOKUP & M...
Advanced VLookup with nested functions:
• Advanced VLookup with ...
Vlookup vs Index and Match in Excel:
• Vlookup vs Index and M...
Use a PivotTable and Vlookup to find out weekly revenue
• Use a PivotTable and V...
XLOOKUP videos by Chris Menard
***********
1) XLOOKUP - Excel's new awesome function by Chris Menard
• XLOOKUP - Excel's new ...
2) XLOOKUP vs. VLOOKUP and Match
• XLOOKUP vs VLOOKUP & M...
XLOOKUP availability
***********
Excel for Microsoft 365, Excel for Microsoft 365 for Mac, Excel for the web, Excel for iPad, Excel for iPhone, Excel for Android tablets, Excel for Android phones
And make sure you subscribe to my channel!
- EQUIPMENT USED --------------------------------
○ My camera - amzn.to/3vdgF5E
○ Microphone - amzn.to/3gphDXh
○ Camera tripod - amzn.to/3veN6Rg
○ Studio lights - amzn.to/3vaxyy5
○ Dual monitor mount stand - amzn.to/3vbZSjJ
○ Web camera - amzn.to/2Tg75Sn
○ Shock mount - amzn.to/3g96FGj
○ Boom Arm - amzn.to/3g8cNi6
- SOFTWARE USED --------------------------------
○ Screen recording - Camtasia - chrismenardtraining.com/camtasia
○ Screenshots - Snagit - chrismenardtraining.com/snagit
○ KZbin keyword search - TubeBuddy - www.tubebuddy.com/chrismenard
DISCLAIMER: Links included in this description might be affiliate links. If you purchase a product or service with the links I provide, I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel, so I can continue to provide you with free content each week!
#vlookup #excel #taxbrackets

[@JACKABOYDERP]

You are a lifesaver, I'm writing boundary value analysis tests and I needed a way to get income tax easily without changing too many numbers around.

[@brittanys9048]

This was very helpful for my personal finances for my small business. Thank you.

[@clearKermit]

Thank you so very much for this Chris! This video helped me get my budget on point for job offer negotiations over compensation. It really pays to have the numbers right and your video worked wonders, thanks again and will share with friends!

[@ChrisMenardTraining]

Glad it was helpful! Cool that you are using it for negotiations over compensation.

[@marriejames01]

Thank you! This helped me set up FIT for payroll. I just took the rate divided by the # of pay periods. It’s a good estimate.

[@ChrisMenardTraining]

Excellent! Thanks, Marrie.

[@aakarshit307]

Perfect, thank you!

[@ChrisMenardTraining]

You're welcome!

[@s.m.aggies7220]

Great work I thank you, I'm working on Every State Tax Bracket, what would be my taxes c/o each state potential Income for future Investments

[@mouhammadali9605]

Could you please explain index and match in several work sheets ?

[@danielcorbin6331]

I have tried many times and cannot get this formula to work. It would have been nice if you explained the logic in the cumulative tax column.

[@jimdumville5226]

Have you tried the sheet with a taxable income below $19900? Could not find value for me. Thanks.