Calculating Federal Income Taxes Using Excel | 2023 Tax Brackets

In this video, I use a simple Excel example to show how you can calculate federal income taxes depending on your taxable income and tax bracket. In the process you will also learn the difference between your average and marginal tax rate.

Reference: Qs 2-4, Corporate Finance 13e [Ross, Westerfield, Jaffe, Jordan]

[Elephantine]

I had thought this calculation would be easier than it was for me. After a couple of failed attempts at doing it myself, I found this and learned some new things. Thank you!

[TallDrinkofDaniel]

Wow. A no frills, concise, well constructed video. Thank you.

[samblasc]

Thanks so much, I was doing but I couldn't find the formula for the last tax rate, thanks a lot!

[WelamAne]

Good👍👍. I like the way you took your time to explain in details. Makes it easier to understand. 👍👍

[AlbertMUBANGA-cq]

Thank you very much, professor Ikram☺

[bonjoursaigon]

Incredible and very good explanation. Great teacher! :-)

[mwa]

Thanks! This is good... It would be much easier to follow along if the cell references (rows and columns) were visible.

[garycurtis]

This is so helpful and explained very clearly. Thank you so much. Would this apply to 2024 Taxes, or have the brackets changed? Also do these taxes cover social Security?

[UrAvgTxDad]

You didn't explain how to do it for the last tax bracket. How would you calculate the taxes for everything over the last amount?\

[BaldytheBear]

Question. So does this include the standard deduction? For example if the taxes owed are 33000 would I then subtract the standardized deduction for whatever that year is? 33000-14000 for example would be 19000 left over that I would actually owe?

[mbeydiya]

Hello there and thank you for the video! What happened to the standard deduction? Where do you remove that from?

[gethachellaiah]

For the average tax rate (married) 17.03% is at percentage 22%

[usmaniqbal]

Sr, please share Excel file for practice

[sidl]

Just a question, Wt about standard deduction?

[gabesellsatx]

I tested out your calculator some parts are wrong for the if function on the married filed jointly part!

[natalieomeara]

What would the formula look like for D26 & D45

[Mr._L.]

I’m lost already. I made 63, 933, so can that simply be explained cause I’m still lost and have watched your video about 5 times already.