US How to compute estimated 2022 federal tax from taxable income (ie. compute line 16 from line 15 in form 1040 only)

DISCLAIMER. this tiny program is used to compute estimated federal tax due for 2022 from a taxable income amount based on the table percentage method describe below. it is NOT meant to do a federal tax return. i was just interested in the method and i just thought to share how i implemented it. Please do not use this to compute your tax. always follow what your form104 instructs you to do.

i had just come across this page that describes how federal tax is computed from a taxable income anount and immediately, i was challenged how the tabular algorithm could be done (maybe not easily -for me) in app inventor.

(link to article)

here's another article from another tax computation service.

first you select how you plan to file:

provide your taxable income and this tiny app will display this.

here's the aia
fedtax.aia (6.1 KB)

note the app table is currently preloaded with 2022 values.

edit. it has occured to me that tax preparation software companies like intuit and forbes can publish tables like the one above, yet the IRS doesn't publsh them (not the full table) at their site (tax computation worksheet). for low taxable income amounts they provide a look up table like what was used for the example below:

but when i use the tables from the forbes or intuit, i get this answer (which is $3 less than the example):

Using my own example, i tried to compute tax for a single person with a taxable income of 120000, the IRS documentation offers this form:

and when i compute it using google sheet,

it agrees with what my tiny program computes:

To which tax regime does this apply? USA ?

yes - l'll update title

No Tax income slab, not there, have to pay tax for every $ :wink:

you have to file a lot of deductions (interests, expenses, mortgage, medical, etc) against your gross income to arrive at a low (or zero) taxable income, to get low (or zero) tax!

Thanks, but I was concerned about a Income Slab which attract No income tax and no need to submit any docmuments, and I just also read that there are some states and municipal authorities can have there own tax criterias also, than that will make calculating tax somewhtat complicated.

Few states impose an income tax at rates that exceed 10%, isn't it?

i'm not an expert - this is federal tax - nation wide - so it probably applies everywhere without exception. i've never heard of such an "income slab" that requires no tax. you mention state tax - that's on top of federal tax (ie. additional tax!)

edit - i looked it up, income slab seems to apply to India. as this article title says, this program is meant for US federal tax.only.

you are right, I was just surprise to know about!

Great! contribution, and if get to know more about Taxation and all, you can definitely add more logic to your app and update in your post to make it more updated version. :+1:

i saw that artilce about income slabs

it's not too different from the way tax is computed in the US and income slabs can be processed as tables too except that there ae a few extra options.

Mybe you should make app inventor app to help facilitate the computation of tax using income slabs!

Right, but slabs are nothing but just income category, as you mentioned $0 - $10,275 with 10% tax, you have did it, what else you want to me to add. Ahh, I can add - Rs 0.0 – Rs 2.5 lakh - NIL. But, I think taxation is not just about considering income slabs, there are more stuffs to be considered. You might need to have some Commerse knowledge too.

@manyone You are attempting only a small part of the US Tax calculations. The laws are VERY complex.

Perhaps you should read

Your app does not do a US Fed tax 2022 computation. Sorry. You might have computerized only the tax tables ( which are only a small part of the process of determining taxes in the USA). You have probably a years worth of coding remaining to calculate even a simple tax return. It is not even certain you have replicated the tax tables. :cry:

Did you follow the IRS instructions? . You can use them as a guide to finish your ambitious app. :slight_smile:

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i've put a disclaiimer on my post and i've changed the title. i just wanted to share my approach (but who cares).
anyway i saw from the IRS documentation that they do use the tables i got from the tax preparation sites and for amounts over 100000, my results agree with their suggested method. however, i'm confused that for lower amounts, the IRS uses a pre-computed table instead of formula.

is there a category for filing this thread elsewhere, other than showcase?

The IRS procedures are VERY complex. Under certain circumstances, many filers pay 0 tax. :astonished:

Some individuals pay no tax because of all the special circumstances they qualify for.

Of course. App Showcase if fine. :slight_smile: Add a question mark to the end of your revised title and you could categorize it as as MIT App Inventor Help,. Or place it in General Discussion .

The topic is an huge coding challenge for all programmers. The tax code is huge.
Good luck with your Project.