Apply the RI, SC, UT, VT, WV and WI rules for a filer who can be claimed as a dependent

changelog.d/claimable-filer-ri-sc-ut-vt-wv-wi.fixed.md

@@ -0,0 +1,7 @@
+Apply the Rhode Island, South Carolina, Utah, Vermont, West Virginia and Wisconsin rules for a filer who can be claimed as a dependent: dependent exemptions, deductions and child credits on such a return, the Wisconsin dependent standard deduction and $250 exemption, the West Virginia exemptions and family credit, the Rhode Island and Vermont claimant tests for property tax relief and the renter credit, and Wisconsin's care subtraction and credit expenses.
+
+Preserve claimable-filer counts and the dependent-claimant filing exception in the contributed Rhode Island, South Carolina, Utah, Vermont and West Virginia exemption reforms. Preserve the Rhode Island and Wisconsin filer counts under the state dependent exemption repeal. For West Virginia units without dependents, preserve the statutory $500 allowance per claimable filer in the baseline, contributed reform and repeal override; retain existing dependent allocation pending resolution.
+
+Exclude pretax payroll deductions from Wisconsin dependent standard deduction earnings on both tax paths.
+
+Use HUD zero-bedroom rents for zero-exemption Vermont renters in every stored fair market rent year (2021–2025).

policyengine_us/parameters/gov/states/vt/tax/income/credits/renter/fair_market_rent.yaml

@@ -1,12 +1,12 @@
-description: Vermont sets these fair market rent amounts, based on the county and household size.
+description: Vermont sets these fair market rent amounts, based on the county and the number of bedrooms allowed by personal exemptions.
 metadata:
   propagate_metadata_to_children: true
   unit: currency-USD
   period: month
   breakdown:
-  - list(range(1,9))
+  - list(range(0,9))
   breakdown_labels:
-  - Household size
+  - Bedrooms (personal exemptions)
   label: Vermont fair market rent amount
   reference:
     # The values are derived from the renter credit computation tables which represent 10% of the
@@ -43,9 +43,19 @@ metadata:
     href: https://www.huduser.gov/portal/datasets/fmr/fmr2022/FY22_FMRs.xlsx
   - title: HUD FY2021 Fair Market Rents
     href: https://www.huduser.gov/portal/datasets/fmr/fmr2021/FY21_4050_FMRs_rev.xlsx
+  - title: "HUD FY2021 Final Fair Market Rent Schedule #page 48-49"
+    href: https://www.huduser.gov/portal/datasets/fmr/fmr2021/FY2021-ScheduleB.pdf#page=48
+  - title: "HUD FY2022 Fair Market Rent Schedule #page 48-50"
+    href: https://www.huduser.gov/portal/datasets/fmr/fmr2022/FY2022_FMR_Schedule.pdf#page=48
+  - title: "HUD FY2023 Fair Market Rent Schedule #page 49-50"
+    href: https://www.huduser.gov/portal/datasets/fmr/fmr2023/FY2023_FMR_Schedule.pdf#page=49
+  - title: "HUD FY2024 Fair Market Rent Schedule #page 51-52"
+    href: https://www.huduser.gov/portal/datasets/fmr/fmr2024/FY2024_FMR_Schedule.pdf#page=51
+  - title: "HUD FY2025 Fair Market Rent Schedule #page 51-52"
+    href: https://www.huduser.gov/portal/datasets/fmr/fmr2025/FY2025_FMR_Schedule.pdf#page=51
 # Each county's value is HUD's fair market rent for the fiscal year that includes
 # June 30 of the taxable year (FY2025 for 2025), for the county's HUD area, with
-# household size n using the min(n, 4)-bedroom rent. Chittenden's 2,083 is the
+# exemption count n using the min(n, 4)-bedroom rent. Chittenden's 2,083 is the
 # rent at which 10% x 12 reaches the $2,500 maximum the department applies to
 # the credit amount (2,500 / 1.2 = 2,083.33).
 #
@@ -64,6 +74,104 @@ metadata:
 # - 2023 reconstruction: the average with the Burlington four-bedroom rent
 #   (2,170) held to 2,083.33 (all 12 unadjusted give 1,913, not the published 1,904).
 # - 2025: the unrounded average (1,057.75 x 1.2 = 1,269.3, published 1,269).
+# Zero-bedroom rents below are the published HUD 0 BR amounts. Franklin and
+# Grand Isle use the unrounded arithmetic mean of all 12 Vermont HUD FMR areas,
+# following the state-average rule in 6061(7)(C). This is the averaging convention
+# that reproduces the department's unrounded 2025 rents. These zero-bedroom
+# values are calculated from HUD schedules rather than department credit tables.
+# The unrounded 12-area method is used in every year. It differs from the
+# existing 1-4 bedroom reconstructions in 2021 and 2024 (whole-dollar rounding)
+# and 2022 (Addison excluded). Applying those alternatives to zero bedrooms
+# gives full-year credits of $883 either way in 2021, $919 versus $918 in 2022,
+# and $1,172 versus $1,171 in 2024 (this method first); 2023 and 2025 agree.
+# A 14-county average instead weights the Burlington area three times and
+# gives a 2025 zero-bedroom credit of $1,273 versus this method's $1,209.
+# Section 6061(7)(C) does not specify averaging weights or intermediate rounding.
+0:
+  ADDISON_COUNTY_VT:
+    2021-01-01: 751
+    2022-01-01: 779
+    2023-01-01: 842
+    2024-01-01: 1_017
+    2025-01-01: 1_096
+  BENNINGTON_COUNTY_VT:
+    2021-01-01: 710
+    2022-01-01: 763
+    2023-01-01: 849
+    2024-01-01: 936
+    2025-01-01: 936
+  CALEDONIA_COUNTY_VT:
+    2021-01-01: 708
+    2022-01-01: 741
+    2023-01-01: 810
+    2024-01-01: 899
+    2025-01-01: 905
+  CHITTENDEN_COUNTY_VT:
+    2021-01-01: 1_091
+    2022-01-01: 1_033
+    2023-01-01: 1_139
+    2024-01-01: 1_341
+    2025-01-01: 1_380
+  ESSEX_COUNTY_VT:
+    2021-01-01: 560
+    2022-01-01: 585
+    2023-01-01: 730
+    2024-01-01: 812
+    2025-01-01: 823
+  FRANKLIN_COUNTY_VT:
+    2021-01-01: 736.0833333333334
+    2022-01-01: 766
+    2023-01-01: 849.0833333333334
+    2024-01-01: 976.3333333333334
+    2025-01-01: 1_007.6666666666666
+  GRAND_ISLE_COUNTY_VT:
+    2021-01-01: 736.0833333333334
+    2022-01-01: 766
+    2023-01-01: 849.0833333333334
+    2024-01-01: 976.3333333333334
+    2025-01-01: 1_007.6666666666666
+  LAMOILLE_COUNTY_VT:
+    2021-01-01: 788
+    2022-01-01: 801
+    2023-01-01: 874
+    2024-01-01: 913
+    2025-01-01: 883
+  ORANGE_COUNTY_VT:
+    2021-01-01: 740
+    2022-01-01: 787
+    2023-01-01: 852
+    2024-01-01: 976
+    2025-01-01: 1_013
+  ORLEANS_COUNTY_VT:
+    2021-01-01: 592
+    2022-01-01: 638
+    2023-01-01: 706
+    2024-01-01: 831
+    2025-01-01: 845
+  RUTLAND_COUNTY_VT:
+    2021-01-01: 764
+    2022-01-01: 814
+    2023-01-01: 904
+    2024-01-01: 991
+    2025-01-01: 992
+  WASHINGTON_COUNTY_VT:
+    2021-01-01: 717
+    2022-01-01: 760
+    2023-01-01: 839
+    2024-01-01: 985
+    2025-01-01: 1_075
+  WINDHAM_COUNTY_VT:
+    2021-01-01: 697
+    2022-01-01: 734
+    2023-01-01: 803
+    2024-01-01: 976
+    2025-01-01: 1_020
+  WINDSOR_COUNTY_VT:
+    2021-01-01: 715
+    2022-01-01: 757
+    2023-01-01: 841
+    2024-01-01: 1_039
+    2025-01-01: 1_124
 1:
   ADDISON_COUNTY_VT:
     2021-01-01: 846

policyengine_us/parameters/gov/states/wv/tax/income/exemptions/base_personal.yaml

@@ -1,12 +1,14 @@
-description: West Virginia provides an income tax exemption of this value for tax units with no exemptions claimed.
+description: West Virginia provides this personal income tax exemption for each individual who is claimable as a dependent on another return.
 values:
   1987-01-01: 500
 
 metadata:
   period: year
   unit: currency-USD
-  label: West Virginia personal exemption
+  label: West Virginia claimable filer personal exemption
   reference:
+  - title: 1988 West Virginia H.B. 4472, enacted personal exemptions, pages 9-10
+    href: https://code.wvlegislature.gov/signed_bills/1988/1988-RS-HB4472-SUB%20ENR_signed.pdf#page=9
   - title: West Virginia Personal Income Tax Forms And Instructions 2025
     href: https://tax.wv.gov/Documents/PIT/2025/it140.PersonalIncomeTaxFormsAndInstructions.2025.pdf#page=26
   - title: West Virginia Personal Income Tax Forms And Instructions 2024

policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py

@@ -152,7 +152,10 @@ class ri_exemptions(Variable):
         def formula(tax_unit, period, parameters):
             p = parameters(period).gov.states.ri.tax.income.exemption
 
-            exemptions_count = tax_unit("head_spouse_count", period)
+            # Repeal removes dependents, preserving the baseline filer count.
+            exemptions_count = tax_unit(
+                "head_spouse_count_not_dependent_elsewhere", period
+            )
 
             exemption_amount = exemptions_count * p.amount
 
@@ -215,10 +218,26 @@ class wv_personal_exemption(Variable):
 
         def formula(tax_unit, period, parameters):
             p = parameters(period).gov.states.wv.tax.income.exemptions
-            tax_unit_size = tax_unit("head_spouse_count", period)
-            return where(
-                tax_unit_size == 0, p.base_personal, p.personal * tax_unit_size
+            own_exemptions = tax_unit(
+                "head_spouse_count_not_dependent_elsewhere", period
+            )
+            # Repeal preserves each childless claimable filer's statutory $500.
+            # Leave dependent-present allocation unchanged pending resolution.
+            person = tax_unit.members
+            claimable_filers = tax_unit.sum(
+                person("is_tax_unit_head_or_spouse", period)
+                & person("claimable_as_dependent_on_another_return", period)
             )
+            filer_allowances = (
+                p.personal * own_exemptions + p.base_personal * claimable_filers
+            )
+            childless_claimable = (tax_unit("tax_unit_dependents", period) == 0) & (
+                claimable_filers > 0
+            )
+            ordinary_amount = where(
+                own_exemptions == 0, p.base_personal, p.personal * own_exemptions
+            )
+            return where(childless_claimable, filer_allowances, ordinary_amount)
 
     class ca_exemptions(Variable):
         value_type = float
@@ -373,7 +392,6 @@ def formula(tax_unit, period, parameters):
             )
             return exempt_status.base[filing_status] + personal_exemptions_added
 
-    # Using head and spouse count instead of exemptions count
     class wi_base_exemption(Variable):
         value_type = float
         entity = TaxUnit
@@ -392,7 +410,11 @@ class wi_base_exemption(Variable):
         def formula(tax_unit, period, parameters):
             # compute base exemption amount
             p = parameters(period).gov.states.wi.tax.income
-            return tax_unit("head_spouse_count", period) * p.exemption.base
+            # Repeal removes dependents, preserving the baseline filer count.
+            own_exemptions = tax_unit(
+                "head_spouse_count_not_dependent_elsewhere", period
+            )
+            return own_exemptions * p.exemption.base
 
     class de_personal_credit(Variable):
         value_type = float

policyengine_us/reforms/states/ri/exemption/ri_exemption_reform.py

@@ -16,7 +16,10 @@ def formula(tax_unit, period, parameters):
 
             person = tax_unit.members
             age = person("age", period)
-            is_dependent = person("is_tax_unit_dependent", period)
+            # Retain the baseline dependent taxpayer test and filing exception.
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
 
             # Apply age limit if in effect
             if p.age_limit.in_effect:
@@ -83,7 +86,10 @@ class ri_older_dependents_count(Variable):
 
         def formula(tax_unit, period, parameters):
             person = tax_unit.members
-            is_dependent = person("is_tax_unit_dependent", period)
+            # Retain the baseline dependent taxpayer test and filing exception.
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
             total_dependents = tax_unit.sum(is_dependent)
             eligible_dependent_exemptions = tax_unit(
                 "ri_eligible_dependents_count", period
@@ -101,17 +107,13 @@ class ri_exemptions(Variable):
         def formula(tax_unit, period, parameters):
             p_base = parameters(period).gov.states.ri.tax.income.exemption
 
-            # Calculate personal exemptions base amount
-            filing_status = tax_unit("filing_status", period)
-            older_dependents = tax_unit("ri_older_dependents_count", period)
-            personal_exemptions = (
-                where(
-                    filing_status == filing_status.possible_values.JOINT,
-                    2,
-                    1,
-                )
-                + older_dependents
+            # Preserve the baseline exclusion of claimable filers, even when
+            # the filing exception permits them to claim their dependents.
+            own_exemptions = tax_unit(
+                "head_spouse_count_not_dependent_elsewhere", period
             )
+            older_dependents = tax_unit("ri_older_dependents_count", period)
+            personal_exemptions = own_exemptions + older_dependents
             personal_exemption_base = personal_exemptions * p_base.amount
 
             # Apply baseline phase-out to personal exemptions

policyengine_us/reforms/states/sc/dependent_exemption/sc_dependent_exemption_reform.py

@@ -21,7 +21,11 @@ def formula(tax_unit, period, parameters):
                 period
             ).gov.states.sc.tax.income.deductions.dependent_exemption.amount
             person = tax_unit.members
-            is_dependent = person("is_tax_unit_dependent", period)
+            # Apply the dependent taxpayer test before either age path,
+            # preserving the claimant filing exception (IRC 152(b)(1)).
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
             # Age gate: when in effect, only dependents under the chosen age
             # are re-priced to the reform amount; older dependents keep the
             # baseline exemption. Otherwise every dependent is re-priced,

policyengine_us/reforms/states/ut/dependent_exemption/ut_dependent_exemption_reform.py

@@ -33,7 +33,13 @@ def formula(tax_unit, period, parameters):
                 return p.personal_exemption * total_dependents
             person = tax_unit.members
             age = person("age", period)
-            dependent = person("is_tax_unit_dependent", period)
+            # A return on which the filer (or, if joint, either spouse) can be
+            # claimed as a dependent has no dependents (IRC 152(b)(1)) outside
+            # the claimant filing exception, as in the baseline
+            # ut_total_dependents.
+            dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
             # Dependents under the age threshold (all dependents when the
             # age limit is off) take the contrib amount; older dependents
             # keep the baseline (uprated) personal-exemption amount.

policyengine_us/reforms/states/vt/dependent_exemption/vt_dependent_exemption_reform.py

@@ -15,7 +15,10 @@ def formula(tax_unit, period, parameters):
 
             person = tax_unit.members
             age = person("age", period)
-            is_dependent = person("is_tax_unit_dependent", period)
+            # Retain the baseline dependent taxpayer test and filing exception.
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
 
             # Apply age limit if in effect
             if p.age_limit.in_effect:
@@ -49,7 +52,11 @@ class vt_older_dependents_count(Variable):
 
         def formula(tax_unit, period, parameters):
             person = tax_unit.members
-            is_dependent = person("is_tax_unit_dependent", period)
+            # Mask the fallback too, so disallowed children cannot reappear
+            # as older dependents after the eligible count is reduced.
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
             total_dependents = tax_unit.sum(is_dependent)
             eligible_dependent_exemptions = tax_unit(
                 "vt_eligible_dependents_count", period