From 1f0cd1b0f918fc3e51441ae08711e65a9ca8d181 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Thu, 8 Oct 2026 11:03:59 -0400 Subject: [PATCH 01/25] Make head_is_dependent_elsewhere consumers independent of the head label The federal standard deduction and 17 state formulas read only whether the tax-unit head is claimed elsewhere, so a joint return where one spouse can be claimed was taxed differently depending on which spouse was labelled head. Each formula now applies its jurisdiction's rule for that case (either spouse, single filers only, per spouse, or only when every filer is claimed), using two new label-independent helpers. Adds swap-pair YAML cases and a Hypothesis property test. Co-Authored-By: Claude Opus 5.5 --- .../head-dependent-elsewhere-swap.fixed.md | 1 + .../itemized/threshold/dependent.yaml | 2 +- .../exemptions/dependent_on_other_return.yaml | 17 +- .../standard/dependent_elsewhere.yaml | 4 +- ...t_elsewhere_head_spouse_swap_invariance.py | 355 ++++++++++++++++++ .../standard/basic_standard_deduction.yaml | 56 +++ .../hi/tax/income/credits/act_163_sunset.yaml | 4 - .../food_excise/hi_food_excise_credit.yaml | 89 ++++- .../tax/income/credits/hi_act_115_rebate.yaml | 90 +++++ ...w_income_household_renters_tax_credit.yaml | 64 ++++ ...low_income_household_renters_eligible.yaml | 91 ++++- .../tax/income/deductions/hi_deductions.yaml | 134 ++++++- .../hi_salt_deduction_integration.yaml | 6 +- ...me_sales_tax_fairness_credit_eligible.yaml | 85 ++++- .../tax/income/exemptions/mi_exemptions.yaml | 148 +++++++- .../income/credits/wftc/mo_wftc_eligible.yaml | 56 +++ .../income/credits/cdcc/nm_cdcc_eligible.yaml | 105 +++++- .../credits/nm_medical_expense_credit.yaml | 92 ++++- ...ction_for_certain_dependents_eligible.yaml | 86 ++++- .../2021_income/nm_2021_income_rebate.yaml | 90 ++++- .../nm_additional_2021_income_rebate.yaml | 89 ++++- .../nm_supplemental_2021_income_rebate.yaml | 89 ++++- .../deductions/ny_standard_deduction.yaml | 94 +++++ .../standard/or_standard_deduction.yaml | 60 ++- .../va_low_income_tax_credit_eligible.yaml | 56 ++- ...head_or_spouse_is_dependent_elsewhere.yaml | 114 ++++++ ..._spouse_count_not_dependent_elsewhere.yaml | 114 ++++++ .../basic_standard_deduction.py | 14 +- .../food_excise/hi_food_excise_credit.py | 25 +- .../hi_food_excise_exemption_amount.py | 18 +- .../tax/income/credits/hi_act_115_rebate.py | 16 +- ...low_income_household_renters_tax_credit.py | 30 +- ...r_low_income_household_renters_eligible.py | 16 +- .../hi/tax/income/deductions/hi_deductions.py | 27 +- .../me_sales_tax_fairness_credit_eligible.py | 16 +- .../mi/tax/income/exemptions/mi_exemptions.py | 29 +- .../mo/tax/income/credits/mo_wftc_eligible.py | 18 +- .../income/credits/cdcc/nm_cdcc_eligible.py | 20 +- .../credits/nm_medical_expense_credit.py | 16 +- ...duction_for_certain_dependents_eligible.py | 16 +- .../2021_rebate/nm_2021_income_rebate.py | 17 +- .../nm_additional_2021_income_rebate.py | 17 +- .../nm_supplemental_2021_income_rebate.py | 17 +- .../deductions/ny_standard_deduction.py | 20 +- .../deductions/or_standard_deduction.py | 11 +- .../va_low_income_tax_credit_eligible.py | 17 +- .../head_or_spouse_is_dependent_elsewhere.py | 21 ++ ...ad_spouse_count_not_dependent_elsewhere.py | 20 + 48 files changed, 2413 insertions(+), 179 deletions(-) create mode 100644 changelog.d/head-dependent-elsewhere-swap.fixed.md create mode 100644 policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py create mode 100644 policyengine_us/tests/policy/baseline/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.yaml create mode 100644 policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.yaml create mode 100644 policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.yaml create mode 100644 policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py create mode 100644 policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py diff --git a/changelog.d/head-dependent-elsewhere-swap.fixed.md b/changelog.d/head-dependent-elsewhere-swap.fixed.md new file mode 100644 index 00000000000..4b4d878f15f --- /dev/null +++ b/changelog.d/head-dependent-elsewhere-swap.fixed.md @@ -0,0 +1 @@ +The federal standard deduction and the New York, Michigan, Oregon, Virginia, Missouri, New Mexico, Maine and Hawaii rules for a filer claimed as a dependent elsewhere no longer depend on which spouse is labelled head; each follows its jurisdiction's rule for a joint return where one spouse can be claimed. New York's $3,100 dependent standard deduction now applies only to single filers, and Hawaii now limits the standard deduction of a filer who can be claimed as a dependent. diff --git a/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml b/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml index 0a894e4a148..3ff2ac9a451 100644 --- a/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml +++ b/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml @@ -1,4 +1,4 @@ -description: Hawaii allows for itemized deductions for dependent filers with deductions above this amount. +description: Hawaii limits the standard deduction of a filer who can be claimed as a dependent to the greater of this amount or earned income, and lets such a filer itemize deductions above that limit. values: 2018-01-01: 500 metadata: diff --git a/policyengine_us/parameters/gov/states/mi/tax/income/exemptions/dependent_on_other_return.yaml b/policyengine_us/parameters/gov/states/mi/tax/income/exemptions/dependent_on_other_return.yaml index 44fbabc57c8..46ca0dabbff 100644 --- a/policyengine_us/parameters/gov/states/mi/tax/income/exemptions/dependent_on_other_return.yaml +++ b/policyengine_us/parameters/gov/states/mi/tax/income/exemptions/dependent_on_other_return.yaml @@ -1,21 +1,10 @@ -description: Michigan provides this exemption amount for a taxpayer who can be claimed as a dependent on someone else’s return. -SINGLE: - 2021-01-01: 1_500 -JOINT: - 2021-01-01: 3_000 -HEAD_OF_HOUSEHOLD: - 2021-01-01: 1_500 -SURVIVING_SPOUSE: - 2021-01-01: 1_500 -SEPARATE: +description: Michigan provides this exemption amount to each individual who can be claimed as a dependent on another taxpayer's return, in place of that individual's personal exemption. +values: 2021-01-01: 1_500 metadata: - propagate_metadata_to_children: true unit: currency-USD period: year - breakdown: - - filing_status - label: Michigan dependent on other return exemption amount + label: Michigan exemption amount per individual claimable as a dependent elsewhere reference: - title: Michigan Legal Code Section 206.30 - (4) href: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-30 diff --git a/policyengine_us/parameters/gov/states/ny/tax/income/deductions/standard/dependent_elsewhere.yaml b/policyengine_us/parameters/gov/states/ny/tax/income/deductions/standard/dependent_elsewhere.yaml index 4744cadf89b..efe6e74704b 100644 --- a/policyengine_us/parameters/gov/states/ny/tax/income/deductions/standard/dependent_elsewhere.yaml +++ b/policyengine_us/parameters/gov/states/ny/tax/income/deductions/standard/dependent_elsewhere.yaml @@ -1,10 +1,10 @@ -description: New York standard deduction for filers who can be claimed as a dependent elsewhere. +description: New York provides this standard deduction to single filers who can be claimed as a dependent on another taxpayer's federal return. values: 2020-01-01: 3_100 metadata: unit: currency-USD period: year - label: New York standard deduction for dependent filers + label: New York standard deduction for single dependent filers reference: - title: 2021 NY Form IT-201 Instructions Line 34 href: https://www.tax.ny.gov/pdf/2021/inc/it201i_2021.pdf#page=19 diff --git a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py new file mode 100644 index 00000000000..8c3e6fc2c48 --- /dev/null +++ b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py @@ -0,0 +1,355 @@ +"""Rules for a filer claimed as a dependent elsewhere do not depend on which +spouse is labelled head. + +A married couple may list either spouse first, so exchanging the two adults' +`is_tax_unit_head` and `is_tax_unit_spouse` labels, with every other input +kept, must not change their taxes. On main, the federal standard deduction and +seventeen state formulas read only `head_is_dependent_elsewhere`, so a joint +return where one spouse can be claimed on another return (a joint return filed +only to recover withholding can meet the federal exception, IRS Publication +501) was taxed differently depending on which spouse was labelled head. Each +formula now applies its jurisdiction's rule for that case: + +- Either spouse limits the return (the IRC 63(c)(5) worksheet): the federal + standard deduction, Oregon's and Hawaii's standard deductions, and + Virginia's credit for low-income individuals. +- Only single filers: New York's dependent standard deduction. +- Each spouse separately: Michigan's exemptions and Hawaii's food/excise, + renters and Act 115 credits count only the filers who cannot be claimed. +- Only when every filer is a dependent: New Mexico's rebates, credits and + dependents deduction, and Maine's sales tax fairness credit. +- Never on a joint return: Missouri's working family credit, since such a + couple files as married filing combined. + +Hypothesis draws batches of married couples, with and without dependents, in +the eight states with such a rule and one without, for 2021-2026, with either, +both or neither spouse claimed elsewhere. A seeded population and crafted +cases add breadth in every year, and two seeded couples plus the review case +in every state guard 2026. Each batch is one vectorized simulation. For each couple: + +1. Swap invariance: federal income tax, state income tax before and after + refundable credits, and each of the eighteen formulas are the same to the + cent (or the same boolean) under either labelling. +2. Monotonicity: marking another filer as claimed elsewhere never raises any + of the eighteen amounts or turns an eligibility on. +3. The helper identities: `head_or_spouse_is_dependent_elsewhere` equals + `head_is_dependent_elsewhere | spouse_is_dependent_elsewhere`, and + `head_spouse_count_not_dependent_elsewhere` plus the claimed filers equals + the number of filers. +""" + +import numpy as np +import pytest +from hypothesis import HealthCheck, given, settings +from hypothesis import strategies as st + +from policyengine_us import Simulation +from policyengine_us.model_api import STATES + +TOLERANCE = 0.01 # dollars: the same to the cent +YEARS = [2021, 2022, 2023, 2024, 2025, 2026] +AFFECTED = ["HI", "ME", "MI", "MO", "NM", "NY", "OR", "VA", "CA"] +ALL_STATES = [s for s in STATES if s not in ("PR", "VI")] +TAX_UNIT_OUTPUTS = [ + "income_tax", + "state_income_tax", + "state_income_tax_before_refundable_credits", +] +# The formulas that read whether a filer is claimed elsewhere. +CONSUMERS = [ + "basic_standard_deduction", + "ny_standard_deduction", + "mi_exemptions", + "or_standard_deduction", + "va_low_income_tax_credit_eligible", + "mo_wftc_eligible", + "nm_2021_income_rebate", + "nm_additional_2021_income_rebate", + "nm_supplemental_2021_income_rebate", + "nm_deduction_for_certain_dependents_eligible", + "nm_medical_expense_credit", + "nm_cdcc_eligible", + "me_sales_tax_fairness_credit_eligible", + "hi_deductions", + "hi_act_115_rebate", + "hi_food_excise_credit", + "hi_tax_credit_for_low_income_household_renters_eligible", + "hi_tax_credit_for_low_income_household_renters", +] +CLAIM_PATTERNS = [(True, False), (False, True), (True, True), (False, False)] + + +def money(high): + return st.one_of(st.just(0.0), st.integers(1, high).map(float)) + + +@st.composite +def adults(draw): + # Low incomes reach the credits' limits; ages reach the 65+ rules. + return { + "age": draw(st.integers(18, 90)), + "is_blind": draw(st.booleans()), + "is_disabled": draw(st.booleans()), + "employment_income": draw(money(60_000)), + "self_employment_income": draw(money(20_000)), + "taxable_interest_income": draw(money(3_000)), + "social_security_retirement": draw(money(25_000)), + "real_estate_taxes": draw(money(6_000)), + "rent": draw(money(18_000)), + "charitable_cash_donations": draw(money(6_000)), + "other_medical_expenses": draw(money(40_000)), + } + + +@st.composite +def dependents(draw): + age = draw(st.integers(0, 23)) + return { + "age": age, + "is_full_time_student": age >= 18, + "employment_income": draw(money(10_000)), + "pre_subsidy_childcare_expenses": draw(money(8_000)), + } + + +@st.composite +def couples(draw): + return { + "state": draw(st.sampled_from(AFFECTED)), + "adults": [draw(adults()), draw(adults())], + "dependents": draw(st.lists(dependents(), max_size=2)), + "claimed": draw(st.sampled_from(CLAIM_PATTERNS)), + } + + +SEED = 20261008 + + +def _seeded_adult(rng): + def some(high, p): + return float(round(rng.uniform(1, high))) if rng.random() < p else 0.0 + + age = int(rng.integers(18, 91)) + return { + "age": age, + "is_blind": bool(rng.random() < 0.1), + "is_disabled": bool(rng.random() < 0.1), + "employment_income": some(60_000, 0.7), + "self_employment_income": some(20_000, 0.15), + "taxable_interest_income": some(3_000, 0.3), + "social_security_retirement": some(25_000, 0.5 if age >= 62 else 0.03), + "real_estate_taxes": some(6_000, 0.3), + "rent": some(18_000, 0.5), + "charitable_cash_donations": some(6_000, 0.3), + "other_medical_expenses": some(40_000, 0.15), + } + + +def _seeded_couples(states, per_state): + rng = np.random.default_rng(SEED) + return [ + { + "state": state, + "adults": [_seeded_adult(rng), _seeded_adult(rng)], + "dependents": [ + {"age": int(rng.integers(0, 18))} + for _ in range(int(rng.choice([0, 0, 1, 2]))) + ], + "claimed": CLAIM_PATTERNS[int(rng.integers(0, 3))], + } + for state in states + for _ in range(per_state) + ] + + +def _crafted_cases(states, review_case_only=False): + # The review case (married adults aged 20 earning $8,000 each, one + # claimed by a parent), with and without a child, and older couples who + # reach the 65+ and renter rules. + young = {"age": 20, "employment_income": 8_000.0, "rent": 6_000.0} + old = { + "age": 70, + "social_security_retirement": 12_000.0, + "rent": 9_000.0, + "other_medical_expenses": 30_000.0, + } + cases = [] + for state in states: + for claimed in CLAIM_PATTERNS[:3]: + cases += [ + { + "state": state, + "adults": [young, young], + "dependents": [], + "claimed": claimed, + }, + ] + if review_case_only: + continue + cases += [ + { + "state": state, + "adults": [young, {"age": 22, "employment_income": 3_000.0}], + "dependents": [{"age": 2}], + "claimed": claimed, + }, + { + "state": state, + "adults": [old, {**old, "age": 66}], + "dependents": [], + "claimed": claimed, + }, + ] + return cases + + +def _situation(units, year, variants): + # Each unit appears once per variant: (head is the first adult, first + # adult claimed, second adult claimed). People keep their order and every + # other input in every copy. + people = {} + groups = { + "tax_units": {}, + "spm_units": {}, + "families": {}, + "marital_units": {}, + "households": {}, + } + for i, unit in enumerate(units): + for copy, (first_is_head, claim_a, claim_b) in enumerate(variants(unit)): + a, b = f"a_{i}_{copy}", f"b_{i}_{copy}" + for name, amounts, is_head, claimed in ( + (a, unit["adults"][0], first_is_head, claim_a), + (b, unit["adults"][1], not first_is_head, claim_b), + ): + people[name] = { + **amounts, + "is_tax_unit_head": is_head, + "is_tax_unit_spouse": not is_head, + "is_tax_unit_dependent": False, + "claimed_as_dependent_on_another_return": claimed, + } + members = [a, b] + groups["marital_units"][f"couple_{i}_{copy}"] = {"members": [a, b]} + for j, amounts in enumerate(unit["dependents"]): + child = f"dependent_{i}_{copy}_{j}" + people[child] = { + **amounts, + "is_tax_unit_head": False, + "is_tax_unit_spouse": False, + "is_tax_unit_dependent": True, + } + members.append(child) + groups["marital_units"][f"single_{i}_{copy}_{j}"] = {"members": [child]} + for group, prefix in ( + ("tax_units", "tax_unit"), + ("spm_units", "spm_unit"), + ("families", "family"), + ): + groups[group][f"{prefix}_{i}_{copy}"] = {"members": members} + groups["households"][f"household_{i}_{copy}"] = { + "members": members, + "state_code": {year: unit["state"]}, + } + people = { + name: {k: {year: v} for k, v in values.items()} + for name, values in people.items() + } + return {"people": people, **groups} + + +def _swap_variants(unit): + claim_a, claim_b = unit["claimed"] + return [(True, claim_a, claim_b), (False, claim_a, claim_b)] + + +def _calc(sim, name, year): + return np.asarray(sim.calculate(name, year), dtype=float) + + +def _check_swap(units, year, outputs): + sim = Simulation(situation=_situation(units, year, _swap_variants)) + states = np.array([u["state"] for u in units]) + for name in outputs: + values = _calc(sim, name, year) + assert np.isfinite(values).all(), f"{name} in {year} is not finite" + drawn, swapped = values[0::2], values[1::2] + differs = ~(np.abs(swapped - drawn) <= TOLERANCE) + assert not differs.any(), ( + f"{name} in {year} changes when the head and spouse labels are " + f"exchanged: " + + ", ".join( + f"{states[i]} claimed={units[i]['claimed']} " + f"{drawn[i]:.2f} -> {swapped[i]:.2f}" + for i in np.flatnonzero(differs)[:10] + ) + ) + # 3. The helper identities. + either = _calc(sim, "head_or_spouse_is_dependent_elsewhere", year) + head = _calc(sim, "head_is_dependent_elsewhere", year) + spouse = _calc(sim, "spouse_is_dependent_elsewhere", year) + np.testing.assert_array_equal(either, np.maximum(head, spouse)) + independent = _calc(sim, "head_spouse_count_not_dependent_elsewhere", year) + np.testing.assert_array_equal(independent + head + spouse, 2) + + +def _monotone_variants(unit): + # Nobody, either adult, then both adults claimed; labels fixed. + return [ + (True, False, False), + (True, True, False), + (True, False, True), + (True, True, True), + ] + + +def _check_monotone(units, year): + sim = Simulation(situation=_situation(units, year, _monotone_variants)) + states = np.array([u["state"] for u in units]) + for name in CONSUMERS: + values = _calc(sim, name, year).reshape(-1, 4) + nobody, first, second, both = values.T + for more, fewer, label in ( + (first, nobody, "first adult"), + (second, nobody, "second adult"), + (both, first, "both after first"), + (both, second, "both after second"), + ): + rises = more > fewer + TOLERANCE + assert not rises.any(), ( + f"{name} in {year} rises when the {label} is claimed " + f"elsewhere: " + + ", ".join( + f"{states[i]} {fewer[i]:.2f} -> {more[i]:.2f}" + for i in np.flatnonzero(rises)[:10] + ) + ) + + +# A batch's cost is mostly per-variable overhead, so each example is a large +# batch and there are few examples. +@settings( + max_examples=6, + deadline=None, + derandomize=True, + suppress_health_check=[HealthCheck.too_slow, HealthCheck.data_too_large], +) +@given(st.sampled_from(YEARS), st.lists(couples(), min_size=8, max_size=20)) +def test_claimed_spouse_does_not_depend_on_head_label(year, units): + _check_swap(units, year, TAX_UNIT_OUTPUTS + CONSUMERS) + + +@pytest.mark.parametrize("year", YEARS) +def test_seeded_population(year): + units = _seeded_couples(AFFECTED, per_state=4) + _crafted_cases(AFFECTED) + _check_swap(units, year, TAX_UNIT_OUTPUTS + CONSUMERS) + _check_monotone(units, year) + + +def test_every_state_with_a_claimed_spouse(): + # Other states' rules for a claimed filer read both spouses already; + # this guards their state income tax in one year. + units = _seeded_couples(ALL_STATES, per_state=2) + _crafted_cases( + ALL_STATES, review_case_only=True + ) + _check_swap(units, 2026, TAX_UNIT_OUTPUTS) diff --git a/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml index 483f073599a..b9a821293a5 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml @@ -207,3 +207,59 @@ members: [head] output: basic_standard_deduction: 3_650 + +- name: 2025 joint return uses the dependent worksheet when either spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # Joint earned income $16,000 + $450 = $16,450, below the $31,500 joint amount. + basic_standard_deduction: 16_450 + +- name: 2025 joint return uses the dependent worksheet when either spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + # Joint earned income $16,000 + $450 = $16,450, below the $31,500 joint amount. + basic_standard_deduction: 16_450 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/act_163_sunset.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/act_163_sunset.yaml index 4116a0a6dac..778252cac05 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/act_163_sunset.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/act_163_sunset.yaml @@ -34,7 +34,6 @@ adjusted_gross_income: 10_000 filing_status: JOINT exemptions_count: 2 - head_is_dependent_elsewhere: false households: household: members: [person1, person2] @@ -58,7 +57,6 @@ adjusted_gross_income: 4_000 filing_status: JOINT exemptions_count: 2 - head_is_dependent_elsewhere: false households: household: members: [person1, person2] @@ -80,7 +78,6 @@ adjusted_gross_income: 10_000 filing_status: SINGLE exemptions_count: 1 - head_is_dependent_elsewhere: false households: household: members: [person1] @@ -102,7 +99,6 @@ adjusted_gross_income: 4_000 filing_status: SINGLE exemptions_count: 1 - head_is_dependent_elsewhere: false households: household: members: [person1] diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml index 9ad568e7fee..e340975fe5c 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml @@ -20,7 +20,6 @@ adjusted_gross_income: 4_000 filing_status: SINGLE exemptions_count: 3 - head_is_dependent_elsewhere: false households: household: members: [person1, person2, person3] @@ -50,7 +49,6 @@ adjusted_gross_income: 4_000 filing_status: SINGLE exemptions_count: 3 - head_is_dependent_elsewhere: false households: household: members: [person1, person2, person3] @@ -71,6 +69,7 @@ person2: age: 39 is_child: false + claimed_as_dependent_on_another_return: true spm_units: spm_unit: members: [person1, person2] @@ -81,7 +80,6 @@ adjusted_gross_income: 4_000 filing_status: SINGLE exemptions_count: 2 - head_is_dependent_elsewhere: true households: household: members: [person1, person2] @@ -111,7 +109,6 @@ adjusted_gross_income: 35_000 filing_status: SINGLE exemptions_count: 3 - head_is_dependent_elsewhere: false households: household: members: [person1, person2, person3] @@ -141,7 +138,6 @@ adjusted_gross_income: 35_000 filing_status: JOINT exemptions_count: 3 - head_is_dependent_elsewhere: false households: household: members: [person1, person2, person3] @@ -171,7 +167,6 @@ adjusted_gross_income: 55_000 filing_status: JOINT exemptions_count: 3 - head_is_dependent_elsewhere: false households: household: members: [person1, person2, person3] @@ -197,7 +192,6 @@ members: [person1, person2] adjusted_gross_income: 6_000 filing_status: SINGLE - head_is_dependent_elsewhere: false households: household: members: [person1, person2] @@ -223,7 +217,6 @@ members: [person1, person2] adjusted_gross_income: 6_000 filing_status: SINGLE - head_is_dependent_elsewhere: false households: household: members: [person1, person2] @@ -258,3 +251,83 @@ exemptions_count: 2 hi_food_excise_credit: 440 hi_income_tax: -440 + +- name: 2027 joint return where only one spouse can be claimed (the claimable spouse is the head) + period: 2027 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + # Form N-311 counts only the spouse who cannot be claimed: 1 x $220. + hi_food_excise_credit: 220 + +- name: 2027 joint return where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2027 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_b, person_a] + state_code: HI + output: + # Form N-311 counts only the spouse who cannot be claimed: 1 x $220. + hi_food_excise_credit: 220 + +- name: 2027 joint return where both spouses can be claimed + period: 2027 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + hi_food_excise_credit: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml index 13ebfd8d94a..7c4030e8e4c 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml @@ -162,3 +162,93 @@ state_code: HI output: hi_act_115_rebate: 0 + +- name: Joint return with a child where only one spouse can be claimed (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 5_000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + # Only the spouse who cannot be claimed has a qualified exemption; a joint + # return on which a spouse can be claimed claims no dependents. 1 x $300. + hi_act_115_rebate: 300 + +- name: Joint return with a child where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 5_000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + # Only the spouse who cannot be claimed has a qualified exemption; a joint + # return on which a spouse can be claimed claims no dependents. 1 x $300. + hi_act_115_rebate: 300 + +- name: Joint return where both spouses can be claimed + period: 2021 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + adjusted_gross_income: 5_000 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + hi_act_115_rebate: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml index cddb436375d..2dd4cd51e42 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml @@ -37,3 +37,67 @@ hi_tax_credit_for_low_income_household_renters_eligible: false output: hi_tax_credit_for_low_income_household_renters: 0 + +- name: Joint return with a child where only one spouse can be claimed (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 66 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 66 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + # Schedule X lines 8-10: the spouse who cannot be claimed, plus their age + # 65 exemption. 2 x $50. + hi_tax_credit_for_low_income_household_renters: 100 + +- name: Joint return with a child where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 66 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 66 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + # Schedule X lines 8-10: the spouse who cannot be claimed, plus their age + # 65 exemption. 2 x $50. + hi_tax_credit_for_low_income_household_renters: 100 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.yaml index 4916c7667b8..629efc27e05 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.yaml @@ -2,7 +2,7 @@ period: 2021 input: state_code: HI - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false hi_agi: 29_000 rent: 1_100 output: @@ -12,7 +12,7 @@ period: 2021 input: state_code: HI - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false hi_agi: 31_000 rent: 1_100 output: @@ -22,7 +22,7 @@ period: 2021 input: state_code: HI - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false hi_agi: 29_000 rent: 900 output: @@ -32,8 +32,91 @@ period: 2021 input: state_code: HI - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false hi_agi: 32_000 rent: 900 output: hi_tax_credit_for_low_income_household_renters_eligible: false + +- name: Joint return where only one spouse can be claimed (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + rent: 1_100 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + hi_agi: 29_000 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + # HRS 235-55.7(b): the spouse who cannot be claimed may claim the credit. + hi_tax_credit_for_low_income_household_renters_eligible: true + +- name: Joint return where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 20 + rent: 1_100 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + hi_agi: 29_000 + households: + household: + members: [person_b, person_a] + state_code: HI + output: + # HRS 235-55.7(b): the spouse who cannot be claimed may claim the credit. + hi_tax_credit_for_low_income_household_renters_eligible: true + +- name: Joint return where both spouses can be claimed + period: 2021 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + rent: 1_100 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + hi_agi: 29_000 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + hi_tax_credit_for_low_income_household_renters_eligible: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml index fee63c3b063..377d8edd769 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml @@ -7,7 +7,7 @@ hi_agi: 1_000 hi_total_itemized_deductions: 5_000 hi_reduced_itemized_deductions: 1_000 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: hi_deductions: 5_000 @@ -20,7 +20,7 @@ hi_agi: 1_000_000 hi_total_itemized_deductions: 5_000 hi_reduced_itemized_deductions: 1_000 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: hi_deductions: 4_400 @@ -33,7 +33,7 @@ hi_agi: 1_000 hi_total_itemized_deductions: 1_000 hi_reduced_itemized_deductions: 1_000 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: hi_deductions: 4_400 @@ -46,7 +46,7 @@ hi_agi: 1_000_000 hi_total_itemized_deductions: 5_000 hi_reduced_itemized_deductions: 1_000 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: hi_deductions: 2_200 @@ -59,7 +59,7 @@ hi_agi: 1_000_000 hi_total_itemized_deductions: 5_000 hi_reduced_itemized_deductions: 4_500 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: hi_deductions: 4_500 @@ -71,3 +71,127 @@ employment_income: 62_000 output: hi_deductions: 8_800 + +- name: 2025 joint standard deduction limited when either spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + tax_unit_earned_income: 3_000 + hi_itemized_deductions: 0 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + # HRS 235-2.4(a)(3): greater of $500 or earned income ($3,000), up to $8,800. + hi_deductions: 3_000 + +- name: 2025 joint standard deduction limited when either spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + tax_unit_earned_income: 3_000 + hi_itemized_deductions: 0 + households: + household: + members: [person_b, person_a] + state_code: HI + output: + # HRS 235-2.4(a)(3): greater of $500 or earned income ($3,000), up to $8,800. + hi_deductions: 3_000 + +- name: 2025 joint filers with a claimable spouse itemize above the limited standard deduction (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + tax_unit_earned_income: 3_000 + hi_itemized_deductions: 4_000 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + # Itemized deductions of $4,000 exceed the limited $3,000 standard deduction. + hi_deductions: 4_000 + +- name: 2025 joint filers with a claimable spouse itemize above the limited standard deduction (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + tax_unit_earned_income: 3_000 + hi_itemized_deductions: 4_000 + households: + household: + members: [person_b, person_a] + state_code: HI + output: + # Itemized deductions of $4,000 exceed the limited $3,000 standard deduction. + hi_deductions: 4_000 + +- name: 2025 single dependent filer with little earned income gets the $500 minimum + period: 2025 + input: + state_code: HI + filing_status: SINGLE + claimed_as_dependent_on_another_return: true + tax_unit_earned_income: 300 + hi_itemized_deductions: 0 + output: + # HRS 235-2.4(a)(3): greater of $500 or earned income ($300). + hi_deductions: 500 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/itemized/hi_salt_deduction_integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/itemized/hi_salt_deduction_integration.yaml index 74db648797c..7efb22ba1f0 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/itemized/hi_salt_deduction_integration.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/itemized/hi_salt_deduction_integration.yaml @@ -4,7 +4,7 @@ state_code: HI filing_status: SINGLE age: 40 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false adjusted_gross_income: 99_999 hi_agi: 99_999 state_withheld_income_tax: 6_000 @@ -32,7 +32,7 @@ state_code: HI filing_status: SINGLE age: 40 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false adjusted_gross_income: 100_000 hi_agi: 100_000 state_withheld_income_tax: 6_000 @@ -60,7 +60,7 @@ state_code: HI filing_status: SINGLE age: 40 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false adjusted_gross_income: 99_999 hi_agi: 99_999 state_withheld_income_tax: 2_000 diff --git a/policyengine_us/tests/policy/baseline/gov/states/me/tax/income/credits/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/me/tax/income/credits/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.yaml index b3afa273542..b81ac606775 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/me/tax/income/credits/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/me/tax/income/credits/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.yaml @@ -2,7 +2,7 @@ period: 2022 input: state_code: ME - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true filing_status: JOINT output: me_sales_tax_fairness_credit_eligible: false @@ -11,7 +11,7 @@ period: 2022 input: state_code: ME - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false filing_status: SINGLE output: me_sales_tax_fairness_credit_eligible: true @@ -20,7 +20,86 @@ period: 2022 input: state_code: ME - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true filing_status: SEPARATE output: me_sales_tax_fairness_credit_eligible: false + +- name: Joint return where only one spouse can be claimed as a dependent (the claimable spouse is the head) + period: 2022 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: ME + output: + # 36 MRSA 5213-A(6)(C) excludes the claimable individual; the other spouse + # still qualifies for the joint credit. + me_sales_tax_fairness_credit_eligible: true + +- name: Joint return where only one spouse can be claimed as a dependent (the claimable spouse is the spouse) + period: 2022 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: ME + output: + # 36 MRSA 5213-A(6)(C) excludes the claimable individual; the other spouse + # still qualifies for the joint credit. + me_sales_tax_fairness_credit_eligible: true + +- name: Joint return where both spouses can be claimed as dependents + period: 2022 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: ME + output: + me_sales_tax_fairness_credit_eligible: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml b/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml index f916a47b51d..eee9da8f35d 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml @@ -55,20 +55,36 @@ period: 2021 input: mi_personal_exemptions: 5_000 - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true filing_status: SINGLE state_code: MI output: mi_exemptions: 1_500 -- name: not disabled, is a dependent, married +- name: not disabled, both spouses can be claimed as dependents, married period: 2021 input: - mi_personal_exemptions: 10_000 - head_is_dependent_elsewhere: true - filing_status: JOINT - state_code: MI + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: MI output: + # $1,500 for each spouse. mi_exemptions: 3_000 # 2025 test cases - personal exemption $5,800, disabled exemption $3,400 @@ -301,15 +317,131 @@ person1: mi_disabled_exemption_eligible_person: true is_fully_disabled_service_connected_veteran: false + claimed_as_dependent_on_another_return: true tax_units: tax_unit: mi_personal_exemptions: 5_800 - head_is_dependent_elsewhere: true filing_status: SINGLE members: [person1] household: members: [person1] state_code: MI output: - # Dependent exemption: $1,500 (for single) + $3,400 disabled = $4,900 + # Dependent exemption: $1,500 + $3,400 disabled = $4,900 mi_exemptions: 4_900 + +- name: 2025 joint return where only one spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: MI + output: + # MCL 206.30(4): $1,500 for the claimable spouse, plus the other + # spouse's own $5,800 personal exemption. + mi_exemptions: 7_300 + +- name: 2025 joint return where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: MI + output: + # MCL 206.30(4): $1,500 for the claimable spouse, plus the other + # spouse's own $5,800 personal exemption. + mi_exemptions: 7_300 + +- name: 2025 joint return with a child where only one spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child_1] + state_code: MI + output: + # A joint return on which a spouse can be claimed claims no dependents + # (IRS Publication 501), so the child adds no exemption. + mi_exemptions: 7_300 + +- name: 2025 joint return with a child where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child_1] + state_code: MI + output: + # A joint return on which a spouse can be claimed claims no dependents + # (IRS Publication 501), so the child adds no exemption. + mi_exemptions: 7_300 diff --git a/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml index dba14ed3fb0..6cb8a3e48c6 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml @@ -133,3 +133,59 @@ # $4,401 is below the federal EITC investment income limit ($11,950 in # 2025) but above Missouri's $4,400 limit. mo_wftc_eligible: false + +- name: 2025 married couple filing combined is not stopped by a claimable spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + eitc: 500 + households: + household: + members: [person_a, person_b] + state_code: MO + output: + # A joint federal filer whose spouse can be claimed still files Form MO-1040 + # as married filing combined, not as claimed as a dependent. + mo_wftc_eligible: true + +- name: 2025 married couple filing combined is not stopped by a claimable spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + eitc: 500 + households: + household: + members: [person_b, person_a] + state_code: MO + output: + # A joint federal filer whose spouse can be claimed still files Form MO-1040 + # as married filing combined, not as claimed as a dependent. + mo_wftc_eligible: true diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.yaml index df774c30456..de3db5f2233 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.yaml @@ -1,7 +1,7 @@ - name: Is dependent on another return period: 2022 input: - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true state_code: NM earned_income: 1 is_disabled: false @@ -15,7 +15,7 @@ - name: No earned income period: 2022 input: - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false state_code: NM earned_income: 0 is_disabled: false @@ -29,7 +29,7 @@ - name: No earned income but disabled - eligible period: 2022 input: - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false state_code: NM earned_income: 0 is_disabled: true @@ -43,7 +43,7 @@ - name: Over income threshold period: 2022 input: - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false state_code: NM earned_income: 0 is_disabled: false @@ -57,7 +57,7 @@ - name: Receives tanf period: 2022 input: - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false state_code: NM earned_income: 0 is_disabled: false @@ -71,7 +71,7 @@ - name: Eligible period: 2022 input: - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false state_code: NM earned_income: 1 is_disabled: false @@ -101,7 +101,6 @@ tax_units: tax_unit: members: [head, spouse] - head_is_dependent_elsewhere: false filing_status: JOINT nm_modified_gross_income: 30_159 households: @@ -130,7 +129,6 @@ tax_units: tax_unit: members: [head, spouse] - head_is_dependent_elsewhere: false filing_status: JOINT nm_modified_gross_income: 30_159 households: @@ -159,7 +157,6 @@ tax_units: tax_unit: members: [head, spouse] - head_is_dependent_elsewhere: false filing_status: JOINT nm_modified_gross_income: 30_159 households: @@ -188,7 +185,6 @@ tax_units: tax_unit: members: [head, spouse] - head_is_dependent_elsewhere: false filing_status: JOINT nm_modified_gross_income: 30_159 households: @@ -217,7 +213,6 @@ tax_units: tax_unit: members: [head, spouse] - head_is_dependent_elsewhere: false filing_status: JOINT nm_modified_gross_income: 30_159 households: @@ -230,7 +225,7 @@ - name: Reported TANF receipt disqualifies despite zero computed TANF period: 2022 input: - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false state_code: NM earned_income: 0 is_disabled: true @@ -241,3 +236,89 @@ nm_modified_gross_income: 30_159 output: nm_cdcc_eligible: false + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the head) + period: 2022 + input: + people: + person_a: + age: 30 + earned_income: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + earned_income: 1 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + nm_modified_gross_income: 30_159 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_cdcc_eligible: true + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the spouse) + period: 2022 + input: + people: + person_b: + age: 30 + earned_income: 1 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + earned_income: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + nm_modified_gross_income: 30_159 + households: + household: + members: [person_b, person_a] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_cdcc_eligible: true + +- name: Joint return where both spouses are a dependent of another taxpayer + period: 2022 + input: + people: + person_a: + age: 30 + earned_income: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + earned_income: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + nm_modified_gross_income: 30_159 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + nm_cdcc_eligible: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml index df55277d73a..518854ff24e 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml @@ -4,7 +4,7 @@ state_code: NM age: 64 other_medical_expenses: 30_000 - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_medical_expense_credit: 0 @@ -16,7 +16,7 @@ medicare_enrolled: false other_medical_expenses: 27_999 filing_status: JOINT - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_medical_expense_credit: 0 @@ -27,7 +27,7 @@ age: 65 other_medical_expenses: 28_000 filing_status: JOINT - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_medical_expense_credit: 2_800 @@ -38,7 +38,7 @@ age: 65 other_medical_expenses: 28_000 filing_status: SEPARATE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_medical_expense_credit: 1_400 @@ -49,7 +49,7 @@ age: 65 other_medical_expenses: 40_000 filing_status: SINGLE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_medical_expense_credit: 2_800 @@ -60,6 +60,86 @@ age: 65 other_medical_expenses: 40_000 filing_status: SINGLE - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true + output: + nm_medical_expense_credit: 0 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the head) + period: 2023 + input: + people: + person_a: + age: 66 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 66 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + itemized_medical_expenses: 28_000 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_medical_expense_credit: 2_800 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the spouse) + period: 2023 + input: + people: + person_b: + age: 66 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 66 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + itemized_medical_expenses: 28_000 + households: + household: + members: [person_b, person_a] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_medical_expense_credit: 2_800 + +- name: Joint return where both spouses are a dependent of another taxpayer + period: 2023 + input: + people: + person_a: + age: 66 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 66 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + itemized_medical_expenses: 28_000 + households: + household: + members: [person_a, person_b] + state_code: NM output: nm_medical_expense_credit: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.yaml index 6f65f043918..bcb29cf3062 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.yaml @@ -3,7 +3,7 @@ input: exemptions: 0 state_code: NM - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_deduction_for_certain_dependents_eligible: true @@ -12,7 +12,7 @@ input: exemptions: 1 state_code: NM - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_deduction_for_certain_dependents_eligible: false @@ -22,6 +22,86 @@ input: exemptions: 0 state_code: NM - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true + output: + nm_deduction_for_certain_dependents_eligible: false + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + exemptions: 0 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_deduction_for_certain_dependents_eligible: true + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + exemptions: 0 + households: + household: + members: [person_b, person_a] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_deduction_for_certain_dependents_eligible: true + +- name: Joint return where both spouses are a dependent of another taxpayer + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + exemptions: 0 + households: + household: + members: [person_a, person_b] + state_code: NM output: nm_deduction_for_certain_dependents_eligible: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_2021_income_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_2021_income_rebate.yaml index 72c2bb91a67..3a1c22772bc 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_2021_income_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_2021_income_rebate.yaml @@ -4,7 +4,7 @@ state_code: NM adjusted_gross_income: 74_999 filing_status: SINGLE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_2021_income_rebate: 250 @@ -14,7 +14,7 @@ state_code: NM adjusted_gross_income: 75_000 filing_status: SEPARATE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_2021_income_rebate: 0 @@ -24,7 +24,7 @@ state_code: NM adjusted_gross_income: 149_999 filing_status: JOINT - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_2021_income_rebate: 500 @@ -34,7 +34,7 @@ state_code: NM adjusted_gross_income: 150_000 filing_status: SURVIVING_SPOUSE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_2021_income_rebate: 0 @@ -44,6 +44,86 @@ state_code: NM adjusted_gross_income: 149_999 filing_status: JOINT - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true + output: + nm_2021_income_rebate: 0 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + adjusted_gross_income: 50_000 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_2021_income_rebate: 500 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + adjusted_gross_income: 50_000 + households: + household: + members: [person_b, person_a] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_2021_income_rebate: 500 + +- name: Joint return where both spouses are a dependent of another taxpayer + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + adjusted_gross_income: 50_000 + households: + household: + members: [person_a, person_b] + state_code: NM output: nm_2021_income_rebate: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_additional_2021_income_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_additional_2021_income_rebate.yaml index ddf2f6150d1..91a64599414 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_additional_2021_income_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_additional_2021_income_rebate.yaml @@ -3,7 +3,7 @@ input: state_code: NM filing_status: JOINT - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_additional_2021_income_rebate: 1_000 @@ -12,7 +12,7 @@ input: state_code: NM filing_status: SINGLE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_additional_2021_income_rebate: 500 @@ -21,7 +21,7 @@ input: state_code: NM filing_status: SEPARATE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_additional_2021_income_rebate: 500 @@ -30,7 +30,7 @@ input: state_code: NM filing_status: SURVIVING_SPOUSE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_additional_2021_income_rebate: 1_000 @@ -39,7 +39,7 @@ input: state_code: NM filing_status: HEAD_OF_HOUSEHOLD - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_additional_2021_income_rebate: 1_000 @@ -48,6 +48,83 @@ input: state_code: NM filing_status: SEPARATE - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true + output: + nm_additional_2021_income_rebate: 0 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_additional_2021_income_rebate: 1_000 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_additional_2021_income_rebate: 1_000 + +- name: Joint return where both spouses are a dependent of another taxpayer + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: NM output: nm_additional_2021_income_rebate: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_supplemental_2021_income_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_supplemental_2021_income_rebate.yaml index ac64cc9f434..0b1b8565f7a 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_supplemental_2021_income_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/2021_income/nm_supplemental_2021_income_rebate.yaml @@ -3,7 +3,7 @@ input: state_code: NM filing_status: JOINT - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_supplemental_2021_income_rebate: 1_000 @@ -12,7 +12,7 @@ input: state_code: NM filing_status: SINGLE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_supplemental_2021_income_rebate: 500 @@ -21,7 +21,7 @@ input: state_code: NM filing_status: SEPARATE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_supplemental_2021_income_rebate: 500 @@ -30,7 +30,7 @@ input: state_code: NM filing_status: SURVIVING_SPOUSE - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_supplemental_2021_income_rebate: 1_000 @@ -39,7 +39,7 @@ input: state_code: NM filing_status: HEAD_OF_HOUSEHOLD - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false output: nm_supplemental_2021_income_rebate: 1_000 @@ -48,6 +48,83 @@ input: state_code: NM filing_status: HEAD_OF_HOUSEHOLD - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true + output: + nm_supplemental_2021_income_rebate: 0 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_supplemental_2021_income_rebate: 1_000 + +- name: Joint return where only one spouse is a dependent of another taxpayer (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: NM + output: + # A spouse who is not a dependent may still qualify (PIT-RC instructions). + nm_supplemental_2021_income_rebate: 1_000 + +- name: Joint return where both spouses are a dependent of another taxpayer + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: NM output: nm_supplemental_2021_income_rebate: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.yaml new file mode 100644 index 00000000000..cd98af8b0dc --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.yaml @@ -0,0 +1,94 @@ +- name: 2025 single filer who can be claimed as a dependent + period: 2025 + input: + state_code: NY + filing_status: SINGLE + claimed_as_dependent_on_another_return: true + output: + ny_standard_deduction: 3_100 + +- name: 2025 single filer who cannot be claimed as a dependent + period: 2025 + input: + state_code: NY + filing_status: SINGLE + claimed_as_dependent_on_another_return: false + output: + ny_standard_deduction: 8_000 + +- name: 2025 head of household who can be claimed as a dependent keeps the regular amount + period: 2025 + input: + state_code: NY + filing_status: HEAD_OF_HOUSEHOLD + claimed_as_dependent_on_another_return: true + output: + # The IT-201 table gives the dependent amount only to filing status 1. + ny_standard_deduction: 11_200 + +- name: 2025 separate filer who can be claimed as a dependent keeps the regular amount + period: 2025 + input: + state_code: NY + filing_status: SEPARATE + claimed_as_dependent_on_another_return: true + output: + ny_standard_deduction: 8_000 + +- name: 2025 joint return where only one spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: NY + output: + # The IT-201 table gives married filing jointly $16,050 whether or not + # item C is marked. + ny_standard_deduction: 16_050 + +- name: 2025 joint return where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: NY + output: + # The IT-201 table gives married filing jointly $16,050 whether or not + # item C is marked. + ny_standard_deduction: 16_050 diff --git a/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml index 6c2182a4783..7818ce120d2 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml @@ -68,7 +68,7 @@ state_code: OR filing_status: JOINT age_head: 35 - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true tax_unit_earned_income: 600 output: # $1100 base @@ -80,7 +80,7 @@ state_code: OR filing_status: SINGLE age_head: 35 - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true tax_unit_earned_income: 1_000 output: # $1000 income + $350 addition, below the $2,350 normal standard deduction cap. @@ -92,7 +92,7 @@ state_code: OR filing_status: SINGLE age: 35 - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true tax_unit_earned_income: 1_000 blind_head: true output: @@ -137,3 +137,57 @@ output: # $2,835 base + $1,200 aged or_standard_deduction: 4_035 + +- name: 2025 joint return limited to the dependent amount when either spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 35 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 35 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + tax_unit_earned_income: 3_000 + households: + household: + members: [person_a, person_b] + state_code: OR + output: + # max($1,350, $3,000 + $450) = $3,450, below the $5,670 joint amount. + or_standard_deduction: 3_450 + +- name: 2025 joint return limited to the dependent amount when either spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 35 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 35 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + tax_unit_earned_income: 3_000 + households: + household: + members: [person_b, person_a] + state_code: OR + output: + # max($1,350, $3,000 + $450) = $3,450, below the $5,670 joint amount. + or_standard_deduction: 3_450 diff --git a/policyengine_us/tests/policy/baseline/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.yaml index 5584f3c0288..b5cf4a21af1 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.yaml @@ -2,7 +2,7 @@ period: 2021 input: state_code: VA - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true va_aged_blind_exemption: 0 va_age_deduction: 0 va_military_benefit_subtraction: 0 @@ -14,7 +14,7 @@ period: 2021 input: state_code: VA - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false va_aged_blind_exemption: 1_600 va_age_deduction: 12_000 va_military_benefit_subtraction: 0 @@ -26,10 +26,60 @@ period: 2021 input: state_code: VA - head_is_dependent_elsewhere: false + claimed_as_dependent_on_another_return: false va_aged_blind_exemption: 0 va_age_deduction: 0 va_military_benefit_subtraction: 0 va_federal_state_employees_subtraction: 0 output: va_low_income_tax_credit_eligible: true + +- name: Joint return is ineligible when either spouse is claimed as a dependent (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: VA + output: + va_low_income_tax_credit_eligible: false + +- name: Joint return is ineligible when either spouse is claimed as a dependent (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: VA + output: + va_low_income_tax_credit_eligible: false diff --git a/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.yaml b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.yaml new file mode 100644 index 00000000000..80029885451 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.yaml @@ -0,0 +1,114 @@ +- name: Head is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [head, spouse] + output: + head_or_spouse_is_dependent_elsewhere: true + +- name: Spouse is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + output: + head_or_spouse_is_dependent_elsewhere: true + +- name: Both spouses are claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + output: + head_or_spouse_is_dependent_elsewhere: true + +- name: Neither spouse is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [head, spouse] + output: + head_or_spouse_is_dependent_elsewhere: false + +- name: A dependent claimed elsewhere is not a filer + period: 2025 + input: + people: + head: + age: 40 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + child: + age: 10 + is_tax_unit_head: false + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, child] + output: + head_or_spouse_is_dependent_elsewhere: false + +- name: Single filer claimed elsewhere + period: 2025 + input: + people: + head: + age: 19 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head] + output: + head_or_spouse_is_dependent_elsewhere: true diff --git a/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.yaml b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.yaml new file mode 100644 index 00000000000..ac5381a1b4b --- /dev/null +++ b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.yaml @@ -0,0 +1,114 @@ +- name: Head is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [head, spouse] + output: + head_spouse_count_not_dependent_elsewhere: 1 + +- name: Spouse is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + output: + head_spouse_count_not_dependent_elsewhere: 1 + +- name: Both spouses are claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + output: + head_spouse_count_not_dependent_elsewhere: 0 + +- name: Neither spouse is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [head, spouse] + output: + head_spouse_count_not_dependent_elsewhere: 2 + +- name: A dependent claimed elsewhere is not a filer + period: 2025 + input: + people: + head: + age: 40 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + child: + age: 10 + is_tax_unit_head: false + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, child] + output: + head_spouse_count_not_dependent_elsewhere: 1 + +- name: Single filer claimed elsewhere + period: 2025 + input: + people: + head: + age: 19 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head] + output: + head_spouse_count_not_dependent_elsewhere: 0 diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py index e3d3745bdc5..e8575cdcc7e 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py @@ -7,13 +7,23 @@ class basic_standard_deduction(Variable): label = "Basic standard deduction" definition_period = YEAR unit = USD - reference = "https://www.law.cornell.edu/uscode/text/26/63#c_2" + reference = ( + "https://www.law.cornell.edu/uscode/text/26/63#c_2", + "https://www.law.cornell.edu/uscode/text/26/63#c_5", + # Standard Deduction Worksheet for Dependents: "Use this worksheet + # only if someone can claim you, or your spouse if filing jointly, + # as a dependent." + "https://www.irs.gov/pub/irs-prior/i1040gi--2025.pdf#page=35", + ) def formula(tax_unit, period, parameters): p = parameters(period).gov.irs.deductions.standard filing_status = tax_unit("filing_status", period) separate_filer_itemizes = tax_unit("separate_filer_itemizes", period) - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # A joint return uses the dependent worksheet, with the couple's + # earned income and the joint amount as the cap, when either spouse + # can be claimed. + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) standard_deduction = p.amount[filing_status] standard_deduction_if_dependent = min_( standard_deduction, diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py index c4f098d02f1..a98403539f7 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py @@ -8,17 +8,20 @@ class hi_food_excise_credit(Variable): defined_for = StateCode.HI unit = USD definition_period = YEAR - reference = "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=44" + reference = ( + "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=50", + "https://files.hawaii.gov/tax/forms/2025/n311_i.pdf#page=1", + ) def formula(tax_unit, period, parameters): - # filer can not be a dependent on another return - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) - total_amount = add( - tax_unit, - period, - [ - "hi_food_excise_credit_minor_child_amount", - "hi_food_excise_exemption_amount", - ], + # HRS 235-55.85(a): only a taxpayer who cannot be claimed as a + # dependent may claim the credit, for each qualified exemption. The + # exemption amount counts only filers who cannot be claimed when + # either can; such a return claims no dependents (IRS Publication + # 501), so it gets no minor child amount. + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + exemption_amount = tax_unit("hi_food_excise_exemption_amount", period) + minor_child_amount = tax_unit( + "hi_food_excise_credit_minor_child_amount", period ) - return ~dependent_elsewhere * total_amount + return exemption_amount + where(dependent_filer, 0, minor_child_amount) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py index 1b4e22e61bc..d11bb0a6cac 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py @@ -7,6 +7,11 @@ class hi_food_excise_exemption_amount(Variable): label = "Exemption amount for Hawaii Food/Excise Tax Credit" definition_period = YEAR defined_for = StateCode.HI + reference = ( + "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=50", + "https://files.hawaii.gov/tax/forms/2025/n311_i.pdf#page=1", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", + ) def formula(tax_unit, period, parameters): p = parameters(period).gov.states.hi.tax.income.credits.food_excise_tax @@ -45,4 +50,15 @@ def formula(tax_unit, period, parameters): claimable_exemptions = exemptions - minor_children else: claimable_exemptions = exemptions - return claimable_exemptions * amount_per_exemption + # Form N-311 counts only people who cannot be claimed as a dependent + # by another taxpayer. A return on which a filer can be claimed claims + # no dependents (IRS Publication 501), so it counts only the filers + # who cannot be claimed. + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + independent_filers = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period + ) + qualified_exemptions = where( + dependent_filer, independent_filers, claimable_exemptions + ) + return qualified_exemptions * amount_per_exemption diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py index 8fd79179391..3a229d50ebb 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py @@ -12,6 +12,7 @@ class hi_act_115_rebate(Variable): "https://tax.hawaii.gov/act-115-ref/", "https://data.capitol.hawaii.gov/sessions/session2022/bills/SB514_CD2_.HTM", "https://files.hawaii.gov/tax/news/announce/ann22-03.pdf#page=2", + "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=45", ) def formula(tax_unit, period, parameters): @@ -39,6 +40,15 @@ def formula(tax_unit, period, parameters): # person in the tax unit is one exemption. exemptions = tax_unit("exemptions_count", period) # A person who can be claimed as a dependent by another taxpayer is - # not a qualifying resident taxpayer. - head_is_dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) - return where(head_is_dependent_elsewhere, 0, amount_per_exemption * exemptions) + # not a qualifying resident taxpayer, and each qualifying resident + # taxpayer claims the refund for the exemptions they are entitled to. + # A filer who can be claimed has no exemption (HRS 235-54(a)), and a + # return on which a filer can be claimed claims no dependents (IRS + # Publication 501), so such a return counts only the filers who + # cannot be claimed. + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + independent_filers = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period + ) + qualified_exemptions = where(dependent_filer, independent_filers, exemptions) + return amount_per_exemption * qualified_exemptions diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py index e0a69bef748..81a87e2876e 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py @@ -8,18 +8,36 @@ class hi_tax_credit_for_low_income_household_renters(Variable): unit = USD definition_period = YEAR defined_for = "hi_tax_credit_for_low_income_household_renters_eligible" + reference = ( + "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=48", + "https://files.hawaii.gov/tax/forms/2025/schx_i.pdf#page=1", + ) def formula(tax_unit, period, parameters): p = parameters(period).gov.states.hi.tax.income.credits.lihrtc - # Aged extra exemptions - aged_head = (tax_unit("age_head", period) >= p.aged_age_threshold).astype(int) - aged_spouse = (tax_unit("age_spouse", period) >= p.aged_age_threshold).astype( - int + # Schedule X lines 8-10 count only people who cannot be claimed as a + # dependent by another taxpayer, with an extra exemption for each + # such filer aged 65 or over. A return on which a filer can be + # claimed claims no dependents (IRS Publication 501), so it counts + # only the filers who cannot be claimed. + aged_head = (tax_unit("age_head", period) >= p.aged_age_threshold) & ~tax_unit( + "head_is_dependent_elsewhere", period ) + aged_spouse = ( + tax_unit("age_spouse", period) >= p.aged_age_threshold + ) & ~tax_unit("spouse_is_dependent_elsewhere", period) + aged_exemptions = aged_head.astype(int) + aged_spouse.astype(int) - aged_exemptions = aged_head + aged_spouse - exemptions = tax_unit("exemptions_count", period) + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + independent_filers = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period + ) + exemptions = where( + dependent_filer, + independent_filers, + tax_unit("exemptions_count", period), + ) total_exemptions = exemptions + aged_exemptions return p.amount * total_exemptions diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py index 3c99b935916..db97f6a626f 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py @@ -6,16 +6,26 @@ class hi_tax_credit_for_low_income_household_renters_eligible(Variable): entity = TaxUnit label = "Eligible for the Hawaii low income household renters tax credit" definition_period = YEAR - reference = "https://files.hawaii.gov/tax/legal/har/har_235.pdf#page=105" # §18-235-55.7 (b) + reference = ( + "https://files.hawaii.gov/tax/legal/har/har_235.pdf#page=105", # §18-235-55.7 (b) + "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=48", + "https://files.hawaii.gov/tax/forms/2025/schx_i.pdf#page=1", + ) defined_for = StateCode.HI def formula(tax_unit, period, parameters): - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # HRS 235-55.7(b) allows the credit to each resident taxpayer who + # cannot be claimed as a dependent. Schedule X stops at line 3 only + # for the first-listed filer; since a couple may list either spouse + # first, a joint return qualifies unless both spouses can be claimed. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) p = parameters(period).gov.states.hi.tax.income.credits.lihrtc agi = tax_unit("hi_agi", period) rent = add(tax_unit, period, ["rent"]) return ( (rent > p.eligibility.rent_threshold) & (agi < p.eligibility.agi_limit) - & ~dependent_elsewhere + & independent_filer ) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py b/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py index 5e84412ac6c..70a783508dd 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py @@ -10,6 +10,11 @@ class hi_deductions(Variable): "https://files.hawaii.gov/tax/forms/2022/n11ins.pdf#page=15\n" # Itemized Deduction "https://files.hawaii.gov/tax/forms/2022/n11ins.pdf#page=20" # Standard Deduction ) + reference = ( + "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=11", + # PDF pages 15, 20 + "https://files.hawaii.gov/tax/forms/2025/n11ins.pdf#page=15", + ) definition_period = YEAR defined_for = StateCode.HI @@ -25,14 +30,26 @@ def formula(tax_unit, period, parameters): filing_status_eligible = ( total_itemized_deduction > p.threshold.deductions[filing_status] ) - is_dependent_on_another_return = tax_unit("head_is_dependent_elsewhere", period) - standard_cap = min_(tax_unit_earned_income, standard_deduction) - dependent_floor = max_(p.threshold.dependent, standard_cap) + # HRS 235-2.4(a)(3) applies IRC 63(c)(5): the standard deduction of a + # filer who can be claimed as a dependent is the greater of $500 or + # earned income, up to the regular amount. As federally, a joint + # return is limited when either spouse can be claimed. + is_dependent_on_another_return = tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + dependent_standard_deduction = min_( + max_(p.threshold.dependent, tax_unit_earned_income), standard_deduction + ) + applicable_standard_deduction = where( + is_dependent_on_another_return, + dependent_standard_deduction, + standard_deduction, + ) dependent_eligible = is_dependent_on_another_return & ( - total_itemized_deduction > dependent_floor + total_itemized_deduction > dependent_standard_deduction ) itemized_deductions_eligible = filing_status_eligible | dependent_eligible itemized_deduction = where( itemized_deductions_eligible, total_itemized_deduction, 0 ) - return max_(itemized_deduction, standard_deduction) + return max_(itemized_deduction, applicable_standard_deduction) diff --git a/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py b/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py index c0ea36df12a..d761c2d8ecf 100644 --- a/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py +++ b/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py @@ -6,11 +6,21 @@ class me_sales_tax_fairness_credit_eligible(Variable): entity = TaxUnit label = "Eligible for the Maine sales tax fairness credit" definition_period = YEAR - reference = "https://legislature.maine.gov/statutes/36/title36sec5213-A.html" + reference = ( + "https://legislature.maine.gov/statutes/36/title36sec5213-A.html", + "https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_1040me_sch_ptfc_fillable.pdf#page=3", + ) defined_for = StateCode.ME def formula(tax_unit, period, parameters): - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # 36 MRSA 5213-A(6)(C) excludes individuals who may be claimed as a + # dependent on another return, and subsection 2 allows each resident + # individual the base credit for the return's filing status. On a + # joint return where only one spouse can be claimed, the other spouse + # still qualifies for the joint credit. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) filing_status = tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE - return ~dependent_elsewhere & ~separate + return independent_filer & ~separate diff --git a/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py b/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py index 5974fd46303..1c77fb504ce 100644 --- a/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py +++ b/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py @@ -11,6 +11,8 @@ class mi_exemptions(Variable): reference = ( "https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-30", "https://www.legislature.mi.gov/Publications/TaxpayerGuide.pdf", + "https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf#page=10", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", ) def formula(tax_unit, period, parameters): @@ -31,16 +33,31 @@ def formula(tax_unit, period, parameters): ) disabled_veteran_exemption = disabled_veterans * p.disabled.amount.veteran - # Dependent-on-other-return exemptions - filing_status = tax_unit("filing_status", period) - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) - dependent_exemption = ( - dependent_elsewhere * p.dependent_on_other_return[filing_status] + # MCL 206.30(4): an individual who can be claimed as a dependent on + # another return gets no personal exemption but subtracts $1,500. + # This applies to each spouse separately, so on a joint return where + # only one spouse can be claimed, the other keeps their own personal + # exemption (and any stillbirth exemption). A joint return on which + # either spouse can be claimed claims no dependents (IRS Publication + # 501, "Dependent Taxpayer Test"). + filers = add(tax_unit, period, ["is_tax_unit_head_or_spouse"]) + independent_filers = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period ) + dependent_filers = filers - independent_filers + stillborn = tax_unit("tax_unit_stillborn_children", period) + independent_filer_exemptions = ( + independent_filers + where(independent_filers > 0, stillborn, 0) + ) * p.personal + dependent_filer_exemptions = dependent_filers * p.dependent_on_other_return # Total exemptions return ( - where(dependent_elsewhere, dependent_exemption, personal_exemption) + where( + dependent_filers > 0, + independent_filer_exemptions + dependent_filer_exemptions, + personal_exemption, + ) + disabled_exemption + disabled_veteran_exemption ) diff --git a/policyengine_us/variables/gov/states/mo/tax/income/credits/mo_wftc_eligible.py b/policyengine_us/variables/gov/states/mo/tax/income/credits/mo_wftc_eligible.py index d1b71e8d93e..582fdb3ed2a 100644 --- a/policyengine_us/variables/gov/states/mo/tax/income/credits/mo_wftc_eligible.py +++ b/policyengine_us/variables/gov/states/mo/tax/income/credits/mo_wftc_eligible.py @@ -8,7 +8,8 @@ class mo_wftc_eligible(Variable): definition_period = YEAR reference = ( "https://revisor.mo.gov/main/OneSection.aspx?section=143.177&bid=49978&hl=", - "https://dor.mo.gov/forms/MO-1040%20Instructions_2025.pdf#page=43", + # PDF pages 6, 43 + "https://dor.mo.gov/forms/MO-1040%20Instructions_2025.pdf#page=6", ) defined_for = StateCode.MO @@ -23,10 +24,17 @@ def formula(tax_unit, period, parameters): # married filing separately. filing_status = tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE - # The 2024 and 2025 Form MO-WFTC checklists also stop filers - # claimed as a dependent on another return; the 2023 form does not. - excluded_dependent = p.dependent_filers_excluded & tax_unit( - "head_is_dependent_elsewhere", period + # The 2024 and 2025 Form MO-WFTC checklists also stop filers with a + # filing status of "claimed as a dependent"; the 2023 form does not. + # A couple filing a joint federal return files Form MO-1040 as + # married filing combined even when a spouse can be claimed (2025 + # MO-1040 instructions, "Filing status"), so the stop never applies + # to a joint return. + joint = filing_status == filing_status.possible_values.JOINT + excluded_dependent = ( + p.dependent_filers_excluded + & ~joint + & tax_unit("head_or_spouse_is_dependent_elsewhere", period) ) # Form MO-WFTC applies Missouri's own investment income limit, # reflecting IRC Section 32(i) as of January 1, 2021 per RSMo diff --git a/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py b/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py index ea1c0e9fd46..48198e1b904 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py @@ -6,13 +6,22 @@ class nm_cdcc_eligible(Variable): entity = TaxUnit label = "Eligible household for the New Mexico dependent child day care credit" definition_period = YEAR - reference = "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503752/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsfAEwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA" + reference = ( + "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503752/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsfAEwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA", + "https://realfile.tax.newmexico.gov/2025pit-rc-ins.pdf#page=2", + ) defined_for = StateCode.NM def formula(tax_unit, period, parameters): person = tax_unit.members - # Filer can not be a dependent on another tax return - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # Filer can not be a dependent on another tax return, but "If you are + # a dependent with a spouse who was not a dependent of another + # taxpayer, your spouse may still qualify to claim rebates or + # credits" (PIT-RC instructions). So only a return on which every + # filer is a dependent elsewhere is barred. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) p = parameters(period).gov.states.nm.tax.income.credits.cdcc # Filer has to be be gainfully employed to receive credit has_earnings = person("earned_income", period) > 0 @@ -43,8 +52,5 @@ def formula(tax_unit, period, parameters): ) income_eligible = nm_modified_gross_income <= income_limit return ( - ~dependent_elsewhere - & employment_eligible - & ~receives_tanf - & income_eligible + independent_filer & employment_eligible & ~receives_tanf & income_eligible ) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py index e516884f45e..205f3b1b0e4 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py @@ -6,7 +6,10 @@ class nm_medical_expense_credit(Variable): entity = TaxUnit label = "New Mexico unreimbursed medical expense care credit" definition_period = YEAR - reference = "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503776/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDswgGwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA" + reference = ( + "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503776/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDswgGwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA", + "https://realfile.tax.newmexico.gov/2025pit-rc-ins.pdf#page=2", + ) defined_for = StateCode.NM def formula(tax_unit, period, parameters): @@ -17,8 +20,15 @@ def formula(tax_unit, period, parameters): medical_expense = tax_unit("itemized_medical_expenses", period) age_eligible = tax_unit.any(age >= p.age_eligibility) expense_eligible = medical_expense >= p.min_expenses - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) - eligible = age_eligible & expense_eligible & ~dependent_elsewhere + # The rebate and credit schedule bars a filer who is a dependent of + # another taxpayer, but "If you are a dependent with a spouse who was + # not a dependent of another taxpayer, your spouse may still qualify + # to claim rebates or credits" (PIT-RC instructions). So only a return + # on which every filer is a dependent elsewhere is barred. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) + eligible = age_eligible & expense_eligible & independent_filer # exemption is halved for married filing separately filing_status = tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE diff --git a/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py b/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py index d0415b60595..d66ef23f1a6 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py @@ -6,12 +6,22 @@ class nm_deduction_for_certain_dependents_eligible(Variable): entity = TaxUnit label = "Eligibility for New Mexico deduction for certain dependents" definition_period = YEAR - reference = "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503892/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgAcATgBMASgA0ybKUIQAiokK4AntADkW6REJhcCFWs069BoyADKeUgCFNAJQCiAGRcA1AIIA5AMIu0qRgAEbQpOySkkA" + reference = ( + "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503892/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgAcATgBMASgA0ybKUIQAiokK4AntADkW6REJhcCFWs069BoyADKeUgCFNAJQCiAGRcA1AIIA5AMIu0qRgAEbQpOySkkA", + "https://realfile.tax.newmexico.gov/2025pit-rc-ins.pdf#page=2", + ) defined_for = StateCode.NM def formula(tax_unit, period, parameters): - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # The deduction uses the same "not a dependent of another individual" + # test as the rebates and credits on Schedule PIT-RC, whose + # instructions let a spouse who is not a dependent still qualify. So + # only a return on which every filer is a dependent elsewhere is + # barred. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) # deduction does not apply if an exemption under IRS 151 is claimed; # IRC 151 refers to the federal personal exemption federal_exemption_amount = tax_unit("exemptions", period) - return ~dependent_elsewhere & (federal_exemption_amount == 0) + return independent_filer & (federal_exemption_amount == 0) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py index 1f37e1c7c21..8ce48277203 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py @@ -6,15 +6,26 @@ class nm_2021_income_rebate(Variable): entity = TaxUnit label = "New Mexico 2021 income tax rebate" definition_period = YEAR - reference = "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503708/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsPABwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA" + reference = ( + "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503708/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsPABwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA", + # PDF pages 2-3 + "https://realfile.tax.newmexico.gov/2021pit-rc-ins.pdf#page=2", + ) defined_for = StateCode.NM def formula(tax_unit, period, parameters): - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # The rebate and credit schedule bars a filer who is a dependent of + # another taxpayer, but "If you are a dependent with a spouse who was + # not a dependent of another taxpayer, your spouse may still qualify + # to claim rebates or credits" (PIT-RC instructions). So only a return + # on which every filer is a dependent elsewhere is barred. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) agi = tax_unit("adjusted_gross_income", period) filing_status = tax_unit("filing_status", period) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] income_eligible = agi < p.main.income_limit[filing_status] - eligible = income_eligible & ~dependent_elsewhere + eligible = income_eligible & independent_filer amount_if_eligible = p.main.amount[filing_status] return eligible * amount_if_eligible diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py index 891ce07d54e..dd68e862de4 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py @@ -6,11 +6,22 @@ class nm_additional_2021_income_rebate(Variable): entity = TaxUnit label = "New Mexico additional 2021 income tax rebate" definition_period = YEAR - reference = "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503710/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsHHgEoANMmylCEAIqJCuAJ7QA5BskRCYXAiUr1WnXoMgAynlIAhdQCUAogBknANQCCAOQDCTyVIwACNoUnZxcSA" + reference = ( + "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503710/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsHHgEoANMmylCEAIqJCuAJ7QA5BskRCYXAiUr1WnXoMgAynlIAhdQCUAogBknANQCCAOQDCTyVIwACNoUnZxcSA", + # PDF pages 2-3 + "https://realfile.tax.newmexico.gov/2021pit-rc-ins.pdf#page=2", + ) defined_for = StateCode.NM def formula(tax_unit, period, parameters): - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # The rebate and credit schedule bars a filer who is a dependent of + # another taxpayer, but "If you are a dependent with a spouse who was + # not a dependent of another taxpayer, your spouse may still qualify + # to claim rebates or credits" (PIT-RC instructions). So only a return + # on which every filer is a dependent elsewhere is barred. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] filing_status = tax_unit("filing_status", period) - return ~dependent_elsewhere * p.additional.amount[filing_status] + return independent_filer * p.additional.amount[filing_status] diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py index 7839b75873d..e98e3be36dd 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py @@ -6,11 +6,22 @@ class nm_supplemental_2021_income_rebate(Variable): entity = TaxUnit label = "New Mexico supplemental 2021 income tax rebate" definition_period = YEAR - reference = "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503706/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsPAGwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA" + reference = ( + "https://nmonesource.com/nmos/nmsa/en/item/4340/index.do#!fragment/zoupio-_Toc140503706/BQCwhgziBcwMYgK4DsDWszIQewE4BUBTADwBdoAvbRABwEtsBaAfX2zgEYAWABgFYeAZgDsPAGwBKADTJspQhACKiQrgCe0AOSapEQmFwJlqjdt37DIAMp5SAIQ0AlAKIAZZwDUAggDkAws5SpGAARtCk7BISQA", + # PDF pages 2-3 + "https://realfile.tax.newmexico.gov/2021pit-rc-ins.pdf#page=2", + ) defined_for = StateCode.NM def formula(tax_unit, period, parameters): - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # The rebate and credit schedule bars a filer who is a dependent of + # another taxpayer, but "If you are a dependent with a spouse who was + # not a dependent of another taxpayer, your spouse may still qualify + # to claim rebates or credits" (PIT-RC instructions). So only a return + # on which every filer is a dependent elsewhere is barred. + independent_filer = ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 + ) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] filing_status = tax_unit("filing_status", period) - return ~dependent_elsewhere * p.supplemental.amount[filing_status] + return independent_filer * p.supplemental.amount[filing_status] diff --git a/policyengine_us/variables/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.py b/policyengine_us/variables/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.py index d98250ebddb..1720bb49cd2 100644 --- a/policyengine_us/variables/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.py +++ b/policyengine_us/variables/gov/states/ny/tax/income/taxable_income/deductions/ny_standard_deduction.py @@ -7,17 +7,21 @@ class ny_standard_deduction(Variable): label = "NY standard deduction" unit = USD definition_period = YEAR - reference = "https://www.nysenate.gov/legislation/laws/TAX/613" + reference = ( + "https://www.nysenate.gov/legislation/laws/TAX/614", + # Standard deduction table: the dependent amount applies only to + # filing status 1, "Single and you marked item C Yes". + "https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf#page=11", + ) defined_for = StateCode.NY def formula(tax_unit, period, parameters): - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) - standard_deduction = parameters( - period - ).gov.states.ny.tax.income.deductions.standard + p = parameters(period).gov.states.ny.tax.income.deductions.standard filing_status = tax_unit("filing_status", period) + single = filing_status == filing_status.possible_values.SINGLE + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) return where( - dependent_elsewhere, - standard_deduction.dependent_elsewhere, - standard_deduction.amount[filing_status], + single & dependent_elsewhere, + p.dependent_elsewhere, + p.amount[filing_status], ) diff --git a/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py b/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py index 6d8dde3554d..eb3c543e6fa 100644 --- a/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py +++ b/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py @@ -8,9 +8,10 @@ class or_standard_deduction(Variable): unit = USD definition_period = YEAR documentation = "Oregon standard deduction, including bonus for aged or blind and special rules for filers who are claimable as dependents." - reference = ( # TODO: update + reference = ( "https://www.oregon.gov/dor/forms/FormsPubs/form-or-40-inst_101-040-1_2021.pdf#page=18", - "https://www.oregonlegislature.gov/bills_laws/ors/ors316.html", # Subsection 316.695 (7) + "https://www.oregonlegislature.gov/bills_laws/ors/ors316.html", # ORS 316.695(7)-(8) + "https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf#page=96", ) defined_for = StateCode.OR @@ -25,7 +26,11 @@ def formula(tax_unit, period, parameters): claimable_dep_earned_amount = ( earned_income + p.claimable_as_dependent.earned_income_addition ) - dependent_elsewhere = tax_unit("head_is_dependent_elsewhere", period) + # ORS 316.695(8) limits the deduction as IRC 63(c)(5) does, so a joint + # return uses the couple's earned income and the joint amount when + # either spouse can be claimed (Publication OR-17, "Standard deduction + # worksheet for married filing jointly (MFJ) dependents"). + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) # Set floor and ceiling around earned income plus additional amount. floored_claimable_dep_amount = max_( claimable_dep_earned_amount, claimable_dep_floor diff --git a/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py b/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py index 82b96fe10d0..7b746711ad1 100644 --- a/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py @@ -7,16 +7,23 @@ class va_low_income_tax_credit_eligible(Variable): label = "Eligible for the Virginia Low Income Tax Credit" definition_period = YEAR defined_for = StateCode.VA + reference = ( + "https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-339.8/", + "https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf#page=30", + ) def formula(tax_unit, period, parameters): # Criteria 1: Not qualified to claim EITC if anyone in the tax unit claimed any of the following: p = parameters(period).gov.states.va.tax.income.credits.eitc.low_income_tax program_eligible = add(tax_unit, period, p.ineligible_programs) == 0 - # Criteria 2: Not qualified to claim EITC if the filier is claimed as a dependent on another taxpayer's return - - head_is_not_dependent_elsewhere = ~tax_unit( - "head_is_dependent_elsewhere", period + # Criteria 2: Not qualified if a filer is claimed as a dependent on + # another taxpayer's return. Va. Code 58.1-339.8 bars the credit + # against the tax of a dependent of another individual or couple; a + # joint return carries both spouses' tax, so either spouse being + # claimed bars it. + filer_is_dependent_elsewhere = tax_unit( + "head_or_spouse_is_dependent_elsewhere", period ) - return program_eligible & head_is_not_dependent_elsewhere + return program_eligible & ~filer_is_dependent_elsewhere diff --git a/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py new file mode 100644 index 00000000000..493bf92c3c4 --- /dev/null +++ b/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py @@ -0,0 +1,21 @@ +from policyengine_us.model_api import * + + +class head_or_spouse_is_dependent_elsewhere(Variable): + value_type = bool + entity = TaxUnit + definition_period = YEAR + label = "Head or spouse is a dependent elsewhere" + documentation = ( + "Whether the head or the spouse of this tax unit is claimed as a " + "dependent in another tax unit. Unlike head_is_dependent_elsewhere, " + "this does not depend on which spouse is labelled head." + ) + + def formula(tax_unit, period, parameters): + person = tax_unit.members + claimed_on_another_return = person( + "claimed_as_dependent_on_another_return", period + ) + filer = person("is_tax_unit_head_or_spouse", period) + return tax_unit.any(claimed_on_another_return & filer) diff --git a/policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py new file mode 100644 index 00000000000..348b7a993a2 --- /dev/null +++ b/policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py @@ -0,0 +1,20 @@ +from policyengine_us.model_api import * + + +class head_spouse_count_not_dependent_elsewhere(Variable): + value_type = int + entity = TaxUnit + definition_period = YEAR + label = "Head and spouse count not dependent elsewhere" + documentation = ( + "Number of tax unit heads and spouses who are not claimed as a " + "dependent in another tax unit." + ) + + def formula(tax_unit, period, parameters): + person = tax_unit.members + claimed_on_another_return = person( + "claimed_as_dependent_on_another_return", period + ) + filer = person("is_tax_unit_head_or_spouse", period) + return tax_unit.sum(filer & ~claimed_on_another_return) From 3ecc675fe669409f59f1a756cf30103598e59598 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Fri, 9 Oct 2026 08:35:58 -0400 Subject: [PATCH 02/25] Keep tax units without a filer eligible where only claimed filers are barred The New Mexico, Maine and Hawaii renters gates counted filers who are not claimed elsewhere, so a tax unit with neither a head nor a spouse (252 in the default dataset) looked like one whose every filer was claimed. A new helper, every_filer_is_dependent_elsewhere, requires a claimed filer and no unclaimed one. Co-Authored-By: Claude Opus 5.5 --- ...t_elsewhere_head_spouse_swap_invariance.py | 19 ++-- .../every_filer_is_dependent_elsewhere.yaml | 89 +++++++++++++++++++ ...r_low_income_household_renters_eligible.py | 6 +- .../me_sales_tax_fairness_credit_eligible.py | 6 +- .../income/credits/cdcc/nm_cdcc_eligible.py | 9 +- .../credits/nm_medical_expense_credit.py | 6 +- ...duction_for_certain_dependents_eligible.py | 6 +- .../2021_rebate/nm_2021_income_rebate.py | 6 +- .../nm_additional_2021_income_rebate.py | 6 +- .../nm_supplemental_2021_income_rebate.py | 6 +- .../every_filer_is_dependent_elsewhere.py | 18 ++++ 11 files changed, 138 insertions(+), 39 deletions(-) create mode 100644 policyengine_us/tests/policy/baseline/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.yaml create mode 100644 policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py diff --git a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py index 8c3e6fc2c48..721d38dff05 100644 --- a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py +++ b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py @@ -33,9 +33,10 @@ 2. Monotonicity: marking another filer as claimed elsewhere never raises any of the eighteen amounts or turns an eligibility on. 3. The helper identities: `head_or_spouse_is_dependent_elsewhere` equals - `head_is_dependent_elsewhere | spouse_is_dependent_elsewhere`, and - `head_spouse_count_not_dependent_elsewhere` plus the claimed filers equals - the number of filers. + `head_is_dependent_elsewhere | spouse_is_dependent_elsewhere`, + `every_filer_is_dependent_elsewhere` equals their conjunction for a + couple, and `head_spouse_count_not_dependent_elsewhere` plus the claimed + filers equals the number of filers. """ import numpy as np @@ -173,9 +174,11 @@ def _crafted_cases(states, review_case_only=False): "rent": 9_000.0, "other_medical_expenses": 30_000.0, } + # One claimed adult covers both labellings of a claimed spouse, since each + # case runs with the labels exchanged. cases = [] for state in states: - for claimed in CLAIM_PATTERNS[:3]: + for claimed in [(True, False), (True, True)]: cases += [ { "state": state, @@ -291,6 +294,8 @@ def _check_swap(units, year, outputs): np.testing.assert_array_equal(either, np.maximum(head, spouse)) independent = _calc(sim, "head_spouse_count_not_dependent_elsewhere", year) np.testing.assert_array_equal(independent + head + spouse, 2) + every = _calc(sim, "every_filer_is_dependent_elsewhere", year) + np.testing.assert_array_equal(every, np.minimum(head, spouse)) def _monotone_variants(unit): @@ -329,19 +334,19 @@ def _check_monotone(units, year): # A batch's cost is mostly per-variable overhead, so each example is a large # batch and there are few examples. @settings( - max_examples=6, + max_examples=4, deadline=None, derandomize=True, suppress_health_check=[HealthCheck.too_slow, HealthCheck.data_too_large], ) -@given(st.sampled_from(YEARS), st.lists(couples(), min_size=8, max_size=20)) +@given(st.sampled_from(YEARS), st.lists(couples(), min_size=6, max_size=15)) def test_claimed_spouse_does_not_depend_on_head_label(year, units): _check_swap(units, year, TAX_UNIT_OUTPUTS + CONSUMERS) @pytest.mark.parametrize("year", YEARS) def test_seeded_population(year): - units = _seeded_couples(AFFECTED, per_state=4) + _crafted_cases(AFFECTED) + units = _seeded_couples(AFFECTED, per_state=2) + _crafted_cases(AFFECTED) _check_swap(units, year, TAX_UNIT_OUTPUTS + CONSUMERS) _check_monotone(units, year) diff --git a/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.yaml b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.yaml new file mode 100644 index 00000000000..2b934fda74a --- /dev/null +++ b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.yaml @@ -0,0 +1,89 @@ +- name: Only the head is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [head, spouse] + output: + every_filer_is_dependent_elsewhere: false + +- name: Only the spouse is claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + output: + every_filer_is_dependent_elsewhere: false + +- name: Both spouses are claimed elsewhere + period: 2025 + input: + people: + head: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + spouse: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + output: + every_filer_is_dependent_elsewhere: true + +- name: Single filer claimed elsewhere + period: 2025 + input: + people: + head: + age: 19 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head] + output: + every_filer_is_dependent_elsewhere: true + +- name: A tax unit with neither a head nor a spouse has no filer claimed elsewhere + period: 2025 + input: + people: + child: + age: 10 + is_tax_unit_head: false + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [child] + output: + every_filer_is_dependent_elsewhere: false diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py index db97f6a626f..61f4c81eaf2 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py @@ -18,14 +18,12 @@ def formula(tax_unit, period, parameters): # cannot be claimed as a dependent. Schedule X stops at line 3 only # for the first-listed filer; since a couple may list either spouse # first, a joint return qualifies unless both spouses can be claimed. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) p = parameters(period).gov.states.hi.tax.income.credits.lihrtc agi = tax_unit("hi_agi", period) rent = add(tax_unit, period, ["rent"]) return ( (rent > p.eligibility.rent_threshold) & (agi < p.eligibility.agi_limit) - & independent_filer + & ~every_filer_dependent ) diff --git a/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py b/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py index d761c2d8ecf..6d8e7aac8dd 100644 --- a/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py +++ b/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py @@ -18,9 +18,7 @@ def formula(tax_unit, period, parameters): # individual the base credit for the return's filing status. On a # joint return where only one spouse can be claimed, the other spouse # still qualifies for the joint credit. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) filing_status = tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE - return independent_filer & ~separate + return ~every_filer_dependent & ~separate diff --git a/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py b/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py index 48198e1b904..3bdf5fa4fed 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/credits/cdcc/nm_cdcc_eligible.py @@ -19,9 +19,7 @@ def formula(tax_unit, period, parameters): # taxpayer, your spouse may still qualify to claim rebates or # credits" (PIT-RC instructions). So only a return on which every # filer is a dependent elsewhere is barred. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) p = parameters(period).gov.states.nm.tax.income.credits.cdcc # Filer has to be be gainfully employed to receive credit has_earnings = person("earned_income", period) > 0 @@ -52,5 +50,8 @@ def formula(tax_unit, period, parameters): ) income_eligible = nm_modified_gross_income <= income_limit return ( - independent_filer & employment_eligible & ~receives_tanf & income_eligible + ~every_filer_dependent + & employment_eligible + & ~receives_tanf + & income_eligible ) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py index 205f3b1b0e4..27585ed2568 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py @@ -25,10 +25,8 @@ def formula(tax_unit, period, parameters): # not a dependent of another taxpayer, your spouse may still qualify # to claim rebates or credits" (PIT-RC instructions). So only a return # on which every filer is a dependent elsewhere is barred. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) - eligible = age_eligible & expense_eligible & independent_filer + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) + eligible = age_eligible & expense_eligible & ~every_filer_dependent # exemption is halved for married filing separately filing_status = tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE diff --git a/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py b/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py index d66ef23f1a6..389227abe70 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py @@ -18,10 +18,8 @@ def formula(tax_unit, period, parameters): # instructions let a spouse who is not a dependent still qualify. So # only a return on which every filer is a dependent elsewhere is # barred. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) # deduction does not apply if an exemption under IRS 151 is claimed; # IRC 151 refers to the federal personal exemption federal_exemption_amount = tax_unit("exemptions", period) - return independent_filer & (federal_exemption_amount == 0) + return ~every_filer_dependent & (federal_exemption_amount == 0) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py index 8ce48277203..c49035340e2 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py @@ -19,13 +19,11 @@ def formula(tax_unit, period, parameters): # not a dependent of another taxpayer, your spouse may still qualify # to claim rebates or credits" (PIT-RC instructions). So only a return # on which every filer is a dependent elsewhere is barred. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) agi = tax_unit("adjusted_gross_income", period) filing_status = tax_unit("filing_status", period) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] income_eligible = agi < p.main.income_limit[filing_status] - eligible = income_eligible & independent_filer + eligible = income_eligible & ~every_filer_dependent amount_if_eligible = p.main.amount[filing_status] return eligible * amount_if_eligible diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py index dd68e862de4..f574c92dbab 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py @@ -19,9 +19,7 @@ def formula(tax_unit, period, parameters): # not a dependent of another taxpayer, your spouse may still qualify # to claim rebates or credits" (PIT-RC instructions). So only a return # on which every filer is a dependent elsewhere is barred. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] filing_status = tax_unit("filing_status", period) - return independent_filer * p.additional.amount[filing_status] + return ~every_filer_dependent * p.additional.amount[filing_status] diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py index e98e3be36dd..bf8f1a88d52 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py @@ -19,9 +19,7 @@ def formula(tax_unit, period, parameters): # not a dependent of another taxpayer, your spouse may still qualify # to claim rebates or credits" (PIT-RC instructions). So only a return # on which every filer is a dependent elsewhere is barred. - independent_filer = ( - tax_unit("head_spouse_count_not_dependent_elsewhere", period) > 0 - ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] filing_status = tax_unit("filing_status", period) - return independent_filer * p.supplemental.amount[filing_status] + return ~every_filer_dependent * p.supplemental.amount[filing_status] diff --git a/policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py new file mode 100644 index 00000000000..161339f0358 --- /dev/null +++ b/policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py @@ -0,0 +1,18 @@ +from policyengine_us.model_api import * + + +class every_filer_is_dependent_elsewhere(Variable): + value_type = bool + entity = TaxUnit + definition_period = YEAR + label = "Every head and spouse is a dependent elsewhere" + documentation = ( + "Whether the tax unit has a head or spouse claimed as a dependent in " + "another tax unit and none who is not. False for a tax unit with " + "neither a head nor a spouse." + ) + + def formula(tax_unit, period, parameters): + return tax_unit("head_or_spouse_is_dependent_elsewhere", period) & ( + tax_unit("head_spouse_count_not_dependent_elsewhere", period) == 0 + ) From 8da831289dabf23c4f36e06fa567f4a32a7293d4 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Fri, 9 Oct 2026 09:14:47 -0400 Subject: [PATCH 03/25] Address review: Hawaii worksheet earnings, NM same-filer age, childless EITC - Hawaii's dependent standard deduction uses earned income net of the deductible part of self-employment tax, as the N-11 worksheet does. - New Mexico's medical care credit needs a filer who is both 65 or older and not a dependent when a filer is a dependent elsewhere (NMSA 7-2-18.13). - The federal EITC without a qualifying child requires that no filer can be claimed as a dependent (IRC 32(c)(1)(A)(ii)(III), Publication 596), so Missouri's working family credit no longer reaches such a couple. - Hawaii's food/excise credit keeps minor children receiving public support (HRS 235-55.85(c)) on a joint return where one spouse can be claimed. - Comments label the readings the law does not settle, and the property test covers the EITC and the food/excise exemption amount. Co-Authored-By: Claude Opus 5.5 --- .../head-dependent-elsewhere-swap.fixed.md | 2 +- ...t_elsewhere_head_spouse_swap_invariance.py | 36 +++-- .../eitc_demographic_eligible.yaml | 130 ++++++++++++++++++ .../food_excise/hi_food_excise_credit.yaml | 130 ++++++++++++++++++ .../tax/income/deductions/hi_deductions.yaml | 79 +++++++++++ .../income/credits/wftc/mo_wftc_eligible.yaml | 62 +++++++++ .../credits/nm_medical_expense_credit.yaml | 106 ++++++++++++++ .../eligibility/eitc_demographic_eligible.py | 16 ++- .../food_excise/hi_food_excise_credit.py | 11 +- .../hi_food_excise_exemption_amount.py | 20 ++- .../tax/income/credits/hi_act_115_rebate.py | 7 +- ...low_income_household_renters_tax_credit.py | 5 +- .../hi/tax/income/deductions/hi_deductions.py | 7 +- .../me_sales_tax_fairness_credit_eligible.py | 6 +- .../mi/tax/income/exemptions/mi_exemptions.py | 12 +- .../credits/nm_medical_expense_credit.py | 22 +-- ...duction_for_certain_dependents_eligible.py | 9 +- .../2021_rebate/nm_2021_income_rebate.py | 13 +- .../nm_additional_2021_income_rebate.py | 13 +- .../nm_supplemental_2021_income_rebate.py | 13 +- .../va_low_income_tax_credit_eligible.py | 9 +- 21 files changed, 635 insertions(+), 73 deletions(-) diff --git a/changelog.d/head-dependent-elsewhere-swap.fixed.md b/changelog.d/head-dependent-elsewhere-swap.fixed.md index 4b4d878f15f..42a32945776 100644 --- a/changelog.d/head-dependent-elsewhere-swap.fixed.md +++ b/changelog.d/head-dependent-elsewhere-swap.fixed.md @@ -1 +1 @@ -The federal standard deduction and the New York, Michigan, Oregon, Virginia, Missouri, New Mexico, Maine and Hawaii rules for a filer claimed as a dependent elsewhere no longer depend on which spouse is labelled head; each follows its jurisdiction's rule for a joint return where one spouse can be claimed. New York's $3,100 dependent standard deduction now applies only to single filers, and Hawaii now limits the standard deduction of a filer who can be claimed as a dependent. +The federal standard deduction and the New York, Michigan, Oregon, Virginia, Missouri, New Mexico, Maine and Hawaii rules for a filer claimed as a dependent elsewhere no longer depend on which spouse is labelled head; each follows its jurisdiction's rule for a joint return where one spouse can be claimed. New York's $3,100 dependent standard deduction now applies only to single filers; Hawaii now limits the standard deduction of a filer who can be claimed as a dependent; the federal EITC without a qualifying child now requires that no filer can be claimed as a dependent; and New Mexico's medical care credit requires a filer who is both 65 or older and not a dependent when a filer is a dependent elsewhere. diff --git a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py index 721d38dff05..d64c56ff5ba 100644 --- a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py +++ b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py @@ -4,34 +4,40 @@ A married couple may list either spouse first, so exchanging the two adults' `is_tax_unit_head` and `is_tax_unit_spouse` labels, with every other input kept, must not change their taxes. On main, the federal standard deduction and -seventeen state formulas read only `head_is_dependent_elsewhere`, so a joint -return where one spouse can be claimed on another return (a joint return filed -only to recover withholding can meet the federal exception, IRS Publication -501) was taxed differently depending on which spouse was labelled head. Each +16 state formulas read only `head_is_dependent_elsewhere`, so a joint return +where one spouse can be claimed on another return (a joint return filed only +to recover withholding can meet the federal exception, IRS Publication 501) +was taxed differently depending on which spouse was labelled head. Each formula now applies its jurisdiction's rule for that case: - Either spouse limits the return (the IRC 63(c)(5) worksheet): the federal standard deduction, Oregon's and Hawaii's standard deductions, and - Virginia's credit for low-income individuals. + Virginia's credit for low-income individuals. The federal EITC without a + qualifying child now also requires that neither spouse can be claimed. - Only single filers: New York's dependent standard deduction. - Each spouse separately: Michigan's exemptions and Hawaii's food/excise, renters and Act 115 credits count only the filers who cannot be claimed. - Only when every filer is a dependent: New Mexico's rebates, credits and - dependents deduction, and Maine's sales tax fairness credit. -- Never on a joint return: Missouri's working family credit, since such a - couple files as married filing combined. + dependents deduction, and Maine's sales tax fairness credit. New Mexico's + medical care credit also needs a filer who is both 65 or older and not a + dependent. +- Never on a joint return: Missouri's own stop in its working family credit, + since such a couple files as married filing combined. Hypothesis draws batches of married couples, with and without dependents, in the eight states with such a rule and one without, for 2021-2026, with either, -both or neither spouse claimed elsewhere. A seeded population and crafted -cases add breadth in every year, and two seeded couples plus the review case -in every state guard 2026. Each batch is one vectorized simulation. For each couple: +both or neither spouse claimed elsewhere, and checks 1 and 3. A seeded +population and crafted cases check 1, 2 and 3 in every year, and two seeded +couples plus the review case in every state check 1 for federal and state +income tax in 2026. Each batch is one vectorized simulation. For each couple: 1. Swap invariance: federal income tax, state income tax before and after - refundable credits, and each of the eighteen formulas are the same to the - cent (or the same boolean) under either labelling. + refundable credits, and each formula in CONSUMERS are the same to the cent + (or the same boolean) under either labelling. 2. Monotonicity: marking another filer as claimed elsewhere never raises any - of the eighteen amounts or turns an eligibility on. + amount in CONSUMERS or turns an eligibility on. This holds for current + parameters and inputs the model derives; for example, a Hawaii standard + deduction input below the itemization threshold could break it. 3. The helper identities: `head_or_spouse_is_dependent_elsewhere` equals `head_is_dependent_elsewhere | spouse_is_dependent_elsewhere`, `every_filer_is_dependent_elsewhere` equals their conjunction for a @@ -59,6 +65,7 @@ # The formulas that read whether a filer is claimed elsewhere. CONSUMERS = [ "basic_standard_deduction", + "eitc", "ny_standard_deduction", "mi_exemptions", "or_standard_deduction", @@ -73,6 +80,7 @@ "me_sales_tax_fairness_credit_eligible", "hi_deductions", "hi_act_115_rebate", + "hi_food_excise_exemption_amount", "hi_food_excise_credit", "hi_tax_credit_for_low_income_household_renters_eligible", "hi_tax_credit_for_low_income_household_renters", diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml index ae065070ccc..80b379d010b 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml @@ -127,3 +127,133 @@ is_full_time_student: true output: eitc_demographic_eligible: false + +- name: 2025 childless single filer who can be claimed as a dependent is ineligible + period: 2025 + input: + people: + head: + age: 30 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head] + output: + # IRC 32(c)(1)(A)(ii)(III). + eitc_demographic_eligible: false + +- name: 2025 childless joint return where one spouse can be claimed is ineligible (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # Publication 596 (2025, p.18): "neither you nor your spouse can be claimed as a + # dependent by another person if you claim the EIC on your joint return." + eitc_demographic_eligible: false + +- name: 2025 childless joint return where one spouse can be claimed is ineligible (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + # Publication 596 (2025, p.18): "neither you nor your spouse can be claimed as a + # dependent by another person if you claim the EIC on your joint return." + eitc_demographic_eligible: false + +- name: 2025 joint return with a child where one spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child_1] + state_code: CA + output: + # The dependent condition in IRC 32(c)(1)(A)(ii)(III) applies only without a + # qualifying child. + eitc_demographic_eligible: true + +- name: 2025 joint return with a child where one spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child_1] + state_code: CA + output: + # The dependent condition in IRC 32(c)(1)(A)(ii)(III) applies only without a + # qualifying child. + eitc_demographic_eligible: true diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml index e340975fe5c..eaf2ffad6cd 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml @@ -331,3 +331,133 @@ state_code: HI output: hi_food_excise_credit: 0 + +- name: 2022 joint return with a publicly supported minor where only one spouse can be claimed (the claimable spouse is the head) + period: 2022 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + # The spouse who cannot be claimed: $110; HRS 235-55.85(c) lets the minor + # receiving public support count for this credit: $110. + hi_food_excise_credit: 220 + +- name: 2022 joint return with a publicly supported minor where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2022 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + # The spouse who cannot be claimed: $110; HRS 235-55.85(c) lets the minor + # receiving public support count for this credit: $110. + hi_food_excise_credit: 220 + +- name: 2025 joint return with a publicly supported minor where only one spouse can be claimed (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + # From 2023 the minor counts as a qualified exemption: 2 x $220. + hi_food_excise_credit: 440 + +- name: 2025 joint return with a publicly supported minor where only one spouse can be claimed (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + # From 2023 the minor counts as a qualified exemption: 2 x $220. + hi_food_excise_credit: 440 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml index 377d8edd769..584d987cbe7 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml @@ -195,3 +195,82 @@ output: # HRS 235-2.4(a)(3): greater of $500 or earned income ($300). hi_deductions: 500 + +- name: 2025 single dependent filer with self-employment income uses earned income net of the self-employment tax deduction + period: 2025 + absolute_error_margin: 0.01 + input: + people: + head: + age: 20 + self_employment_income: 3_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head] + filing_status: SINGLE + hi_itemized_deductions: 0 + households: + household: + members: [head] + state_code: HI + output: + # N-11 worksheet earned income subtracts Schedule 1 line 15: + # $3,000 x 0.9235 x 15.3% / 2 = $211.94, so $3,000 - $211.94 = $2,788.06. + hi_deductions: 2_788.06 + +- name: 2025 joint return with a claimable self-employed spouse uses earned income net of the self-employment tax deduction (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + self_employment_income: 3_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + hi_itemized_deductions: 0 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + # $3,000 - $3,000 x 0.9235 x 15.3% / 2 = $2,788.06, below the $8,800 joint amount. + hi_deductions: 2788.06 + +- name: 2025 joint return with a claimable self-employed spouse uses earned income net of the self-employment tax deduction (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + self_employment_income: 3_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + hi_itemized_deductions: 0 + households: + household: + members: [person_b, person_a] + state_code: HI + output: + # $3,000 - $3,000 x 0.9235 x 15.3% / 2 = $2,788.06, below the $8,800 joint amount. + hi_deductions: 2788.06 diff --git a/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml index 6cb8a3e48c6..0cea1d97f45 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/mo/tax/income/credits/wftc/mo_wftc_eligible.yaml @@ -189,3 +189,65 @@ # A joint federal filer whose spouse can be claimed still files Form MO-1040 # as married filing combined, not as claimed as a dependent. mo_wftc_eligible: true + +- name: 2025 childless couple with a claimable student spouse gets no federal EITC and so no WFTC (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + is_full_time_student: true + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 8_000 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: MO + output: + # Without a qualifying child, neither spouse may be claimable for the federal + # EITC (Publication 596), which RSMo 143.177 requires. + eitc: 0 + mo_wftc_eligible: false + +- name: 2025 childless couple with a claimable student spouse gets no federal EITC and so no WFTC (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + employment_income: 8_000 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + is_full_time_student: true + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: MO + output: + # Without a qualifying child, neither spouse may be claimable for the federal + # EITC (Publication 596), which RSMo 143.177 requires. + eitc: 0 + mo_wftc_eligible: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml index 518854ff24e..f8563d24439 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/credits/nm_medical_expense_credit.yaml @@ -143,3 +143,109 @@ state_code: NM output: nm_medical_expense_credit: 0 + +- name: Joint return where only the claimable spouse is 65 or older (the claimable spouse is the head) + period: 2023 + input: + people: + person_a: + age: 70 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 60 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + itemized_medical_expenses: 28_000 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # NMSA 7-2-18.13(A): the taxpayer who is 65 or older must also not be a dependent. + nm_medical_expense_credit: 0 + +- name: Joint return where only the claimable spouse is 65 or older (the claimable spouse is the spouse) + period: 2023 + input: + people: + person_b: + age: 60 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 70 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + itemized_medical_expenses: 28_000 + households: + household: + members: [person_b, person_a] + state_code: NM + output: + # NMSA 7-2-18.13(A): the taxpayer who is 65 or older must also not be a dependent. + nm_medical_expense_credit: 0 + +- name: Joint return where the spouse who is not claimable is 65 or older (the claimable spouse is the head) + period: 2023 + input: + people: + person_a: + age: 60 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 70 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + itemized_medical_expenses: 28_000 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + nm_medical_expense_credit: 2_800 + +- name: Joint return where the spouse who is not claimable is 65 or older (the claimable spouse is the spouse) + period: 2023 + input: + people: + person_b: + age: 70 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 60 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + itemized_medical_expenses: 28_000 + households: + household: + members: [person_b, person_a] + state_code: NM + output: + nm_medical_expense_credit: 2_800 diff --git a/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py b/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py index 2338356763e..053ca2799c0 100644 --- a/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py +++ b/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py @@ -6,7 +6,10 @@ class eitc_demographic_eligible(Variable): entity = TaxUnit label = "Meets demographic eligibility for EITC" definition_period = YEAR - reference = "https://www.law.cornell.edu/uscode/text/26/32#c_1_A_ii_II" + reference = ( + "https://www.law.cornell.edu/uscode/text/26/32#c_1_A_ii", + "https://www.irs.gov/pub/irs-prior/p596--2025.pdf#page=18", + ) def formula(tax_unit, period, parameters): person = tax_unit.members @@ -27,4 +30,13 @@ def formula(tax_unit, period, parameters): # IRC § 32(c)(1)(A)(ii)(II) applies the age test to the filer or, # on a joint return, either spouse — never to dependents. is_filer_or_spouse = ~person("is_tax_unit_dependent", period) - return has_child | tax_unit.any(meets_age_requirements & is_filer_or_spouse) + # IRC § 32(c)(1)(A)(ii)(III): without a qualifying child, the filer + # must not be a dependent of another taxpayer; on a joint return, + # "neither you nor your spouse can be claimed as a dependent by another + # person" (IRS Publication 596). + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + childless_eligible = ( + tax_unit.any(meets_age_requirements & is_filer_or_spouse) + & ~dependent_elsewhere + ) + return has_child | childless_eligible diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py index a98403539f7..220561807b8 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py @@ -15,13 +15,14 @@ class hi_food_excise_credit(Variable): def formula(tax_unit, period, parameters): # HRS 235-55.85(a): only a taxpayer who cannot be claimed as a - # dependent may claim the credit, for each qualified exemption. The + # dependent may claim the credit, for each qualified exemption; the # exemption amount counts only filers who cannot be claimed when - # either can; such a return claims no dependents (IRS Publication - # 501), so it gets no minor child amount. - dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # either can. Minor children receiving public support count for this + # credit under 235-55.85(c), so they keep their amount unless every + # filer can be claimed. + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) exemption_amount = tax_unit("hi_food_excise_exemption_amount", period) minor_child_amount = tax_unit( "hi_food_excise_credit_minor_child_amount", period ) - return exemption_amount + where(dependent_filer, 0, minor_child_amount) + return exemption_amount + where(every_filer_dependent, 0, minor_child_amount) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py index d11bb0a6cac..c597ba1352b 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py @@ -44,21 +44,29 @@ def formula(tax_unit, period, parameters): ], ) exemptions = tax_unit("exemptions_count", period) + minor_children = tax_unit("hi_food_excise_credit_minor_child_count", period) if p.minor_child.in_effect: - # Reduce number of exemptions by the number of minor children - minor_children = tax_unit("hi_food_excise_credit_minor_child_count", period) + # Reduce number of exemptions by the number of minor children, + # who get a fixed amount instead. claimable_exemptions = exemptions - minor_children + minor_child_exemptions = 0 else: claimable_exemptions = exemptions + minor_child_exemptions = minor_children # Form N-311 counts only people who cannot be claimed as a dependent - # by another taxpayer. A return on which a filer can be claimed claims - # no dependents (IRS Publication 501), so it counts only the filers - # who cannot be claimed. + # by another taxpayer. A return on which a filer can be claimed + # generally claims no dependents (IRS Publication 501; its exception + # for a claimer who files only for a refund is not modeled), so it + # counts the filers who cannot be claimed and, through HRS + # 235-55.85(c), their minor children receiving public support. dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period ) + mixed_return_exemptions = independent_filers + where( + independent_filers > 0, minor_child_exemptions, 0 + ) qualified_exemptions = where( - dependent_filer, independent_filers, claimable_exemptions + dependent_filer, mixed_return_exemptions, claimable_exemptions ) return qualified_exemptions * amount_per_exemption diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py index 3a229d50ebb..734e6305b38 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py @@ -43,9 +43,10 @@ def formula(tax_unit, period, parameters): # not a qualifying resident taxpayer, and each qualifying resident # taxpayer claims the refund for the exemptions they are entitled to. # A filer who can be claimed has no exemption (HRS 235-54(a)), and a - # return on which a filer can be claimed claims no dependents (IRS - # Publication 501), so such a return counts only the filers who - # cannot be claimed. + # return on which a filer can be claimed generally claims no dependents + # (IRS Publication 501; its exception for a claimer who files only for + # a refund is not modeled), so such a return counts only the filers + # who cannot be claimed. dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py index 81a87e2876e..f60088206d8 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py @@ -19,8 +19,9 @@ def formula(tax_unit, period, parameters): # Schedule X lines 8-10 count only people who cannot be claimed as a # dependent by another taxpayer, with an extra exemption for each # such filer aged 65 or over. A return on which a filer can be - # claimed claims no dependents (IRS Publication 501), so it counts - # only the filers who cannot be claimed. + # claimed generally claims no dependents (IRS Publication 501; its + # exception for a claimer who files only for a refund is not modeled), + # so it counts only the filers who cannot be claimed. aged_head = (tax_unit("age_head", period) >= p.aged_age_threshold) & ~tax_unit( "head_is_dependent_elsewhere", period ) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py b/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py index 70a783508dd..ee104646ba4 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py @@ -37,8 +37,13 @@ def formula(tax_unit, period, parameters): is_dependent_on_another_return = tax_unit( "head_or_spouse_is_dependent_elsewhere", period ) + # Worksheet earned income: wages and self-employment income minus the + # deductible part of self-employment tax (Schedule 1, line 15). + worksheet_earned_income = max_( + tax_unit_earned_income - tax_unit("self_employment_tax_ald", period), 0 + ) dependent_standard_deduction = min_( - max_(p.threshold.dependent, tax_unit_earned_income), standard_deduction + max_(p.threshold.dependent, worksheet_earned_income), standard_deduction ) applicable_standard_deduction = where( is_dependent_on_another_return, diff --git a/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py b/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py index 6d8e7aac8dd..cf13c6de8ea 100644 --- a/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py +++ b/policyengine_us/variables/gov/states/me/tax/income/credits/fairness/sales_tax_fairness_credit/me_sales_tax_fairness_credit_eligible.py @@ -15,9 +15,9 @@ class me_sales_tax_fairness_credit_eligible(Variable): def formula(tax_unit, period, parameters): # 36 MRSA 5213-A(6)(C) excludes individuals who may be claimed as a # dependent on another return, and subsection 2 allows each resident - # individual the base credit for the return's filing status. On a - # joint return where only one spouse can be claimed, the other spouse - # still qualifies for the joint credit. + # individual the base credit for the return's filing status. Neither + # settles a joint return where only one spouse can be claimed; we read + # them as letting the other spouse qualify for the joint credit. every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) filing_status = tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE diff --git a/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py b/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py index 1c77fb504ce..1940d6d1af8 100644 --- a/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py +++ b/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py @@ -35,11 +35,13 @@ def formula(tax_unit, period, parameters): # MCL 206.30(4): an individual who can be claimed as a dependent on # another return gets no personal exemption but subtracts $1,500. - # This applies to each spouse separately, so on a joint return where - # only one spouse can be claimed, the other keeps their own personal - # exemption (and any stillbirth exemption). A joint return on which - # either spouse can be claimed claims no dependents (IRS Publication - # 501, "Dependent Taxpayer Test"). + # Treasury's instructions do not address a joint return where only + # one spouse can be claimed; since subsection (4) speaks of an + # individual, we apply it to each spouse, so the other keeps their own + # personal exemption (and any stillbirth exemption). A joint return on + # which either spouse can be claimed generally claims no dependents + # (IRS Publication 501, "Dependent Taxpayer Test"; its exception for a + # claimer who files only for a refund is not modeled). filers = add(tax_unit, period, ["is_tax_unit_head_or_spouse"]) independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period diff --git a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py index 27585ed2568..1ee85c8bfae 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py @@ -18,15 +18,21 @@ def formula(tax_unit, period, parameters): p = pcredits.unreimbursed_medical_care_expense age = person("age", period) medical_expense = tax_unit("itemized_medical_expenses", period) - age_eligible = tax_unit.any(age >= p.age_eligibility) + aged = age >= p.age_eligibility expense_eligible = medical_expense >= p.min_expenses - # The rebate and credit schedule bars a filer who is a dependent of - # another taxpayer, but "If you are a dependent with a spouse who was - # not a dependent of another taxpayer, your spouse may still qualify - # to claim rebates or credits" (PIT-RC instructions). So only a return - # on which every filer is a dependent elsewhere is barred. - every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) - eligible = age_eligible & expense_eligible & ~every_filer_dependent + # NMSA 7-2-18.13(A) allows the credit to a taxpayer "who is sixty-five + # years of age or older and who is not a dependent of another + # taxpayer", and the PIT-RC instructions let a spouse who is not a + # dependent claim it when the other spouse is. So when a filer is a + # dependent elsewhere, a filer who is not must be 65 or older. + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + independent_aged_filer = tax_unit.any(filer & ~claimed & aged) + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + age_eligible = where( + dependent_filer, independent_aged_filer, tax_unit.any(aged) + ) + eligible = age_eligible & expense_eligible # exemption is halved for married filing separately filing_status = tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE diff --git a/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py b/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py index 389227abe70..c083077aebd 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/deductions/certain_dependents/nm_deduction_for_certain_dependents_eligible.py @@ -14,10 +14,11 @@ class nm_deduction_for_certain_dependents_eligible(Variable): def formula(tax_unit, period, parameters): # The deduction uses the same "not a dependent of another individual" - # test as the rebates and credits on Schedule PIT-RC, whose - # instructions let a spouse who is not a dependent still qualify. So - # only a return on which every filer is a dependent elsewhere is - # barred. + # test as the rebates and credits on Schedule PIT-RC, and the law does + # not settle a joint return where only one spouse is a dependent. We + # apply the PIT-RC instructions' reading, which lets a spouse who is + # not a dependent still qualify, so only a return on which every + # filer is a dependent elsewhere is barred. every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) # deduction does not apply if an exemption under IRS 151 is claimed; # IRC 151 refers to the federal personal exemption diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py index c49035340e2..0dab3d96509 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_2021_income_rebate.py @@ -14,11 +14,14 @@ class nm_2021_income_rebate(Variable): defined_for = StateCode.NM def formula(tax_unit, period, parameters): - # The rebate and credit schedule bars a filer who is a dependent of - # another taxpayer, but "If you are a dependent with a spouse who was - # not a dependent of another taxpayer, your spouse may still qualify - # to claim rebates or credits" (PIT-RC instructions). So only a return - # on which every filer is a dependent elsewhere is barred. + # The rebate goes to "a resident ... who is not a dependent of another + # individual", and the law does not settle a joint return where only + # one spouse is. For the same phrase on its rebate and credit schedule, + # TRD says "If you are a dependent with a spouse who was not a + # dependent of another taxpayer, your spouse may still qualify to + # claim rebates or credits" (PIT-RC instructions); we apply that + # reading, so only a return on which every filer is a dependent + # elsewhere is barred. every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) agi = tax_unit("adjusted_gross_income", period) filing_status = tax_unit("filing_status", period) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py index f574c92dbab..78493990ef0 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_additional_2021_income_rebate.py @@ -14,11 +14,14 @@ class nm_additional_2021_income_rebate(Variable): defined_for = StateCode.NM def formula(tax_unit, period, parameters): - # The rebate and credit schedule bars a filer who is a dependent of - # another taxpayer, but "If you are a dependent with a spouse who was - # not a dependent of another taxpayer, your spouse may still qualify - # to claim rebates or credits" (PIT-RC instructions). So only a return - # on which every filer is a dependent elsewhere is barred. + # The rebate goes to "a resident ... who is not a dependent of another + # individual", and the law does not settle a joint return where only + # one spouse is. For the same phrase on its rebate and credit schedule, + # TRD says "If you are a dependent with a spouse who was not a + # dependent of another taxpayer, your spouse may still qualify to + # claim rebates or credits" (PIT-RC instructions); we apply that + # reading, so only a return on which every filer is a dependent + # elsewhere is barred. every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] filing_status = tax_unit("filing_status", period) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py index bf8f1a88d52..cd82e30a49b 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/2021_rebate/nm_supplemental_2021_income_rebate.py @@ -14,11 +14,14 @@ class nm_supplemental_2021_income_rebate(Variable): defined_for = StateCode.NM def formula(tax_unit, period, parameters): - # The rebate and credit schedule bars a filer who is a dependent of - # another taxpayer, but "If you are a dependent with a spouse who was - # not a dependent of another taxpayer, your spouse may still qualify - # to claim rebates or credits" (PIT-RC instructions). So only a return - # on which every filer is a dependent elsewhere is barred. + # The rebate goes to "a resident ... who is not a dependent of another + # individual", and the law does not settle a joint return where only + # one spouse is. For the same phrase on its rebate and credit schedule, + # TRD says "If you are a dependent with a spouse who was not a + # dependent of another taxpayer, your spouse may still qualify to + # claim rebates or credits" (PIT-RC instructions); we apply that + # reading, so only a return on which every filer is a dependent + # elsewhere is barred. every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) p = parameters(period).gov.states.nm.tax.income.rebates["2021_income"] filing_status = tax_unit("filing_status", period) diff --git a/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py b/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py index 7b746711ad1..58934026c25 100644 --- a/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/va/tax/income/credits/low_income_credit/va_low_income_tax_credit_eligible.py @@ -18,10 +18,11 @@ def formula(tax_unit, period, parameters): program_eligible = add(tax_unit, period, p.ineligible_programs) == 0 # Criteria 2: Not qualified if a filer is claimed as a dependent on - # another taxpayer's return. Va. Code 58.1-339.8 bars the credit - # against the tax of a dependent of another individual or couple; a - # joint return carries both spouses' tax, so either spouse being - # claimed bars it. + # another taxpayer's return. Neither Va. Code 58.1-339.8 nor the + # instructions settle a joint return where only one spouse is + # claimed. We read the statute's bar on the credit "against such tax + # of a dependent" as reaching a joint return, which carries both + # spouses' tax, so either spouse being claimed bars it. filer_is_dependent_elsewhere = tax_unit( "head_or_spouse_is_dependent_elsewhere", period ) From e8386234d207195fbcc487daa650d584e25a83e2 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Fri, 9 Oct 2026 10:00:44 -0400 Subject: [PATCH 04/25] Allow a cent of rounding in the Hawaii self-employed joint pair Co-Authored-By: Claude Opus 5.5 --- .../gov/states/hi/tax/income/deductions/hi_deductions.yaml | 2 ++ 1 file changed, 2 insertions(+) diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml index 584d987cbe7..56eb95f2a84 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/deductions/hi_deductions.yaml @@ -221,6 +221,7 @@ - name: 2025 joint return with a claimable self-employed spouse uses earned income net of the self-employment tax deduction (the claimable spouse is the head) period: 2025 + absolute_error_margin: 0.01 input: people: person_a: @@ -249,6 +250,7 @@ - name: 2025 joint return with a claimable self-employed spouse uses earned income net of the self-employment tax deduction (the claimable spouse is the spouse) period: 2025 + absolute_error_margin: 0.01 input: people: person_b: From 41fb4a55471a77d8a4fd7508d5cd177d802557fd Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Fri, 9 Oct 2026 10:25:58 -0400 Subject: [PATCH 05/25] Address review round 2: worksheet earnings, minors' own status, input meaning MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit - The federal and Oregon dependent worksheets use earned income net of the deductible part of self-employment tax, as Hawaii's now does. - Hawaii's food/excise minor-child count excludes children who can be claimed by another taxpayer and the filers themselves (Form N-311 line 3). - claimed_as_dependent_on_another_return documents what it stands for: a §151 deduction for the person is allowable to another taxpayer, so a person whose would-be claimer files only for a refund is not one (Publications 501 and 596); rules on actually being claimed read it too. - Hawaii's renters comment labels the mixed joint reading as an inference; the Hawaii dependent threshold cites HRS 235-2.4(a)(3) on its page. Co-Authored-By: Claude Opus 5.5 --- .../itemized/threshold/dependent.yaml | 2 +- ...t_elsewhere_head_spouse_swap_invariance.py | 6 +- .../eitc_demographic_eligible.yaml | 21 +++ .../standard/basic_standard_deduction.yaml | 22 +++ .../food_excise/hi_food_excise_credit.yaml | 134 ++++++++++++++++++ .../standard/or_standard_deduction.yaml | 22 +++ .../basic_standard_deduction.py | 10 +- ...hi_food_excise_credit_minor_child_count.py | 9 +- ...r_low_income_household_renters_eligible.py | 8 +- .../deductions/or_standard_deduction.py | 10 +- .../claimed_as_dependent_on_another_return.py | 10 +- 11 files changed, 241 insertions(+), 13 deletions(-) diff --git a/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml b/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml index 3ff2ac9a451..36300fde6de 100644 --- a/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml +++ b/policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml @@ -16,6 +16,6 @@ metadata: - title: 2018 Hawaii Resident Income Tax Instructions Itemized Deductions Worksheet href: https://files.hawaii.gov/tax/forms/2018/n11ins.pdf#page=38 - title: Hawaii Income Tax Law, Chapter 235, Section 235-2.4, (a)(3) - href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=10 + href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=11 - title: 2025 Hawaii N-11 Instructions Itemized Deductions href: https://files.hawaii.gov/tax/forms/current/n11ins.pdf#page=32 diff --git a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py index d64c56ff5ba..4e681240eb5 100644 --- a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py +++ b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py @@ -18,9 +18,9 @@ - Each spouse separately: Michigan's exemptions and Hawaii's food/excise, renters and Act 115 credits count only the filers who cannot be claimed. - Only when every filer is a dependent: New Mexico's rebates, credits and - dependents deduction, and Maine's sales tax fairness credit. New Mexico's - medical care credit also needs a filer who is both 65 or older and not a - dependent. + dependents deduction, and Maine's sales tax fairness credit. When a filer + is a dependent elsewhere, New Mexico's medical care credit also needs a + filer who is both 65 or older and not a dependent. - Never on a joint return: Missouri's own stop in its working family credit, since such a couple files as married filing combined. diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml index 80b379d010b..b922b61cb47 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml @@ -257,3 +257,24 @@ # The dependent condition in IRC 32(c)(1)(A)(ii)(III) applies only without a # qualifying child. eitc_demographic_eligible: true + +- name: 2025 childless single filer whose parent files only to claim a refund is not a dependent + period: 2025 + input: + people: + head: + age: 26 + employment_income: 2_000 + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [head] + households: + household: + members: [head] + state_code: CA + output: + # Publication 596 (2025, p.18): the credit is allowed when the person who can claim + # you files only to claim a refund; such a person is not a dependent, so the + # input is false. + eitc_demographic_eligible: true diff --git a/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml index b9a821293a5..4099214070c 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/deductions/standard/basic_standard_deduction.yaml @@ -263,3 +263,25 @@ output: # Joint earned income $16,000 + $450 = $16,450, below the $31,500 joint amount. basic_standard_deduction: 16_450 + +- name: 2025 dependent filer with self-employment income uses earned income net of the self-employment tax deduction + period: 2025 + absolute_error_margin: 0.01 + input: + people: + head: + age: 20 + self_employment_income: 3_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head] + filing_status: SINGLE + households: + household: + members: [head] + state_code: CA + output: + # Worksheet earned income subtracts Schedule 1 line 15: + # $3,000 - $3,000 x 0.9235 x 15.3% / 2 = $2,788.06; plus $450 = $3,238.06. + basic_standard_deduction: 3238.06 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml index eaf2ffad6cd..260651381eb 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml @@ -461,3 +461,137 @@ output: # From 2023 the minor counts as a qualified exemption: 2 x $220. hi_food_excise_credit: 440 + +- name: 2022 joint return where one spouse and the publicly supported minor can be claimed elsewhere (the claimable spouse is the head) + period: 2022 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + # Form N-311 line 3 lists only minors who cannot be claimed by another taxpayer, + # so only the spouse who cannot be claimed counts: $110. + hi_food_excise_credit: 110 + +- name: 2022 joint return where one spouse and the publicly supported minor can be claimed elsewhere (the claimable spouse is the spouse) + period: 2022 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + # Form N-311 line 3 lists only minors who cannot be claimed by another taxpayer, + # so only the spouse who cannot be claimed counts: $110. + hi_food_excise_credit: 110 + +- name: 2025 joint return where one spouse and the publicly supported minor can be claimed elsewhere (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + # Only the spouse who cannot be claimed counts: 1 x $220. + hi_food_excise_credit: 220 + +- name: 2025 joint return where one spouse and the publicly supported minor can be claimed elsewhere (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4_000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + # Only the spouse who cannot be claimed counts: 1 x $220. + hi_food_excise_credit: 220 diff --git a/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml index 7818ce120d2..c040dee6619 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/or/tax/income/deductions/standard/or_standard_deduction.yaml @@ -191,3 +191,25 @@ output: # max($1,350, $3,000 + $450) = $3,450, below the $5,670 joint amount. or_standard_deduction: 3_450 + +- name: 2025 dependent filer with self-employment income uses earned income net of the self-employment tax deduction + period: 2025 + absolute_error_margin: 0.01 + input: + people: + head: + age: 20 + self_employment_income: 1_500 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head] + filing_status: SINGLE + households: + household: + members: [head] + state_code: OR + output: + # $1,500 - $1,500 x 0.9235 x 15.3% / 2 = $1,394.03; plus $450 = $1,844.03, + # above the $1,350 minimum and below the $2,835 single amount. + or_standard_deduction: 1844.03 diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py index e8575cdcc7e..952da61a05f 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/basic_standard_deduction.py @@ -25,11 +25,17 @@ def formula(tax_unit, period, parameters): # can be claimed. dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) standard_deduction = p.amount[filing_status] + # Worksheet earned income: wages and self-employment income minus the + # deductible part of self-employment tax (Schedule 1, line 15). + worksheet_earned_income = max_( + tax_unit("tax_unit_earned_income", period) + - tax_unit("self_employment_tax_ald", period), + 0, + ) standard_deduction_if_dependent = min_( standard_deduction, max_( - p.dependent.additional_earned_income - + tax_unit("tax_unit_earned_income", period), + p.dependent.additional_earned_income + worksheet_earned_income, p.dependent.amount, ), ) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py index ba06f9635a3..c4cc41a8d42 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py @@ -16,6 +16,13 @@ def formula(tax_unit, period, parameters): ) is_child = person("is_child", period) minor = person("age", period) < p.minor_child.age_threshold - eligible_minor_child = is_child & minor & public_support_over_half + # Form N-311 line 3 lists minor children who, among other tests, + # "Cannot be claimed as a dependent by another taxpayer"; the filers + # are listed on line 2. + claimed_elsewhere = person("claimed_as_dependent_on_another_return", period) + filer = person("is_tax_unit_head_or_spouse", period) + eligible_minor_child = ( + is_child & minor & public_support_over_half & ~claimed_elsewhere & ~filer + ) return tax_unit.sum(eligible_minor_child) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py index 61f4c81eaf2..e25924271ee 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_tax_credit_for_low_income_household_renters_eligible.py @@ -15,9 +15,11 @@ class hi_tax_credit_for_low_income_household_renters_eligible(Variable): def formula(tax_unit, period, parameters): # HRS 235-55.7(b) allows the credit to each resident taxpayer who - # cannot be claimed as a dependent. Schedule X stops at line 3 only - # for the first-listed filer; since a couple may list either spouse - # first, a joint return qualifies unless both spouses can be claimed. + # cannot be claimed as a dependent, and Schedule X stops at line 3 if + # "you" can be claimed. Neither settles a joint return where only one + # spouse can be claimed; since the credit and its exemption count are + # per person, we read them as letting the other spouse claim it, so a + # joint return qualifies unless both spouses can be claimed. every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) p = parameters(period).gov.states.hi.tax.income.credits.lihrtc agi = tax_unit("hi_agi", period) diff --git a/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py b/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py index eb3c543e6fa..54d2dc18fbc 100644 --- a/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py +++ b/policyengine_us/variables/gov/states/or/tax/income/deductions/or_standard_deduction.py @@ -20,8 +20,14 @@ def formula(tax_unit, period, parameters): # Core deduction based on filing status. filing_status = tax_unit("filing_status", period) initial_core_deduction = p.amount[filing_status] - # Replace if claimable as a dependent. - earned_income = tax_unit("tax_unit_earned_income", period) + # Replace if claimable as a dependent. Earned income is figured as in + # the federal worksheet, net of the deductible part of self-employment + # tax (Schedule 1, line 15). + earned_income = max_( + tax_unit("tax_unit_earned_income", period) + - tax_unit("self_employment_tax_ald", period), + 0, + ) claimable_dep_floor = p.claimable_as_dependent.min claimable_dep_earned_amount = ( earned_income + p.claimable_as_dependent.earned_income_addition diff --git a/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py b/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py index a62ae0c4703..f941fcb3254 100644 --- a/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py +++ b/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py @@ -6,4 +6,12 @@ class claimed_as_dependent_on_another_return(Variable): entity = Person definition_period = YEAR label = "Is claimed as a dependent elsewhere" - documentation = "Whether the person is claimed as a dependent in another tax unit." + documentation = ( + "Whether another taxpayer can claim the person as a dependent, that " + "is, a deduction under IRC section 151 for the person is allowable to " + "another taxpayer, whether or not it is claimed. A person whose " + "would-be claimer is not required to file and files only to claim a " + "refund is not such a dependent (IRS Publications 501 and 596). Rules " + "that turn on actually being claimed also read this input; the model " + "has no separate input for that." + ) From 436805e3e0c3d386e66016e54f69967d37be4a1b Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Fri, 9 Oct 2026 10:27:15 -0400 Subject: [PATCH 06/25] Merge the Hawaii deductions references after syncing main Co-Authored-By: Claude Opus 5.5 --- .../gov/states/hi/tax/income/deductions/hi_deductions.py | 6 ++---- 1 file changed, 2 insertions(+), 4 deletions(-) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py b/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py index 646fee7433c..fe50a345a3c 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/deductions/hi_deductions.py @@ -6,12 +6,10 @@ class hi_deductions(Variable): entity = TaxUnit label = "Hawaii deductions" unit = USD - reference = ( - "https://files.hawaii.gov/tax/forms/2022/n11ins.pdf#page=15", # Itemized Deduction - "https://files.hawaii.gov/tax/forms/2022/n11ins.pdf#page=20", # Standard Deduction - ) reference = ( "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=11", + # PDF pages 15 (itemized deduction), 20 (standard deduction) + "https://files.hawaii.gov/tax/forms/2022/n11ins.pdf#page=15", # PDF pages 15, 20 "https://files.hawaii.gov/tax/forms/2025/n11ins.pdf#page=15", ) From 23c6229b2004fdc2a8a370c94399eae50dcaccfe Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Fri, 9 Oct 2026 12:03:39 -0400 Subject: [PATCH 07/25] Apply the federal rules for a filer who can be claimed as a dependent A filer who can be claimed on another return is treated as having no dependents (IRC 152(b)(1); on a joint return either spouse counts) and has no personal exemption (IRC 151(d)(2)); one who is claimed gets no education credits (25A(g)(3)), student loan interest deduction (221(c)) or recovery rebate (6428(d)(2), 6428A(d)(2), 6428B(c)(2)). The model read none of these. Now the child tax credit and credit for other dependents, the under-13 child and dependent care qualifying person, exemptions_count and its RI, DE, OH, OR, WI, HI and NM readers, the recovery rebates, the education credits and the student loan interest deduction apply them symmetrically for joint returns. Georgia keeps its own counts; the HI, WI and Treasury exemption reforms follow the corrected count. Co-Authored-By: Claude Opus 5.5 --- changelog.d/claimable-filer-federal.fixed.md | 1 + .../hi_dependent_exemption_reform.py | 24 ++- .../wi_dependent_exemption_reform.py | 23 ++- .../treasury/repeal_dependent_exemptions.py | 10 +- ...test_claimable_filer_federal_invariants.py | 153 ++++++++++++++++++ .../irs/credits/cdcc/is_cdcc_eligible.yaml | 96 +++++++++++ .../ctc/maximum/ctc_qualifying_child.yaml | 103 ++++++++++++ .../ctc_adult_individual_maximum.yaml | 93 +++++++++++ ...gible_for_american_opportunity_credit.yaml | 130 +++++++++++++++ ...eligible_for_lifetime_learning_credit.yaml | 107 ++++++++++++ .../recovery_rebate_credit.yaml | 112 +++++++++++++ .../student_loan_interest_ald_eligible.yaml | 69 ++++++++ .../exemptions/exemptions_count.yaml | 133 +++++++++++++++ .../personal/de_personal_credit_indv.yaml | 51 ++++++ .../credits/personal/de_personal_credits.yaml | 55 +++++++ .../states/ga/tax/income/credits/ga_ctc.yaml | 30 +++- .../income/credits/ga_low_income_credit.yaml | 16 +- .../nm_low_and_middle_income_exemption.yaml | 99 ++++++++++++ ...m_low_income_comprehensive_tax_rebate.yaml | 80 +++++++++ ...e_comprehensive_tax_rebate_exemptions.yaml | 101 ++++++++++++ .../oh_personal_exemptions_eligible.yaml | 54 +++++++ .../tax/income/exemption/ri_exemptions.yaml | 79 +++++++++ .../wi/tax/income/wi_base_exemption.yaml | 76 +++++++++ .../gov/irs/credits/cdcc/cdcc_eligible.py | 17 +- .../ctc/maximum/ctc_qualifying_child.py | 18 ++- .../ctc_adult_individual_maximum.py | 8 + ...ligible_for_american_opportunity_credit.py | 6 + ...s_eligible_for_lifetime_learning_credit.py | 6 + .../rrc_adult_count_with_valid_ssn.py | 8 +- .../rrc_arpa_dependents_with_valid_ssn.py | 8 +- .../student_loan_interest_ald_eligible.py | 8 +- .../exemptions/exemptions_count.py | 28 +++- .../personal/de_personal_credit_indv.py | 25 ++- .../income/credits/ctc/ga_ctc_potential.py | 12 +- .../credits/ga_low_income_credit_potential.py | 5 +- .../nm_low_and_middle_income_exemption.py | 3 + .../nm_low_income_comprehensive_tax_rebate.py | 8 +- ...ome_comprehensive_tax_rebate_exemptions.py | 6 + .../oh_personal_exemptions_eligible_person.py | 9 +- 39 files changed, 1820 insertions(+), 50 deletions(-) create mode 100644 changelog.d/claimable-filer-federal.fixed.md create mode 100644 policyengine_us/tests/core/test_claimable_filer_federal_invariants.py create mode 100644 policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml diff --git a/changelog.d/claimable-filer-federal.fixed.md b/changelog.d/claimable-filer-federal.fixed.md new file mode 100644 index 00000000000..545d474e1a6 --- /dev/null +++ b/changelog.d/claimable-filer-federal.fixed.md @@ -0,0 +1 @@ +Apply the federal rules for a filer who can be claimed as a dependent on another return: no child tax credit, credit for other dependents or under-13 care qualifying child on such a return (IRC 24, 21, 152(b)(1)), no personal exemption for that filer (IRC 151(d)(2)) in the exemption count Rhode Island, Delaware, Ohio, Wisconsin, Oregon, Hawaii and New Mexico read, no recovery rebate for that filer, and no education credits or student loan interest deduction on a return with a claimed filer (IRC 25A(g)(3), 221(c)). diff --git a/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py b/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py index c2ec738773b..3349f9a9f31 100644 --- a/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py +++ b/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py @@ -15,7 +15,11 @@ def formula(tax_unit, period, parameters): person = tax_unit.members age = person("age", period) - is_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)). + is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) # Apply age limit if in effect if p.age_limit.in_effect: @@ -49,7 +53,11 @@ class hi_older_dependents_count(Variable): def formula(tax_unit, period, parameters): person = tax_unit.members - is_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)). + is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) total_dependents = tax_unit.sum(is_dependent) eligible_dependent_exemptions = tax_unit( "hi_eligible_dependents_count", period @@ -66,14 +74,16 @@ class hi_regular_exemptions(Variable): defined_for = StateCode.HI def formula(tax_unit, period, parameters): - exemptions_count = tax_unit("exemptions_count", period) p = parameters(period).gov.states.hi.tax.income.exemptions - # Personal exemptions exclude the dependent portion. Over-age - # dependents fall back to the personal count. - dependents = tax_unit("tax_unit_dependents", period) + # Personal exemptions exclude the dependent portion: the filers' + # own exemptions (none for a filer who can be claimed as a + # dependent). Over-age dependents fall back to the personal count. + own_exemptions = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period + ) older_dependents = tax_unit("hi_older_dependents_count", period) - personal_count = exemptions_count - dependents + older_dependents + personal_count = own_exemptions + older_dependents # Aged heads and spouses get an extra base exemption (preserved # exactly as the baseline computes it). diff --git a/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py b/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py index cf44d6a86f2..85e40eefe7f 100644 --- a/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py +++ b/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py @@ -15,7 +15,11 @@ def formula(tax_unit, period, parameters): person = tax_unit.members age = person("age", period) - is_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)). + is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) # Apply age limit if in effect if p.age_limit.in_effect: @@ -49,7 +53,11 @@ class wi_older_dependents_count(Variable): def formula(tax_unit, period, parameters): person = tax_unit.members - is_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)). + is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) total_dependents = tax_unit.sum(is_dependent) eligible_dependent_exemptions = tax_unit( "wi_eligible_dependents_count", period @@ -68,12 +76,13 @@ def formula(tax_unit, period, parameters): p_base = parameters(period).gov.states.wi.tax.income # Personal exemptions exclude the dependent portion. - total_exemptions_count = tax_unit("exemptions_count", period) - dependents = tax_unit("tax_unit_dependents", period) - older_dependents = tax_unit("wi_older_dependents_count", period) - personal_exemptions_count = ( - total_exemptions_count - dependents + older_dependents + # These are the filers' own exemptions (none for a filer who can + # be claimed as a dependent) plus over-age dependents. + own_exemptions = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period ) + older_dependents = tax_unit("wi_older_dependents_count", period) + personal_exemptions_count = own_exemptions + older_dependents personal_exemption_amount = ( personal_exemptions_count * p_base.exemption.base ) diff --git a/policyengine_us/reforms/treasury/repeal_dependent_exemptions.py b/policyengine_us/reforms/treasury/repeal_dependent_exemptions.py index ab54afe5e89..fbfd6b94c1e 100644 --- a/policyengine_us/reforms/treasury/repeal_dependent_exemptions.py +++ b/policyengine_us/reforms/treasury/repeal_dependent_exemptions.py @@ -13,7 +13,15 @@ class exemptions_count(Variable): def formula(tax_unit, period, parameters): total_unit_size = tax_unit("tax_unit_size", period) dependents = tax_unit("tax_unit_dependents", period) - return total_unit_size - dependents + # Only the filers' own exemptions remain; a filer who can be + # claimed as a dependent has none (IRC 151(d)(2)). + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + independent_filers = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period + ) + return where( + dependent_filer, independent_filers, total_unit_size - dependents + ) class reform(Reform): def apply(self): diff --git a/policyengine_us/tests/core/test_claimable_filer_federal_invariants.py b/policyengine_us/tests/core/test_claimable_filer_federal_invariants.py new file mode 100644 index 00000000000..58eb58887b4 --- /dev/null +++ b/policyengine_us/tests/core/test_claimable_filer_federal_invariants.py @@ -0,0 +1,153 @@ +"""Federal rules for a filer who can be claimed as a dependent elsewhere. + +A filer who can be claimed as a dependent on another return is treated as +having no dependents (IRC 152(b)(1); on a joint return, if either spouse can be +claimed, "you and your spouse can't claim any dependents", Publication 501) and +has no personal exemption (IRC 151(d)(2)). So: + +- `exemptions_count` counts only the filers who cannot be claimed, plus the + dependents when no filer can be claimed; +- `ctc_qualifying_child` and the credit for other dependents are zero on a + return with a claimable filer; +- a child under 13 is not a child and dependent care qualifying person on such + a return (a disabled person still is, IRC 21(b)(1)(B)); +- recovery rebates leave out a claimable filer and, on such a return, the + dependents. + +For couples drawn by Hypothesis and a seeded population, with either, both or +neither spouse claimed, in 2021-2026: + +1. Swap invariance: each output is the same under either head/spouse + labelling. +2. Monotonicity: marking another filer as claimed never raises any of the + amounts or counts below. +3. Identities: `exemptions_count` equals the filers who cannot be claimed plus + the dependents when no filer can be claimed, and a return with a claimable + filer has no CTC-qualifying child and no credit for other dependents. +""" + +import numpy as np +import pytest +from hypothesis import HealthCheck, given, settings +from hypothesis import strategies as st + +from policyengine_us import Simulation +from policyengine_us.tests.core.test_dependent_elsewhere_head_spouse_swap_invariance import ( + CLAIM_PATTERNS, + TOLERANCE, + YEARS, + _calc, + _crafted_cases, + _monotone_variants, + _seeded_couples, + _situation, + _swap_variants, + adults, + dependents, +) + +# Texas has no income tax; the others read the federal exemption count. +STATES = ["TX", "OR", "HI", "NM", "GA", "RI", "DE", "OH", "WI"] +OUTPUTS = [ + "income_tax", + "ctc_maximum", + "ctc_qualifying_children", + "capped_count_cdcc_eligible", + "exemptions_count", + "rrc_arpa", +] +# Amounts that marking another filer as claimed must never raise. +MONOTONE = [ + "ctc_maximum", + "ctc_qualifying_children", + "capped_count_cdcc_eligible", + "exemptions_count", + "rrc_arpa", +] + + +@st.composite +def couples(draw): + return { + "state": draw(st.sampled_from(STATES)), + "adults": [draw(adults()), draw(adults())], + "dependents": draw(st.lists(dependents(), max_size=2)), + "claimed": draw(st.sampled_from(CLAIM_PATTERNS)), + } + + +def check_swap(units, year, outputs, identities=None): + """Each output is the same under either head/spouse labelling.""" + sim = Simulation(situation=_situation(units, year, _swap_variants)) + for name in outputs: + values = _calc(sim, name, year) + assert np.isfinite(values).all(), f"{name} in {year} is not finite" + drawn, swapped = values[0::2], values[1::2] + differs = ~(np.abs(swapped - drawn) <= TOLERANCE) + assert not differs.any(), ( + f"{name} in {year} changes when the head and spouse labels are " + "exchanged: " + + ", ".join( + f"{units[i]['state']} claimed={units[i]['claimed']} " + f"{drawn[i]:.2f} -> {swapped[i]:.2f}" + for i in np.flatnonzero(differs)[:10] + ) + ) + if identities is not None: + identities(sim, year) + + +def check_monotone(units, year, outputs, identities=None): + """Marking another filer as claimed never raises an output.""" + sim = Simulation(situation=_situation(units, year, _monotone_variants)) + for name in outputs: + values = _calc(sim, name, year).reshape(-1, 4) + nobody, first, second, both = values.T + for more, fewer, label in ( + (first, nobody, "first adult"), + (second, nobody, "second adult"), + (both, first, "both after first"), + (both, second, "both after second"), + ): + rises = more > fewer + TOLERANCE + assert not rises.any(), ( + f"{name} in {year} rises when the {label} is claimed " + "elsewhere: " + + ", ".join( + f"{units[i]['state']} {fewer[i]:.2f} -> {more[i]:.2f}" + for i in np.flatnonzero(rises)[:10] + ) + ) + if identities is not None: + identities(sim, year) + + +def _federal_identities(sim, year): + claimed_filer = _calc(sim, "head_or_spouse_is_dependent_elsewhere", year) > 0 + independent = _calc(sim, "head_spouse_count_not_dependent_elsewhere", year) + dependents_count = _calc(sim, "tax_unit_count_dependents", year) + expected = independent + np.where(claimed_filer, 0, dependents_count) + np.testing.assert_array_equal(_calc(sim, "exemptions_count", year), expected) + assert not _calc(sim, "ctc_qualifying_children", year)[claimed_filer].any() + odc = np.asarray( + sim.calculate("ctc_adult_individual_maximum", year, map_to="tax_unit") + ) + assert not odc[claimed_filer].any() + + +@settings( + max_examples=4, + deadline=None, + derandomize=True, + suppress_health_check=[HealthCheck.too_slow, HealthCheck.data_too_large], +) +@given(st.sampled_from(YEARS), st.lists(couples(), min_size=6, max_size=15)) +def test_claimable_filer_federal_rules_are_label_free(year, units): + check_swap(units, year, OUTPUTS, _federal_identities) + + +@pytest.mark.parametrize("year", YEARS) +def test_claimable_filer_federal_rules_seeded_population(year): + units = _seeded_couples(STATES, per_state=2) + _crafted_cases(STATES) + check_swap(units, year, OUTPUTS, _federal_identities) + check_monotone(units, year, MONOTONE, _federal_identities) diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/is_cdcc_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/is_cdcc_eligible.yaml index 9a4d8616b69..1c590c6f3cf 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/is_cdcc_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/is_cdcc_eligible.yaml @@ -54,3 +54,99 @@ is_tax_unit_spouse: false output: is_cdcc_eligible: true + +- name: 2025 child under 13 is not a qualifying person when the single filer can be claimed as a dependent + period: 2025 + input: + people: + parent: + age: 20 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + # Publication 503: "Your qualifying child who is your dependent and who + # was under age 13"; IRC 152(b)(1). + is_cdcc_eligible: [false, false] + +- name: 2025 joint return with one claimable spouse has no under-13 qualifying person (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + is_cdcc_eligible: [false, false, false] + +- name: 2025 joint return with one claimable spouse has no under-13 qualifying person (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: TX + output: + is_cdcc_eligible: [false, false, false] + +- name: 2025 disabled person still qualifies when the filer can be claimed as a dependent + period: 2025 + input: + people: + filer: + age: 30 + claimed_as_dependent_on_another_return: true + relative: + age: 60 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [filer, relative] + households: + household: + members: [filer, relative] + state_code: TX + output: + # IRC 21(b)(1)(B) determines dependency "without regard to subsections + # (b)(1), (b)(2), and (d)(1)(B)" of section 152; Publication 503 item + # 3(b)(iii). + is_cdcc_eligible: [false, true] diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml index 3f4a66e3619..0a40c086281 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml @@ -56,3 +56,106 @@ members: [adult, child, child2] output: ctc_qualifying_child: [False, True, False] + +- name: 2025 single filer who can be claimed as a dependent has no CTC-qualifying child + period: 2025 + input: + people: + parent: + age: 20 + employment_income: 5_000 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + # IRC 24(a), 152(b)(1); Publication 501, Dependent Taxpayer Test. + ctc_qualifying_child: [false, false] + ctc_maximum: 0 + +- name: 2025 joint return with one claimable spouse has no CTC-qualifying child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + # "If you are filing a joint return and your spouse can be claimed as a + # dependent by another taxpayer, you and your spouse can't claim any + # dependents on your joint return" (Publication 501). + ctc_qualifying_child: [false, false, false] + ctc_maximum: 0 + +- name: 2025 joint return with one claimable spouse has no CTC-qualifying child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: TX + output: + ctc_qualifying_child: [false, false, false] + ctc_maximum: 0 + +- name: 2025 joint return with neither spouse claimable keeps the CTC-qualifying child + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 20 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + ctc_qualifying_child: [false, false, true] + ctc_maximum: 2_200 diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml index fec059bb2d7..9c46915a88e 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml @@ -43,3 +43,96 @@ ctc_child_individual_maximum: 0 output: ctc_adult_individual_maximum: 500 + +- name: 2025 single filer who can be claimed as a dependent gets no credit for other dependents + period: 2025 + input: + people: + filer: + age: 22 + claimed_as_dependent_on_another_return: true + sibling: + age: 18 + tax_units: + tax_unit: + members: [filer, sibling] + households: + household: + members: [filer, sibling] + state_code: TX + output: + # IRC 24(h)(4) "any dependent of the taxpayer"; IRC 152(b)(1). + ctc_adult_individual_maximum: [0, 0] + +- name: 2025 joint return with one claimable spouse gets no credit for other dependents (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 22 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + sibling: + age: 18 + tax_units: + tax_unit: + members: [person_a, person_b, sibling] + filing_status: JOINT + households: + household: + members: [person_a, person_b, sibling] + state_code: TX + output: + ctc_adult_individual_maximum: [0, 0, 0] + +- name: 2025 joint return with one claimable spouse gets no credit for other dependents (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 22 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + sibling: + age: 18 + tax_units: + tax_unit: + members: [person_b, person_a, sibling] + filing_status: JOINT + households: + household: + members: [person_b, person_a, sibling] + state_code: TX + output: + ctc_adult_individual_maximum: [0, 0, 0] + +- name: 2025 joint return with neither spouse claimable gets the credit for other dependents + period: 2025 + input: + people: + person_a: + age: 22 + person_b: + age: 22 + sibling: + age: 18 + tax_units: + tax_unit: + members: [person_a, person_b, sibling] + filing_status: JOINT + households: + household: + members: [person_a, person_b, sibling] + state_code: TX + output: + ctc_adult_individual_maximum: [0, 0, 500] diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml index 0d102e18b78..908d3d3c657 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml @@ -177,3 +177,133 @@ has_tin: true output: is_eligible_for_american_opportunity_credit: false + + +- name: 2024 student claimed as a dependent elsewhere cannot claim the credit + period: 2024 + input: + people: + student: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [student] + households: + household: + members: [student] + state_code: TX + output: + # IRC 25A(g)(3); Form 8863: "You're claimed as a dependent on another + # person's tax return". + is_eligible_for_american_opportunity_credit: false + +- name: 2024 joint return with one spouse claimed elsewhere cannot claim the credit for either spouse (the claimable spouse is the head) + period: 2024 + input: + people: + person_a: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + # Form 1040 instructions: "or your spouse if filing jointly". + is_eligible_for_american_opportunity_credit: [false, false] + +- name: 2024 joint return with one spouse claimed elsewhere cannot claim the credit for either spouse (the claimable spouse is the spouse) + period: 2024 + input: + people: + person_b: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [false, false] + +- name: 2024 joint return with neither spouse claimed keeps both students' eligibility + period: 2024 + input: + people: + person_a: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + person_b: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [true, true] diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/lifetime_learning_credit/is_eligible_for_lifetime_learning_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/lifetime_learning_credit/is_eligible_for_lifetime_learning_credit.yaml index 72ca159a702..4bff0f55a7d 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/lifetime_learning_credit/is_eligible_for_lifetime_learning_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/lifetime_learning_credit/is_eligible_for_lifetime_learning_credit.yaml @@ -70,3 +70,110 @@ has_tin: true output: is_eligible_for_lifetime_learning_credit: false + + +- name: 2024 student claimed as a dependent elsewhere cannot claim the credit + period: 2024 + input: + people: + student: + age: 30 + attends_eligible_educational_institution_for_lifetime_learning_credit: true + has_lifetime_learning_credit_1098_t_or_exception: true + has_tin: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [student] + households: + household: + members: [student] + state_code: TX + output: + # IRC 25A(g)(3). + is_eligible_for_lifetime_learning_credit: false + +- name: 2024 joint return with one spouse claimed elsewhere cannot claim the credit for either spouse (the claimable spouse is the head) + period: 2024 + input: + people: + person_a: + age: 30 + attends_eligible_educational_institution_for_lifetime_learning_credit: true + has_lifetime_learning_credit_1098_t_or_exception: true + has_tin: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + attends_eligible_educational_institution_for_lifetime_learning_credit: true + has_lifetime_learning_credit_1098_t_or_exception: true + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + is_eligible_for_lifetime_learning_credit: [false, false] + +- name: 2024 joint return with one spouse claimed elsewhere cannot claim the credit for either spouse (the claimable spouse is the spouse) + period: 2024 + input: + people: + person_b: + age: 30 + attends_eligible_educational_institution_for_lifetime_learning_credit: true + has_lifetime_learning_credit_1098_t_or_exception: true + has_tin: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + attends_eligible_educational_institution_for_lifetime_learning_credit: true + has_lifetime_learning_credit_1098_t_or_exception: true + has_tin: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: TX + output: + is_eligible_for_lifetime_learning_credit: [false, false] + +- name: 2024 joint return with neither spouse claimed keeps both students' eligibility + period: 2024 + input: + people: + person_a: + age: 30 + attends_eligible_educational_institution_for_lifetime_learning_credit: true + has_lifetime_learning_credit_1098_t_or_exception: true + has_tin: true + person_b: + age: 30 + attends_eligible_educational_institution_for_lifetime_learning_credit: true + has_lifetime_learning_credit_1098_t_or_exception: true + has_tin: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + is_eligible_for_lifetime_learning_credit: [true, true] diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml index e84c1db994a..0d21682feaf 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml @@ -47,3 +47,115 @@ members: [parent, child_1, child_2] output: recovery_rebate_credit: 3_920 # https://www.efile.com/stimulus-check-three/ + + +- name: 2021 single filer who can be claimed as a dependent gets no ARPA rebate + period: 2021 + input: + people: + filer: + age: 20 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + households: + household: + members: [filer] + state_code: TX + output: + # IRC 6428B(c)(2): an eligible individual excludes "any individual who is a + # dependent of another taxpayer". + rrc_arpa: 0 + +- name: 2021 claimable single filer's child adds no ARPA rebate + period: 2021 + input: + people: + parent: + age: 20 + claimed_as_dependent_on_another_return: true + child: + age: 2 + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + # IRC 152(b)(1): such a filer has no dependents. + rrc_arpa: 0 + +- name: 2021 joint return with one claimable spouse gets the other spouse's ARPA rebate (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + # Each spouse is an eligible individual or not on their own; $1,400 for + # the spouse who cannot be claimed. + rrc_arpa: 1_400 + +- name: 2021 joint return with one claimable spouse gets the other spouse's ARPA rebate (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: TX + output: + rrc_arpa: 1_400 + +- name: 2021 joint return with neither spouse claimable gets both rebates and the child's + period: 2021 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + child: + age: 2 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + # 3 x $1,400. + rrc_arpa: 4_200 diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml index ca6f654768e..97566eae089 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml @@ -37,3 +37,72 @@ filing_status: SEPARATE output: student_loan_interest_ald_eligible: false + + +- name: 2024 single filer claimed as a dependent elsewhere cannot deduct student loan interest + period: 2024 + input: + people: + filer: + age: 24 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + households: + household: + members: [filer] + state_code: TX + output: + # IRC 221(c). + student_loan_interest_ald_eligible: false + +- name: 2024 joint return with one spouse claimed elsewhere cannot deduct student loan interest (the claimable spouse is the head) + period: 2024 + input: + people: + person_a: + age: 24 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 24 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + # Form 1040 instructions: "you, or your spouse if filing jointly, aren't + # claimed as a dependent". + student_loan_interest_ald_eligible: [false, false] + +- name: 2024 joint return with one spouse claimed elsewhere cannot deduct student loan interest (the claimable spouse is the spouse) + period: 2024 + input: + people: + person_b: + age: 24 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 24 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: TX + output: + student_loan_interest_ald_eligible: [false, false] diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml new file mode 100644 index 00000000000..16c899b35cf --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml @@ -0,0 +1,133 @@ +- name: 2025 single filer with a child counts both + period: 2025 + input: + people: + parent: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + exemptions_count: 2 + +- name: 2025 single filer who can be claimed as a dependent has no exemptions + period: 2025 + input: + people: + parent: + age: 20 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + # IRC 151(d)(2) for the filer; IRC 152(b)(1) for the child. + exemptions_count: 0 + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + exemptions_count: 1 + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: TX + output: + exemptions_count: 1 + +- name: 2025 joint return with both spouses claimable has no exemptions + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 20 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + exemptions_count: 0 + +- name: 2025 joint return with neither spouse claimable counts everyone + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 20 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + exemptions_count: 3 diff --git a/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.yaml b/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.yaml index 406b0d0f8f9..5964fe8cf76 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.yaml @@ -71,3 +71,54 @@ output: # Equal capacity: split evenly (both columns can absorb their share) de_personal_credit_indv: [110, 110] + + +- name: 2025 spouse who can be claimed as a dependent has no personal credit (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + de_income_tax_before_non_refundable_credits_indv: 1000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + de_income_tax_before_non_refundable_credits_indv: 1000 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: DE + output: + # 30 Del. C. 1110(b)(1): $110 for each personal exemption to which the + # individual is entitled for federal purposes; IRC 151(d)(2). + de_personal_credit_indv: [0, 110] + +- name: 2025 spouse who can be claimed as a dependent has no personal credit (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + de_income_tax_before_non_refundable_credits_indv: 1000 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + de_income_tax_before_non_refundable_credits_indv: 1000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: DE + output: + de_personal_credit_indv: [110, 0] diff --git a/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credits.yaml b/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credits.yaml index fd12e7c01ce..b13f8f2f86d 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credits.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/credits/personal/de_personal_credits.yaml @@ -30,3 +30,58 @@ de_income_tax_before_non_refundable_credits_unit: 1000000 output: de_personal_credit: 0 + + +- name: 2025 joint return with one claimable spouse gets one personal credit (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: DE + output: + # Federal exemptions: the other spouse only; IRC 152(b)(1) leaves no + # dependents. + de_personal_credit_potential: 110 + +- name: 2025 joint return with one claimable spouse gets one personal credit (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: DE + output: + de_personal_credit_potential: 110 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_ctc.yaml b/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_ctc.yaml index 658c2647ad9..0690ba455ca 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_ctc.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_ctc.yaml @@ -6,7 +6,6 @@ age: 30 child: age: 2 - ctc_qualifying_child: true tax_units: tax_unit: members: @@ -30,7 +29,6 @@ age: 30 child: age: 6 - ctc_qualifying_child: true tax_units: tax_unit: members: @@ -54,10 +52,8 @@ age: 32 child1: age: 1 - ctc_qualifying_child: true child2: age: 5 - ctc_qualifying_child: true tax_units: tax_unit: members: @@ -83,7 +79,6 @@ age: 30 child: age: 2 - ctc_qualifying_child: true tax_units: tax_unit: members: @@ -107,7 +102,6 @@ age: 30 child: age: 2 - ctc_qualifying_child: true tax_units: tax_unit: members: @@ -123,3 +117,27 @@ state_code: GA output: ga_non_refundable_credits: 0 + + +- name: 2026 GA CTC still counts the child of a filer who can be claimed as a dependent + period: 2026 + input: + people: + parent: + age: 20 + claimed_as_dependent_on_another_return: true + child: + age: 2 + tax_units: + tax_unit: + members: [parent, child] + filing_status: SINGLE + ga_income_tax_before_non_refundable_credits: 10000 + households: + household: + members: [parent, child] + state_code: GA + output: + # Georgia uses the IRC 24(c) qualifying-child definition only; whether IRC + # 152(b)(1) reaches it is not settled, so the child test is kept. + ga_ctc: 250 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_low_income_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_low_income_credit.yaml index 5a059239e46..2a410aa94df 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_low_income_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ga/tax/income/credits/ga_low_income_credit.yaml @@ -5,7 +5,7 @@ adjusted_gross_income: 14000 age_head: 67 age_spouse: 70 - exemptions_count: 2 + tax_unit_size: 2 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 32 @@ -16,7 +16,7 @@ adjusted_gross_income: 4000 age_head: 67 age_spouse: 56 - exemptions_count: 2 + tax_unit_size: 2 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 78 @@ -27,7 +27,7 @@ adjusted_gross_income: 15500 age_head: 80 age_spouse: 75 - exemptions_count: 3 + tax_unit_size: 3 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 25 @@ -38,7 +38,7 @@ adjusted_gross_income: 4000 age_head: 67 age_spouse: 56 - exemptions_count: 0 + tax_unit_size: 0 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 26 @@ -49,7 +49,7 @@ adjusted_gross_income: 10500 age_head: 67 age_spouse: 56 - exemptions_count: 0 + tax_unit_size: 0 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 8 @@ -60,7 +60,7 @@ adjusted_gross_income: 10500 age_head: 56 age_spouse: 56 - exemptions_count: 0 + tax_unit_size: 0 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 0 @@ -71,7 +71,7 @@ adjusted_gross_income: 10500 age_head: 65 age_spouse: 64 - exemptions_count: 1 + tax_unit_size: 1 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 16 @@ -82,7 +82,7 @@ adjusted_gross_income: 10000 age_head: 64 age_spouse: 64 - exemptions_count: 2 + tax_unit_size: 2 ga_income_tax_before_non_refundable_credits: 1000000 output: ga_low_income_credit: 16 diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.yaml index f4acfca8392..5f236216e86 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.yaml @@ -27,3 +27,102 @@ exemptions_count: 3 output: nm_low_and_middle_income_exemption: 4_500 + + +- name: 2025 single filer who can be claimed as a dependent has no exemptions + period: 2025 + input: + people: + filer: + age: 30 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + adjusted_gross_income: 10_000 + households: + household: + members: [filer] + state_code: NM + output: + # NMSA 7-2-5.8 counts federal exemptions; IRC 151(d)(2). + nm_low_and_middle_income_exemption: 0 + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b, child] + state_code: NM + output: + # One exemption (the child is not a dependent, IRC 152(b)(1)) x $2,500. + nm_low_and_middle_income_exemption: 2_500 + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_b, person_a, child] + state_code: NM + output: + # One exemption (the child is not a dependent, IRC 152(b)(1)) x $2,500. + nm_low_and_middle_income_exemption: 2_500 + +- name: 2025 joint return with neither spouse claimable counts everyone + period: 2025 + input: + people: + person_a: + age: 30 + person_b: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b, child] + state_code: NM + output: + # 3 exemptions x $2,500. + nm_low_and_middle_income_exemption: 7_500 diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml index 7bcd28c10fa..6c7e83fb126 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml @@ -246,3 +246,83 @@ state_code: NM output: nm_low_income_comprehensive_tax_rebate: 583 + +- name: 2025 single filer who can be claimed as a dependent gets no rebate + period: 2025 + input: + people: + person: + age: 20 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person] + nm_modified_gross_income: 5_000 + households: + household: + members: [person] + state_code: NM + output: + # NMSA 7-2-14(A): only a resident "who is not a dependent of another + # individual" may claim the rebate. + nm_low_income_comprehensive_tax_rebate: 0 + +- name: 2025 single filer who cannot be claimed gets the one-exemption rebate + period: 2025 + input: + people: + person: + age: 20 + tax_units: + tax_unit: + members: [person] + nm_modified_gross_income: 5_000 + households: + household: + members: [person] + state_code: NM + output: + # $1,000-$7,500 row, one exemption. + nm_low_income_comprehensive_tax_rebate: 252 + +- name: 2025 single filer aged 65 or older who can be claimed as a dependent gets no rebate + period: 2025 + input: + people: + person: + age: 70 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person] + nm_modified_gross_income: 5_000 + households: + household: + members: [person] + state_code: NM + output: + # The age-65 exemptions do not make a dependent of another individual a + # claimant (NMSA 7-2-14(A)). + nm_low_income_comprehensive_tax_rebate: 0 + +- name: 2025 joint return with one claimable spouse keeps the rebate with the couple's combined income + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + nm_modified_gross_income: 8_500 + households: + household: + members: [person_a, person_b] + state_code: NM + output: + # One exemption; the $8,000-$9,000 row of the one-exemption table. + nm_low_income_comprehensive_tax_rebate: 212 diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.yaml index 5b10b5cf2d8..6fa092fcffe 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.yaml @@ -24,3 +24,104 @@ blind_head: true output: nm_low_income_comprehensive_tax_rebate_exemptions: 2 + +- name: 2025 single filer who can be claimed as a dependent has no rebate exemptions + period: 2025 + input: + people: + parent: + age: 20 + claimed_as_dependent_on_another_return: true + child: + age: 2 + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: NM + output: + # NMSA 7-2-14(A),(C); PIT-RC line 2a. + nm_low_income_comprehensive_tax_rebate_exemptions: 0 + +- name: 2025 joint return with one claimable spouse drops its ordinary exemption and the dependents (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 70 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 40 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 2 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: NM + output: + # "the non-qualifying spouse is not eligible" (PIT-RC line 2a) and a + # return on which a filer can be claimed has no dependents (IRC + # 152(b)(1)), leaving 1 ordinary exemption; NMSA 7-2-14(C) still adds 2 + # for "each individual ... included in the return who is sixty-five years + # of age or older". + nm_low_income_comprehensive_tax_rebate_exemptions: 3 + +- name: 2025 joint return with one claimable spouse drops its ordinary exemption and the dependents (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 40 + claimed_as_dependent_on_another_return: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 70 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 2 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: NM + output: + nm_low_income_comprehensive_tax_rebate_exemptions: 3 + +- name: 2025 joint return with neither spouse claimable counts everyone plus the age-65 exemptions + period: 2025 + input: + people: + person_a: + age: 70 + person_b: + age: 40 + child: + age: 2 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: NM + output: + # 3 federal exemptions + 2 for the spouse aged 65 or older. + nm_low_income_comprehensive_tax_rebate_exemptions: 5 diff --git a/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml index 97f70fe2376..88f43d6e9af 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml @@ -27,3 +27,57 @@ is_tax_unit_dependent: true output: oh_personal_exemptions_eligible_person: true + + +- name: 2025 joint return with one claimable spouse makes neither that spouse nor the child eligible (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: OH + output: + # Ohio R.C. 5747.025; IRC 152(b)(1) leaves the return no dependents. + oh_personal_exemptions_eligible_person: [false, true, false] + +- name: 2025 joint return with one claimable spouse makes neither that spouse nor the child eligible (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: OH + output: + oh_personal_exemptions_eligible_person: [true, false, false] diff --git a/policyengine_us/tests/policy/baseline/gov/states/ri/tax/income/exemption/ri_exemptions.yaml b/policyengine_us/tests/policy/baseline/gov/states/ri/tax/income/exemption/ri_exemptions.yaml index 874ee89a624..539a40f00a6 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ri/tax/income/exemption/ri_exemptions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ri/tax/income/exemption/ri_exemptions.yaml @@ -135,3 +135,82 @@ exemptions_count: 2 output: ri_exemptions: 0 + + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + ri_agi: 10000 + households: + household: + members: [person_a, person_b, child] + state_code: RI + output: + # R.I. Gen. Laws 44-30-2.6: "If someone else can claim you on their return, + # your exemption amount is zero"; IRC 152(b)(1). + ri_exemptions: 5_100 + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + ri_agi: 10000 + households: + household: + members: [person_b, person_a, child] + state_code: RI + output: + ri_exemptions: 5_100 + +- name: 2025 joint return with neither spouse claimable counts everyone + period: 2025 + input: + people: + person_a: + age: 30 + person_b: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + ri_agi: 10000 + households: + household: + members: [person_a, person_b, child] + state_code: RI + output: + ri_exemptions: 15_300 diff --git a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_base_exemption.yaml b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_base_exemption.yaml index 9e54d8bd87f..f1f8087f317 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_base_exemption.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_base_exemption.yaml @@ -5,3 +5,79 @@ state_code: WI output: wi_base_exemption: 5 * 700 + + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: WI + output: + # Form 1 instructions: "either you or your spouse (not both) can be claimed"; + # IRC 152(b)(1). + wi_base_exemption: 700 + +- name: 2025 joint return with one claimable spouse counts only the other spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: WI + output: + wi_base_exemption: 700 + +- name: 2025 joint return with neither spouse claimable counts everyone + period: 2025 + input: + people: + person_a: + age: 30 + person_b: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: WI + output: + wi_base_exemption: 2_100 diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py index 82861496784..20d82cc32e0 100644 --- a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py @@ -9,6 +9,9 @@ class is_cdcc_eligible(Variable): reference = ( "https://www.law.cornell.edu/uscode/text/26/21#b_1", "https://www.law.cornell.edu/uscode/text/26/21#e_5", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + # Publication 503, Who Is a Qualifying Person? + "https://www.irs.gov/pub/irs-prior/p503--2025.pdf#page=3", ) def formula(person, period, parameters): @@ -21,8 +24,18 @@ def formula(person, period, parameters): # qualifying individual even when the noncustodial parent claims the # dependent, so any under-age member other than the head or spouse # qualifies. - qualifies_by_age = ~head_or_spouse & (age < p.child_age) - # Subsections (b)(1)(B) (dependent) and (b)(1)(C) (spouse). + # A child qualifies only as the filer's dependent ("Your qualifying + # child who is your dependent", Publication 503), and under IRC + # 152(b)(1) a return on which the filer (or, if joint, either spouse) + # can be claimed as a dependent has no dependents. + filer_is_dependent = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + qualifies_by_age = ~head_or_spouse & (age < p.child_age) & ~filer_is_dependent + # Subsections (b)(1)(B) (dependent) and (b)(1)(C) (spouse). Subsection + # (b)(1)(B) determines dependency "without regard to subsections + # (b)(1), (b)(2), and (d)(1)(B)" of section 152, so a disabled person + # still qualifies when the filer can be claimed as a dependent. disabled = person("is_incapable_of_self_care", period) married = person.tax_unit("tax_unit_married", period) qualifies_by_disability = disabled & (is_dependent | (head_or_spouse & married)) diff --git a/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py b/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py index ae2c1bfab24..bd478b60870 100644 --- a/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py +++ b/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py @@ -8,7 +8,13 @@ class ctc_qualifying_child(Variable): documentation = "Child qualifies for the Child Tax Credit" definition_period = YEAR defined_for = "is_tax_unit_dependent" - reference = "https://www.law.cornell.edu/uscode/text/26/24#c" + reference = ( + "https://www.law.cornell.edu/uscode/text/26/24#a", + "https://www.law.cornell.edu/uscode/text/26/24#c", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + # Publication 501, Dependent Taxpayer Test. + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", + ) def formula(person, period, parameters): age = person("age", period) @@ -18,4 +24,12 @@ def formula(person, period, parameters): meets_identification_requirements = person( "meets_ctc_child_identification_requirements", period ) - return age_eligible & meets_identification_requirements + # IRC 24(a) allows the credit only for a qualifying child for whom the + # taxpayer is allowed a deduction under section 151. Under IRC + # 152(b)(1) a taxpayer who can be claimed as a dependent is treated as + # having no dependents, and on a joint return neither spouse may be + # claimable (Publication 501, Dependent Taxpayer Test). + filer_is_dependent = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + return age_eligible & meets_identification_requirements & ~filer_is_dependent diff --git a/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py b/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py index 4caaab2f978..70f5b877edd 100644 --- a/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py +++ b/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py @@ -15,6 +15,7 @@ class ctc_adult_individual_maximum(Variable): "https://www.law.cornell.edu/uscode/text/26/24#a", "https://www.law.cornell.edu/uscode/text/26/24#h", "https://www.law.cornell.edu/uscode/text/26/24#i", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", ) def formula(person, period, parameters): @@ -24,9 +25,16 @@ def formula(person, period, parameters): filer_meets_tin_requirement = person.tax_unit( "filer_meets_ctc_identification_requirements", period ) + # IRC 24(h)(4) gives the credit for "any dependent of the taxpayer"; + # under IRC 152(b)(1) a return on which the filer (or, if joint, + # either spouse) can be claimed as a dependent has no dependents. + filer_is_dependent = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) return ( is_adult * dependent_has_tin * filer_meets_tin_requirement + * ~filer_is_dependent * p.amount.adult_dependent ) diff --git a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py index 6509aa1f045..c3a557b0d8f 100644 --- a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py @@ -18,6 +18,11 @@ def formula(person, period, parameters): filing_status = tax_unit("filing_status", period) filing_status_values = filing_status.possible_values filing_status_eligible = filing_status != filing_status_values.SEPARATE + # IRC 25A(g)(3): no credit to an individual claimed as a dependent by + # another taxpayer, and the Form 1040 instructions extend this to + # "your spouse if filing jointly", so either filer being claimed bars + # the return's credit. + filer_claimed = tax_unit("head_or_spouse_is_dependent_elsewhere", period) requires_1098_t = aoc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( person("has_american_opportunity_credit_1098_t_or_exception", period) @@ -66,4 +71,5 @@ def formula(person, period, parameters): period, ) & filing_status_eligible + & ~filer_claimed ) diff --git a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py index 3d80f23da5f..75c2e133d15 100644 --- a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py @@ -19,6 +19,11 @@ def formula(person, period, parameters): filing_status = tax_unit("filing_status", period) filing_status_values = filing_status.possible_values filing_status_eligible = filing_status != filing_status_values.SEPARATE + # IRC 25A(g)(3): no credit to an individual claimed as a dependent by + # another taxpayer, and the Form 1040 instructions extend this to + # "your spouse if filing jointly", so either filer being claimed bars + # the return's credit. + filer_claimed = tax_unit("head_or_spouse_is_dependent_elsewhere", period) requires_1098_t = llc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( person("has_lifetime_learning_credit_1098_t_or_exception", period) @@ -45,4 +50,5 @@ def formula(person, period, parameters): period, ) & filing_status_eligible + & ~filer_claimed ) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py index 2250e5d6698..4e08716df78 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py @@ -13,6 +13,7 @@ class rrc_adult_count_with_valid_ssn(Variable): "https://www.law.cornell.edu/uscode/text/26/6428A#g_2", "https://www.law.cornell.edu/uscode/text/26/6428B#e_2_A", "https://www.law.cornell.edu/uscode/text/26/6428B#e_2_B", + "https://www.law.cornell.edu/uscode/text/26/6428#d_2", ) def formula(tax_unit, period, parameters): @@ -20,4 +21,9 @@ def formula(tax_unit, period, parameters): head_or_spouse = person("is_tax_unit_head_or_spouse", period) # Reuse existing EITC SSN check - identical definition (SSN required) has_valid_ssn = person("meets_eitc_identification_requirements", period) - return tax_unit.sum(head_or_spouse & has_valid_ssn) + # An "eligible individual" excludes "any individual with respect to + # whom a deduction under section 151 is allowable to another + # taxpayer" (IRC 6428(d)(2), 6428A(d)(2)) or "who is a dependent of + # another taxpayer" (IRC 6428B(c)(2)). + claimed = person("claimed_as_dependent_on_another_return", period) + return tax_unit.sum(head_or_spouse & has_valid_ssn & ~claimed) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py index 00b05333a86..e91e2ee9a48 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py @@ -13,6 +13,12 @@ class rrc_arpa_dependents_with_valid_ssn(Variable): def formula(tax_unit, period, parameters): person = tax_unit.members - is_dependent = person("is_tax_unit_dependent", period) + # IRC 6428B(b)(2) counts "the number of dependents of the taxpayer", and + # under 152(b)(1) a return on which the filer (or, if joint, either + # spouse) can be claimed as a dependent has none. + dependent_filer = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + is_dependent = person("is_tax_unit_dependent", period) & ~dependent_filer has_valid_ssn = person("meets_eitc_identification_requirements", period) return tax_unit.sum(is_dependent & has_valid_ssn) diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py b/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py index 9bf6a41feb0..3b45af22df5 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py @@ -19,9 +19,13 @@ class student_loan_interest_ald_eligible(Variable): ) def formula(person, period, parameters): - # Per IRC § 221(c), taxpayer cannot be claimed as a dependent head_or_spouse = person("is_tax_unit_head_or_spouse", period) + # Per IRC § 221(c), no deduction for an individual claimed as a + # dependent by another taxpayer; the Form 1040 instructions require + # that "you, or your spouse if filing jointly, aren't claimed as a + # dependent", so either filer being claimed bars the return. + filer_claimed = person.tax_unit("head_or_spouse_is_dependent_elsewhere", period) # Per IRC § 221(e)(2), taxpayer cannot file as Married Filing Separately filing_status = person.tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE - return head_or_spouse & ~separate + return head_or_spouse & ~separate & ~filer_claimed diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py b/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py index b8e19acbdab..2fec52064f4 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py @@ -7,5 +7,31 @@ class exemptions_count(Variable): label = "Number of tax exemptions" unit = USD definition_period = YEAR + documentation = ( + "Number of personal exemptions on the federal return: one for each " + "filer who cannot be claimed as a dependent by another taxpayer, plus " + "one for each dependent unless a filer can be claimed." + ) + reference = ( + "https://www.law.cornell.edu/uscode/text/26/151#d_2", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + # Publication 501, Dependent Taxpayer Test. + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", + # 2017 Form 1040, line 6a: "If someone can claim you as a dependent, + # do not check box 6a"; instructions, line 6b: the spouse box only + # if the "spouse can't be claimed as a dependent". + "https://www.irs.gov/pub/irs-prior/f1040--2017.pdf#page=1", + "https://www.irs.gov/pub/irs-prior/i1040gi--2017.pdf#page=15", + ) - adds = ["tax_unit_size"] + def formula(tax_unit, period, parameters): + # IRC 151(d)(2) zeroes the exemption of a filer whom another taxpayer + # can claim, and IRC 152(b)(1) treats a return on which the filer (or, + # if joint, either spouse) can be claimed as having no dependents. So + # such a return counts only its filers who cannot be claimed. + tax_unit_size = tax_unit("tax_unit_size", period) + filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + independent_filers = tax_unit( + "head_spouse_count_not_dependent_elsewhere", period + ) + return where(filer_is_dependent, independent_filers, tax_unit_size) diff --git a/policyengine_us/variables/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.py b/policyengine_us/variables/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.py index 6722f22b3c2..9701ad23833 100644 --- a/policyengine_us/variables/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.py +++ b/policyengine_us/variables/gov/states/de/tax/income/credits/personal/de_personal_credit_indv.py @@ -32,16 +32,27 @@ def formula(person, period, parameters): fixed = person("de_aged_personal_credit_indv", period) + person( "de_cdcc_indv", period ) - # Each column's own $110 personal credit is fixed to that column. - head_fixed = person.tax_unit.sum(is_head * fixed) + credit_per - spouse_fixed = person.tax_unit.sum(is_spouse * fixed) + credit_per + # Each column's own $110 personal credit is fixed to that column. 30 + # Del. C. 1110(b)(1) gives it "for each personal exemption to which + # such individual is entitled ... for federal income tax purposes", + # and a spouse who can be claimed as a dependent has none (IRC + # 151(d)(2)). + head_own = where( + person.tax_unit("head_is_dependent_elsewhere", period), 0, credit_per + ) + spouse_own = where( + person.tax_unit("spouse_is_dependent_elsewhere", period), 0, credit_per + ) + head_fixed = person.tax_unit.sum(is_head * fixed) + head_own + spouse_fixed = person.tax_unit.sum(is_spouse * fixed) + spouse_own head_capacity = max_(head_tax - head_fixed, 0) spouse_capacity = max_(spouse_tax - spouse_fixed, 0) total_units = person.tax_unit("exemptions_count", period) - # Dependent increments: exemptions beyond the two spouses. - dep_units = max_(total_units - 2, 0) + # Dependent increments: exemptions beyond the spouses' own. + own_units = person.tax_unit("head_spouse_count_not_dependent_elsewhere", period) + dep_units = max_(total_units - own_units, 0) # Optimal dependent split: try proportional floor and ceil, pick # whichever maximises effective credits (min of alloc vs @@ -62,7 +73,7 @@ def formula(person, period, parameters): ) n_head_dep = where(eff_high > eff_low, n_high, n_low) - head_alloc = credit_per + n_head_dep * credit_per - spouse_alloc = credit_per + (dep_units - n_head_dep) * credit_per + head_alloc = head_own + n_head_dep * credit_per + spouse_alloc = spouse_own + (dep_units - n_head_dep) * credit_per return is_head_or_spouse * where(is_head, head_alloc, spouse_alloc) diff --git a/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py index 46ceaac454b..61195c8cb2c 100644 --- a/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py +++ b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py @@ -16,7 +16,17 @@ def formula(tax_unit, period, parameters): p = parameters(period).gov.states.ga.tax.income.credits.ctc person = tax_unit.members age = person("age", period) - ctc_eligible_child = person("ctc_qualifying_child", period) + # Georgia gives "qualifying child" the meaning of IRC 24(c) only, so + # it is not limited to children for whom the federal credit is + # allowed (IRC 24(a), 152(b)(1)). Whether a filer who can be claimed + # as a dependent can claim it is not settled; this keeps the IRC + # 24(c) child test. + p_federal = parameters(period).gov.irs.credits.ctc + ctc_eligible_child = ( + person("is_tax_unit_dependent", period) + & (age < p_federal.amount.base.thresholds[-1]) + & person("meets_ctc_child_identification_requirements", period) + ) ga_child_age_eligible = age < p.age_threshold eligible_children = tax_unit.sum(ctc_eligible_child & ga_child_age_eligible) diff --git a/policyengine_us/variables/gov/states/ga/tax/income/credits/ga_low_income_credit_potential.py b/policyengine_us/variables/gov/states/ga/tax/income/credits/ga_low_income_credit_potential.py index 4487e9e448a..07708fa354f 100644 --- a/policyengine_us/variables/gov/states/ga/tax/income/credits/ga_low_income_credit_potential.py +++ b/policyengine_us/variables/gov/states/ga/tax/income/credits/ga_low_income_credit_potential.py @@ -15,7 +15,10 @@ def formula(tax_unit, period, parameters): # "multiplied by the number of dependents which the taxpayer is entitled to claim." # The tax form excludes adult dependents: # "Exemptions are self, spouse and natural or legally adopted children" - exemptions = tax_unit("exemptions_count", period) + # Georgia counts its own exemptions (O.C.G.A. 48-7A-3 deems each joint + # spouse a dependent), not the federal count, which leaves out a + # filer who can be claimed as a dependent. + exemptions = tax_unit("tax_unit_size", period) p = parameters(period).gov.states.ga.tax.income.credits.low_income # age threshold age_threshold = p.supplement_age_eligibility diff --git a/policyengine_us/variables/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.py b/policyengine_us/variables/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.py index 98a265dc9e8..c1540e1b65f 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/exemptions/nm_low_and_middle_income_exemption.py @@ -25,5 +25,8 @@ def formula(tax_unit, period, parameters): exemption_amount = p.max_amount - reduction_amount # Multiply the exemption amount by the number of exemptions + # NMSA 7-2-5.8 multiplies by the number of federal exemptions, which + # leaves out a filer who can be claimed as a dependent and, on such a + # return, the dependents. exemptions_count = tax_unit("exemptions_count", period) return eligible * exemption_amount * exemptions_count diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.py index 1fbb3a4d6b7..33bf6d2e2a3 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.py @@ -49,4 +49,10 @@ def formula(tax_unit, period, parameters): p.divisor, 1, ) - return rebate / divisor + # NMSA 7-2-14(A) allows the rebate only to a resident "who is not a + # dependent of another individual"; on a joint return the spouse who + # is not may still claim it (PIT-RC). The table starts at one + # exemption. + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) + eligible = ~every_filer_dependent & (exemptions > 0) + return where(eligible, rebate / divisor, 0) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.py b/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.py index cd8f89ad180..05621600269 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate_exemptions.py @@ -9,6 +9,7 @@ class nm_low_income_comprehensive_tax_rebate_exemptions(Variable): definition_period = YEAR reference = ( "https://law.justia.com/codes/new-mexico/chapter-7/article-2/section-7-2-14/", + "https://realfile.tax.newmexico.gov/2025pit-rc-ins.pdf#page=3", ) defined_for = StateCode.NM @@ -21,6 +22,11 @@ def formula(tax_unit, period, parameters): tax purposes for each individual included in the return who is domiciled in New Mexico... """ + # The federal count leaves out a filer who can be claimed as a + # dependent and, on such a return, the dependents, as PIT-RC line 2a + # does: "If either you or your spouse meet the general + # qualifications, but not both, then the non-qualifying spouse is not + # eligible". federal_exemptions = tax_unit("exemptions_count", period) """ ...plus two additional exemptions for each individual domiciled diff --git a/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py b/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py index e222b7bf362..b78575932fb 100644 --- a/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py +++ b/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py @@ -18,6 +18,11 @@ def formula(person, period, parameters): dependent_on_another_return = person( "claimed_as_dependent_on_another_return", period ) - # The personal exemption is also provided to dependents - dependent = person("is_tax_unit_dependent", period) + # The personal exemption is also provided to dependents, but a return + # on which the filer (or, if joint, either spouse) can be claimed as a + # dependent has none (IRC 152(b)(1)). + dependent_filer = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + dependent = person("is_tax_unit_dependent", period) & ~dependent_filer return (~dependent_on_another_return & head_or_spouse) | dependent From ed4f96461d62b994d8f59d995a7e8510a16b5779 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 06:54:02 -0400 Subject: [PATCH 08/25] Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent A return on which the filer (or, if joint, either spouse) can be claimed as a dependent has no IRC 152 dependents (IRC 152(b)(1)). Arizona's dependent credit, family credit count and income limit, and 2021 families rebate; Arkansas's dependent credit, generic disabled-dependent credit and low-income table; and California's dependent exemption credit now follow that. A claimable filer also loses California's personal, senior and blind credits (RTC 17054, Form 540 lines 7-9), the childless CalEITC and so the foster youth credit (RTC 17052, FTB 3514), and is not counted for Arizona's excise credit (A.R.S. 43-1072.01; Form 140 line 56). California's standard deduction follows its dependent worksheet (RTC 17073.5(c)(2)). California's renter credit excludes a claimable filer who lived in the claimer's home (RTC 17053.5(d)(2)), read from a new input, and its 2025 joint income limit is $107,988. Co-Authored-By: Claude Opus 5.5 --- changelog.d/claimable-filer-az-ar-ca.fixed.md | 1 + .../tax/income/credits/renter/income_cap.yaml | 6 +- ...est_claimable_filer_az_ar_ca_invariants.py | 102 +++++ .../ar_personal_credit_dependent.yaml | 140 ++++++ ...ar_personal_credit_disabled_dependent.yaml | 431 ++++++++++++++++++ .../ar_personal_credits_potential.yaml | 145 ++++++ .../low_income/ar_low_income_tax_joint.yaml | 155 +++++++ .../credits/az_families_tax_rebate.yaml | 148 ++++++ .../az_family_tax_credit_eligible.yaml | 122 +++++ .../az_family_tax_credit_potential.yaml | 148 ++++++ .../az_increased_excise_tax_credit.yaml | 235 ++++++++++ .../az_dependent_tax_credit_potential.yaml | 192 ++++++++ .../earned_income/ca_eitc_eligible.yaml | 274 +++++++++++ .../ca_foster_youth_tax_credit.yaml | 149 ++++++ .../credits/renter/ca_renter_credit.yaml | 217 +++++++++ .../standard/ca_standard_deduction.yaml | 202 ++++++++ .../tax/income/exemptions/ca_exemptions.yaml | 323 +++++++++++++ .../personal/ar_personal_credit_dependent.py | 11 +- .../ar_personal_credit_disabled_dependent.py | 28 +- .../low_income/ar_low_income_tax_joint.py | 11 +- .../income/credits/az_families_tax_rebate.py | 9 +- .../credits/az_increased_excise_tax_credit.py | 28 +- ...az_increased_excise_tax_credit_eligible.py | 14 +- .../az_dependent_tax_credit_potential.py | 12 +- .../az_family_tax_credit_eligible.py | 14 +- .../az_family_tax_credit_potential.py | 19 +- .../ca/tax/income/credits/ca_renter_credit.py | 22 +- .../credits/earned_income/ca_eitc_eligible.py | 16 + .../standard/ca_standard_deduction.py | 32 +- .../ca/tax/income/exemptions/ca_exemptions.py | 41 +- .../person/lives_with_claiming_taxpayer.py | 15 + 31 files changed, 3233 insertions(+), 29 deletions(-) create mode 100644 changelog.d/claimable-filer-az-ar-ca.fixed.md create mode 100644 policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py create mode 100644 policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credits_potential.yaml create mode 100644 policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml create mode 100644 policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml create mode 100644 policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/foster_youth/ca_foster_youth_tax_credit.yaml create mode 100644 policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py diff --git a/changelog.d/claimable-filer-az-ar-ca.fixed.md b/changelog.d/claimable-filer-az-ar-ca.fixed.md new file mode 100644 index 00000000000..d00a1fad0cb --- /dev/null +++ b/changelog.d/claimable-filer-az-ar-ca.fixed.md @@ -0,0 +1 @@ +Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent. A return on which the filer (or, if joint, either spouse) can be claimed counts no dependents for Arizona's dependent credit, family credit and 2021 families rebate, Arkansas's dependent credit, disabled-dependent credit (except for a filer's own child) and low-income tables, or California's dependent exemption credit, and gets no childless CalEITC or foster youth credit. A claimable filer loses California's personal, senior and blind credits and is not counted for Arizona's excise credit. California's standard deduction follows its dependent worksheet, and its renter credit excludes a claimable filer who lived in the claimer's home (new input `lives_with_claiming_taxpayer`). California's 2025 joint renter credit income limit is now $107,988. diff --git a/policyengine_us/parameters/gov/states/ca/tax/income/credits/renter/income_cap.yaml b/policyengine_us/parameters/gov/states/ca/tax/income/credits/renter/income_cap.yaml index 2ed14a3a3bc..d912a05e840 100644 --- a/policyengine_us/parameters/gov/states/ca/tax/income/credits/renter/income_cap.yaml +++ b/policyengine_us/parameters/gov/states/ca/tax/income/credits/renter/income_cap.yaml @@ -16,19 +16,19 @@ SURVIVING_SPOUSE: 2022-01-01: 98_440 2023-01-01: 101_492 2024-01-01: 104_842 - 2025-01-01: 107_987 + 2025-01-01: 107_988 JOINT: 2021-01-01: 90_896 2022-01-01: 98_440 2023-01-01: 101_492 2024-01-01: 104_842 - 2025-01-01: 107_987 + 2025-01-01: 107_988 HEAD_OF_HOUSEHOLD: 2021-01-01: 90_896 2022-01-01: 98_440 2023-01-01: 101_492 2024-01-01: 104_842 - 2025-01-01: 107_987 + 2025-01-01: 107_988 metadata: period: year diff --git a/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py b/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py new file mode 100644 index 00000000000..af314ccc7f4 --- /dev/null +++ b/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py @@ -0,0 +1,102 @@ +"""Arizona, Arkansas and California rules for a filer who can be claimed as a +dependent. + +Arizona's dependent and family credits, excise credit and 2021 families +rebate, Arkansas's dependent, disabled-dependent and low-income-table rules, +and California's standard deduction, exemption credits, CalEITC, foster youth +credit and renter credit apply IRC 151(d)(2) and 152(b)(1) and each state's +own text. + +For couples drawn by Hypothesis and a seeded population in the three states, +with either, both or neither spouse claimed: + +1. Swap invariance: each output is the same under either head/spouse + labelling. +2. Monotonicity: marking another filer as claimed never raises a credit, + deduction or eligibility below. +3. Identities: a return with a claimable filer gets no Arizona dependent + credit or families rebate and no Arkansas dependent credit, and a return + on which every filer can be claimed gets no Arizona excise credit. +""" + +import numpy as np +import pytest +from hypothesis import HealthCheck, given, settings +from hypothesis import strategies as st + +from policyengine_us.tests.core.test_claimable_filer_federal_invariants import ( + check_monotone, + check_swap, +) +from policyengine_us.tests.core.test_dependent_elsewhere_head_spouse_swap_invariance import ( + CLAIM_PATTERNS, + _calc, + _crafted_cases, + _seeded_couples, + adults, + dependents, +) + +STATES = ["AZ", "AR", "CA"] +# 2021 covers the Arizona families rebate; 2026 the new Arizona amounts. +YEARS = [2021, 2023, 2025, 2026] +MONOTONE = [ + "az_dependent_tax_credit_potential", + "az_family_tax_credit_eligible", + "az_family_tax_credit_potential", + "az_increased_excise_tax_credit", + "az_families_tax_rebate", + "ar_personal_credits_potential", + "ca_standard_deduction", + "ca_exemptions", + "ca_eitc_eligible", + "ca_eitc", + "ca_foster_youth_tax_credit", + "ca_renter_credit", +] +# Arkansas's tax can rise when the low-income table changes, so it is checked +# only for swap invariance. +OUTPUTS = MONOTONE + [ + "ar_income_tax_before_non_refundable_credits_unit", + "state_income_tax", +] + + +def _identities(sim, year): + claimed_filer = _calc(sim, "head_or_spouse_is_dependent_elsewhere", year) > 0 + every_filer = _calc(sim, "every_filer_is_dependent_elsewhere", year) > 0 + for name in ["az_dependent_tax_credit_potential", "az_families_tax_rebate"]: + assert not _calc(sim, name, year)[claimed_filer].any(), name + ar_dependent = np.asarray( + sim.calculate("ar_personal_credit_dependent", year, map_to="tax_unit") + ) + assert not ar_dependent[claimed_filer].any() + assert not _calc(sim, "az_increased_excise_tax_credit", year)[every_filer].any() + + +@st.composite +def couples(draw): + return { + "state": draw(st.sampled_from(STATES)), + "adults": [draw(adults()), draw(adults())], + "dependents": draw(st.lists(dependents(), max_size=2)), + "claimed": draw(st.sampled_from(CLAIM_PATTERNS)), + } + + +@settings( + max_examples=2, + deadline=None, + derandomize=True, + suppress_health_check=[HealthCheck.too_slow, HealthCheck.data_too_large], +) +@given(st.sampled_from(YEARS), st.lists(couples(), min_size=6, max_size=12)) +def test_az_ar_ca_claimable_filer_rules_are_label_free(year, units): + check_swap(units, year, OUTPUTS, _identities) + + +@pytest.mark.parametrize("year", YEARS) +def test_az_ar_ca_claimable_filer_rules_seeded_population(year): + units = _seeded_couples(STATES, per_state=3) + _crafted_cases(STATES) + check_swap(units, year, OUTPUTS, _identities) + check_monotone(units, year, MONOTONE, _identities) diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.yaml index f06334ba950..4ce8472766a 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.yaml @@ -13,3 +13,143 @@ state_code: AR output: ar_personal_credit_dependent: 0 + +# Ark. Code 26-51-501 gives each dependent a $29 personal credit +# (credits/personal/amount/base.yaml), with "dependent" in the IRC 152 sense. +# A return on which the filer (or, if joint, either spouse) can be claimed as +# a dependent has no dependents (IRC 152(b)(1)). + +- name: 2025 single filer who can be claimed as a dependent gets no dependent credit for a child + period: 2025 + input: + people: + filer: + age: 19 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AR + output: + ar_personal_credit_dependent: [0, 0] + +- name: 2025 single filer who cannot be claimed gets the dependent credit for a child + period: 2025 + input: + people: + filer: + age: 19 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AR + output: + ar_personal_credit_dependent: [0, 29] + +- name: 2025 joint return with one claimable spouse gets no dependent credit for a child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_personal_credit_dependent: [0, 0, 0] + +- name: 2025 joint return with one claimable spouse gets no dependent credit for a child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: AR + output: + ar_personal_credit_dependent: [0, 0, 0] + +- name: 2025 joint return with both spouses claimable gets no dependent credit for a child + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_personal_credit_dependent: [0, 0, 0] + +- name: 2025 joint return with neither spouse claimable gets the dependent credit for a child + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_personal_credit_dependent: [0, 0, 29] diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml index 96a04e415cc..952521f188b 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml @@ -24,3 +24,434 @@ state_code: AR output: ar_personal_credit_disabled_dependent: 500 + +# Act 417 of 1999 covers an individual who is "a child of the taxpayer's +# blood, an adopted child, or a dependent" in the IRC 152 sense, $500 each +# (credits/personal/amount/disabled_dependent.yaml). A return on which the +# filer (or, if joint, either spouse) can be claimed has no IRC 152 +# dependents (IRC 152(b)(1)), so only the filers' own children qualify. Parent +# ids say whose child the dependent is; id 99 is an absent parent. + +- name: 2025 single filer who can be claimed as a dependent gets no credit for a disabled dependent who is not their child + period: 2025 + input: + people: + filer: + age: 19 + person_id: 1 + claimed_as_dependent_on_another_return: true + dependent: + age: 30 + person_id: 3 + is_disabled: true + parent_1_id: 99 + tax_units: + tax_unit: + members: [filer, dependent] + filing_status: SINGLE + households: + household: + members: [filer, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0] + +- name: 2025 single filer who cannot be claimed gets the credit for a disabled dependent who is not their child + period: 2025 + input: + people: + filer: + age: 19 + person_id: 1 + dependent: + age: 30 + person_id: 3 + is_disabled: true + parent_1_id: 99 + tax_units: + tax_unit: + members: [filer, dependent] + filing_status: SINGLE + households: + household: + members: [filer, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 500] + +- name: 2025 joint return with one claimable spouse gets no credit for a disabled dependent who is not their child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + person_id: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + person_id: 2 + is_tax_unit_head: false + is_tax_unit_spouse: true + dependent: + age: 30 + person_id: 3 + is_disabled: true + parent_1_id: 99 + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 0] + +- name: 2025 joint return with one claimable spouse gets no credit for a disabled dependent who is not their child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + person_id: 2 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + person_id: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + dependent: + age: 30 + person_id: 3 + is_disabled: true + parent_1_id: 99 + tax_units: + tax_unit: + members: [person_b, person_a, dependent] + filing_status: JOINT + households: + household: + members: [person_b, person_a, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 0] + +- name: 2025 joint return with both spouses claimable gets no credit for a disabled dependent who is not their child + period: 2025 + input: + people: + person_a: + age: 20 + person_id: 1 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + person_id: 2 + claimed_as_dependent_on_another_return: true + dependent: + age: 30 + person_id: 3 + is_disabled: true + parent_1_id: 99 + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 0] + +- name: 2025 joint return with neither spouse claimable gets the credit for a disabled dependent who is not their child + period: 2025 + input: + people: + person_a: + age: 20 + person_id: 1 + person_b: + age: 22 + person_id: 2 + dependent: + age: 30 + person_id: 3 + is_disabled: true + parent_1_id: 99 + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 single filer who can be claimed as a dependent keeps the credit for their own disabled child + period: 2025 + input: + people: + filer: + age: 19 + person_id: 1 + claimed_as_dependent_on_another_return: true + dependent: + age: 8 + person_id: 3 + is_disabled: true + parent_1_id: 1 + tax_units: + tax_unit: + members: [filer, dependent] + filing_status: SINGLE + households: + household: + members: [filer, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 500] + +- name: 2025 joint return with one claimable spouse keeps the credit for a spouse's own disabled child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + person_id: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + person_id: 2 + is_tax_unit_head: false + is_tax_unit_spouse: true + dependent: + age: 8 + person_id: 3 + is_disabled: true + parent_1_id: 1 + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 joint return with one claimable spouse keeps the credit for a spouse's own disabled child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + person_id: 2 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + person_id: 1 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + dependent: + age: 8 + person_id: 3 + is_disabled: true + parent_1_id: 1 + tax_units: + tax_unit: + members: [person_b, person_a, dependent] + filing_status: JOINT + households: + household: + members: [person_b, person_a, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 joint return with both spouses claimable keeps the credit for a spouse's own disabled child + period: 2025 + input: + people: + person_a: + age: 20 + person_id: 1 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + person_id: 2 + claimed_as_dependent_on_another_return: true + dependent: + age: 8 + person_id: 3 + is_disabled: true + parent_1_id: 1 + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 joint return with neither spouse claimable gets the credit for a spouse's own disabled child + period: 2025 + input: + people: + person_a: + age: 20 + person_id: 1 + person_b: + age: 22 + person_id: 2 + dependent: + age: 8 + person_id: 3 + is_disabled: true + parent_1_id: 1 + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 single filer who can be claimed as a dependent keeps the credit when no parent ids say whose child the disabled dependent is + period: 2025 + input: + people: + filer: + age: 19 + claimed_as_dependent_on_another_return: true + dependent: + age: 8 + is_disabled: true + tax_units: + tax_unit: + members: [filer, dependent] + filing_status: SINGLE + households: + household: + members: [filer, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 500] + +- name: 2025 joint return with one claimable spouse keeps the credit when no parent ids say whose child the disabled dependent is (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + dependent: + age: 8 + is_disabled: true + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 joint return with one claimable spouse keeps the credit when no parent ids say whose child the disabled dependent is (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + dependent: + age: 8 + is_disabled: true + tax_units: + tax_unit: + members: [person_b, person_a, dependent] + filing_status: JOINT + households: + household: + members: [person_b, person_a, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 joint return with both spouses claimable keeps the credit when no parent ids say whose child the disabled dependent is + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + dependent: + age: 8 + is_disabled: true + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 joint return with neither spouse claimable gets the credit for a disabled dependent without parent ids + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + dependent: + age: 8 + is_disabled: true + tax_units: + tax_unit: + members: [person_a, person_b, dependent] + filing_status: JOINT + households: + household: + members: [person_a, person_b, dependent] + state_code: AR + output: + ar_personal_credit_disabled_dependent: [0, 0, 500] diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credits_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credits_potential.yaml new file mode 100644 index 00000000000..abc7b630d00 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credits_potential.yaml @@ -0,0 +1,145 @@ +# Each taxpayer and spouse keeps their own $29 personal credit +# ("Each taxpayer and spouse is entitled to one personal tax credit", AR1000F +# instructions) when another taxpayer can claim them; only the dependents' +# credits go (IRC 152(b)(1)). The filers are 30, so no aged credits apply. + +- name: 2025 single filer who can be claimed as a dependent keeps their own personal credit + period: 2025 + input: + people: + filer: + age: 30 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AR + output: + # $29 x 1. + ar_personal_credits_potential: 29 + +- name: 2025 single filer who cannot be claimed gets credits for the filer and the child + period: 2025 + input: + people: + filer: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AR + output: + # $29 x 2. + ar_personal_credits_potential: 58 + +- name: 2025 joint return with one claimable spouse keeps both spouses' personal credits (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + # $29 x 2. + ar_personal_credits_potential: 58 + +- name: 2025 joint return with one claimable spouse keeps both spouses' personal credits (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: AR + output: + # $29 x 2. + ar_personal_credits_potential: 58 + +- name: 2025 joint return with both spouses claimable keeps both spouses' personal credits + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + # $29 x 2. + ar_personal_credits_potential: 58 + +- name: 2025 joint return with neither spouse claimable gets credits for both spouses and the child + period: 2025 + input: + people: + person_a: + age: 30 + person_b: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + # $29 x 3. + ar_personal_credits_potential: 87 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.yaml index 49e11429e8b..de155b8ed0a 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.yaml @@ -583,3 +583,158 @@ output: ar_low_income_tax_joint: [92, 104] ar_income_tax_before_non_refundable_credits_joint: [92, 104] + +# The low-income tax tables for joint filers differ by whether there are two +# or more dependents, counted in the IRC 152 sense. A joint return on which +# either spouse can be claimed has no dependents (IRC 152(b)(1)), so it uses +# the no-or-one-dependent table: $222 at $26,050 of AGI +# (low_income_tax_tables/joint/no_or_one_dependent.yaml) instead of $0 on the +# two-or-more table. The tax is attributed to the head, listed first. + +- name: 2025 joint return with one claimable spouse with two children uses the no-or-one-dependent table (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + ar_agi_joint: 26_050 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + ar_agi_joint: 0 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + ar_agi_joint: 0 + child_2: + age: 8 + ar_agi_joint: 0 + tax_units: + tax_unit: + members: [person_a, person_b, child_1, child_2] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child_1, child_2] + state_code: AR + output: + ar_low_income_tax_joint: [222, 0, 0, 0] + +- name: 2025 joint return with one claimable spouse with two children uses the no-or-one-dependent table (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + ar_agi_joint: 0 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + ar_agi_joint: 26_050 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + ar_agi_joint: 0 + child_2: + age: 8 + ar_agi_joint: 0 + tax_units: + tax_unit: + members: [person_b, person_a, child_1, child_2] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child_1, child_2] + state_code: AR + output: + ar_low_income_tax_joint: [222, 0, 0, 0] + +- name: 2025 joint return with both spouses claimable with two children uses the no-or-one-dependent table + period: 2025 + input: + people: + person_a: + age: 20 + ar_agi_joint: 26_050 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + ar_agi_joint: 0 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + ar_agi_joint: 0 + child_2: + age: 8 + ar_agi_joint: 0 + tax_units: + tax_unit: + members: [person_a, person_b, child_1, child_2] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child_1, child_2] + state_code: AR + output: + ar_low_income_tax_joint: [222, 0, 0, 0] + +- name: 2025 joint return with neither spouse claimable with two children uses the two-or-more-dependent table + period: 2025 + input: + people: + person_a: + age: 20 + ar_agi_joint: 26_050 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + ar_agi_joint: 0 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + ar_agi_joint: 0 + child_2: + age: 8 + ar_agi_joint: 0 + tax_units: + tax_unit: + members: [person_a, person_b, child_1, child_2] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child_1, child_2] + state_code: AR + output: + ar_low_income_tax_joint: [0, 0, 0, 0] + +- name: 2025 single filer who can be claimed as a dependent uses the single table + period: 2025 + input: + people: + filer: + age: 19 + ar_agi_joint: 15_050 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: AR + output: + # low_income_tax_tables/single.yaml: $54 at $15,050. + ar_low_income_tax_joint: 54 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml index b64a35ac376..422254c510c 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml @@ -325,3 +325,151 @@ # and would wrongly pay $250, so this case fails without it. Also closes the # sub-$1 boundary (0.99 vs the 1.00 kept-rebate case above). az_families_tax_rebate: 0 + +# Laws 2023, ch. 147, sec. 3(A) and (D): the rebate goes to a taxpayer who +# "claimed a dependent tax credit under section 43-1073.01" on the 2021 +# return, $250 for each such dependent under 17. That credit needs an IRC 152 +# dependent, and a 2021 return on which the filer (or, if joint, either +# spouse) can be claimed as a dependent has none (IRC 152(b)(1)). The filers +# have enough income for at least $1 of 2021 Arizona tax liability. + +- name: 2021 single filer who can be claimed as a dependent gets no rebate for a child + period: 2021 + input: + people: + filer: + age: 20 + employment_income: 40_000 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AZ + output: + az_families_tax_rebate: 0 + +- name: 2021 single filer who cannot be claimed gets the rebate for a child + period: 2021 + input: + people: + filer: + age: 20 + employment_income: 40_000 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AZ + output: + az_families_tax_rebate: 250 + +- name: 2021 joint return with one claimable spouse gets no rebate for a child (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 20 + employment_income: 40_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_families_tax_rebate: 0 + +- name: 2021 joint return with one claimable spouse gets no rebate for a child (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 40_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: AZ + output: + az_families_tax_rebate: 0 + +- name: 2021 joint return with both spouses claimable gets no rebate for a child + period: 2021 + input: + people: + person_a: + age: 20 + employment_income: 40_000 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_families_tax_rebate: 0 + +- name: 2021 joint return with neither spouse claimable gets the rebate for a child + period: 2021 + input: + people: + person_a: + age: 20 + employment_income: 40_000 + person_b: + age: 22 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_families_tax_rebate: 250 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml index c1261a443de..c375174bf1b 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml @@ -85,3 +85,125 @@ tax_unit_dependents: 2 output: az_family_tax_credit_eligible: false + +# A.R.S. 43-1073(A) sets the income limit by the number of dependents, in the +# IRC 152 sense (A.R.S. 43-1001(3)). A joint return on which either spouse +# can be claimed has no dependents (IRC 152(b)(1)), so it uses the $20,000 +# limit for "not more than one dependent" rather than $23,600 for two. +# Income is Arizona AGI plus the exemptions subtracted under 43-1023. + +- name: 2025 joint return with one claimable spouse uses the no-dependent family credit income limit (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + child_2: + age: 8 + tax_units: + tax_unit: + members: [person_a, person_b, child_1, child_2] + filing_status: JOINT + az_agi: 22_500 + az_exemptions: 0 + households: + household: + members: [person_a, person_b, child_1, child_2] + state_code: AZ + output: + # $22,500 > $20,000. + az_family_tax_credit_eligible: false + +- name: 2025 joint return with one claimable spouse uses the no-dependent family credit income limit (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + child_2: + age: 8 + tax_units: + tax_unit: + members: [person_b, person_a, child_1, child_2] + filing_status: JOINT + az_agi: 22_500 + az_exemptions: 0 + households: + household: + members: [person_b, person_a, child_1, child_2] + state_code: AZ + output: + # $22,500 > $20,000. + az_family_tax_credit_eligible: false + +- name: 2025 joint return with both spouses claimable uses the no-dependent family credit income limit + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + child_1: + age: 5 + child_2: + age: 8 + tax_units: + tax_unit: + members: [person_a, person_b, child_1, child_2] + filing_status: JOINT + az_agi: 22_500 + az_exemptions: 0 + households: + household: + members: [person_a, person_b, child_1, child_2] + state_code: AZ + output: + # $22,500 > $20,000. + az_family_tax_credit_eligible: false + +- name: 2025 joint return with neither spouse claimable uses the two-dependent family credit income limit + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + child_1: + age: 5 + child_2: + age: 8 + tax_units: + tax_unit: + members: [person_a, person_b, child_1, child_2] + filing_status: JOINT + az_agi: 22_500 + az_exemptions: 0 + households: + household: + members: [person_a, person_b, child_1, child_2] + state_code: AZ + output: + # $22,500 <= $23,600. + az_family_tax_credit_eligible: true diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml new file mode 100644 index 00000000000..ac919a722fc --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml @@ -0,0 +1,148 @@ +# A.R.S. 43-1073(B): $40 "for each person who is a resident of this state and +# who is either the taxpayer, the taxpayer's spouse who does not file a return +# or a dependent", capped at $120 single and $240 joint +# (family_tax_credits/amount). A filer who can be claimed as a dependent still +# counts as the taxpayer, but "dependent" has the IRC 152 meaning (A.R.S. +# 43-1001(3)), so a return on which either filer can be claimed counts no +# dependents (IRC 152(b)(1)). + +- name: 2025 single filer who can be claimed as a dependent counts only the filer, not the child + period: 2025 + input: + people: + filer: + age: 19 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AZ + output: + # $40 x 1. + az_family_tax_credit_potential: 40 + +- name: 2025 single filer who cannot be claimed counts the filer and the child + period: 2025 + input: + people: + filer: + age: 19 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AZ + output: + # $40 x 2. + az_family_tax_credit_potential: 80 + +- name: 2025 joint return with one claimable spouse counts both spouses but not the child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + # $40 x 2. + az_family_tax_credit_potential: 80 + +- name: 2025 joint return with one claimable spouse counts both spouses but not the child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: AZ + output: + # $40 x 2. + az_family_tax_credit_potential: 80 + +- name: 2025 joint return with both spouses claimable still counts both spouses + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + # $40 x 2. + az_family_tax_credit_potential: 80 + +- name: 2025 joint return with neither spouse claimable counts both spouses and the child + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + # $40 x 3. + az_family_tax_credit_potential: 120 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml index e7d2353bfd8..98eab030ab9 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml @@ -113,3 +113,238 @@ tax_unit_size: 4 output: az_increased_excise_tax_credit: 0 + +# A.R.S. 43-1072.01 allows $25 "for each person ... for whom a personal or +# dependent exemption is allowed", up to $100, but only "for a taxpayer who is +# not claimed as a dependent by any other taxpayer". The Form 140 line 56 +# worksheet counts the filers and the dependents "provided that person(s) +# qualifies as a dependent for federal purposes", and the instructions let a +# joint filer claim the credit but not for a spouse who is barred. So a filer +# who can be claimed is not counted, and a return on which either filer can +# be claimed counts no dependents (IRC 152(b)(1)). Income is zero. + +- name: 2025 single filer who can be claimed as a dependent gets no excise credit + period: 2025 + input: + people: + filer: + age: 19 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: AZ + output: + az_increased_excise_tax_credit: 0 + +- name: 2025 single filer who cannot be claimed gets the excise credit for the filer + period: 2025 + input: + people: + filer: + age: 19 + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: AZ + output: + # $25 x 1. + az_increased_excise_tax_credit: 25 + +- name: 2025 joint return with one claimable spouse gets the excise credit only for the other spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: AZ + output: + # $25 x 1. + az_increased_excise_tax_credit: 25 + +- name: 2025 joint return with one claimable spouse gets the excise credit only for the other spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: AZ + output: + # $25 x 1. + az_increased_excise_tax_credit: 25 + +- name: 2025 joint return with both spouses claimable gets no excise credit + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: AZ + output: + az_increased_excise_tax_credit: 0 + +- name: 2025 joint return with neither spouse claimable gets the excise credit for both spouses + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: AZ + output: + # $25 x 2. + az_increased_excise_tax_credit: 50 + +- name: 2025 joint return with one claimable spouse with a child gets the excise credit only for the other spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + # $25 x 1; the child is not counted. + az_increased_excise_tax_credit: 25 + +- name: 2025 joint return with one claimable spouse with a child gets the excise credit only for the other spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: AZ + output: + # $25 x 1; the child is not counted. + az_increased_excise_tax_credit: 25 + +- name: 2025 joint return with both spouses claimable with a child gets no excise credit + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_increased_excise_tax_credit: 0 + +- name: 2025 joint return with neither spouse claimable with a child gets the excise credit for both spouses and the child + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + # $25 x 3. + az_increased_excise_tax_credit: 75 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml new file mode 100644 index 00000000000..40d42d87826 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml @@ -0,0 +1,192 @@ +# A.R.S. 43-1073.01 grants the credit for each dependent, and A.R.S. +# 43-1001(3) gives "dependent" the IRC 152 meaning. Under IRC 152(b)(1) a +# return on which the filer (or, if joint, either spouse) can be claimed as a +# dependent has no dependents. Amounts: $100 per dependent under 17 through +# 2025 and $125 from 2026 (dependent_credit/amount.yaml); no reduction below +# $200,000 single / $400,000 joint AGI. + +- name: 2025 single filer who can be claimed as a dependent gets no credit for a child + period: 2025 + input: + people: + filer: + age: 19 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + adjusted_gross_income: 10_000 + households: + household: + members: [filer, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 0 + +- name: 2025 single filer who cannot be claimed gets $100 for a child + period: 2025 + input: + people: + filer: + age: 19 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + adjusted_gross_income: 10_000 + households: + household: + members: [filer, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 100 + +- name: 2025 joint return with one claimable spouse gets no dependent credit (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 0 + +- name: 2025 joint return with one claimable spouse gets no dependent credit (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_b, person_a, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 0 + +- name: 2025 joint return with both spouses claimable gets no dependent credit + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 0 + +- name: 2025 joint return with neither spouse claimable gets $100 for a child + period: 2025 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 100 + +- name: 2026 joint return with one claimable spouse gets no dependent credit + period: 2026 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 0 + +- name: 2026 joint return with neither spouse claimable gets $125 for a child + period: 2026 + input: + people: + person_a: + age: 20 + person_b: + age: 22 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 125 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.yaml index 8566120cea5..b1358ec8207 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.yaml @@ -161,3 +161,277 @@ state_code: CA output: ca_eitc_eligible: true + +# RTC 17052 keeps the IRC 32(c)(1)(A)(ii)(III) rule that a filer without a +# qualifying child must not be another taxpayer's dependent (FTB 3514, Step 4, +# question f). FTB 3514 skips that question on a joint return, since a married +# filer can be claimed only when the joint return seeks just a refund of +# withholding; as for the federal credit, a joint return on which either +# spouse can be claimed gets no credit without a qualifying child. A filer +# with a qualifying child is not barred. + +- name: 2025 single filer who can be claimed as a dependent without a qualifying child is ineligible + period: 2025 + input: + people: + filer: + age: 25 + employment_income: 1_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_eitc_eligible: false + ca_eitc: 0 + +- name: 2025 single filer who cannot be claimed without a qualifying child is eligible + period: 2025 + input: + people: + filer: + age: 25 + employment_income: 1_000 + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # $1,000 x 7.65% x 0.85. + ca_eitc_eligible: true + ca_eitc: 65.025 + +- name: 2025 joint return with one claimable spouse without a qualifying child is ineligible (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 25 + employment_income: 500 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 25 + employment_income: 500 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_eitc_eligible: false + ca_eitc: 0 + +- name: 2025 joint return with one claimable spouse without a qualifying child is ineligible (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 25 + employment_income: 500 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 25 + employment_income: 500 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + ca_eitc_eligible: false + ca_eitc: 0 + +- name: 2025 joint return with both spouses claimable without a qualifying child is ineligible + period: 2025 + input: + people: + person_a: + age: 25 + employment_income: 500 + claimed_as_dependent_on_another_return: true + person_b: + age: 25 + employment_income: 500 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_eitc_eligible: false + ca_eitc: 0 + +- name: 2025 joint return with neither spouse claimable without a qualifying child is eligible + period: 2025 + input: + people: + person_a: + age: 25 + employment_income: 500 + person_b: + age: 25 + employment_income: 500 + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # $1,000 x 7.65% x 0.85. + ca_eitc_eligible: true + ca_eitc: 65.025 + +- name: 2025 single filer who can be claimed as a dependent but has a qualifying child stays eligible + period: 2025 + input: + people: + filer: + age: 20 + employment_income: 1_000 + claimed_as_dependent_on_another_return: true + child: + age: 3 + tax_units: + tax_unit: + members: [filer, child] + filing_status: HEAD_OF_HOUSEHOLD + households: + household: + members: [filer, child] + state_code: CA + output: + ca_eitc_eligible: true + +- name: 2025 joint return with one claimable spouse with a qualifying child stays eligible (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 500 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + employment_income: 500 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 3 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_eitc_eligible: true + +- name: 2025 joint return with one claimable spouse with a qualifying child stays eligible (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + employment_income: 500 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 500 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 3 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: CA + output: + ca_eitc_eligible: true + +- name: 2025 joint return with both spouses claimable with a qualifying child stays eligible + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 500 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + employment_income: 500 + claimed_as_dependent_on_another_return: true + child: + age: 3 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_eitc_eligible: true + +- name: 2025 joint return with neither spouse claimable with a qualifying child is eligible + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 500 + person_b: + age: 22 + employment_income: 500 + child: + age: 3 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_eitc_eligible: true diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/foster_youth/ca_foster_youth_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/foster_youth/ca_foster_youth_tax_credit.yaml new file mode 100644 index 00000000000..9e97727fbbb --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/foster_youth/ca_foster_youth_tax_credit.yaml @@ -0,0 +1,149 @@ +# The foster youth tax credit requires CalEITC eligibility (RTC 17052.2; +# FTB 3514 instructions), so a childless filer who can be claimed as a +# dependent, or a joint return on which either spouse can be, gets none. +# $1,189 per former foster youth aged 18-25 in 2025; earnings are below the +# phase-out start. + +- name: 2025 single filer who can be claimed as a dependent gets no foster youth credit without a qualifying child + period: 2025 + input: + people: + filer: + age: 20 + employment_income: 1_000 + was_in_foster_care: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_foster_youth_tax_credit: 0 + +- name: 2025 single filer who cannot be claimed gets the foster youth credit + period: 2025 + input: + people: + filer: + age: 20 + employment_income: 1_000 + was_in_foster_care: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_foster_youth_tax_credit: 1_189 + +- name: 2025 joint return with one claimable spouse gets no foster youth credit without a qualifying child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 500 + was_in_foster_care: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 20 + employment_income: 500 + was_in_foster_care: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_foster_youth_tax_credit: 0 + +- name: 2025 joint return with one claimable spouse gets no foster youth credit without a qualifying child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 20 + employment_income: 500 + was_in_foster_care: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 500 + was_in_foster_care: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + ca_foster_youth_tax_credit: 0 + +- name: 2025 joint return with both spouses claimable gets no foster youth credit without a qualifying child + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 500 + was_in_foster_care: true + claimed_as_dependent_on_another_return: true + person_b: + age: 20 + employment_income: 500 + was_in_foster_care: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_foster_youth_tax_credit: 0 + +- name: 2025 joint return with neither spouse claimable gets the foster youth credit for both spouses + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 500 + was_in_foster_care: true + person_b: + age: 20 + employment_income: 500 + was_in_foster_care: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # 2 x $1,189. + ca_foster_youth_tax_credit: 2_378 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml index b0191cde7ff..cce211742cf 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml @@ -47,3 +47,220 @@ rent: 0 output: ca_renter_credit: 0 + +# RTC 17053.5(d)(2): a qualified renter does not include "an individual whose +# principal place of residence for more than 50 percent of the taxable year is +# with another person who claimed that individual as a dependent". The 2025 +# qualification record asks "Can you be claimed as a dependent ..." and then +# "did you live in the home of the person who can claim you as a dependent?" +# Being claimable alone does not bar the credit. Spouses filing jointly get +# one $120 credit when either is a qualified renter (17053.5(a)(1)(A)). +# Single filers get $60. California AGI is $2,000 and rent $6,000. + +- name: 2025 single filer who can be claimed as a dependent who lived in the claimer's home gets no renter credit + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + rent: 6_000 + lives_with_claiming_taxpayer: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_renter_credit: 0 + +- name: 2025 single filer who cannot be claimed who reports living with a claimer is still a qualified renter + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + rent: 6_000 + lives_with_claiming_taxpayer: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_renter_credit: 60 + +- name: 2025 joint return with one claimable spouse who lived in the claimer's home keeps the joint renter credit through the other spouse (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 2_000 + rent: 6_000 + lives_with_claiming_taxpayer: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + lives_with_claiming_taxpayer: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_renter_credit: 120 + +- name: 2025 joint return with one claimable spouse who lived in the claimer's home keeps the joint renter credit through the other spouse (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + lives_with_claiming_taxpayer: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 2_000 + rent: 6_000 + lives_with_claiming_taxpayer: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + ca_renter_credit: 120 + +- name: 2025 joint return with both spouses claimable who both lived in the claimers' homes get no renter credit + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 2_000 + rent: 6_000 + lives_with_claiming_taxpayer: true + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + lives_with_claiming_taxpayer: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_renter_credit: 0 + +- name: 2025 joint return with neither spouse claimable gets the joint renter credit + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 2_000 + rent: 6_000 + lives_with_claiming_taxpayer: true + person_b: + age: 22 + lives_with_claiming_taxpayer: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_renter_credit: 120 + +- name: 2025 single filer who can be claimed as a dependent but lived elsewhere gets the renter credit + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + rent: 6_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_renter_credit: 60 + +- name: 2025 joint return at the $107,988 income limit gets the renter credit + period: 2025 + input: + people: + person_a: + age: 40 + rent: 6_000 + person_b: + age: 40 + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + ca_agi: 107_988 + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # 2025 qualification record, question 2: $107,988 or less if married/RDP filing jointly. + ca_renter_credit: 120 + +- name: 2025 joint return above the $107,988 income limit gets no renter credit + period: 2025 + input: + people: + person_a: + age: 40 + rent: 6_000 + person_b: + age: 40 + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + ca_agi: 107_989 + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_renter_credit: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml index 3ebfd55dca1..0440cde47fc 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml @@ -13,3 +13,205 @@ filing_status: JOINT output: ca_standard_deduction: 9_606 + +# RTC 17073.5 and the Form 540 "California Standard Deduction Worksheet for +# Dependents", used "only if your parent, or someone else, can claim you (or +# your spouse/RDP) as a dependent": the smaller of the California amount +# ($5,706 single, $11,412 joint in 2025) and the larger of $1,350 or earned +# income plus $450 (federal dependent amounts, gov.irs.deductions.standard +# .dependent). The filers have $2,000 of wages in total. + +- name: 2025 single filer who can be claimed as a dependent uses the dependent worksheet + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # max($1,350, $2,000 + $450) = $2,450 < $5,706. + ca_standard_deduction: 2_450 + +- name: 2025 single filer who cannot be claimed gets the full standard deduction + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_standard_deduction: 5_706 + +- name: 2025 joint return with one claimable spouse uses the dependent worksheet (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 1_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + employment_income: 1_000 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # max($1,350, $2,000 + $450) = $2,450 < $11,412. + ca_standard_deduction: 2_450 + +- name: 2025 joint return with one claimable spouse uses the dependent worksheet (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + employment_income: 1_000 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 1_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + # max($1,350, $2,000 + $450) = $2,450 < $11,412. + ca_standard_deduction: 2_450 + +- name: 2025 joint return with both spouses claimable uses the dependent worksheet + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 1_000 + claimed_as_dependent_on_another_return: true + person_b: + age: 22 + employment_income: 1_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # max($1,350, $2,000 + $450) = $2,450 < $11,412. + ca_standard_deduction: 2_450 + +- name: 2025 joint return with neither spouse claimable gets the full standard deduction + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 1_000 + person_b: + age: 22 + employment_income: 1_000 + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_standard_deduction: 11_412 + +- name: 2025 single filer who can be claimed and has no earned income gets the $1,350 minimum + period: 2025 + input: + people: + filer: + age: 19 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_standard_deduction: 1_350 + +- name: 2025 single filer who can be claimed and has high earnings is capped at the California amount + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 10_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # min($5,706, $10,000 + $450). + ca_standard_deduction: 5_706 + +- name: 2021 single filer who can be claimed uses the 2021 dependent amounts + period: 2021 + input: + people: + filer: + age: 19 + employment_income: 3_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # min($4,803, max($1,100, $3,000 + $350)). + ca_standard_deduction: 3_350 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/exemptions/ca_exemptions.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/exemptions/ca_exemptions.yaml index 648ed555e86..b2fcc60caa2 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/exemptions/ca_exemptions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/exemptions/ca_exemptions.yaml @@ -39,3 +39,326 @@ state_code: CA output: ca_exemptions: 658 + +# RTC 17054 and the Form 540 line 6-10 instructions: a filer whom another +# taxpayer can claim gets no personal, blind or senior credit (line 7 enters +# 0 for a single or head of household filer, and on a joint return 1 when only +# one spouse can be claimed and 0 when both can), and the dependents must be +# federal dependents, of which such a return has none (IRC 152(b)(1)). 2025 +# amounts: $153 per personal, blind or senior credit and $475 per dependent; +# income is zero, so nothing phases out. + +- name: 2025 single filer who can be claimed as a dependent with a child gets no exemption credits + period: 2025 + input: + people: + filer: + age: 30 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: CA + output: + ca_exemptions: 0 + +- name: 2025 single filer who cannot be claimed with a child gets the personal and dependent credits + period: 2025 + input: + people: + filer: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: CA + output: + # $153 + $475. + ca_exemptions: 628 + +- name: 2025 joint return with one claimable spouse with a child gets only the other spouse's personal credit (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_exemptions: 153 + +- name: 2025 joint return with one claimable spouse with a child gets only the other spouse's personal credit (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: CA + output: + ca_exemptions: 153 + +- name: 2025 joint return with both spouses claimable with a child gets no exemption credits + period: 2025 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_exemptions: 0 + +- name: 2025 joint return with neither spouse claimable with a child gets two personal credits and a dependent credit + period: 2025 + input: + people: + person_a: + age: 30 + person_b: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + # 2 x $153 + $475. + ca_exemptions: 781 + +- name: 2025 single filer who can be claimed as a dependent aged 70 and blind gets no personal, senior or blind credit + period: 2025 + input: + people: + filer: + age: 70 + is_blind: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + ca_exemptions: 0 + +- name: 2025 single filer who cannot be claimed aged 70 and blind gets personal, senior and blind credits + period: 2025 + input: + people: + filer: + age: 70 + is_blind: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # 3 x $153. + ca_exemptions: 459 + +- name: 2025 joint return with one claimable spouse both aged 70 and blind keeps only the other spouse's three credits (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 70 + is_blind: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 70 + is_blind: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # 3 x $153. + ca_exemptions: 459 + +- name: 2025 joint return with one claimable spouse both aged 70 and blind keeps only the other spouse's three credits (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 70 + is_blind: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 70 + is_blind: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + # 3 x $153. + ca_exemptions: 459 + +- name: 2025 joint return with both spouses claimable both aged 70 and blind gets no exemption credits + period: 2025 + input: + people: + person_a: + age: 70 + is_blind: true + claimed_as_dependent_on_another_return: true + person_b: + age: 70 + is_blind: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_exemptions: 0 + +- name: 2025 joint return with neither spouse claimable both aged 70 and blind gets six credits + period: 2025 + input: + people: + person_a: + age: 70 + is_blind: true + person_b: + age: 70 + is_blind: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + # 6 x $153. + ca_exemptions: 918 + +- name: 2025 single filer who can be claimed as a dependent filing as head of household gets no exemption credits + period: 2025 + input: + people: + filer: + age: 30 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: HEAD_OF_HOUSEHOLD + households: + household: + members: [filer, child] + state_code: CA + output: + # Line 7 instructions: head of household, enter -0-. + ca_exemptions: 0 + +- name: 2025 single filer who cannot be claimed filing as head of household gets the personal and dependent credits + period: 2025 + input: + people: + filer: + age: 30 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: HEAD_OF_HOUSEHOLD + households: + household: + members: [filer, child] + state_code: CA + output: + # $153 + $475. + ca_exemptions: 628 diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py index 23e95b90721..877498e6ac7 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py @@ -11,10 +11,19 @@ class ar_personal_credit_dependent(Variable): "https://www.dfa.arkansas.gov/wp-content/uploads/2021_AR1000F_FullYearResidentIndividualIncomeTaxReturn.pdf", "https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_FullYearResidentIndividualIncomeTaxReturn.pdf#page=1", "https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=12", + "https://www.arkleg.state.ar.us/Home/FTPDocument?path=/ACTS/2005/Public/ACT675.pdf#page=8", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", ) defined_for = StateCode.AR def formula(person, period, parameters): - dependent = person("is_tax_unit_dependent", period) + # Ark. Code 26-51-501 defines the dependent for this credit by IRC + # 152 (Act 675 of 2005, sec. 14), and under IRC 152(b)(1) a return on + # which the filer (or, if joint, either spouse) can be claimed as a + # dependent has no dependents. The filers' own credits remain. + filer_is_dependent = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent p = parameters(period).gov.states.ar.tax.income.credits.personal.amount return dependent * p.base diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py index d035f6d50db..6e0520f2f1a 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py @@ -1,4 +1,8 @@ from policyengine_us.model_api import * +from policyengine_us.variables.household.demographic.person._parent_links import ( + household_has_parent_ids, + tax_unit_parent_indices, +) class ar_personal_credit_disabled_dependent(Variable): @@ -11,12 +15,34 @@ class ar_personal_credit_disabled_dependent(Variable): "https://www.dfa.arkansas.gov/wp-content/uploads/2021_AR1000F_FullYearResidentIndividualIncomeTaxReturn.pdf", "https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_FullYearResidentIndividualIncomeTaxReturn.pdf#page=1", "https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=12", + "https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F1999%2FPublic%2FACT417.pdf#page=2", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", ) defined_for = StateCode.AR def formula(person, period, parameters): dependent = person("is_tax_unit_dependent", period) disabled = person("is_disabled", period) - disabled_dependent = disabled & dependent + # The credit covers an individual who is "a child of the taxpayer's + # blood, an adopted child, or a dependent" in the IRC 152 sense (Act + # 417 of 1999). A return on which the filer (or, if joint, either + # spouse) can be claimed as a dependent has no IRC 152 dependents + # (IRC 152(b)(1)), so only the filers' own children still qualify. + filer_is_dependent = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + # A filer's child: a parent id that names a head or spouse of the + # tax unit. Parent ids also name step-parents, which on a joint + # return covers the other spouse's own child. Without parent ids the + # model cannot tell a filer's child from another dependent and keeps + # the child route open. + filer = person("is_tax_unit_head_or_spouse", period) + first, second = tax_unit_parent_indices(person, period) + child_of_filer = np.where(first >= 0, filer[first], False) | np.where( + second >= 0, filer[second], False + ) + relationship_unknown = ~household_has_parent_ids(person, period) + qualifies = ~filer_is_dependent | child_of_filer | relationship_unknown + disabled_dependent = disabled & dependent & qualifies p = parameters(period).gov.states.ar.tax.income.credits.personal.amount return disabled_dependent * p.disabled_dependent diff --git a/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py b/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py index 0dad1967ab0..31a75dac553 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py @@ -17,7 +17,16 @@ def formula(person, period, parameters): p = parameters(period).gov.states.ar.tax.income.rates.low_income_tax_tables filing_status_separate = person.tax_unit("filing_status", period) status = filing_status_separate.possible_values - dependents = person.tax_unit("tax_unit_dependents", period) + # The tables count dependents in the IRC 152 sense, and a return on + # which the filer (or, if joint, either spouse) can be claimed as a + # dependent has none (IRC 152(b)(1)). This changes only which table + # applies, not the filing status. + filer_is_dependent = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + dependents = where( + filer_is_dependent, 0, person.tax_unit("tax_unit_dependents", period) + ) return select( [ filing_status_separate == status.SINGLE, diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py index 1f6b885c7b3..6ec5345039c 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py @@ -47,7 +47,14 @@ def formula(tax_unit, period, parameters): has_tax_liability = tax_liability >= p.min_tax_liability person = tax_unit.members - dependent = person("is_tax_unit_dependent", period) + # The rebate counts each dependent for whom the 2021 return claimed + # the dependent tax credit (sec. 3(A), (D)). That credit needs an IRC + # 152 dependent (A.R.S. 43-1001(3)), and a return on which the filer + # (or, if joint, either spouse) can be claimed as a dependent has none + # (IRC 152(b)(1)). The rebate is computed on the 2021 return, so this + # reads the 2021 inputs. + filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent age = person("age", period) # Get counts by age group for max dependent limit prioritization diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py index 2be1bc88d3b..f130704f102 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py @@ -8,12 +8,34 @@ class az_increased_excise_tax_credit(Variable): unit = USD definition_period = YEAR defined_for = "az_increased_excise_tax_credit_eligible" - reference = "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072-01.htm" + reference = ( + "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072-01.htm", + # Form 140 line 56 instructions and worksheet. + "https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140i.pdf#page=25", + ) def formula(tax_unit, period, parameters): p = parameters(period).gov.states.az.tax.income.credits.increased_excise # The increased excise tax credit is allowed for each person that a # personal or dependent exemption can be claimed for - tax_unit_size = tax_unit("tax_unit_size", period) - uncapped_credit = tax_unit_size * p.amount + # (A.R.S. 43-1072.01(C)). The Form 140 worksheet counts the filers and + # the dependents "provided that person(s) qualifies as a dependent + # for federal purposes", and the instructions let a joint filer claim + # the credit but not for a spouse who is barred. So a filer whom + # another taxpayer can claim is not counted, and a return on which + # the filer (or, if joint, either spouse) can be claimed counts no + # dependents (IRC 152(b)(1)). + person = tax_unit.members + filers = tax_unit.sum(person("is_tax_unit_head_or_spouse", period)) + claimed_filers = filers - tax_unit( + "head_spouse_count_not_dependent_elsewhere", period + ) + filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + disallowed_dependents = where( + filer_is_dependent, tax_unit("tax_unit_dependents", period), 0 + ) + persons = ( + tax_unit("tax_unit_size", period) - claimed_filers - disallowed_dependents + ) + uncapped_credit = persons * p.amount return min_(uncapped_credit, p.max_amount) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py index 4db2d5a5e09..231629e571c 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py @@ -6,7 +6,11 @@ class az_increased_excise_tax_credit_eligible(Variable): entity = TaxUnit definition_period = YEAR label = "Eligible for Arizona Increased Excise Tax Credit" - reference = "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072-01.htm" + reference = ( + "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072-01.htm", + # Form 140 line 56 instructions. + "https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140i.pdf#page=25", + ) defined_for = StateCode.AZ def formula(tax_unit, period, parameters): @@ -14,4 +18,10 @@ def formula(tax_unit, period, parameters): agi = tax_unit("adjusted_gross_income", period) filing_status = tax_unit("filing_status", period) max_income = p.income_threshold[filing_status] - return agi <= max_income + # A.R.S. 43-1072.01(A) allows the credit only "for a taxpayer who is + # not claimed as a dependent by any other taxpayer". On a joint + # return a spouse who is not claimed can still claim it. + every_filer_is_dependent = tax_unit( + "every_filer_is_dependent_elsewhere", period + ) + return (agi <= max_income) & ~every_filer_is_dependent diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py b/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py index af778feb0af..bb887ccc8e8 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py @@ -6,14 +6,22 @@ class az_dependent_tax_credit_potential(Variable): entity = TaxUnit label = "Arizona dependent tax credit" unit = USD - reference = "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01073-01.htm" + reference = ( + "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01073-01.htm", + "https://www.azleg.gov/ars/43/01001.htm", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + ) definition_period = YEAR defined_for = StateCode.AZ def formula(tax_unit, period, parameters): person = tax_unit.members p = parameters(period).gov.states.az.tax.income.credits.dependent_credit - dependent = person("is_tax_unit_dependent", period) + # A.R.S. 43-1001(3) gives "dependent" the IRC 152 meaning, and under + # IRC 152(b)(1) a return on which the filer (or, if joint, either + # spouse) can be claimed as a dependent has no dependents. + filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent age = person("age", period) dependent_amount = p.amount.calc(age) * dependent amount = tax_unit.sum(dependent_amount) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py index 56673f2ec7d..e35ae45f124 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py @@ -6,7 +6,11 @@ class az_family_tax_credit_eligible(Variable): entity = TaxUnit label = "Eligible for the Arizona Family Tax Credit" definition_period = YEAR - reference = "https://www.azleg.gov/ars/43/01073.htm" + reference = ( + "https://www.azleg.gov/ars/43/01073.htm", + "https://www.azleg.gov/ars/43/01001.htm", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + ) defined_for = StateCode.AZ def formula(tax_unit, period, parameters): @@ -18,7 +22,13 @@ def formula(tax_unit, period, parameters): income = az_agi + exemptions filing_status = tax_unit("az_filing_status", period) status = filing_status.possible_values - dependents = tax_unit("tax_unit_dependents", period) + # The thresholds count dependents in the IRC 152 sense (A.R.S. + # 43-1001(3)); a return on which the filer (or, if joint, either + # spouse) can be claimed as a dependent has none (IRC 152(b)(1)). + filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + dependents = where( + filer_is_dependent, 0, tax_unit("tax_unit_dependents", period) + ) income_limit = select( [ filing_status == status.SINGLE, diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py index caaad18abc5..59dc9591156 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py @@ -7,6 +7,11 @@ class az_family_tax_credit_potential(Variable): label = "Arizona Family Tax Credit" unit = USD definition_period = YEAR + reference = ( + "https://www.azleg.gov/ars/43/01073.htm", + "https://www.azleg.gov/ars/43/01001.htm", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + ) defined_for = "az_family_tax_credit_eligible" def formula(tax_unit, period, parameters): @@ -14,6 +19,16 @@ def formula(tax_unit, period, parameters): period ).gov.states.az.tax.income.credits.family_tax_credits.amount filing_status = tax_unit("filing_status", period) - - amount = p.per_person * tax_unit("tax_unit_size", period) + # A.R.S. 43-1073(B): $40 "for each person ... who is either the + # taxpayer, the taxpayer's spouse who does not file a return or a + # dependent". A filer whom another taxpayer can claim still counts as + # the taxpayer, but "dependent" has the IRC 152 meaning (A.R.S. + # 43-1001(3)), so under IRC 152(b)(1) a return on which the filer (or, + # if joint, either spouse) can be claimed counts no dependents. + filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + disallowed_dependents = where( + filer_is_dependent, tax_unit("tax_unit_dependents", period), 0 + ) + persons = tax_unit("tax_unit_size", period) - disallowed_dependents + amount = p.per_person * persons return min_(amount, p.cap[filing_status]) diff --git a/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py b/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py index 057af59abcd..86c28f97713 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py @@ -6,7 +6,11 @@ class ca_renter_credit(Variable): entity = TaxUnit label = "California Renter Tax Credit" unit = USD - reference = "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17053.5" + reference = ( + "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17053.5", + # Nonrefundable Renter's Credit Qualification Record. + "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf#page=25", + ) definition_period = YEAR defined_for = StateCode.CA @@ -18,7 +22,21 @@ def formula(tax_unit, period, parameters): filing_status = tax_unit("filing_status", period) income_cap = p.income_cap[filing_status] income_eligible = agi <= income_cap - eligible = income_eligible & has_rent + # RTC 17053.5(d)(2): a qualified renter does not include "an + # individual whose principal place of residence for more than 50 + # percent of the taxable year is with another person who claimed that + # individual as a dependent" (the qualification record asks whether + # someone can claim you and, if so, whether you lived in that + # person's home for more than half the year). Being claimable alone + # does not bar the credit, and on a joint return a spouse who is a + # qualified renter still gets the joint amount (17053.5(a)(1)(A)). + person = tax_unit.members + filer = person("is_tax_unit_head_or_spouse", period) + excluded = person("claimed_as_dependent_on_another_return", period) & person( + "lives_with_claiming_taxpayer", period + ) + has_qualified_renter = tax_unit.any(filer & ~excluded) + eligible = income_eligible & has_rent & has_qualified_renter # Determine amount if eligible based on filing status. amount_if_eligible = p.amount[filing_status] # Return eligibility * (amount if eligible). diff --git a/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py b/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py index 8d6d28990ce..438626a3bc9 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py @@ -11,6 +11,8 @@ class ca_eitc_eligible(Variable): reference = ( "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17052.", "https://www.ftb.ca.gov/forms/2024/2024-3514-booklet.html", + "https://www.ftb.ca.gov/forms/2025/2025-3514-booklet.pdf#page=6", + "https://www.law.cornell.edu/uscode/text/26/32#c_1_A_ii", ) def formula(tax_unit, period, parameters): @@ -37,8 +39,22 @@ def formula(tax_unit, period, parameters): federal_agi = tax_unit("adjusted_gross_income", period) meets_agi_requirements = federal_agi < p.phase_out.final.end + # RTC 17052 keeps the IRC 32(c)(1)(A)(ii)(III) rule: without a + # qualifying child, the filer must not be another taxpayer's + # dependent (FTB 3514, Step 4, question f). FTB 3514 skips that + # question on a joint return because a married filer can be claimed + # only when the joint return seeks just a refund of withholding; as + # for the federal credit, a joint return on which either spouse can + # be claimed gets no credit without a qualifying child. + has_qualifying_child = tax_unit.any( + person("ca_is_qualifying_child_for_caleitc", period) + ) + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + meets_dependency_requirements = has_qualifying_child | ~dependent_elsewhere + return ( meets_age_requirements & meets_investment_income_requirements & meets_agi_requirements + & meets_dependency_requirements ) diff --git a/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py b/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py index 27c3ceea1a1..d6a4126be48 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py @@ -6,11 +6,39 @@ class ca_standard_deduction(Variable): entity = TaxUnit label = "California standard deduction" unit = USD - reference = "https://www.ftb.ca.gov/forms/2021/2021-540.pdf" + reference = ( + "https://www.ftb.ca.gov/forms/2021/2021-540.pdf", + "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17073.5", + # California Standard Deduction Worksheet for Dependents. + "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf#page=13", + ) definition_period = YEAR defined_for = StateCode.CA def formula(tax_unit, period, parameters): p = parameters(period).gov.states.ca.tax.income.deductions.standard filing_status = tax_unit("filing_status", period) - return p.amount[filing_status] + standard = p.amount[filing_status] + # RTC 17073.5 applies the IRC 63(c)(5) limit, and the Form 540 + # worksheet for dependents applies "only if your parent, or someone + # else, can claim you (or your spouse/RDP) as a dependent": the + # deduction is the smaller of the California amount and the larger of + # the federal minimum or earned income plus the federal addition + # (line 1 carries line 2 of the federal worksheet). + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + p_dependent = parameters(period).gov.irs.deductions.standard.dependent + # Federal worksheet earned income: wages and self-employment income + # minus the deductible part of self-employment tax. + earned_income = max_( + tax_unit("tax_unit_earned_income", period) + - tax_unit("self_employment_tax_ald", period), + 0, + ) + dependent_standard = min_( + standard, + max_( + p_dependent.amount, + earned_income + p_dependent.additional_earned_income, + ), + ) + return where(dependent_elsewhere, dependent_standard, standard) diff --git a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py index 31fb55cf0e6..54bd4aa88d8 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py @@ -8,7 +8,12 @@ class ca_exemptions(Variable): defined_for = StateCode.CA unit = USD definition_period = YEAR - reference = "https://www.ftb.ca.gov/forms/2021/2021-540.pdf" + reference = ( + "https://www.ftb.ca.gov/forms/2021/2021-540.pdf", + "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17054", + # Form 540 lines 6-10 instructions. + "https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf#page=12", + ) def formula(tax_unit, period, parameters): p = parameters(period).gov.states.ca.tax.income.exemptions @@ -20,18 +25,40 @@ def formula(tax_unit, period, parameters): increments = np.ceil(over_agi_threshold / p.phase_out.increment[filing_status]) exemption_reduction = increments * p.phase_out.amount - # Personal Exemptions - personal_exemption_count = p.personal_scale[filing_status] - personal_aged_blind_exemption_count = personal_exemption_count + tax_unit( - "aged_blind_count", period + # A filer whom another taxpayer can claim as a dependent gets no + # personal, blind or senior credit (RTC 17054). The Form 540 line 7 + # instructions enter 0 for a single, separate or head of household + # filer who can be claimed and, on a joint return, 1 when only one + # spouse can be claimed and 0 when both can; lines 8 and 9 say "Do + # not claim this credit if someone else can claim you as a + # dependent". + person = tax_unit.members + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + personal_exemption_count = where( + dependent_elsewhere, + tax_unit("head_spouse_count_not_dependent_elsewhere", period), + p.personal_scale[filing_status], + ) + aged_blind_count = tax_unit.sum( + (filer & ~claimed) + * (person("is_irs_aged", period).astype(int) + person("is_blind", period)) + ) + personal_aged_blind_exemption_count = ( + personal_exemption_count + aged_blind_count ) personal_aged_blind_exemption = max_( 0, personal_aged_blind_exemption_count * (p.amount - exemption_reduction), ) - # Dependent exemptions - dependents = tax_unit("tax_unit_dependents", period) + # Dependent exemptions: the dependents must be those claimed on the + # federal return, and a return on which the filer (or, if joint, + # either spouse) can be claimed has none (IRC 152(b)(1)). + dependents = where( + dependent_elsewhere, 0, tax_unit("tax_unit_dependents", period) + ) dependent_exemptions = max_( 0, dependents * (p.dependent_amount - exemption_reduction) ) diff --git a/policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py b/policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py new file mode 100644 index 00000000000..59d7cc8de4d --- /dev/null +++ b/policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py @@ -0,0 +1,15 @@ +from policyengine_us.model_api import * + + +class lives_with_claiming_taxpayer(Variable): + value_type = bool + entity = Person + definition_period = YEAR + label = "Lives with the taxpayer who can claim them as a dependent" + documentation = ( + "Whether, for more than half the year, the person's principal place " + "of residence was the home of the taxpayer who can claim them as a " + "dependent (see claimed_as_dependent_on_another_return). Rules read " + "it only for a person who can be claimed." + ) + reference = ("https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf#page=25",) From 9efabea7b9da42f6aa6955c92942af9b5a36d9bd Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 07:02:02 -0400 Subject: [PATCH 09/25] Pin the inherited care-credit fixes, cite A.R.S. 43-1072.02, cap the joint Arizona rebate at three dependents Arkansas's and California's care credits and Arizona's 2026 care subtraction read the federal qualifying-person count, which the base branch fixes; YAML cases now pin the claimable-filer and disabled-child cases. The excise credit cites 43-1072.02, its operative section for 2021-2041. The 2021 families rebate counts at most three dependents on any return (Laws 2023, ch. 147, sec. 3(E)); ADOR's $1,500 joint maximum describes two 2021 families who married later. Co-Authored-By: Claude Opus 5.5 --- changelog.d/claimable-filer-az-ar-ca.fixed.md | 2 +- .../az/tax/income/rebate/max_dependents.yaml | 7 +- .../tax/income/credits/ar_cdcc_potential.yaml | 293 ++++++++++++++++++ .../credits/az_families_tax_rebate.yaml | 7 +- .../az_increased_excise_tax_credit.yaml | 5 +- ...az_dependent_care_expense_subtraction.yaml | 293 ++++++++++++++++++ .../credits/child_dependent_care/ca_cdcc.yaml | 293 ++++++++++++++++++ .../credits/az_increased_excise_tax_credit.py | 17 +- ...az_increased_excise_tax_credit_eligible.py | 8 +- 9 files changed, 908 insertions(+), 17 deletions(-) diff --git a/changelog.d/claimable-filer-az-ar-ca.fixed.md b/changelog.d/claimable-filer-az-ar-ca.fixed.md index d00a1fad0cb..b0ef687d062 100644 --- a/changelog.d/claimable-filer-az-ar-ca.fixed.md +++ b/changelog.d/claimable-filer-az-ar-ca.fixed.md @@ -1 +1 @@ -Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent. A return on which the filer (or, if joint, either spouse) can be claimed counts no dependents for Arizona's dependent credit, family credit and 2021 families rebate, Arkansas's dependent credit, disabled-dependent credit (except for a filer's own child) and low-income tables, or California's dependent exemption credit, and gets no childless CalEITC or foster youth credit. A claimable filer loses California's personal, senior and blind credits and is not counted for Arizona's excise credit. California's standard deduction follows its dependent worksheet, and its renter credit excludes a claimable filer who lived in the claimer's home (new input `lives_with_claiming_taxpayer`). California's 2025 joint renter credit income limit is now $107,988. +Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent. A return on which the filer (or, if joint, either spouse) can be claimed counts no dependents for Arizona's dependent credit, family credit and 2021 families rebate, Arkansas's dependent credit, disabled-dependent credit (except for a filer's own child) and low-income tables, or California's dependent exemption credit, and gets no childless CalEITC or foster youth credit. A claimable filer loses California's personal, senior and blind credits and is not counted for Arizona's excise credit. California's standard deduction follows its dependent worksheet, and its renter credit excludes a claimable filer who lived in the claimer's home (new input `lives_with_claiming_taxpayer`). California's 2025 joint renter credit income limit is now $107,988. Arizona's 2021 families rebate counts at most three dependents on a joint return, as on every other return (Laws 2023, ch. 147, sec. 3(E)). diff --git a/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml b/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml index 7d451605bd2..c6a3ef77a85 100644 --- a/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml +++ b/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml @@ -11,6 +11,8 @@ metadata: href: https://azdor.gov/individuals/arizona-families-tax-rebate - title: SB1734 - Arizona Families Tax Rebate href: https://www.azleg.gov/legtext/56leg/1r/laws/0147.htm + - title: Laws 2023, ch. 147, sec. 3(C), (E) + href: https://www.azleg.gov/legtext/56leg/1R/laws/0147.pdf#page=4 SINGLE: 2021-01-01: 3 HEAD_OF_HOUSEHOLD: @@ -19,5 +21,8 @@ SEPARATE: 2021-01-01: 3 SURVIVING_SPOUSE: 2021-01-01: 3 +# Sec. 3(E): "a maximum of three dependents for a qualifying taxpayer", with one +# rebate for each 2021 return (sec. 3(C)). ADOR's $1,500 joint maximum +# describes two 2021 families who married later, each with its own 2021 return. JOINT: - 2021-01-01: 6 + 2021-01-01: 3 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml index 38ff28007e5..3541dea11ec 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml @@ -128,3 +128,296 @@ # (Under the live 2026 federal 50 percent rate it would be 300.) ar_federal_cdcc: 1_050 ar_cdcc_potential: 210 + +# Fixed by the federal base branch, pinned here: a child under 13 is a +# qualifying person only as the filer's dependent (IRC 21(b)(1)(A)), and a +# return on which either filer can be claimed has none (IRC 152(b)(1)); a +# disabled dependent still qualifies (21(b)(1)(B) disregards 152(b)(1)). +# AGI $50,000, $1,000 of care: 2013-law rate 20% gives $200; Arkansas 20% +# gives $40 (credits/cdcc/match.yaml). + +- name: 2025 single filer who can be claimed as a dependent gets no care credit for a child under 13 + period: 2025 + input: + people: + filer: + age: 30 + employment_income: 50_000 + claimed_as_dependent_on_another_return: true + child: + age: 2 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [filer, child] + state_code: AR + output: + ar_cdcc_potential: 0 + +- name: 2025 single filer who cannot be claimed gets the care credit for a child under 13 + period: 2025 + input: + people: + filer: + age: 30 + employment_income: 50_000 + child: + age: 2 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [filer, child] + state_code: AR + output: + ar_cdcc_potential: 40 + +- name: 2025 joint return with one claimable spouse gets no care credit for a child under 13 (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 25_000 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 2 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_cdcc_potential: 0 + +- name: 2025 joint return with one claimable spouse gets no care credit for a child under 13 (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + employment_income: 25_000 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 2 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_b, person_a, child] + state_code: AR + output: + ar_cdcc_potential: 0 + +- name: 2025 joint return with both spouses claimable gets no care credit for a child under 13 + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + child: + age: 2 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_cdcc_potential: 0 + +- name: 2025 joint return with neither spouse claimable gets the care credit for a child under 13 + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 25_000 + person_b: + age: 30 + employment_income: 25_000 + child: + age: 2 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_cdcc_potential: 40 + +- name: 2025 single filer who can be claimed as a dependent keeps the care credit for a disabled child + period: 2025 + input: + people: + filer: + age: 30 + employment_income: 50_000 + claimed_as_dependent_on_another_return: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [filer, child] + state_code: AR + output: + ar_cdcc_potential: 40 + +- name: 2025 joint return with one claimable spouse keeps the care credit for a disabled child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 25_000 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_cdcc_potential: 40 + +- name: 2025 joint return with one claimable spouse keeps the care credit for a disabled child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + employment_income: 25_000 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_b, person_a, child] + state_code: AR + output: + ar_cdcc_potential: 40 + +- name: 2025 joint return with both spouses claimable keeps the care credit for a disabled child + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + employment_income: 25_000 + claimed_as_dependent_on_another_return: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_cdcc_potential: 40 + +- name: 2025 joint return with neither spouse claimable gets the care credit for a disabled child + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 25_000 + person_b: + age: 30 + employment_income: 25_000 + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: AR + output: + ar_cdcc_potential: 40 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml index 422254c510c..d021252ea63 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_families_tax_rebate.yaml @@ -145,7 +145,7 @@ # No dependents = no rebate az_families_tax_rebate: 0 -- name: 2021 - MFJ with six young dependents - max $1,500 rebate +- name: 2021 - MFJ with six young dependents - capped at three, $750 period: 2021 input: people: @@ -183,8 +183,9 @@ members: [filer1, filer2, child1, child2, child3, child4, child5, child6] state_code: AZ output: - # MFJ can claim up to 6 dependents: 6 x $250 = $1,500 - az_families_tax_rebate: 1_500 + # Laws 2023, ch. 147, sec. 3(E): "a maximum of three dependents for a + # qualifying taxpayer", one rebate per 2021 return: 3 x $250 = $750. + az_families_tax_rebate: 750 - name: 2021 - Single filer with four dependents - capped at $750 period: 2021 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml index 98eab030ab9..a813e364ba0 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml @@ -114,8 +114,9 @@ output: az_increased_excise_tax_credit: 0 -# A.R.S. 43-1072.01 allows $25 "for each person ... for whom a personal or -# dependent exemption is allowed", up to $100, but only "for a taxpayer who is +# A.R.S. 43-1072.01 and, from 2021, 43-1072.02 allow $25 for each person +# (43-1072.02(C): "either the taxpayer, the taxpayer's spouse who does not +# file a return or a dependent"), up to $100, but only "for a taxpayer who is # not claimed as a dependent by any other taxpayer". The Form 140 line 56 # worksheet counts the filers and the dependents "provided that person(s) # qualifies as a dependent for federal purposes", and the instructions let a diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/subtractions/az_dependent_care_expense_subtraction.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/subtractions/az_dependent_care_expense_subtraction.yaml index d5b6c2bae34..4dd6ecdd155 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/subtractions/az_dependent_care_expense_subtraction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/subtractions/az_dependent_care_expense_subtraction.yaml @@ -90,3 +90,296 @@ # cdcc = $3,000 * 0.37 rate = $1,110 # subtraction = max($3,000 - $1,110, 0) = $1,890 az_dependent_care_expense_subtraction: 1_890 + +# Fixed by the federal base branch, pinned here: A.R.S. 43-1022(34) subtracts +# care expenses "for a qualifying individual under section 21" above the +# federal credit. A child under 13 is not such an individual on a return on +# which either filer can be claimed (IRC 21(b)(1)(A), 152(b)(1)); a disabled +# dependent still is. $3,000 of care, earnings $8,000, no federal tax, so no +# federal credit: $3,000 (federal cdcc/max.yaml cap $3,000). + +- name: 2026 single filer who can be claimed as a dependent gets no care subtraction for a child under 13 + period: 2026 + input: + people: + filer: + age: 30 + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [filer, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 0 + +- name: 2026 single filer who cannot be claimed gets the care subtraction for a child under 13 + period: 2026 + input: + people: + filer: + age: 30 + employment_income: 8_000 + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [filer, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 3_000 + +- name: 2026 joint return with one claimable spouse gets no care subtraction for a child under 13 (the claimable spouse is the head) + period: 2026 + input: + people: + person_a: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 4_000 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 0 + +- name: 2026 joint return with one claimable spouse gets no care subtraction for a child under 13 (the claimable spouse is the spouse) + period: 2026 + input: + people: + person_b: + age: 30 + employment_income: 4_000 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_b, person_a, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 0 + +- name: 2026 joint return with both spouses claimable gets no care subtraction for a child under 13 + period: 2026 + input: + people: + person_a: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 0 + +- name: 2026 joint return with neither spouse claimable gets the care subtraction for a child under 13 + period: 2026 + input: + people: + person_a: + age: 30 + employment_income: 4_000 + person_b: + age: 30 + employment_income: 4_000 + child: + age: 5 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 3_000 + +- name: 2026 single filer who can be claimed as a dependent keeps the care credit for a disabled child + period: 2026 + input: + people: + filer: + age: 30 + employment_income: 8_000 + claimed_as_dependent_on_another_return: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [filer, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 3_000 + +- name: 2026 joint return with one claimable spouse keeps the care credit for a disabled child (the claimable spouse is the head) + period: 2026 + input: + people: + person_a: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 4_000 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 3_000 + +- name: 2026 joint return with one claimable spouse keeps the care credit for a disabled child (the claimable spouse is the spouse) + period: 2026 + input: + people: + person_b: + age: 30 + employment_income: 4_000 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_b, person_a, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 3_000 + +- name: 2026 joint return with both spouses claimable keeps the care credit for a disabled child + period: 2026 + input: + people: + person_a: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + employment_income: 4_000 + claimed_as_dependent_on_another_return: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 3_000 + +- name: 2026 joint return with neither spouse claimable gets the care credit for a disabled child + period: 2026 + input: + people: + person_a: + age: 30 + employment_income: 4_000 + person_b: + age: 30 + employment_income: 4_000 + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [person_a, person_b, child] + state_code: AZ + output: + az_dependent_care_expense_subtraction: 3_000 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc.yaml index 3cbbe67213b..15a48773b97 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc.yaml @@ -77,3 +77,296 @@ ca_federal_capped_cdcc: 0 output: ca_cdcc: 500 + +# Fixed by the federal base branch, pinned here: a child under 13 is a +# qualifying person only as the filer's dependent (IRC 21(b)(1)(A)), and a +# return on which either filer can be claimed has none (IRC 152(b)(1)); a +# disabled dependent still qualifies. AGI $39,900, $1,000 of care: federal +# rate 35% - ceil(24,900 / 2,000) x 1% = 22% gives $220; California 50% +# (credits/child_dependent_care/rate.yaml) gives $110. + +- name: 2025 single filer who can be claimed as a dependent gets no care credit for a child under 13 + period: 2025 + input: + people: + filer: + age: 30 + employment_income: 39_900 + claimed_as_dependent_on_another_return: true + child: + age: 3 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [filer, child] + state_code: CA + output: + ca_cdcc: 0 + +- name: 2025 single filer who cannot be claimed gets the care credit for a child under 13 + period: 2025 + input: + people: + filer: + age: 30 + employment_income: 39_900 + child: + age: 3 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [filer, child] + state_code: CA + output: + ca_cdcc: 110 + +- name: 2025 joint return with one claimable spouse gets no care credit for a child under 13 (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 19_950 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 3 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_cdcc: 0 + +- name: 2025 joint return with one claimable spouse gets no care credit for a child under 13 (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + employment_income: 19_950 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 3 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_b, person_a, child] + state_code: CA + output: + ca_cdcc: 0 + +- name: 2025 joint return with both spouses claimable gets no care credit for a child under 13 + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + child: + age: 3 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_cdcc: 0 + +- name: 2025 joint return with neither spouse claimable gets the care credit for a child under 13 + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 19_950 + person_b: + age: 30 + employment_income: 19_950 + child: + age: 3 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_cdcc: 110 + +- name: 2025 single filer who can be claimed as a dependent keeps the care credit for a disabled child + period: 2025 + input: + people: + filer: + age: 30 + employment_income: 39_900 + claimed_as_dependent_on_another_return: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [filer, child] + state_code: CA + output: + ca_cdcc: 110 + +- name: 2025 joint return with one claimable spouse keeps the care credit for a disabled child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 19_950 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_cdcc: 110 + +- name: 2025 joint return with one claimable spouse keeps the care credit for a disabled child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + employment_income: 19_950 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_b, person_a, child] + state_code: CA + output: + ca_cdcc: 110 + +- name: 2025 joint return with both spouses claimable keeps the care credit for a disabled child + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + person_b: + age: 30 + employment_income: 19_950 + claimed_as_dependent_on_another_return: true + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_cdcc: 110 + +- name: 2025 joint return with neither spouse claimable gets the care credit for a disabled child + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 19_950 + person_b: + age: 30 + employment_income: 19_950 + child: + age: 14 + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [person_a, person_b, child] + state_code: CA + output: + ca_cdcc: 110 diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py index f130704f102..c091d75dfed 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py @@ -10,6 +10,7 @@ class az_increased_excise_tax_credit(Variable): defined_for = "az_increased_excise_tax_credit_eligible" reference = ( "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072-01.htm", + "https://www.azleg.gov/ars/43/01072-02.htm", # Form 140 line 56 instructions and worksheet. "https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140i.pdf#page=25", ) @@ -18,13 +19,15 @@ def formula(tax_unit, period, parameters): p = parameters(period).gov.states.az.tax.income.credits.increased_excise # The increased excise tax credit is allowed for each person that a # personal or dependent exemption can be claimed for - # (A.R.S. 43-1072.01(C)). The Form 140 worksheet counts the filers and - # the dependents "provided that person(s) qualifies as a dependent - # for federal purposes", and the instructions let a joint filer claim - # the credit but not for a spouse who is barred. So a filer whom - # another taxpayer can claim is not counted, and a return on which - # the filer (or, if joint, either spouse) can be claimed counts no - # dependents (IRC 152(b)(1)). + # (A.R.S. 43-1072.01(C)); from 2021, 43-1072.02(C) allows $25 for each + # person "who is either the taxpayer, the taxpayer's spouse who does + # not file a return or a dependent". The Form 140 worksheet counts the + # filers and the dependents "provided that person(s) qualifies as a + # dependent for federal purposes", and the instructions let a joint + # filer claim the credit but not for a spouse who is barred. So a + # filer whom another taxpayer can claim is not counted, and a return + # on which the filer (or, if joint, either spouse) can be claimed + # counts no dependents (IRC 152(b)(1)). person = tax_unit.members filers = tax_unit.sum(person("is_tax_unit_head_or_spouse", period)) claimed_filers = filers - tax_unit( diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py index 231629e571c..9c4b90ad87a 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py @@ -8,6 +8,7 @@ class az_increased_excise_tax_credit_eligible(Variable): label = "Eligible for Arizona Increased Excise Tax Credit" reference = ( "https://www.azleg.gov/viewdocument/?docName=https://www.azleg.gov/ars/43/01072-01.htm", + "https://www.azleg.gov/ars/43/01072-02.htm", # Form 140 line 56 instructions. "https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140i.pdf#page=25", ) @@ -18,9 +19,10 @@ def formula(tax_unit, period, parameters): agi = tax_unit("adjusted_gross_income", period) filing_status = tax_unit("filing_status", period) max_income = p.income_threshold[filing_status] - # A.R.S. 43-1072.01(A) allows the credit only "for a taxpayer who is - # not claimed as a dependent by any other taxpayer". On a joint - # return a spouse who is not claimed can still claim it. + # A.R.S. 43-1072.01(A) and, from 2021, 43-1072.02(A) allow the credit + # only "for a taxpayer who is not claimed as a dependent by any other + # taxpayer". On a joint return a spouse who is not claimed can still + # claim it. every_filer_is_dependent = tax_unit( "every_filer_is_dependent_elsewhere", period ) From 02e2c3d8139b41b9b5b7534a1086aa489786ec23 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 07:27:49 -0400 Subject: [PATCH 10/25] Keep California's aged and blind count input; use a younger non-child dependent in the Arkansas cases California's senior and blind credits now subtract the claimable filers' own aged and blind credits from aged_blind_count, so cases that supply that count keep working. The Arkansas disabled-dependent cases used a dependent older than the filers, whom the model made the head; the dependent is now 15. Co-Authored-By: Claude Opus 5.5 --- .../ar_personal_credit_disabled_dependent.yaml | 12 ++++++------ .../states/ca/tax/income/exemptions/ca_exemptions.py | 7 +++++-- 2 files changed, 11 insertions(+), 8 deletions(-) diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml index 952521f188b..42e399e18b4 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml @@ -41,7 +41,7 @@ person_id: 1 claimed_as_dependent_on_another_return: true dependent: - age: 30 + age: 15 person_id: 3 is_disabled: true parent_1_id: 99 @@ -64,7 +64,7 @@ age: 19 person_id: 1 dependent: - age: 30 + age: 15 person_id: 3 is_disabled: true parent_1_id: 99 @@ -95,7 +95,7 @@ is_tax_unit_head: false is_tax_unit_spouse: true dependent: - age: 30 + age: 15 person_id: 3 is_disabled: true parent_1_id: 99 @@ -126,7 +126,7 @@ is_tax_unit_head: false is_tax_unit_spouse: true dependent: - age: 30 + age: 15 person_id: 3 is_disabled: true parent_1_id: 99 @@ -154,7 +154,7 @@ person_id: 2 claimed_as_dependent_on_another_return: true dependent: - age: 30 + age: 15 person_id: 3 is_disabled: true parent_1_id: 99 @@ -180,7 +180,7 @@ age: 22 person_id: 2 dependent: - age: 30 + age: 15 person_id: 3 is_disabled: true parent_1_id: 99 diff --git a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py index 54bd4aa88d8..2ee5000732b 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py @@ -41,10 +41,13 @@ def formula(tax_unit, period, parameters): tax_unit("head_spouse_count_not_dependent_elsewhere", period), p.personal_scale[filing_status], ) - aged_blind_count = tax_unit.sum( - (filer & ~claimed) + claimed_aged_blind_count = tax_unit.sum( + (filer & claimed) * (person("is_irs_aged", period).astype(int) + person("is_blind", period)) ) + aged_blind_count = ( + tax_unit("aged_blind_count", period) - claimed_aged_blind_count + ) personal_aged_blind_exemption_count = ( personal_exemption_count + aged_blind_count ) From 97ca53c801e06dd5f07eb0257061e0c5c308912c Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 07:30:28 -0400 Subject: [PATCH 11/25] Project the claimable-filer flag to persons in Arizona's dependent credit and rebate Both formulas combined a tax-unit array with a person array, which only broadcasts when the simulation has one tax unit. The property test's vectorized population caught it. Co-Authored-By: Claude Opus 5.5 --- .../states/az/tax/income/credits/az_families_tax_rebate.py | 4 +++- .../dependent_credit/az_dependent_tax_credit_potential.py | 4 +++- 2 files changed, 6 insertions(+), 2 deletions(-) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py index 6ec5345039c..c846662852a 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py @@ -54,7 +54,9 @@ def formula(tax_unit, period, parameters): # (IRC 152(b)(1)). The rebate is computed on the 2021 return, so this # reads the 2021 inputs. filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) - dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent + dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( + filer_is_dependent + ) age = person("age", period) # Get counts by age group for max dependent limit prioritization diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py b/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py index bb887ccc8e8..9483c70f3b1 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py @@ -21,7 +21,9 @@ def formula(tax_unit, period, parameters): # IRC 152(b)(1) a return on which the filer (or, if joint, either # spouse) can be claimed as a dependent has no dependents. filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) - dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent + dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( + filer_is_dependent + ) age = person("age", period) dependent_amount = p.amount.calc(age) * dependent amount = tax_unit.sum(dependent_amount) From 5843a311602e170565f742aa196b97528c384544 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 08:49:49 -0400 Subject: [PATCH 12/25] Address review: keep the rules in reforms, count filers directly, per-dependent relationship fallback, farm income - The Arizona, Arkansas and California dependent credit reforms, the California entry of the state dependent exemption repeal and AB 2591 replaced the changed formulas with the old ones; they now apply the same rules (California through shared helpers in ca_exemptions and ca_standard_deduction), with default-parity cases. - Arizona's family and excise credits count the filers directly on a claimable return, so a tax_unit_size input cannot carry dependents in. - Arkansas's disabled-dependent credit decides an unknown relationship from the dependent's own parent ids, not the household's; the comment records that parent ids also name step-parents. - The California dependent worksheet reads the new dependent_standard_deduction_earned_income, which counts farm income (Schedule 1 line 6) like the federal worksheet. - The property test adds renters who lived with the claimer and disabled dependents with and without parent ids. Co-Authored-By: Claude Opus 5.5 --- changelog.d/claimable-filer-az-ar-ca.fixed.md | 2 +- .../az/tax/income/rebate/max_dependents.yaml | 4 +- .../repeal_state_dependent_exemptions.py | 16 +++-- .../ar_dependent_credit_reform.py | 7 +- .../az_dependent_credit_reform.py | 10 ++- .../reforms/states/ca/ab2591/ab2591.py | 12 +++- .../ca_dependent_credit_reform.py | 22 +++++-- ...est_claimable_filer_az_ar_ca_invariants.py | 52 ++++++++++++++- ...dent_standard_deduction_earned_income.yaml | 66 +++++++++++++++++++ ...ar_personal_credit_disabled_dependent.yaml | 34 ++++++++++ .../az_family_tax_credit_potential.yaml | 54 +++++++++++++++ .../az_increased_excise_tax_credit.yaml | 54 +++++++++++++++ .../az_dependent_tax_credit_potential.yaml | 33 +++++++++- .../standard/ca_standard_deduction.yaml | 22 +++++++ .../repeal_state_dependent_exemptions.yaml | 41 ++++++++++++ .../ar/dependent_credit_reform_test.yaml | 41 ++++++++++++ .../az/dependent_credit_reform_test.yaml | 41 ++++++++++++ .../contrib/states/ca/ab2591/ca_ab2591.yaml | 47 +++++++++++++ .../ca/dependent_credit_reform_test.yaml | 41 ++++++++++++ ...endent_standard_deduction_earned_income.py | 35 ++++++++++ .../ar_personal_credit_disabled_dependent.py | 18 ++--- .../credits/az_increased_excise_tax_credit.py | 14 ++-- .../az_family_tax_credit_potential.py | 7 +- .../standard/ca_standard_deduction.py | 42 ++++++------ .../ca/tax/income/exemptions/ca_exemptions.py | 56 +++++++++------- 25 files changed, 679 insertions(+), 92 deletions(-) create mode 100644 policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml create mode 100644 policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py diff --git a/changelog.d/claimable-filer-az-ar-ca.fixed.md b/changelog.d/claimable-filer-az-ar-ca.fixed.md index b0ef687d062..ea05dfaab95 100644 --- a/changelog.d/claimable-filer-az-ar-ca.fixed.md +++ b/changelog.d/claimable-filer-az-ar-ca.fixed.md @@ -1 +1 @@ -Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent. A return on which the filer (or, if joint, either spouse) can be claimed counts no dependents for Arizona's dependent credit, family credit and 2021 families rebate, Arkansas's dependent credit, disabled-dependent credit (except for a filer's own child) and low-income tables, or California's dependent exemption credit, and gets no childless CalEITC or foster youth credit. A claimable filer loses California's personal, senior and blind credits and is not counted for Arizona's excise credit. California's standard deduction follows its dependent worksheet, and its renter credit excludes a claimable filer who lived in the claimer's home (new input `lives_with_claiming_taxpayer`). California's 2025 joint renter credit income limit is now $107,988. Arizona's 2021 families rebate counts at most three dependents on a joint return, as on every other return (Laws 2023, ch. 147, sec. 3(E)). +Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent. A return on which the filer (or, if joint, either spouse) can be claimed counts no dependents for Arizona's dependent credit, family credit and 2021 families rebate, Arkansas's dependent credit, disabled-dependent credit (except for a filer's own child) and low-income tables, or California's dependent exemption credit, and gets no childless CalEITC or foster youth credit. A claimable filer loses California's personal, senior and blind credits and is not counted for Arizona's excise credit. California's standard deduction follows its dependent worksheet, and its renter credit excludes a claimable filer who lived in the claimer's home (new input `lives_with_claiming_taxpayer`). California's 2025 joint renter credit income limit is now $107,988. Arizona's 2021 families rebate counts at most three dependents on a joint return, as on every other return (Laws 2023, ch. 147, sec. 3(E)). The Arizona, Arkansas and California dependent credit reforms, the state dependent exemption repeal and California's AB 2591 reform keep these rules, and the California dependent worksheet counts farm income as earned income (new `dependent_standard_deduction_earned_income`). diff --git a/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml b/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml index c6a3ef77a85..f333b260637 100644 --- a/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml +++ b/policyengine_us/parameters/gov/states/az/tax/income/rebate/max_dependents.yaml @@ -9,9 +9,7 @@ metadata: reference: - title: Arizona Families Tax Rebate href: https://azdor.gov/individuals/arizona-families-tax-rebate - - title: SB1734 - Arizona Families Tax Rebate - href: https://www.azleg.gov/legtext/56leg/1r/laws/0147.htm - - title: Laws 2023, ch. 147, sec. 3(C), (E) + - title: SB1734 - Arizona Families Tax Rebate (Laws 2023, ch. 147), sec. 3(C), (E) href: https://www.azleg.gov/legtext/56leg/1R/laws/0147.pdf#page=4 SINGLE: 2021-01-01: 3 diff --git a/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py b/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py index 55765f89e4b..df2c4a3c059 100644 --- a/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py +++ b/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py @@ -1,5 +1,8 @@ from policyengine_us.model_api import * from policyengine_core.periods import period as period_ +from policyengine_us.variables.gov.states.ca.tax.income.exemptions.ca_exemptions import ( + ca_personal_aged_blind_exemption_count, +) def create_repeal_state_dependent_exemptions() -> Reform: @@ -239,17 +242,18 @@ def formula(tax_unit, period, parameters): over_agi_threshold / p.phase_out.increment[filing_status] ) exemption_reduction = increments * p.phase_out.amount - # Personal Exemptions - personal_exemption_count = p.personal_scale[filing_status] - personal_aged_blind_exemption_count = personal_exemption_count + tax_unit( - "aged_blind_count", period + # Personal, blind and senior exemptions, as in the baseline + # (none for a filer who can be claimed elsewhere) + personal_aged_blind_exemption_count = ( + ca_personal_aged_blind_exemption_count( + tax_unit, period, p, filing_status + ) ) personal_aged_blind_exemption = max_( 0, personal_aged_blind_exemption_count * (p.amount - exemption_reduction), ) - # Dependent exemptions - # total exemptions + # Dependent exemptions repealed return personal_aged_blind_exemption class ga_exemptions(Variable): diff --git a/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py b/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py index 2e12a55fa4c..2e62c73fc61 100644 --- a/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py +++ b/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py @@ -18,7 +18,12 @@ def formula(person, period, parameters): # age; this person-level amount is summed via adds in # ar_personal_credits_potential, so the age gate composes. p = parameters(period).gov.contrib.states.ar.dependent_credit - is_dependent = person("is_tax_unit_dependent", period) + # As in the baseline, a return on which the filer (or, if joint, + # either spouse) can be claimed has no dependents (IRC 152(b)(1)). + filer_is_dependent = person.tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + is_dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent if p.age_limit.in_effect: age = person("age", period) eligible = is_dependent & (age < p.age_limit.threshold) diff --git a/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py b/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py index 02f1d3fe14d..02395b753db 100644 --- a/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py +++ b/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py @@ -21,7 +21,15 @@ def formula(tax_unit, period, parameters): period ).gov.states.az.tax.income.credits.dependent_credit p = parameters(period).gov.contrib.states.az.dependent_credit - dependent = person("is_tax_unit_dependent", period) + # As in the baseline, a return on which the filer (or, if joint, + # either spouse) can be claimed has no dependents (A.R.S. + # 43-1001(3), IRC 152(b)(1)). + filer_is_dependent = tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( + filer_is_dependent + ) age = person("age", period) if p.age_limit.in_effect: eligible = dependent & (age < p.age_limit.threshold) diff --git a/policyengine_us/reforms/states/ca/ab2591/ab2591.py b/policyengine_us/reforms/states/ca/ab2591/ab2591.py index 4a73035d27f..2dade84f10d 100644 --- a/policyengine_us/reforms/states/ca/ab2591/ab2591.py +++ b/policyengine_us/reforms/states/ca/ab2591/ab2591.py @@ -1,5 +1,8 @@ from policyengine_us.model_api import * from policyengine_core.periods import period as period_ +from policyengine_us.variables.gov.states.ca.tax.income.deductions.standard.ca_standard_deduction import ( + ca_dependent_standard_deduction_limit, +) def create_ca_ab2591() -> Reform: @@ -52,7 +55,14 @@ def formula(tax_unit, period, parameters): # statutory standard deduction. elected_deduction = max_(fpl_deduction, baseline_deduction) - return where(p_ab2591.in_effect, elected_deduction, baseline_deduction) + deduction = where(p_ab2591.in_effect, elected_deduction, baseline_deduction) + # Assumes the bill leaves 17073.5(c)(2) in place, so the IRC + # 63(c)(5) limit for a filer who can be claimed as a dependent + # applies to whichever deduction is taken (and to the baseline + # amount in years the election is not in effect). + return ca_dependent_standard_deduction_limit( + tax_unit, period, parameters, deduction + ) class reform(Reform): def apply(self): diff --git a/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py b/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py index d190f71b159..5b62c271a95 100644 --- a/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py +++ b/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py @@ -1,5 +1,8 @@ from policyengine_us.model_api import * from policyengine_core.periods import period as period_ +from policyengine_us.variables.gov.states.ca.tax.income.exemptions.ca_exemptions import ( + ca_personal_aged_blind_exemption_count, +) def create_ca_dependent_credit_reform() -> Reform: @@ -25,10 +28,12 @@ def formula(tax_unit, period, parameters): ) exemption_reduction = increments * p.phase_out.amount - # Personal exemptions (unchanged) - personal_exemption_count = p.personal_scale[filing_status] - personal_aged_blind_exemption_count = personal_exemption_count + tax_unit( - "aged_blind_count", period + # Personal, blind and senior exemptions (unchanged from baseline, + # including the rules for a filer who can be claimed elsewhere) + personal_aged_blind_exemption_count = ( + ca_personal_aged_blind_exemption_count( + tax_unit, period, p, filing_status + ) ) personal_aged_blind_exemption = max_( 0, @@ -40,7 +45,14 @@ def formula(tax_unit, period, parameters): # dependent is age-eligible, matching the baseline count. person = tax_unit.members age = person("age", period) - is_dependent = person("is_tax_unit_dependent", period) + # As in the baseline, a return on which the filer (or, if joint, + # either spouse) can be claimed has no dependents (IRC 152(b)(1)). + filer_is_dependent = tax_unit( + "head_or_spouse_is_dependent_elsewhere", period + ) + is_dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( + filer_is_dependent + ) if c.age_limit.in_effect: eligible = is_dependent & (age < c.age_limit.threshold) else: diff --git a/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py b/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py index af314ccc7f4..6e45ea4059b 100644 --- a/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py +++ b/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py @@ -7,8 +7,10 @@ credit and renter credit apply IRC 151(d)(2) and 152(b)(1) and each state's own text. -For couples drawn by Hypothesis and a seeded population in the three states, -with either, both or neither spouse claimed: +For couples drawn by Hypothesis, a seeded population and crafted cases in the +three states (renters who lived with the person who can claim them, and a +disabled dependent who is a filer's own child, someone else's child, or of +unknown relationship), with either, both or neither spouse claimed: 1. Swap invariance: each output is the same under either head/spouse labelling. @@ -74,6 +76,46 @@ def _identities(sim, year): assert not _calc(sim, "az_increased_excise_tax_credit", year)[every_filer].any() +def _claimable_rule_cases(): + """Cases for the inputs the shared strategies never set.""" + renter = { + "age": 20, + "employment_income": 2_000.0, + "rent": 6_000.0, + "lives_with_claiming_taxpayer": True, + } + earner = {"age": 30, "person_id": 1, "employment_income": 20_000.0} + cases = [] + for state in STATES: + for claimed in CLAIM_PATTERNS: + cases.append( + { + "state": state, + "adults": [ + {**renter, "person_id": 1}, + {**renter, "person_id": 2, "age": 22}, + ], + "dependents": [], + "claimed": claimed, + } + ) + # Parent id 1 is the first adult; 99 is a parent outside the + # household; no id leaves the relationship unknown. + for parent in (1, 99, None): + dependent = {"age": 8, "is_disabled": True, "person_id": 3} + if parent is not None: + dependent["parent_1_id"] = parent + cases.append( + { + "state": state, + "adults": [earner, {"age": 32, "person_id": 2}], + "dependents": [dependent], + "claimed": claimed, + } + ) + return cases + + @st.composite def couples(draw): return { @@ -97,6 +139,10 @@ def test_az_ar_ca_claimable_filer_rules_are_label_free(year, units): @pytest.mark.parametrize("year", YEARS) def test_az_ar_ca_claimable_filer_rules_seeded_population(year): - units = _seeded_couples(STATES, per_state=3) + _crafted_cases(STATES) + units = ( + _seeded_couples(STATES, per_state=3) + + _crafted_cases(STATES) + + _claimable_rule_cases() + ) check_swap(units, year, OUTPUTS, _identities) check_monotone(units, year, MONOTONE, _identities) diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml new file mode 100644 index 00000000000..87a69669c3e --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml @@ -0,0 +1,66 @@ +# Standard Deduction Worksheet for Dependents (2025 Form 1040 instructions, +# p.35): earned income is Form 1040 line 1z plus Schedule 1 lines 3, 6, 8r, +# 8t and 8u, less Schedule 1 line 15 (the deductible part of +# self-employment tax), for the filers only. + +- name: 2025 wages count in full + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + tax_units: + tax_unit: + members: [filer] + output: + dependent_standard_deduction_earned_income: 2_000 + +- name: 2025 farm income counts, less the deductible part of self-employment tax + period: 2025 + absolute_error_margin: 0.01 + input: + people: + filer: + age: 19 + farm_operations_income: 2_000 + tax_units: + tax_unit: + members: [filer] + output: + # $2,000 x 0.9235 x 0.153 / 2 = $141.30 deductible. + dependent_standard_deduction_earned_income: 1_858.70 + +- name: 2025 joint return adds both spouses' earnings and leaves out a dependent's + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 1_000 + person_b: + age: 22 + employment_income: 1_500 + child: + age: 16 + employment_income: 5_000 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + output: + dependent_standard_deduction_earned_income: 2_500 + +- name: 2025 a farm loss larger than wages leaves zero + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 1_000 + farm_operations_income: -3_000 + tax_units: + tax_unit: + members: [filer] + output: + dependent_standard_deduction_earned_income: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml index 42e399e18b4..d77a4855722 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml @@ -455,3 +455,37 @@ state_code: AR output: ar_personal_credit_disabled_dependent: [0, 0, 500] + +- name: 2025 parent ids elsewhere in the household do not decide whose child an unlinked disabled dependent is + period: 2025 + input: + people: + filer_a: + age: 19 + person_id: 1 + claimed_as_dependent_on_another_return: true + child_a: + age: 6 + person_id: 2 + is_disabled: true + adult_b: + age: 40 + person_id: 3 + child_b: + age: 10 + person_id: 4 + parent_1_id: 3 + tax_units: + tax_unit_a: + members: [filer_a, child_a] + filing_status: SINGLE + tax_unit_b: + members: [adult_b, child_b] + households: + household: + members: [filer_a, child_a, adult_b, child_b] + state_code: AR + output: + # child_a has no parent ids of their own, so the relationship is unknown + # and the child route stays open; child_b is not disabled. + ar_personal_credit_disabled_dependent: [0, 500, 0, 0] diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml index ac919a722fc..5375c33ab3f 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_potential.yaml @@ -146,3 +146,57 @@ output: # $40 x 3. az_family_tax_credit_potential: 120 + +- name: 2025 joint return with one claimable spouse and a tax unit size input counts only the filers (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + tax_unit_size: 4 + households: + household: + members: [person_a, person_b] + state_code: AZ + output: + # $40 x 2 filers. A tax unit size of 4 does not say who the + # other two are; a return with a claimable filer counts no dependents. + az_family_tax_credit_potential: 80 + +- name: 2025 joint return with one claimable spouse and a tax unit size input counts only the filers (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + tax_unit_size: 4 + households: + household: + members: [person_b, person_a] + state_code: AZ + output: + # $40 x 2 filers. A tax unit size of 4 does not say who the + # other two are; a return with a claimable filer counts no dependents. + az_family_tax_credit_potential: 80 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml index a813e364ba0..729598d9408 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml @@ -349,3 +349,57 @@ output: # $25 x 3. az_increased_excise_tax_credit: 75 + +- name: 2025 joint return with one claimable spouse and a tax unit size input counts only the filers (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + tax_unit_size: 4 + households: + household: + members: [person_a, person_b] + state_code: AZ + output: + # $25 for the spouse who cannot be claimed. A tax unit size of 4 does not say who the + # other two are; a return with a claimable filer counts no dependents. + az_increased_excise_tax_credit: 25 + +- name: 2025 joint return with one claimable spouse and a tax unit size input counts only the filers (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + tax_unit_size: 4 + households: + household: + members: [person_b, person_a] + state_code: AZ + output: + # $25 for the spouse who cannot be claimed. A tax unit size of 4 does not say who the + # other two are; a return with a claimable filer counts no dependents. + az_increased_excise_tax_credit: 25 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml index 40d42d87826..91ad27a3aa1 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml @@ -146,15 +146,19 @@ output: az_dependent_tax_credit_potential: 100 -- name: 2026 joint return with one claimable spouse gets no dependent credit +- name: 2026 joint return with one claimable spouse gets no dependent credit (the claimable spouse is the head) period: 2026 input: people: person_a: age: 20 claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false person_b: age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true child: age: 5 tax_units: @@ -169,6 +173,33 @@ output: az_dependent_tax_credit_potential: 0 +- name: 2026 joint return with one claimable spouse gets no dependent credit (the claimable spouse is the spouse) + period: 2026 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + adjusted_gross_income: 10_000 + households: + household: + members: [person_b, person_a, child] + state_code: AZ + output: + az_dependent_tax_credit_potential: 0 + - name: 2026 joint return with neither spouse claimable gets $125 for a child period: 2026 input: diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml index 0440cde47fc..9e629ea4553 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml @@ -215,3 +215,25 @@ output: # min($4,803, max($1,100, $3,000 + $350)). ca_standard_deduction: 3_350 + +- name: 2025 single filer who can be claimed counts farm income as earned income on the dependent worksheet + period: 2025 + absolute_error_margin: 0.01 + input: + people: + filer: + age: 19 + farm_operations_income: 2_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # Federal worksheet earned income includes Schedule 1 line 6 (farm) less + # line 15: $2,000 - $2,000 x 0.9235 x 0.153 / 2 = $1,858.70; plus $450. + ca_standard_deduction: 2_308.70 diff --git a/policyengine_us/tests/policy/contrib/state_dependent_exemptions/repeal_state_dependent_exemptions.yaml b/policyengine_us/tests/policy/contrib/state_dependent_exemptions/repeal_state_dependent_exemptions.yaml index 2c9f3842667..d894bfde11b 100644 --- a/policyengine_us/tests/policy/contrib/state_dependent_exemptions/repeal_state_dependent_exemptions.yaml +++ b/policyengine_us/tests/policy/contrib/state_dependent_exemptions/repeal_state_dependent_exemptions.yaml @@ -151,3 +151,44 @@ output: # Baseline keeps the dependent add: 7,600 + 1 x 1,000 + 6,800 = 15,400. ma_income_tax_exemption_threshold: 15_400 + +# California keeps its personal credits under the repeal, with the baseline's +# rule that a filer who can be claimed as a dependent gets none (RTC 17054; +# Form 540 line 7). 2025: $153 per credit. +- name: California single filer who can be claimed keeps no personal credit under the repeal + period: 2025 + reforms: policyengine_us.reforms.state_dependent_exemptions.repeal_state_dependent_exemptions.repeal_state_dependent_exemptions + input: + gov.contrib.repeal_state_dependent_exemptions.in_effect: true + people: + filer: {age: 30, claimed_as_dependent_on_another_return: true} + tax_units: {tax_unit: {members: [filer], filing_status: SINGLE}} + households: {household: {members: [filer], state_code: CA}} + output: + ca_exemptions: 0 + +- name: California joint return with one claimable spouse keeps one personal credit under the repeal (the claimable spouse is the head) + period: 2025 + reforms: policyengine_us.reforms.state_dependent_exemptions.repeal_state_dependent_exemptions.repeal_state_dependent_exemptions + input: + gov.contrib.repeal_state_dependent_exemptions.in_effect: true + people: + person_a: {age: 30, claimed_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 30, is_tax_unit_head: false, is_tax_unit_spouse: true} + tax_units: {tax_unit: {members: [person_a, person_b], filing_status: JOINT}} + households: {household: {members: [person_a, person_b], state_code: CA}} + output: + ca_exemptions: 153 + +- name: California joint return with one claimable spouse keeps one personal credit under the repeal (the claimable spouse is the spouse) + period: 2025 + reforms: policyengine_us.reforms.state_dependent_exemptions.repeal_state_dependent_exemptions.repeal_state_dependent_exemptions + input: + gov.contrib.repeal_state_dependent_exemptions.in_effect: true + people: + person_b: {age: 30, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 30, claimed_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + tax_units: {tax_unit: {members: [person_b, person_a], filing_status: JOINT}} + households: {household: {members: [person_b, person_a], state_code: CA}} + output: + ca_exemptions: 153 diff --git a/policyengine_us/tests/policy/contrib/states/ar/dependent_credit_reform_test.yaml b/policyengine_us/tests/policy/contrib/states/ar/dependent_credit_reform_test.yaml index 5f2473f69f6..126c4c24b55 100644 --- a/policyengine_us/tests/policy/contrib/states/ar/dependent_credit_reform_test.yaml +++ b/policyengine_us/tests/policy/contrib/states/ar/dependent_credit_reform_test.yaml @@ -185,3 +185,44 @@ # Dependent one year under the limit (12 < 13) receives the credit. # Head personal credit 29 + 1 dependent * 29 = 58. output: {ar_personal_credits: 58} + +# With default settings the reform keeps the baseline's rule for a filer who +# can be claimed as a dependent: no dependent credits (IRC 152(b)(1)), while +# each filer keeps their own $29 credit. +- name: AR dependent credit reform - default keeps only the own credit for a single filer who can be claimed + period: 2025 + reforms: policyengine_us.reforms.states.ar.dependent_credit.ar_dependent_credit_reform.ar_dependent_credit_reform + input: + gov.contrib.states.ar.dependent_credit.in_effect: true + people: + filer: {age: 30, claimed_as_dependent_on_another_return: true} + child: {age: 5} + tax_units: {tax_unit: {members: [filer, child], filing_status: SINGLE}} + households: {household: {members: [filer, child], state_name: AR}} + output: {ar_personal_credits_potential: 29} + +- name: AR dependent credit reform - default keeps both own credits but no dependent credit on a joint return with a claimable spouse (the claimable spouse is the head) + period: 2025 + reforms: policyengine_us.reforms.states.ar.dependent_credit.ar_dependent_credit_reform.ar_dependent_credit_reform + input: + gov.contrib.states.ar.dependent_credit.in_effect: true + people: + person_a: {age: 30, claimed_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 30, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5} + tax_units: {tax_unit: {members: [person_a, person_b, child], filing_status: JOINT}} + households: {household: {members: [person_a, person_b, child], state_name: AR}} + output: {ar_personal_credits_potential: 58} + +- name: AR dependent credit reform - default keeps both own credits but no dependent credit on a joint return with a claimable spouse (the claimable spouse is the spouse) + period: 2025 + reforms: policyengine_us.reforms.states.ar.dependent_credit.ar_dependent_credit_reform.ar_dependent_credit_reform + input: + gov.contrib.states.ar.dependent_credit.in_effect: true + people: + person_b: {age: 30, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 30, claimed_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5} + tax_units: {tax_unit: {members: [person_b, person_a, child], filing_status: JOINT}} + households: {household: {members: [person_b, person_a, child], state_name: AR}} + output: {ar_personal_credits_potential: 58} diff --git a/policyengine_us/tests/policy/contrib/states/az/dependent_credit_reform_test.yaml b/policyengine_us/tests/policy/contrib/states/az/dependent_credit_reform_test.yaml index b2c60223698..365fd09780c 100644 --- a/policyengine_us/tests/policy/contrib/states/az/dependent_credit_reform_test.yaml +++ b/policyengine_us/tests/policy/contrib/states/az/dependent_credit_reform_test.yaml @@ -71,3 +71,44 @@ households: {household: {members: [parent, child1], state_name: AZ}} # Dependent one year under the limit (12 < 13) receives the credit. output: {az_dependent_tax_credit_potential: 100} + +# With default settings the reform keeps the baseline's rule for a filer who +# can be claimed as a dependent: such a return has no dependents (A.R.S. +# 43-1001(3), IRC 152(b)(1)). +- name: AZ dependent credit reform - default keeps no dependent credit for a single filer who can be claimed + period: 2025 + reforms: policyengine_us.reforms.states.az.dependent_credit.az_dependent_credit_reform.az_dependent_credit_reform + input: + gov.contrib.states.az.dependent_credit.in_effect: true + people: + filer: {age: 19, claimed_as_dependent_on_another_return: true} + child: {age: 5} + tax_units: {tax_unit: {members: [filer, child], filing_status: SINGLE, adjusted_gross_income: 10_000}} + households: {household: {members: [filer, child], state_name: AZ}} + output: {az_dependent_tax_credit_potential: 0} + +- name: AZ dependent credit reform - default keeps no dependent credit on a joint return with a claimable spouse (the claimable spouse is the head) + period: 2025 + reforms: policyengine_us.reforms.states.az.dependent_credit.az_dependent_credit_reform.az_dependent_credit_reform + input: + gov.contrib.states.az.dependent_credit.in_effect: true + people: + person_a: {age: 20, claimed_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 22, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5} + tax_units: {tax_unit: {members: [person_a, person_b, child], filing_status: JOINT, adjusted_gross_income: 10_000}} + households: {household: {members: [person_a, person_b, child], state_name: AZ}} + output: {az_dependent_tax_credit_potential: 0} + +- name: AZ dependent credit reform - default keeps no dependent credit on a joint return with a claimable spouse (the claimable spouse is the spouse) + period: 2025 + reforms: policyengine_us.reforms.states.az.dependent_credit.az_dependent_credit_reform.az_dependent_credit_reform + input: + gov.contrib.states.az.dependent_credit.in_effect: true + people: + person_b: {age: 22, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 20, claimed_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5} + tax_units: {tax_unit: {members: [person_b, person_a, child], filing_status: JOINT, adjusted_gross_income: 10_000}} + households: {household: {members: [person_b, person_a, child], state_name: AZ}} + output: {az_dependent_tax_credit_potential: 0} diff --git a/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml b/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml index 760f94e4e75..e63768d4b34 100644 --- a/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml +++ b/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml @@ -208,3 +208,50 @@ output: # ca_standard_deduction is defined_for=CA, so non-CA returns 0 ca_standard_deduction: 0 + +# The dependent worksheet (RTC 17073.5(c)(2), IRC 63(c)(5)) still limits the +# deduction of a filer who can be claimed as a dependent: in a year the +# election is not in effect (the baseline amount), and, assuming the bill +# leaves (c)(2) in place, on the elected amount. +- name: Single filer who can be claimed uses the dependent worksheet in a year the election is not in effect. + period: 2025 + reforms: policyengine_us.reforms.states.ca.ab2591.ab2591.ca_ab2591 + input: + people: + person1: + age: 19 + employment_income: 2_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person1] + filing_status: SINGLE + households: + household: + members: [person1] + state_code: CA + output: + # max($1,350, $2,000 + $450) = $2,450 < $5,706. + ca_standard_deduction: 2_450 + +- name: Single filer who can be claimed and has no earnings is limited to the dependent minimum under the election. + period: 2027 + absolute_error_margin: 1 + reforms: policyengine_us.reforms.states.ca.ab2591.ab2591.ca_ab2591 + input: + gov.contrib.states.ca.ab2591.in_effect: true + people: + person1: + age: 19 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person1] + filing_status: SINGLE + households: + household: + members: [person1] + state_code: CA + output: + # min($16,334 one-person FPL, max($1,400, $0 + $500)) = $1,400. + ca_standard_deduction: 1_400 diff --git a/policyengine_us/tests/policy/contrib/states/ca/dependent_credit_reform_test.yaml b/policyengine_us/tests/policy/contrib/states/ca/dependent_credit_reform_test.yaml index 26038834ab8..dd0430a8a48 100644 --- a/policyengine_us/tests/policy/contrib/states/ca/dependent_credit_reform_test.yaml +++ b/policyengine_us/tests/policy/contrib/states/ca/dependent_credit_reform_test.yaml @@ -86,3 +86,44 @@ households: {household: {members: [parent, child1], state_name: CA}} # Dependent one year under the limit (12 < 13) is re-priced to the reform amount. output: {ca_exemptions: 1_153} # 153 personal + 1,000 young + +# With default settings the reform keeps the baseline's rules for a filer who +# can be claimed as a dependent: no own personal credit for that filer +# (RTC 17054; Form 540 line 7) and no dependent credits (IRC 152(b)(1)). +- name: CA dependent credit reform - default keeps no exemption credits for a single filer who can be claimed + period: 2025 + reforms: policyengine_us.reforms.states.ca.dependent_credit.ca_dependent_credit_reform.ca_dependent_credit_reform + input: + gov.contrib.states.ca.dependent_credit.in_effect: true + people: + filer: {age: 30, claimed_as_dependent_on_another_return: true} + child: {age: 5} + tax_units: {tax_unit: {members: [filer, child], filing_status: SINGLE}} + households: {household: {members: [filer, child], state_name: CA}} + output: {ca_exemptions: 0} + +- name: CA dependent credit reform - default keeps only the other spouse's personal credit on a joint return with a claimable spouse (the claimable spouse is the head) + period: 2025 + reforms: policyengine_us.reforms.states.ca.dependent_credit.ca_dependent_credit_reform.ca_dependent_credit_reform + input: + gov.contrib.states.ca.dependent_credit.in_effect: true + people: + person_a: {age: 30, claimed_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 30, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5} + tax_units: {tax_unit: {members: [person_a, person_b, child], filing_status: JOINT}} + households: {household: {members: [person_a, person_b, child], state_name: CA}} + output: {ca_exemptions: 153} + +- name: CA dependent credit reform - default keeps only the other spouse's personal credit on a joint return with a claimable spouse (the claimable spouse is the spouse) + period: 2025 + reforms: policyengine_us.reforms.states.ca.dependent_credit.ca_dependent_credit_reform.ca_dependent_credit_reform + input: + gov.contrib.states.ca.dependent_credit.in_effect: true + people: + person_b: {age: 30, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 30, claimed_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5} + tax_units: {tax_unit: {members: [person_b, person_a, child], filing_status: JOINT}} + households: {household: {members: [person_b, person_a, child], state_name: CA}} + output: {ca_exemptions: 153} diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py new file mode 100644 index 00000000000..7e6f0bacdcb --- /dev/null +++ b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py @@ -0,0 +1,35 @@ +from policyengine_us.model_api import * + + +class dependent_standard_deduction_earned_income(Variable): + value_type = float + entity = TaxUnit + label = "Earned income for the standard deduction worksheet for dependents" + unit = USD + documentation = ( + "The filers' earned income as the Standard Deduction Worksheet for " + "Dependents defines it: wages, self-employment income and farm " + "income, less the deductible part of self-employment tax, and not " + "below zero." + ) + definition_period = YEAR + reference = ( + "https://www.law.cornell.edu/uscode/text/26/63#c_5", + # Standard Deduction Worksheet for Dependents, earned income note: + # Form 1040 line 1z and Schedule 1 lines 3, 6, 8r, 8t and 8u, less + # Schedule 1 line 15. + "https://www.irs.gov/pub/irs-prior/i1040gi--2025.pdf#page=35", + ) + + def formula(tax_unit, period, parameters): + person = tax_unit.members + filer = person("is_tax_unit_head_or_spouse", period) + # earned_income leaves out Schedule F farm income, which the + # worksheet counts (Schedule 1 line 6). + earned = person("earned_income", period) + person( + "farm_operations_income", period + ) + return max_( + tax_unit.sum(filer * earned) - tax_unit("self_employment_tax_ald", period), + 0, + ) diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py index 6e0520f2f1a..8af79bf01d2 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py @@ -1,6 +1,6 @@ from policyengine_us.model_api import * from policyengine_us.variables.household.demographic.person._parent_links import ( - household_has_parent_ids, + has_parent_ids, tax_unit_parent_indices, ) @@ -24,24 +24,26 @@ def formula(person, period, parameters): dependent = person("is_tax_unit_dependent", period) disabled = person("is_disabled", period) # The credit covers an individual who is "a child of the taxpayer's - # blood, an adopted child, or a dependent" in the IRC 152 sense (Act - # 417 of 1999). A return on which the filer (or, if joint, either + # blood, an adopted child, or a dependent" in the IRC 152 sense (Ark. + # Code 26-51-503, Act 417 of 1999). A return on which the filer (or, if joint, either # spouse) can be claimed as a dependent has no IRC 152 dependents # (IRC 152(b)(1)), so only the filers' own children still qualify. filer_is_dependent = person.tax_unit( "head_or_spouse_is_dependent_elsewhere", period ) # A filer's child: a parent id that names a head or spouse of the - # tax unit. Parent ids also name step-parents, which on a joint - # return covers the other spouse's own child. Without parent ids the - # model cannot tell a filer's child from another dependent and keeps - # the child route open. + # tax unit. Parent ids name natural, adoptive and step-parents alike, + # so a single filer's stepchild also passes here, though the + # statute's child route covers only blood and adopted children; on a + # joint return a stepchild of one spouse is usually the other's own + # child. A dependent with no parent ids of their own leaves the + # relationship unknown, and the child route stays open. filer = person("is_tax_unit_head_or_spouse", period) first, second = tax_unit_parent_indices(person, period) child_of_filer = np.where(first >= 0, filer[first], False) | np.where( second >= 0, filer[second], False ) - relationship_unknown = ~household_has_parent_ids(person, period) + relationship_unknown = ~has_parent_ids(person, period) qualifies = ~filer_is_dependent | child_of_filer | relationship_unknown disabled_dependent = disabled & dependent & qualifies p = parameters(period).gov.states.ar.tax.income.credits.personal.amount diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py index c091d75dfed..5f97ff1f927 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py @@ -28,17 +28,11 @@ def formula(tax_unit, period, parameters): # filer whom another taxpayer can claim is not counted, and a return # on which the filer (or, if joint, either spouse) can be claimed # counts no dependents (IRC 152(b)(1)). - person = tax_unit.members - filers = tax_unit.sum(person("is_tax_unit_head_or_spouse", period)) - claimed_filers = filers - tax_unit( - "head_spouse_count_not_dependent_elsewhere", period - ) filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) - disallowed_dependents = where( - filer_is_dependent, tax_unit("tax_unit_dependents", period), 0 - ) - persons = ( - tax_unit("tax_unit_size", period) - claimed_filers - disallowed_dependents + persons = where( + filer_is_dependent, + tax_unit("head_spouse_count_not_dependent_elsewhere", period), + tax_unit("tax_unit_size", period), ) uncapped_credit = persons * p.amount return min_(uncapped_credit, p.max_amount) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py index 59dc9591156..6424f33e22f 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py @@ -26,9 +26,8 @@ def formula(tax_unit, period, parameters): # 43-1001(3)), so under IRC 152(b)(1) a return on which the filer (or, # if joint, either spouse) can be claimed counts no dependents. filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) - disallowed_dependents = where( - filer_is_dependent, tax_unit("tax_unit_dependents", period), 0 - ) - persons = tax_unit("tax_unit_size", period) - disallowed_dependents + person = tax_unit.members + filers = tax_unit.sum(person("is_tax_unit_head_or_spouse", period)) + persons = where(filer_is_dependent, filers, tax_unit("tax_unit_size", period)) amount = p.per_person * persons return min_(amount, p.cap[filing_status]) diff --git a/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py b/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py index d6a4126be48..3aab87acefd 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.py @@ -1,6 +1,23 @@ from policyengine_us.model_api import * +def ca_dependent_standard_deduction_limit(tax_unit, period, parameters, amount): + """Apply the California Standard Deduction Worksheet for Dependents. + + RTC 17073.5(c)(2) applies the IRC 63(c)(5) limit, and the Form 540 + worksheet for dependents applies "only if your parent, or someone else, + can claim you (or your spouse/RDP) as a dependent": the deduction is the + smaller of the California amount and the larger of the federal minimum + or earned income plus the federal addition (line 1 carries line 2 of the + federal worksheet). + """ + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + p = parameters(period).gov.irs.deductions.standard.dependent + earned_income = tax_unit("dependent_standard_deduction_earned_income", period) + limit = max_(p.amount, earned_income + p.additional_earned_income) + return where(dependent_elsewhere, min_(amount, limit), amount) + + class ca_standard_deduction(Variable): value_type = float entity = TaxUnit @@ -18,27 +35,6 @@ class ca_standard_deduction(Variable): def formula(tax_unit, period, parameters): p = parameters(period).gov.states.ca.tax.income.deductions.standard filing_status = tax_unit("filing_status", period) - standard = p.amount[filing_status] - # RTC 17073.5 applies the IRC 63(c)(5) limit, and the Form 540 - # worksheet for dependents applies "only if your parent, or someone - # else, can claim you (or your spouse/RDP) as a dependent": the - # deduction is the smaller of the California amount and the larger of - # the federal minimum or earned income plus the federal addition - # (line 1 carries line 2 of the federal worksheet). - dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) - p_dependent = parameters(period).gov.irs.deductions.standard.dependent - # Federal worksheet earned income: wages and self-employment income - # minus the deductible part of self-employment tax. - earned_income = max_( - tax_unit("tax_unit_earned_income", period) - - tax_unit("self_employment_tax_ald", period), - 0, - ) - dependent_standard = min_( - standard, - max_( - p_dependent.amount, - earned_income + p_dependent.additional_earned_income, - ), + return ca_dependent_standard_deduction_limit( + tax_unit, period, parameters, p.amount[filing_status] ) - return where(dependent_elsewhere, dependent_standard, standard) diff --git a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py index 2ee5000732b..f50dad2636a 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py @@ -1,6 +1,33 @@ from policyengine_us.model_api import * +def ca_personal_aged_blind_exemption_count(tax_unit, period, p, filing_status): + """Number of personal, blind and senior exemption credits. + + A filer whom another taxpayer can claim as a dependent gets no personal, + blind or senior credit (RTC 17054). The Form 540 line 7 instructions + enter 0 for a single, separate or head of household filer who can be + claimed and, on a joint return, 1 when only one spouse can be claimed and + 0 when both can; lines 8 and 9 say "Do not claim this credit if someone + else can claim you as a dependent". + """ + person = tax_unit.members + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + personal_exemption_count = where( + dependent_elsewhere, + tax_unit("head_spouse_count_not_dependent_elsewhere", period), + p.personal_scale[filing_status], + ) + claimed_aged_blind_count = tax_unit.sum( + (filer & claimed) + * (person("is_irs_aged", period).astype(int) + person("is_blind", period)) + ) + aged_blind_count = tax_unit("aged_blind_count", period) - claimed_aged_blind_count + return personal_exemption_count + aged_blind_count + + class ca_exemptions(Variable): value_type = float entity = TaxUnit @@ -25,31 +52,9 @@ def formula(tax_unit, period, parameters): increments = np.ceil(over_agi_threshold / p.phase_out.increment[filing_status]) exemption_reduction = increments * p.phase_out.amount - # A filer whom another taxpayer can claim as a dependent gets no - # personal, blind or senior credit (RTC 17054). The Form 540 line 7 - # instructions enter 0 for a single, separate or head of household - # filer who can be claimed and, on a joint return, 1 when only one - # spouse can be claimed and 0 when both can; lines 8 and 9 say "Do - # not claim this credit if someone else can claim you as a - # dependent". - person = tax_unit.members - filer = person("is_tax_unit_head_or_spouse", period) - claimed = person("claimed_as_dependent_on_another_return", period) - dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) - personal_exemption_count = where( - dependent_elsewhere, - tax_unit("head_spouse_count_not_dependent_elsewhere", period), - p.personal_scale[filing_status], - ) - claimed_aged_blind_count = tax_unit.sum( - (filer & claimed) - * (person("is_irs_aged", period).astype(int) + person("is_blind", period)) - ) - aged_blind_count = ( - tax_unit("aged_blind_count", period) - claimed_aged_blind_count - ) - personal_aged_blind_exemption_count = ( - personal_exemption_count + aged_blind_count + # Personal, blind and senior exemptions + personal_aged_blind_exemption_count = ca_personal_aged_blind_exemption_count( + tax_unit, period, p, filing_status ) personal_aged_blind_exemption = max_( 0, @@ -59,6 +64,7 @@ def formula(tax_unit, period, parameters): # Dependent exemptions: the dependents must be those claimed on the # federal return, and a return on which the filer (or, if joint, # either spouse) can be claimed has none (IRC 152(b)(1)). + dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) dependents = where( dependent_elsewhere, 0, tax_unit("tax_unit_dependents", period) ) From 4597c55a869b45c17376673fbe4aa70f72ca0f3c Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 09:35:20 -0400 Subject: [PATCH 13/25] Address the federal claimable-filer review - Child and dependent care: childcare expenses do not count on a return with a claimable filer unless a child under 13 still qualifies (IRC 21(b)(2)(A)(ii)). - Tuition and fees deduction: not allowed to a filer who can be claimed (IRC 222(c)(3)), so the education credit bar no longer makes such a filer eligible. - Recovery rebates: the Armed Forces exception waives the identification rule only, not the exclusion of a spouse who is another taxpayer's dependent. - Georgia: the contributed refundable credit and SB 520 reforms count the same children as ga_ctc_potential through a new ga_ctc_eligible_child. - Education credits and student loan interest read the claimed input directly, since IRC 25A(g)(3) and 221(c) turn on an actual claim. - One reference per source document; quote IRC 24(h)(4)(A) exactly. - Tests: mixed-recipient care, tuition deduction, military rebates, Georgia refund cap, and the swapped New Mexico rebate case; the property test now covers the state readers of the exemption count. Co-Authored-By: Claude Opus 5.5 --- changelog.d/claimable-filer-federal.fixed.md | 2 +- .../reforms/states/ga/ctc/ga_ctc_reform.py | 7 +- .../states/ga/sb520/ga_sb520_reform.py | 8 +- ...test_claimable_filer_federal_invariants.py | 42 +++-- .../credits/cdcc/cdcc_relevant_expenses.yaml | 169 ++++++++++++++++++ .../recovery_rebate_credit.yaml | 154 +++++++++++++++- .../tuition_and_fees_deduction_eligible.yaml | 90 ++++++++++ ...m_low_income_comprehensive_tax_rebate.yaml | 33 +++- .../contrib/states/ga/ctc/ga_ctc_reform.yaml | 90 ++++++++++ .../gov/irs/credits/cdcc/cdcc_eligible.py | 4 +- .../credits/cdcc/cdcc_relevant_expenses.py | 13 ++ .../ctc/maximum/ctc_qualifying_child.py | 2 +- .../ctc_adult_individual_maximum.py | 2 +- ...ligible_for_american_opportunity_credit.py | 14 +- ...s_eligible_for_lifetime_learning_credit.py | 14 +- .../rrc_adult_count_with_valid_ssn.py | 3 +- .../recovery_rebate_credit/rrc_arpa.py | 10 +- .../credits/recovery_rebate_credit/rrc_caa.py | 10 +- .../recovery_rebate_credit/rrc_cares.py | 10 +- .../student_loan_interest_ald_eligible.py | 13 +- .../tuition_and_fees_deduction_eligible.py | 7 +- .../credits/ctc/ga_ctc_eligible_child.py | 29 +++ .../income/credits/ctc/ga_ctc_potential.py | 16 +- 23 files changed, 673 insertions(+), 69 deletions(-) create mode 100644 policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py diff --git a/changelog.d/claimable-filer-federal.fixed.md b/changelog.d/claimable-filer-federal.fixed.md index 545d474e1a6..82a77ce8992 100644 --- a/changelog.d/claimable-filer-federal.fixed.md +++ b/changelog.d/claimable-filer-federal.fixed.md @@ -1 +1 @@ -Apply the federal rules for a filer who can be claimed as a dependent on another return: no child tax credit, credit for other dependents or under-13 care qualifying child on such a return (IRC 24, 21, 152(b)(1)), no personal exemption for that filer (IRC 151(d)(2)) in the exemption count Rhode Island, Delaware, Ohio, Wisconsin, Oregon, Hawaii and New Mexico read, no recovery rebate for that filer, and no education credits or student loan interest deduction on a return with a claimed filer (IRC 25A(g)(3), 221(c)). +Apply the federal rules for a filer who can be claimed as a dependent on another return: no child tax credit, credit for other dependents or under-13 care qualifying child (or that child's care expenses) on such a return (IRC 24, 21, 152(b)(1)), no personal exemption for that filer (IRC 151(d)(2)) in the exemption count Rhode Island, Delaware, Ohio, Wisconsin, Oregon, Hawaii and New Mexico read, no recovery rebate for that filer, including under the Armed Forces exception, no tuition and fees deduction (IRC 222(c)(3)), and no education credits or student loan interest deduction on a return with a claimed filer (IRC 25A(g)(3), 221(c)). diff --git a/policyengine_us/reforms/states/ga/ctc/ga_ctc_reform.py b/policyengine_us/reforms/states/ga/ctc/ga_ctc_reform.py index 6ff5bf1eb8a..8b8f54bc4c6 100644 --- a/policyengine_us/reforms/states/ga/ctc/ga_ctc_reform.py +++ b/policyengine_us/reforms/states/ga/ctc/ga_ctc_reform.py @@ -33,12 +33,7 @@ def formula(tax_unit, period, parameters): unused_credit = max_(potential - non_refundable, 0) # Cap the refund at amount per eligible child (same child count as # ga_ctc_potential: qualifying children under the age threshold). - baseline = parameters(period).gov.states.ga.tax.income.credits.ctc - person = tax_unit.members - age = person("age", period) - ctc_eligible_child = person("ctc_qualifying_child", period) - ga_child_age_eligible = age < baseline.age_threshold - eligible_children = tax_unit.sum(ctc_eligible_child & ga_child_age_eligible) + eligible_children = add(tax_unit, period, ["ga_ctc_eligible_child"]) refund_limit = p.refundable.amount * eligible_children refundable_credit = min_(unused_credit, refund_limit) # Only pay the refund in periods where the reform is in effect. The diff --git a/policyengine_us/reforms/states/ga/sb520/ga_sb520_reform.py b/policyengine_us/reforms/states/ga/sb520/ga_sb520_reform.py index c6b4cfb0fc5..cabfb410d6c 100644 --- a/policyengine_us/reforms/states/ga/sb520/ga_sb520_reform.py +++ b/policyengine_us/reforms/states/ga/sb520/ga_sb520_reform.py @@ -89,12 +89,8 @@ def formula(tax_unit, period, parameters): sb520_active = p_sb520.in_effect - person = tax_unit.members - age = person("age", period) - ctc_eligible_child = person("ctc_qualifying_child", period) - # SB 520 preserves baseline GA CTC age threshold (under 6) - ga_child_age_eligible = age < p.age_threshold - eligible_children = tax_unit.sum(ctc_eligible_child & ga_child_age_eligible) + # SB 520 preserves the baseline GA CTC child test (under 6) + eligible_children = add(tax_unit, period, ["ga_ctc_eligible_child"]) sb520_amount = p_sb520.credits.ctc.amount baseline_amount = p.amount diff --git a/policyengine_us/tests/core/test_claimable_filer_federal_invariants.py b/policyengine_us/tests/core/test_claimable_filer_federal_invariants.py index 58eb58887b4..aab5f3a0156 100644 --- a/policyengine_us/tests/core/test_claimable_filer_federal_invariants.py +++ b/policyengine_us/tests/core/test_claimable_filer_federal_invariants.py @@ -12,18 +12,24 @@ - a child under 13 is not a child and dependent care qualifying person on such a return (a disabled person still is, IRC 21(b)(1)(B)); - recovery rebates leave out a claimable filer and, on such a return, the - dependents. + dependents; +- the state amounts that read the exemption count follow it (Georgia's two + credits keep their own count). -For couples drawn by Hypothesis and a seeded population, with either, both or -neither spouse claimed, in 2021-2026: +For couples with either, both or neither spouse claimed, in 2021-2026: 1. Swap invariance: each output is the same under either head/spouse - labelling. + labelling (Hypothesis batches and the seeded population). 2. Monotonicity: marking another filer as claimed never raises any of the - amounts or counts below. + amounts or counts below (seeded population only). 3. Identities: `exemptions_count` equals the filers who cannot be claimed plus the dependents when no filer can be claimed, and a return with a claimable - filer has no CTC-qualifying child and no credit for other dependents. + filer has no CTC-qualifying child and no credit for other dependents + (both populations). + +The generated adults have no tuition or student loan interest, so the education +credit, tuition deduction and student loan interest gates are covered by YAML +cases only, as are the contributed reforms. """ import numpy as np @@ -48,22 +54,30 @@ # Texas has no income tax; the others read the federal exemption count. STATES = ["TX", "OR", "HI", "NM", "GA", "RI", "DE", "OH", "WI"] -OUTPUTS = [ - "income_tax", - "ctc_maximum", - "ctc_qualifying_children", - "capped_count_cdcc_eligible", - "exemptions_count", - "rrc_arpa", +# State amounts that read the federal exemption count; each is zero outside +# its state. +STATE_OUTPUTS = [ + "ri_exemptions", + "de_personal_credit_potential", + "oh_personal_exemptions", + "wi_base_exemption", + "or_regular_exemptions", + "hi_regular_exemptions", + "nm_low_and_middle_income_exemption", + "nm_low_income_comprehensive_tax_rebate", + "ga_ctc_potential", + "ga_low_income_credit_potential", ] # Amounts that marking another filer as claimed must never raise. MONOTONE = [ "ctc_maximum", "ctc_qualifying_children", "capped_count_cdcc_eligible", + "cdcc_relevant_expenses", "exemptions_count", "rrc_arpa", -] +] + STATE_OUTPUTS +OUTPUTS = ["income_tax"] + MONOTONE @st.composite diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml index 8ed8c1ecdd6..15dfeb1fe4a 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml @@ -40,3 +40,172 @@ min_head_spouse_earned: 10_000 output: cdcc_relevant_expenses: 3_000 # 1_000 childcare + 2_000 adult care + +# IRC 21(b)(2)(A)(ii): only expenses for the care of a qualifying individual count. +# The child of a return on which a filer can be claimed is not one (IRC 152(b)(1)), +# while the incapacitated relative still is (IRC 21(b)(1)(B)). +- name: 2025 childcare for the child of a claimable single filer does not count + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 5000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + relative: + age: 40 + is_incapable_of_self_care: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, child, relative] + tax_unit_childcare_expenses: 3000 + households: + household: + members: [person_a, child, relative] + state_code: TX + output: + count_cdcc_eligible: 1 + cdcc_relevant_expenses: 0 + +- name: 2025 childcare for the child of a joint return with one claimable spouse does not count (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 5000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + employment_income: 5000 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + relative: + age: 40 + is_incapable_of_self_care: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child, relative] + filing_status: JOINT + tax_unit_childcare_expenses: 3000 + households: + household: + members: [person_a, person_b, child, relative] + state_code: TX + output: + count_cdcc_eligible: 1 + cdcc_relevant_expenses: 0 + +- name: 2025 childcare for the child of a joint return with one claimable spouse does not count (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + employment_income: 5000 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + employment_income: 5000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + relative: + age: 40 + is_incapable_of_self_care: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child, relative] + filing_status: JOINT + tax_unit_childcare_expenses: 3000 + households: + household: + members: [person_b, person_a, child, relative] + state_code: TX + output: + count_cdcc_eligible: 1 + cdcc_relevant_expenses: 0 + +- name: 2025 care expenses for the incapacitated relative of a claimable filer still count + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 5000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + relative: + age: 40 + is_incapable_of_self_care: true + pre_subsidy_care_expenses: 2000 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, child, relative] + tax_unit_childcare_expenses: 3000 + households: + household: + members: [person_a, child, relative] + state_code: TX + output: + cdcc_relevant_expenses: 2000 + +- name: 2025 the same household with nobody claimable counts the childcare + period: 2025 + input: + people: + person_a: + age: 30 + employment_income: 5000 + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + relative: + age: 40 + is_incapable_of_self_care: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, child, relative] + tax_unit_childcare_expenses: 3000 + households: + household: + members: [person_a, child, relative] + state_code: TX + output: + count_cdcc_eligible: 2 + cdcc_relevant_expenses: 3000 diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml index 0d21682feaf..045236d3234 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml @@ -48,7 +48,6 @@ output: recovery_rebate_credit: 3_920 # https://www.efile.com/stimulus-check-three/ - - name: 2021 single filer who can be claimed as a dependent gets no ARPA rebate period: 2021 input: @@ -159,3 +158,156 @@ output: # 3 x $1,400. rrc_arpa: 4_200 + +# The Armed Forces exception (IRC 6428B(e)(2)(E)) waives the identification rule +# for the other spouse; it does not make a dependent of another taxpayer an +# eligible individual (IRC 6428B(c)(2)). +- name: 2021 military joint return with one claimable spouse gets one ARPA rebate (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 30 + is_military: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + rrc_arpa: 1400 + +- name: 2021 military joint return with one claimable spouse gets one ARPA rebate (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + is_military: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: TX + output: + rrc_arpa: 1400 + +- name: 2021 military joint return whose other spouse is claimable gets one ARPA rebate (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_military: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + rrc_arpa: 1400 + +- name: 2021 military joint return whose other spouse is claimable gets one ARPA rebate (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 30 + is_military: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: TX + output: + rrc_arpa: 1400 + +- name: 2021 military joint return with both spouses claimable gets no ARPA rebate + period: 2021 + input: + people: + person_a: + age: 30 + is_military: true + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + rrc_arpa: 0 + +- name: 2021 military joint return with neither spouse claimable gets both ARPA rebates + period: 2021 + input: + people: + person_a: + age: 30 + is_military: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + rrc_arpa: 2800 diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml index 4912f0155de..dd6bcd8d147 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml @@ -26,3 +26,93 @@ output: tuition_and_fees_deduction_eligible: false # Can't claim this deduction if the household has taken the American Oppportunity or Lifetime Learning Credit. + +# IRC 222(c)(3): no deduction to an individual for whom a section 151 deduction +# may be allowed to another taxpayer. +- name: 2020 single filer who can be claimed as a dependent is not eligible + period: 2020 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a] + households: + household: + members: [person_a] + state_code: TX + output: + tuition_and_fees_deduction_eligible: false + +- name: 2020 joint return with one claimable spouse is not eligible (the claimable spouse is the head) + period: 2020 + input: + people: + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + tuition_and_fees_deduction_eligible: false + +- name: 2020 joint return with one claimable spouse is not eligible (the claimable spouse is the spouse) + period: 2020 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: TX + output: + tuition_and_fees_deduction_eligible: false + +- name: 2020 joint return with neither spouse claimable is eligible + period: 2020 + input: + people: + person_a: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: TX + output: + tuition_and_fees_deduction_eligible: true diff --git a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml index 6c7e83fb126..84ae85e14bf 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/rebates/low_income_comprehensive/nm_low_income_comprehensive_tax_rebate.yaml @@ -305,20 +305,24 @@ # claimant (NMSA 7-2-14(A)). nm_low_income_comprehensive_tax_rebate: 0 -- name: 2025 joint return with one claimable spouse keeps the rebate with the couple's combined income +- name: 2025 joint return with one claimable spouse keeps the rebate with the couple's combined income (the claimable spouse is the head) period: 2025 input: people: person_a: age: 30 claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false person_b: age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true tax_units: tax_unit: members: [person_a, person_b] filing_status: JOINT - nm_modified_gross_income: 8_500 + nm_modified_gross_income: 8500 households: household: members: [person_a, person_b] @@ -326,3 +330,28 @@ output: # One exemption; the $8,000-$9,000 row of the one-exemption table. nm_low_income_comprehensive_tax_rebate: 212 + +- name: 2025 joint return with one claimable spouse keeps the rebate with the couple's combined income (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + nm_modified_gross_income: 8500 + households: + household: + members: [person_b, person_a] + state_code: NM + output: + nm_low_income_comprehensive_tax_rebate: 212 diff --git a/policyengine_us/tests/policy/contrib/states/ga/ctc/ga_ctc_reform.yaml b/policyengine_us/tests/policy/contrib/states/ga/ctc/ga_ctc_reform.yaml index 77fcd5db26d..c236fb692d2 100644 --- a/policyengine_us/tests/policy/contrib/states/ga/ctc/ga_ctc_reform.yaml +++ b/policyengine_us/tests/policy/contrib/states/ga/ctc/ga_ctc_reform.yaml @@ -127,3 +127,93 @@ # $10k liability fully absorbs the $250 nonrefundable credit, leaving # nothing unused to refund. ga_refundable_ctc: 0 + +# The refund cap counts the same children as ga_ctc_potential (Georgia's own +# IRC 24(c) child test), not children allowed the federal credit. +- name: Refund cap keeps the child of a filer who can be claimed as a dependent + period: 2026 + absolute_error_margin: 0.01 + reforms: policyengine_us.reforms.states.ga.ctc.ga_ctc_reform.ga_ctc_reform + input: + gov.contrib.states.ga.ctc.refundable.in_effect: true + people: + parent: + age: 30 + claimed_as_dependent_on_another_return: true + child: + age: 2 + tax_units: + tax_unit: + members: [parent, child] + filing_status: SINGLE + ga_income_tax_before_non_refundable_credits: 0 + households: + household: + members: [parent, child] + state_code: GA + output: + ctc_qualifying_child: [false, false] + ga_ctc_potential: 250 + ga_refundable_ctc: 250 + +- name: Refund cap keeps the child of a joint return with one claimable spouse (the claimable spouse is the head) + period: 2026 + absolute_error_margin: 0.01 + reforms: policyengine_us.reforms.states.ga.ctc.ga_ctc_reform.ga_ctc_reform + input: + gov.contrib.states.ga.ctc.refundable.in_effect: true + people: + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 2 + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + ga_income_tax_before_non_refundable_credits: 0 + households: + household: + members: [person_a, person_b, child] + state_code: GA + output: + ga_ctc_potential: 250 + ga_refundable_ctc: 250 + +- name: Refund cap keeps the child of a joint return with one claimable spouse (the claimable spouse is the spouse) + period: 2026 + absolute_error_margin: 0.01 + reforms: policyengine_us.reforms.states.ga.ctc.ga_ctc_reform.ga_ctc_reform + input: + gov.contrib.states.ga.ctc.refundable.in_effect: true + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 2 + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + ga_income_tax_before_non_refundable_credits: 0 + households: + household: + members: [person_b, person_a, child] + state_code: GA + output: + ga_ctc_potential: 250 + ga_refundable_ctc: 250 diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py index 20d82cc32e0..7e45d74c8f1 100644 --- a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py @@ -27,7 +27,9 @@ def formula(person, period, parameters): # A child qualifies only as the filer's dependent ("Your qualifying # child who is your dependent", Publication 503), and under IRC # 152(b)(1) a return on which the filer (or, if joint, either spouse) - # can be claimed as a dependent has no dependents. + # can be claimed as a dependent has no dependents. The model has no + # input for an IRC 152(e) release, so the 21(e)(5) child of a + # custodial parent who can be claimed is not kept. filer_is_dependent = person.tax_unit( "head_or_spouse_is_dependent_elsewhere", period ) diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py index 797f2bbcf39..501d124e5b6 100644 --- a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py @@ -19,6 +19,19 @@ def formula(tax_unit, period, parameters): # individual of any age — a disabled adult dependent or spouse # (care_expenses, a person-level yearly input). childcare = tax_unit("tax_unit_childcare_expenses", period) + # IRC 21(b)(2)(A)(ii) counts only expenses "for the care of a + # qualifying individual". A return on which a filer can be claimed as + # a dependent has no qualifying child under 13 unless the child is + # incapable of self-care, so its childcare expenses do not count. + p = parameters(period).gov.irs.credits.cdcc.eligibility + person = tax_unit.members + qualifying_child = person("is_cdcc_eligible", period) & ( + person("age", period) < p.child_age + ) + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + childcare = where( + dependent_filer & ~tax_unit.any(qualifying_child), 0, childcare + ) adult_care = add(tax_unit, period, ["care_expenses"]) expenses = childcare + adult_care cdcc_limit = tax_unit("cdcc_limit", period) diff --git a/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py b/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py index bd478b60870..3bc002458d2 100644 --- a/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py +++ b/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py @@ -9,7 +9,7 @@ class ctc_qualifying_child(Variable): definition_period = YEAR defined_for = "is_tax_unit_dependent" reference = ( - "https://www.law.cornell.edu/uscode/text/26/24#a", + # Subsections (a) and (c). "https://www.law.cornell.edu/uscode/text/26/24#c", "https://www.law.cornell.edu/uscode/text/26/152#b_1", # Publication 501, Dependent Taxpayer Test. diff --git a/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py b/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py index 70f5b877edd..23c93da7ba3 100644 --- a/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py +++ b/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py @@ -25,7 +25,7 @@ def formula(person, period, parameters): filer_meets_tin_requirement = person.tax_unit( "filer_meets_ctc_identification_requirements", period ) - # IRC 24(h)(4) gives the credit for "any dependent of the taxpayer"; + # IRC 24(h)(4)(A) gives the credit for "each dependent of the taxpayer"; # under IRC 152(b)(1) a return on which the filer (or, if joint, # either spouse) can be claimed as a dependent has no dependents. filer_is_dependent = person.tax_unit( diff --git a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py index c3a557b0d8f..91dd0cdffa3 100644 --- a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py @@ -18,11 +18,15 @@ def formula(person, period, parameters): filing_status = tax_unit("filing_status", period) filing_status_values = filing_status.possible_values filing_status_eligible = filing_status != filing_status_values.SEPARATE - # IRC 25A(g)(3): no credit to an individual claimed as a dependent by - # another taxpayer, and the Form 1040 instructions extend this to - # "your spouse if filing jointly", so either filer being claimed bars - # the return's credit. - filer_claimed = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # IRC 25A(g)(3): no credit to an individual for whom a section 151 + # deduction "is allowed to another taxpayer", and the Form 1040 + # instructions extend this to "your spouse if filing jointly", so + # either filer being claimed bars the return's credit. This turns on + # an actual claim (26 CFR 1.25A-1(f)), so it reads the claimed input + # rather than a claimability helper. + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + filer_claimed = tax_unit.any(filer & claimed) requires_1098_t = aoc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( person("has_american_opportunity_credit_1098_t_or_exception", period) diff --git a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py index 75c2e133d15..0dba195cf08 100644 --- a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py @@ -19,11 +19,15 @@ def formula(person, period, parameters): filing_status = tax_unit("filing_status", period) filing_status_values = filing_status.possible_values filing_status_eligible = filing_status != filing_status_values.SEPARATE - # IRC 25A(g)(3): no credit to an individual claimed as a dependent by - # another taxpayer, and the Form 1040 instructions extend this to - # "your spouse if filing jointly", so either filer being claimed bars - # the return's credit. - filer_claimed = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # IRC 25A(g)(3): no credit to an individual for whom a section 151 + # deduction "is allowed to another taxpayer", and the Form 1040 + # instructions extend this to "your spouse if filing jointly", so + # either filer being claimed bars the return's credit. This turns on + # an actual claim (26 CFR 1.25A-1(f)), so it reads the claimed input + # rather than a claimability helper. + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + filer_claimed = tax_unit.any(filer & claimed) requires_1098_t = llc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( person("has_lifetime_learning_credit_1098_t_or_exception", period) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py index 4e08716df78..7ef7231bb3b 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py @@ -13,7 +13,6 @@ class rrc_adult_count_with_valid_ssn(Variable): "https://www.law.cornell.edu/uscode/text/26/6428A#g_2", "https://www.law.cornell.edu/uscode/text/26/6428B#e_2_A", "https://www.law.cornell.edu/uscode/text/26/6428B#e_2_B", - "https://www.law.cornell.edu/uscode/text/26/6428#d_2", ) def formula(tax_unit, period, parameters): @@ -24,6 +23,6 @@ def formula(tax_unit, period, parameters): # An "eligible individual" excludes "any individual with respect to # whom a deduction under section 151 is allowable to another # taxpayer" (IRC 6428(d)(2), 6428A(d)(2)) or "who is a dependent of - # another taxpayer" (IRC 6428B(c)(2)). + # another taxpayer" (IRC 6428B(c)(2)): a claimability test. claimed = person("claimed_as_dependent_on_another_return", period) return tax_unit.sum(head_or_spouse & has_valid_ssn & ~claimed) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py index 252017448f7..2ea2796ed3c 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py @@ -26,9 +26,17 @@ def formula(tax_unit, period, parameters): ) is_joint = tax_unit("tax_unit_is_joint", period) adults_with_ssn = tax_unit("rrc_adult_count_with_valid_ssn", period) + # The exception waives the identification rule, not the exclusion of + # a spouse who is another taxpayer's dependent. + person = tax_unit.members + dependent_filers = tax_unit.sum( + person("is_tax_unit_head_or_spouse", period) + & person("claimed_as_dependent_on_another_return", period) + ) count_adults = where( armed_forces_exception, - 2, # Joint filers always have 2 adults (structural constant) + # Joint filers always have 2 adults (structural constant) + max_(2 - dependent_filers, 0), where(is_joint, adults_with_ssn, min_(adults_with_ssn, 1)), ) max_payment = ( diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py index 577228072bb..cc704eb482b 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py @@ -23,9 +23,17 @@ def formula(tax_unit, period, parameters): "rrc_qualifies_for_armed_forces_exception", period ) is_joint = tax_unit("tax_unit_is_joint", period) + # The exception waives the identification rule, not the exclusion of + # a spouse who is another taxpayer's dependent. + person = tax_unit.members + dependent_filers = tax_unit.sum( + person("is_tax_unit_head_or_spouse", period) + & person("claimed_as_dependent_on_another_return", period) + ) count_adults = where( armed_forces_exception, - 2, # Joint filers always have 2 adults (structural constant) + # Joint filers always have 2 adults (structural constant) + max_(2 - dependent_filers, 0), where(is_joint, adults_with_ssn, min_(adults_with_ssn, 1)), ) # Per 26 USC 6428A(g)(3), children count only if: diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py index bbbf38b4a21..be4a6d8c1c0 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py @@ -23,9 +23,17 @@ def formula(tax_unit, period, parameters): "rrc_qualifies_for_armed_forces_exception", period ) is_joint = tax_unit("tax_unit_is_joint", period) + # The exception waives the identification rule, not the exclusion of + # a spouse who is another taxpayer's dependent. + person = tax_unit.members + dependent_filers = tax_unit.sum( + person("is_tax_unit_head_or_spouse", period) + & person("claimed_as_dependent_on_another_return", period) + ) count_adults = where( armed_forces_exception, - 2, # Joint filers always have 2 adults (structural constant) + # Joint filers always have 2 adults (structural constant) + max_(2 - dependent_filers, 0), where(is_joint, adults_with_ssn, min_(adults_with_ssn, 1)), ) # Per 26 USC 6428(g)(1)(C), children count only if: diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py b/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py index 3b45af22df5..fd1bcc2bab0 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/student_loan_interest/student_loan_interest_ald_eligible.py @@ -20,11 +20,14 @@ class student_loan_interest_ald_eligible(Variable): def formula(person, period, parameters): head_or_spouse = person("is_tax_unit_head_or_spouse", period) - # Per IRC § 221(c), no deduction for an individual claimed as a - # dependent by another taxpayer; the Form 1040 instructions require - # that "you, or your spouse if filing jointly, aren't claimed as a - # dependent", so either filer being claimed bars the return. - filer_claimed = person.tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # Per IRC § 221(c), no deduction for an individual for whom a section + # 151 deduction "is allowed to another taxpayer"; the Form 1040 + # instructions require that "you, or your spouse if filing jointly, + # aren't claimed as a dependent", so either filer being claimed bars + # the return. This turns on an actual claim, so it reads the claimed + # input rather than a claimability helper. + claimed = person("claimed_as_dependent_on_another_return", period) + filer_claimed = person.tax_unit.any(head_or_spouse & claimed) # Per IRC § 221(e)(2), taxpayer cannot file as Married Filing Separately filing_status = person.tax_unit("filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.py b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.py index ac202b88a48..0b169af9c13 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.py @@ -27,4 +27,9 @@ def formula(tax_unit, period, parameters): "lifetime_learning_credit_potential", ], ) - return ~separate & (aoc_llc == 0) + # IRC 222(c)(3): no deduction to an individual for whom a section 151 + # deduction "may be allowed to another taxpayer". Without this, a + # filer barred from the education credits for that reason would + # become eligible here. + dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + return ~separate & (aoc_llc == 0) & ~dependent_filer diff --git a/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py new file mode 100644 index 00000000000..dae5a093b99 --- /dev/null +++ b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py @@ -0,0 +1,29 @@ +from policyengine_us.model_api import * + + +class ga_ctc_eligible_child(Variable): + value_type = bool + entity = Person + label = "Eligible child for the Georgia Child Tax Credit" + definition_period = YEAR + defined_for = StateCode.GA + reference = ( + "https://legiscan.com/GA/text/HB136/id/3204611/Georgia-2025-HB136-Enrolled.pdf#page=2", + "https://www.law.cornell.edu/uscode/text/26/24#c", + ) + + def formula(person, period, parameters): + p = parameters(period).gov.states.ga.tax.income.credits.ctc + age = person("age", period) + # Georgia gives "qualifying child" the meaning of IRC 24(c) only, so + # it is not limited to children for whom the federal credit is + # allowed (IRC 24(a), 152(b)(1)). Whether a filer who can be claimed + # as a dependent can claim it is not settled; this keeps the IRC + # 24(c) child test. + p_federal = parameters(period).gov.irs.credits.ctc + ctc_eligible_child = ( + person("is_tax_unit_dependent", period) + & (age < p_federal.amount.base.thresholds[-1]) + & person("meets_ctc_child_identification_requirements", period) + ) + return ctc_eligible_child & (age < p.age_threshold) diff --git a/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py index 61195c8cb2c..52e40cca462 100644 --- a/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py +++ b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_potential.py @@ -14,20 +14,6 @@ class ga_ctc_potential(Variable): def formula(tax_unit, period, parameters): p = parameters(period).gov.states.ga.tax.income.credits.ctc - person = tax_unit.members - age = person("age", period) - # Georgia gives "qualifying child" the meaning of IRC 24(c) only, so - # it is not limited to children for whom the federal credit is - # allowed (IRC 24(a), 152(b)(1)). Whether a filer who can be claimed - # as a dependent can claim it is not settled; this keeps the IRC - # 24(c) child test. - p_federal = parameters(period).gov.irs.credits.ctc - ctc_eligible_child = ( - person("is_tax_unit_dependent", period) - & (age < p_federal.amount.base.thresholds[-1]) - & person("meets_ctc_child_identification_requirements", period) - ) - ga_child_age_eligible = age < p.age_threshold - eligible_children = tax_unit.sum(ctc_eligible_child & ga_child_age_eligible) + eligible_children = add(tax_unit, period, ["ga_ctc_eligible_child"]) return eligible_children * p.amount From e4b8f36f08479f3bf47598ae0d3c7ecd1a06da84 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 13:01:52 -0400 Subject: [PATCH 14/25] Separate dependency facts and fix Hawaii qualified-person counts --- .../head-dependent-elsewhere-swap.fixed.md | 2 +- .../watca/working_americans_tax_cut_act.py | 13 +- .../repeal_state_dependent_exemptions.py | 2 +- .../reforms/states/ct/hb5114/ct_hb5114.py | 11 +- ...t_elsewhere_head_spouse_swap_invariance.py | 211 ++++++++++- .../income/medicaid_is_tax_dependent.yaml | 49 +++ .../eitc_demographic_eligible.yaml | 78 +++- .../savers_credit_eligible_person.yaml | 22 ++ .../az_aged_exemption_eligible_person.yaml | 38 +- .../food_excise/hi_food_excise_credit.yaml | 339 ++++++++++++++++++ .../tax/income/credits/hi_act_115_rebate.yaml | 63 ++++ ...w_income_household_renters_tax_credit.yaml | 65 ++++ .../tax/income/exemptions/mi_exemptions.yaml | 89 +++++ .../oh_personal_exemptions_eligible.yaml | 11 + ...nter_relief_pre_one_claimant_eligible.yaml | 21 ++ ...imable_as_dependent_on_another_return.yaml | 34 ++ ...nt_elsewhere_without_filing_exception.yaml | 36 ++ ...nt_elsewhere_without_filing_exception.yaml | 119 ++++++ .../tests/policy/contrib/congress/watca.yaml | 33 +- .../contrib/states/ct/hb5114/ct_hb5114.yaml | 2 +- .../eligibility/eitc_demographic_eligible.py | 8 +- .../az_aged_exemption_eligible_person.py | 10 +- .../food_excise/hi_food_excise_credit.py | 5 +- ...hi_food_excise_credit_minor_child_count.py | 8 +- .../hi_food_excise_exemption_amount.py | 31 +- .../tax/income/credits/hi_act_115_rebate.py | 20 +- ...low_income_household_renters_tax_credit.py | 21 +- .../credits/me_affordability_payment.py | 4 +- .../mi/tax/income/exemptions/mi_exemptions.py | 15 +- ...omestead_credit_refund_household_income.py | 2 +- .../credits/nm_medical_expense_credit.py | 2 +- .../oh_personal_exemptions_eligible_person.py | 2 +- ...renter_relief_pre_one_claimant_eligible.py | 9 +- ...laimable_as_dependent_on_another_return.py | 23 ++ .../claimed_as_dependent_on_another_return.py | 11 +- .../dependent_claimant_filing_exception.py | 21 ++ ...dent_elsewhere_without_filing_exception.py | 22 ++ .../every_filer_is_dependent_elsewhere.py | 4 +- .../tax_unit/head_is_dependent_elsewhere.py | 8 +- .../head_or_spouse_is_dependent_elsewhere.py | 10 +- ...dent_elsewhere_without_filing_exception.py | 23 ++ ...ad_spouse_count_not_dependent_elsewhere.py | 8 +- .../tax_unit/spouse_is_dependent_elsewhere.py | 8 +- 43 files changed, 1399 insertions(+), 114 deletions(-) create mode 100644 policyengine_us/tests/policy/baseline/gov/hhs/medicaid/income/medicaid_is_tax_dependent.yaml create mode 100644 policyengine_us/tests/policy/baseline/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.yaml create mode 100644 policyengine_us/tests/policy/baseline/household/demographic/person/claimable_as_dependent_on_another_return.yaml create mode 100644 policyengine_us/tests/policy/baseline/household/demographic/person/is_dependent_elsewhere_without_filing_exception.yaml create mode 100644 policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.yaml create mode 100644 policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py create mode 100644 policyengine_us/variables/household/demographic/person/dependent_claimant_filing_exception.py create mode 100644 policyengine_us/variables/household/demographic/person/is_dependent_elsewhere_without_filing_exception.py create mode 100644 policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.py diff --git a/changelog.d/head-dependent-elsewhere-swap.fixed.md b/changelog.d/head-dependent-elsewhere-swap.fixed.md index 42a32945776..5222c01b901 100644 --- a/changelog.d/head-dependent-elsewhere-swap.fixed.md +++ b/changelog.d/head-dependent-elsewhere-swap.fixed.md @@ -1 +1 @@ -The federal standard deduction and the New York, Michigan, Oregon, Virginia, Missouri, New Mexico, Maine and Hawaii rules for a filer claimed as a dependent elsewhere no longer depend on which spouse is labelled head; each follows its jurisdiction's rule for a joint return where one spouse can be claimed. New York's $3,100 dependent standard deduction now applies only to single filers; Hawaii now limits the standard deduction of a filer who can be claimed as a dependent; the federal EITC without a qualifying child now requires that no filer can be claimed as a dependent; and New Mexico's medical care credit requires a filer who is both 65 or older and not a dependent when a filer is a dependent elsewhere. +The federal standard deduction and the New York, Michigan, Oregon, Virginia, Missouri, New Mexico, Maine and Hawaii rules for a filer claimed as a dependent elsewhere no longer depend on which spouse is labelled head; each follows its jurisdiction's rule for a joint return where one spouse can be claimed. New York's $3,100 dependent standard deduction now applies only to single filers; Hawaii now limits the standard deduction of a filer who can be claimed as a dependent; the federal EITC without a qualifying child now requires that no filer can be claimed as a dependent; and New Mexico's medical care credit requires a filer who is both 65 or older and not a dependent when a filer is a dependent elsewhere. Separate actual dependency claims from claimability and the nonrequired claimant filing exception, preserving dependent deduction limits while restoring EITC and lawful own-dependent counts. Exclude externally claimable children from Hawaii food/excise ordinary exemptions. diff --git a/policyengine_us/reforms/congress/watca/working_americans_tax_cut_act.py b/policyengine_us/reforms/congress/watca/working_americans_tax_cut_act.py index 860462a6ed5..27becb3a73f 100644 --- a/policyengine_us/reforms/congress/watca/working_americans_tax_cut_act.py +++ b/policyengine_us/reforms/congress/watca/working_americans_tax_cut_act.py @@ -52,7 +52,11 @@ class watca_alternative_tax_eligible(Variable): label = "Eligible for WATCA alternative maximum tax" definition_period = YEAR reference = WATCA_REFERENCES - documentation = "Section 1A(b): MAGI < 175% of exemption, and not claimed as dependent on another return." + documentation = ( + "Section 1A(b): MAGI < 175% of exemption. Retains the reform's " + "modeled actual-dependent-claim restriction, which is not stated " + "in the cited bill's section 1A(b)(2)." + ) def formula(tax_unit, period, parameters): magi = tax_unit("watca_alternative_tax_magi", period) @@ -61,9 +65,10 @@ def formula(tax_unit, period, parameters): exemption_amount = p.amount[filing_status] income_limit = exemption_amount * p.income_limit_multiple income_eligible = magi < income_limit - head_dependent = tax_unit("head_is_dependent_elsewhere", period) - spouse_dependent = tax_unit("spouse_is_dependent_elsewhere", period) - not_dependent = ~head_dependent & ~spouse_dependent + person = tax_unit.members + claimed = person("claimed_as_dependent_on_another_return", period) + filer = person("is_tax_unit_head_or_spouse", period) + not_dependent = ~tax_unit.any(claimed & filer) return income_eligible & not_dependent class watca_alternative_max_tax(Variable): diff --git a/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py b/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py index 55765f89e4b..d05820bfb6b 100644 --- a/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py +++ b/policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py @@ -93,7 +93,7 @@ def formula(person, period, parameters): # if they are not claimed as a dependent elsewhere head_or_spouse = person("is_tax_unit_head_or_spouse", period) dependent_on_another_return = person( - "claimed_as_dependent_on_another_return", period + "claimable_as_dependent_on_another_return", period ) # The personal exemption is also provided to dependents return ~dependent_on_another_return & head_or_spouse diff --git a/policyengine_us/reforms/states/ct/hb5114/ct_hb5114.py b/policyengine_us/reforms/states/ct/hb5114/ct_hb5114.py index 91d44eb6f65..c95f0f8a032 100644 --- a/policyengine_us/reforms/states/ct/hb5114/ct_hb5114.py +++ b/policyengine_us/reforms/states/ct/hb5114/ct_hb5114.py @@ -19,11 +19,12 @@ def formula(tax_unit, period, parameters): rent = add(tax_unit, period, ["rent"]) pays_rent = rent > 0 - # Must not be claimed as a dependent on another return - head_is_dependent_elsewhere = tax_unit( - "head_is_dependent_elsewhere", period - ) - not_dependent = ~head_is_dependent_elsewhere + # Preserve the modeled actual-claim gate; the cited bill does + # not state this restriction. + person = tax_unit.members + claimed = person("claimed_as_dependent_on_another_return", period) + head = person("is_tax_unit_head", period) + not_dependent = ~tax_unit.any(claimed & head) # Income eligibility filing_status = tax_unit("filing_status", period) diff --git a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py index 4e681240eb5..4d5f97ae469 100644 --- a/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py +++ b/policyengine_us/tests/core/test_dependent_elsewhere_head_spouse_swap_invariance.py @@ -13,7 +13,8 @@ - Either spouse limits the return (the IRC 63(c)(5) worksheet): the federal standard deduction, Oregon's and Hawaii's standard deductions, and Virginia's credit for low-income individuals. The federal EITC without a - qualifying child now also requires that neither spouse can be claimed. + qualifying child also requires that neither spouse is claimable outside the + nonrequired-claimant filing exception. - Only single filers: New York's dependent standard deduction. - Each spouse separately: Michigan's exemptions and Hawaii's food/excise, renters and Act 115 credits count only the filers who cannot be claimed. @@ -26,7 +27,8 @@ Hypothesis draws batches of married couples, with and without dependents, in the eight states with such a rule and one without, for 2021-2026, with either, -both or neither spouse claimed elsewhere, and checks 1 and 3. A seeded +both or neither spouse claimed or claimable elsewhere, independently of the +nonrequired-claimant filing exception, and checks 1 and 3. A seeded population and crafted cases check 1, 2 and 3 in every year, and two seeded couples plus the review case in every state check 1 for federal and state income tax in 2026. Each batch is one vectorized simulation. For each couple: @@ -41,8 +43,20 @@ 3. The helper identities: `head_or_spouse_is_dependent_elsewhere` equals `head_is_dependent_elsewhere | spouse_is_dependent_elsewhere`, `every_filer_is_dependent_elsewhere` equals their conjunction for a - couple, and `head_spouse_count_not_dependent_elsewhere` plus the claimed + couple, and `head_spouse_count_not_dependent_elsewhere` plus the claimable filers equals the number of filers. + +The 2025 seeded population also compares legacy input only with explicit +claimability equal to that input, protecting the new input's fallback. A +separate vectorized population holds actual claims and claimability fixed +while toggling the exception: general claimability rules and Medicaid stay +unchanged, childless EITC eligibility is restored, and Michigan/Hawaii may +count the filer's own dependents. Benefits derived from the restored federal +EITC may also change: Missouri's working family credit eligibility must track +positive federal EITC for this population's joint returns with no investment +income. Its separate claimability gate stays fixed. YAML examples establish +the corresponding legal amounts, including the limited $2,450 federal +standard deduction. """ import numpy as np @@ -62,10 +76,11 @@ "state_income_tax", "state_income_tax_before_refundable_credits", ] -# The formulas that read whether a filer is claimed elsewhere. +# The formulas that read a filer's claimability or dependent-taxpayer status. CONSUMERS = [ "basic_standard_deduction", "eitc", + "eitc_demographic_eligible", "ny_standard_deduction", "mi_exemptions", "or_standard_deduction", @@ -81,11 +96,32 @@ "hi_deductions", "hi_act_115_rebate", "hi_food_excise_exemption_amount", + "hi_food_excise_credit_minor_child_count", "hi_food_excise_credit", "hi_tax_credit_for_low_income_household_renters_eligible", "hi_tax_credit_for_low_income_household_renters", ] CLAIM_PATTERNS = [(True, False), (False, True), (True, True), (False, False)] +DEPENDENT_TAXPAYER_TEST_OUTPUTS = { + "mi_exemptions", + "hi_act_115_rebate", + "hi_food_excise_exemption_amount", + "hi_food_excise_credit", + "hi_tax_credit_for_low_income_household_renters", +} +# Federal EITC eligibility is restored directly. The federal amount and +# Missouri eligibility can change as a consequence, without changing their +# general claimability gates. +EITC_RELATED_OUTPUTS = { + "eitc_demographic_eligible", + "eitc", + "mo_wftc_eligible", +} +EXCEPTION_SENSITIVE = DEPENDENT_TAXPAYER_TEST_OUTPUTS | EITC_RELATED_OUTPUTS +ACTUAL_CLAIM_OUTPUTS = [ + "medicaid_is_tax_dependent", + "medicaid_uses_missing_claimant_fallback", +] def money(high): @@ -123,11 +159,17 @@ def dependents(draw): @st.composite def couples(draw): + claimable = draw(st.sampled_from(CLAIM_PATTERNS)) + claimed = tuple(can_claim and draw(st.booleans()) for can_claim in claimable) return { "state": draw(st.sampled_from(AFFECTED)), "adults": [draw(adults()), draw(adults())], "dependents": draw(st.lists(dependents(), max_size=2)), - "claimed": draw(st.sampled_from(CLAIM_PATTERNS)), + "claimed": claimed, + "claimable": claimable, + "exception": tuple( + not is_claimed and draw(st.booleans()) for is_claimed in claimed + ), } @@ -214,7 +256,7 @@ def _crafted_cases(states, review_case_only=False): return cases -def _situation(units, year, variants): +def _situation(units, year, variants, explicit_claimability=False): # Each unit appears once per variant: (head is the first adult, first # adult claimed, second adult claimed). People keep their order and every # other input in every copy. @@ -227,11 +269,20 @@ def _situation(units, year, variants): "households": {}, } for i, unit in enumerate(units): - for copy, (first_is_head, claim_a, claim_b) in enumerate(variants(unit)): + for copy, variant in enumerate(variants(unit)): + first_is_head, claim_a, claim_b = variant[:3] + claimable = unit.get("claimable") + exception = unit.get("exception") + if len(variant) == 5: + claimable, exception = variant[3:] + if explicit_claimability: + claimable = (claim_a, claim_b) a, b = f"a_{i}_{copy}", f"b_{i}_{copy}" - for name, amounts, is_head, claimed in ( - (a, unit["adults"][0], first_is_head, claim_a), - (b, unit["adults"][1], not first_is_head, claim_b), + for adult_index, (name, amounts, is_head, claimed) in enumerate( + ( + (a, unit["adults"][0], first_is_head, claim_a), + (b, unit["adults"][1], not first_is_head, claim_b), + ) ): people[name] = { **amounts, @@ -240,6 +291,14 @@ def _situation(units, year, variants): "is_tax_unit_dependent": False, "claimed_as_dependent_on_another_return": claimed, } + if claimable is not None: + people[name]["claimable_as_dependent_on_another_return"] = ( + claimable[adult_index] + ) + if exception is not None: + people[name]["dependent_claimant_filing_exception"] = exception[ + adult_index + ] members = [a, b] groups["marital_units"][f"couple_{i}_{copy}"] = {"members": [a, b]} for j, amounts in enumerate(unit["dependents"]): @@ -250,6 +309,10 @@ def _situation(units, year, variants): "is_tax_unit_spouse": False, "is_tax_unit_dependent": True, } + if explicit_claimability: + people[child]["claimable_as_dependent_on_another_return"] = ( + amounts.get("claimed_as_dependent_on_another_return", False) + ) members.append(child) groups["marital_units"][f"single_{i}_{copy}_{j}"] = {"members": [child]} for group, prefix in ( @@ -278,7 +341,7 @@ def _calc(sim, name, year): return np.asarray(sim.calculate(name, year), dtype=float) -def _check_swap(units, year, outputs): +def _check_swap(units, year, outputs, capture_fallback=False): sim = Simulation(situation=_situation(units, year, _swap_variants)) states = np.array([u["state"] for u in units]) for name in outputs: @@ -304,6 +367,125 @@ def _check_swap(units, year, outputs): np.testing.assert_array_equal(independent + head + spouse, 2) every = _calc(sim, "every_filer_is_dependent_elsewhere", year) np.testing.assert_array_equal(every, np.minimum(head, spouse)) + blocked = _calc(sim, "is_dependent_elsewhere_without_filing_exception", year) + filers = _calc(sim, "is_tax_unit_head", year) + _calc( + sim, "is_tax_unit_spouse", year + ) + np.testing.assert_array_equal( + _calc( + sim, "head_or_spouse_is_dependent_elsewhere_without_filing_exception", year + ), + sim.populations["tax_unit"].any(blocked.astype(bool) & filers.astype(bool)), + ) + if capture_fallback: + # Keep only arrays so the compatibility comparison can release this + # simulation before constructing the next full model. + return { + name: _calc(sim, name, year) + for name in TAX_UNIT_OUTPUTS + CONSUMERS + ACTUAL_CLAIM_OUTPUTS + } + + +def _check_fallback(units, year, legacy_outputs): + # The absence of a new input is simulation-wide: compare separate + # simulations so Core does not fill omitted people with input defaults. + explicit_sim = Simulation( + situation=_situation(units, year, _swap_variants, explicit_claimability=True) + ) + for name in TAX_UNIT_OUTPUTS + CONSUMERS + ACTUAL_CLAIM_OUTPUTS: + np.testing.assert_allclose( + legacy_outputs[name], + _calc(explicit_sim, name, year), + atol=TOLERANCE, + rtol=0, + err_msg=f"{name} changes when fallback claimability is made explicit", + ) + + +def _exception_variants(unit): + claimable = unit["claimed"] + return [ + (True, False, False, claimable, (False, False)), + (False, False, False, claimable, (False, False)), + (True, False, False, claimable, (True, True)), + (False, False, False, claimable, (True, True)), + ] + + +def _check_exception_scope(): + year = 2025 + units = [ + { + "state": state, + "adults": [{"age": 26, "employment_income": 2_000}, {"age": 30}], + "dependents": children, + "claimed": claimed, + } + for state in AFFECTED + # Isolate ordinary dependents: publicly supported minors have a + # separate Hawaii qualification that does not use this exception. + for children in ( + [], + [{"age": 5, "hi_food_excise_credit_child_receiving_public_support": False}], + ) + for claimed in CLAIM_PATTERNS + ] + sim = Simulation(situation=_situation(units, year, _exception_variants)) + for name in CONSUMERS + ACTUAL_CLAIM_OUTPUTS: + values = _calc(sim, name, year) + if name in ACTUAL_CLAIM_OUTPUTS: + # Person outputs have two filers and optionally one child per unit. + start = 0 + for unit in units: + size = 2 + len(unit["dependents"]) + copies = values[start : start + 4 * size].reshape(4, size) + np.testing.assert_array_equal(copies[0:2], copies[2:4]) + start += 4 * size + continue + copies = values.reshape(-1, 4) + np.testing.assert_allclose( + copies[:, 0::2], copies[:, 1::2], atol=TOLERANCE, rtol=0 + ) + if name not in EXCEPTION_SENSITIVE: + np.testing.assert_allclose( + copies[:, :2], + copies[:, 2:], + atol=TOLERANCE, + rtol=0, + err_msg=f"The filing exception changes general claimability rule {name}", + ) + eligibility = _calc(sim, "eitc_demographic_eligible", year).reshape(-1, 4) + childless = np.array([not unit["dependents"] for unit in units]) + claimable = np.array([any(unit["claimed"]) for unit in units]) + assert not eligibility[childless & claimable, :2].any() + assert eligibility[childless, 2:].all() + # RSMo 143.177.2 requires federal EITC. These units file jointly, so the + # separate dependent-filer stop does not apply, and their zero investment + # income meets Missouri's limit. The exception's Missouri effect must + # therefore follow positive federal EITC, rather than alter claimability. + missouri = np.array([unit["state"] == "MO" for unit in units]) + federal_eitc = _calc(sim, "eitc", year).reshape(-1, 4) + missouri_eligible = _calc(sim, "mo_wftc_eligible", year).reshape(-1, 4) + np.testing.assert_array_equal( + missouri_eligible[missouri].astype(bool), federal_eitc[missouri] > 0 + ) + direct_claimability = _calc( + sim, "head_or_spouse_is_dependent_elsewhere", year + ).reshape(-1, 4) + np.testing.assert_array_equal( + direct_claimability, np.repeat(claimable[:, None], 4, axis=1) + ) + for name, state in (("mi_exemptions", "MI"), ("hi_food_excise_credit", "HI")): + values = _calc(sim, name, year).reshape(-1, 4) + restores_child = np.array( + [ + unit["state"] == state + and bool(unit["dependents"]) + and sum(unit["claimed"]) == 1 + for unit in units + ] + ) + assert (values[restores_child, 2:] > values[restores_child, :2]).all() def _monotone_variants(unit): @@ -355,7 +537,12 @@ def test_claimed_spouse_does_not_depend_on_head_label(year, units): @pytest.mark.parametrize("year", YEARS) def test_seeded_population(year): units = _seeded_couples(AFFECTED, per_state=2) + _crafted_cases(AFFECTED) - _check_swap(units, year, TAX_UNIT_OUTPUTS + CONSUMERS) + legacy_outputs = _check_swap( + units, year, TAX_UNIT_OUTPUTS + CONSUMERS, capture_fallback=year == 2025 + ) + if year == 2025: + _check_fallback(units, year, legacy_outputs) + _check_exception_scope() _check_monotone(units, year) diff --git a/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/income/medicaid_is_tax_dependent.yaml b/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/income/medicaid_is_tax_dependent.yaml new file mode 100644 index 00000000000..c04ad8732f3 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/hhs/medicaid/income/medicaid_is_tax_dependent.yaml @@ -0,0 +1,49 @@ +- name: Claimability alone does not create an expected Medicaid tax-dependent claim + period: 2025 + input: + age: 18 + is_tax_unit_head: true + is_tax_unit_spouse: false + is_tax_unit_dependent: false + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + medicaid_has_known_claiming_tax_unit: false + tax_unit_is_filer: true + output: + # 42 CFR 435.603(f)(1)-(2) uses expected actual claims, not claimability. + medicaid_is_tax_dependent: false + medicaid_uses_missing_claimant_fallback: false + medicaid_uses_non_filer_rules: false + +- name: An expected actual claim invokes Medicaid's dependent and missing-claimant rules + period: 2025 + input: + age: 18 + is_tax_unit_head: true + is_tax_unit_spouse: false + is_tax_unit_dependent: false + claimed_as_dependent_on_another_return: true + claimable_as_dependent_on_another_return: true + medicaid_has_known_claiming_tax_unit: false + tax_unit_is_filer: true + output: + medicaid_is_tax_dependent: true + medicaid_uses_missing_claimant_fallback: true + medicaid_uses_non_filer_rules: true + +- name: The tax filing exception leaves Medicaid's expected actual claim unchanged + period: 2025 + input: + age: 18 + is_tax_unit_head: true + is_tax_unit_spouse: false + is_tax_unit_dependent: false + claimed_as_dependent_on_another_return: true + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + medicaid_has_known_claiming_tax_unit: false + tax_unit_is_filer: true + output: + medicaid_is_tax_dependent: true + medicaid_uses_missing_claimant_fallback: true + medicaid_uses_non_filer_rules: true diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml index b922b61cb47..584e066b887 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible.yaml @@ -258,7 +258,7 @@ # qualifying child. eitc_demographic_eligible: true -- name: 2025 childless single filer whose parent files only to claim a refund is not a dependent +- name: 2025 claimable childless filer qualifies when nonrequired parent files only for a withholding refund period: 2025 input: people: @@ -266,6 +266,8 @@ age: 26 employment_income: 2_000 claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true tax_units: tax_unit: members: [head] @@ -274,7 +276,75 @@ members: [head] state_code: CA output: - # Publication 596 (2025, p.18): the credit is allowed when the person who can claim - # you files only to claim a refund; such a person is not a dependent, so the - # input is false. + # Pub. 596 PDF p.18: nonrequired parent files only for a refund of income tax + # withheld. Pub. 501 PDF p.24: claimability still limits the standard deduction. eitc_demographic_eligible: true + basic_standard_deduction: 2_450 + +- name: 2025 claimable childless filer qualifies when nonrequired parent files no return + period: 2025 + input: + people: + head: + age: 26 + employment_income: 2_000 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + tax_units: + tax_unit: + members: [head] + households: + household: + members: [head] + state_code: CA + output: + # Pub. 596 PDF p.18 also covers a nonrequired claimant who files no return. + # The exception changes EITC, while Pub. 501 PDF p.24 still limits deductions. + eitc_demographic_eligible: true + basic_standard_deduction: 2_450 + +- name: 2025 unclaimed childless filer remains ineligible when claimable by a parent required to file + period: 2025 + input: + people: + head: + age: 26 + employment_income: 2_000 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: false + tax_units: + tax_unit: + members: [head] + households: + household: + members: [head] + state_code: CA + output: + # Pub. 596 PDF p.18 Example 2: choosing not to claim the filer is insufficient. + eitc_demographic_eligible: false + basic_standard_deduction: 2_450 + +- name: 2025 unclaimed childless filer remains ineligible when parent files for refundable credits + period: 2025 + input: + people: + head: + age: 26 + employment_income: 2_000 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: false + tax_units: + tax_unit: + members: [head] + households: + household: + members: [head] + state_code: CA + output: + # Pub. 596 PDF pp.18-19: filing for a credit is not filing solely for a refund + # of withholding or estimated payments, even if no return was required. + eitc_demographic_eligible: false + basic_standard_deduction: 2_450 diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/savers_credit_eligible_person.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/savers_credit_eligible_person.yaml index 7309a5c6dc6..c070b58f18f 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/savers_credit_eligible_person.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/savers_credit_eligible_person.yaml @@ -17,3 +17,25 @@ is_full_time_student: false output: savers_credit_eligible_person: false + +- name: Savers credit admits a claimable filer who is not actually claimed + period: 2025 + input: + age: 26 + is_full_time_student: false + is_tax_unit_head_or_spouse: true + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + output: + savers_credit_eligible_person: true + +- name: Savers credit excludes an actually claimed filer + period: 2025 + input: + age: 26 + is_full_time_student: false + is_tax_unit_head_or_spouse: true + claimed_as_dependent_on_another_return: true + claimable_as_dependent_on_another_return: true + output: + savers_credit_eligible_person: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.yaml index a4d945380ab..1bb415b0fed 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.yaml @@ -4,13 +4,13 @@ people: person1: is_tax_unit_head: true + claimed_as_dependent_on_another_return: false person2: is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true tax_units: tax_unit: az_filing_status: JOINT - head_is_dependent_elsewhere: false - spouse_is_dependent_elsewhere: true members: [person1, person2] household: members: [person1, person2] @@ -24,13 +24,13 @@ people: person1: is_tax_unit_head: true + claimed_as_dependent_on_another_return: true person2: is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true tax_units: tax_unit: az_filing_status: JOINT - head_is_dependent_elsewhere: true - spouse_is_dependent_elsewhere: true members: [person1, person2] household: members: [person1, person2] @@ -44,13 +44,13 @@ people: person1: is_tax_unit_head: true + claimed_as_dependent_on_another_return: false person2: is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false tax_units: tax_unit: az_filing_status: SEPARATE - head_is_dependent_elsewhere: false - spouse_is_dependent_elsewhere: false members: [person1, person2] household: members: [person1, person2] @@ -64,19 +64,41 @@ people: person1: is_tax_unit_head: true + claimed_as_dependent_on_another_return: false person2: is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false person3: is_tax_unit_head: false is_tax_unit_spouse: false tax_units: tax_unit: az_filing_status: SEPARATE - head_is_dependent_elsewhere: false - spouse_is_dependent_elsewhere: false members: [person1, person2, person3] household: members: [person1, person2, person3] state_code: AZ output: az_aged_exemption_eligible_person: [true, false, false] + +- name: Arizona aged exemption retains an unclaimed claimable filer + period: 2025 + input: + state_code: AZ + age: 70 + is_tax_unit_head: true + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + output: + az_aged_exemption_eligible_person: true + +- name: Arizona aged exemption excludes an actually claimed filer + period: 2025 + input: + state_code: AZ + age: 70 + is_tax_unit_head: true + claimed_as_dependent_on_another_return: true + claimable_as_dependent_on_another_return: true + output: + az_aged_exemption_eligible_person: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml index 260651381eb..c4daec08bc0 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml @@ -595,3 +595,342 @@ output: # Only the spouse who cannot be claimed counts: 1 x $220. hi_food_excise_credit: 220 + +# N-311 (2022 and 2025), PDF p.1 lines 2-3, excludes externally claimable +# persons from both ordinary qualified persons and publicly supported minors. +# At $4,000 AGI, 2022 lines 7-10 give 2 x $110; 2025 lines 7-9 give 2 x $220. +- name: 2022 independent joint filers exclude externally claimable publicly supported child when person_a is head + period: 2022 + input: + people: + person_a: + age: 40 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: false + dependent_claimant_filing_exception: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 45 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_food_excise_credit: 220 + hi_food_excise_exemption_amount: 220 + hi_food_excise_credit_minor_child_count: 0 + +- name: 2022 independent joint filers exclude externally claimable publicly supported child when person_b is head + period: 2022 + input: + people: + person_b: + age: 45 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 40 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: false + dependent_claimant_filing_exception: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + hi_food_excise_credit: 220 + hi_food_excise_exemption_amount: 220 + hi_food_excise_credit_minor_child_count: 0 + +- name: 2025 independent joint filers exclude externally claimable publicly supported child when person_a is head + period: 2025 + input: + people: + person_a: + age: 40 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: false + dependent_claimant_filing_exception: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 45 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_food_excise_credit: 440 + hi_food_excise_exemption_amount: 440 + hi_food_excise_credit_minor_child_count: 0 + +- name: 2025 independent joint filers exclude externally claimable publicly supported child when person_b is head + period: 2025 + input: + people: + person_b: + age: 45 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 40 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: false + dependent_claimant_filing_exception: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + hi_food_excise_credit: 440 + hi_food_excise_exemption_amount: 440 + hi_food_excise_credit_minor_child_count: 0 + +- name: 2022 joint return filing exception restores own ordinary dependent but excludes claimable head + period: 2022 + input: + people: + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_food_excise_credit_minor_child_count: 0 + hi_food_excise_credit: 220 + hi_food_excise_exemption_amount: 220 + +- name: 2022 joint return filing exception restores own ordinary dependent but excludes claimable spouse + period: 2022 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + hi_food_excise_credit_minor_child_count: 0 + hi_food_excise_credit: 220 + hi_food_excise_exemption_amount: 220 + +- name: 2025 joint return filing exception restores own ordinary dependent but excludes claimable head + period: 2025 + input: + people: + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_food_excise_credit_minor_child_count: 0 + hi_food_excise_credit: 440 + hi_food_excise_exemption_amount: 440 + +- name: 2025 joint return filing exception restores own ordinary dependent but excludes claimable spouse + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + hi_food_excise_credit_minor_child_count: 0 + hi_food_excise_credit: 440 + hi_food_excise_exemption_amount: 440 + +# A publicly supported minor filer belongs to N-311 line 2, not line 3. +# At $16,000 AGI in 2022, 2 ordinary persons x $70 = $140. +- name: 2022 publicly supported minor filer is only an ordinary qualified person when labelled head + period: 2022 + input: + people: + person_a: + age: 17 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: false + dependent_claimant_filing_exception: false + is_tax_unit_head: true + is_tax_unit_spouse: false + hi_food_excise_credit_child_receiving_public_support: true + person_b: + age: 20 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + adjusted_gross_income: 16000 + households: + household: + members: [person_a, person_b] + state_code: HI + output: + hi_food_excise_credit: 140 + hi_food_excise_credit_minor_child_count: 0 + +- name: 2022 publicly supported minor filer is only an ordinary qualified person when labelled spouse + period: 2022 + input: + people: + person_b: + age: 20 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 17 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: false + dependent_claimant_filing_exception: false + is_tax_unit_head: false + is_tax_unit_spouse: true + hi_food_excise_credit_child_receiving_public_support: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + adjusted_gross_income: 16000 + households: + household: + members: [person_b, person_a] + state_code: HI + output: + hi_food_excise_credit: 140 + hi_food_excise_credit_minor_child_count: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml index 7c4030e8e4c..124ffe32e48 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_act_115_rebate.yaml @@ -252,3 +252,66 @@ state_code: HI output: hi_act_115_rebate: 0 + +# Act 115 sec.3(a)-(b), HRS 235-54(a), and Pub. 501 PDF p.11. +- name: Joint return filing exception restores own dependent but excludes claimable head from Act 115 + period: 2021 + input: + people: + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_act_115_rebate: 600 + +- name: Joint return filing exception restores own dependent but excludes claimable spouse from Act 115 + period: 2021 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + hi_act_115_rebate: 600 diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml index 2dd4cd51e42..25fa5e14ce5 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml @@ -101,3 +101,68 @@ # Schedule X lines 8-10: the spouse who cannot be claimed, plus their age # 65 exemption. 2 x $50. hi_tax_credit_for_low_income_household_renters: 100 + +# Schedule X lines 8-10; Pub. 501 filing exception restores only dependents. +- name: Joint return filing exception restores own dependent without claimable head personal or aged exemption + period: 2021 + input: + people: + person_a: + age: 66 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 66 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_tax_credit_for_low_income_household_renters: 150 + +- name: Joint return filing exception restores own dependent without claimable spouse personal or aged exemption + period: 2021 + input: + people: + person_b: + age: 66 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 66 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + hi_tax_credit_for_low_income_household_renters: 150 diff --git a/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml b/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml index eee9da8f35d..e67f331c532 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/exemptions/mi_exemptions.yaml @@ -445,3 +445,92 @@ # A joint return on which a spouse can be claimed claims no dependents # (IRS Publication 501), so the child adds no exemption. mi_exemptions: 7_300 + +# Pub. 501 (2025), Dependent Taxpayer Test, PDF p.11; MCL 206.30(4). +- name: 2025 joint return filing exception restores own dependent while claimable head keeps the dependent allowance + period: 2025 + input: + people: + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_a, person_b, child_1] + state_code: MI + output: + mi_exemptions: 13100 + +- name: 2025 joint return filing exception restores own dependent while claimable spouse keeps the dependent allowance + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 26 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + households: + household: + members: [person_b, person_a, child_1] + state_code: MI + output: + mi_exemptions: 13100 + +- name: 2025 single filer with a nonrequired claimant who files no return may claim their own dependent + period: 2025 + input: + people: + filer: + age: 26 + is_tax_unit_head: true + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: MI + output: + # $1,500 claimable-filer allowance + $5,800 for their child. + mi_exemptions: 7_300 diff --git a/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml index 97f70fe2376..d9fe76117ae 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/oh/tax/income/exemptions/personal/oh_personal_exemptions_eligible.yaml @@ -27,3 +27,14 @@ is_tax_unit_dependent: true output: oh_personal_exemptions_eligible_person: true + +- name: Ohio personal exemption excludes a claimable but unclaimed filer + period: 2025 + input: + state_code: OH + is_tax_unit_head_or_spouse: true + is_tax_unit_dependent: false + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + output: + oh_personal_exemptions_eligible_person: false diff --git a/policyengine_us/tests/policy/baseline/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.yaml new file mode 100644 index 00000000000..64ee21b5111 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.yaml @@ -0,0 +1,21 @@ +- name: Utah property relief retains an unclaimed claimable filer + period: 2025 + input: + state_code: UT + age: 66 + rent: 12_000 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + output: + ut_homeowner_renter_relief_pre_one_claimant_eligible: true + +- name: Utah property relief excludes an actually claimed filer + period: 2025 + input: + state_code: UT + age: 66 + rent: 12_000 + claimed_as_dependent_on_another_return: true + claimable_as_dependent_on_another_return: true + output: + ut_homeowner_renter_relief_pre_one_claimant_eligible: false diff --git a/policyengine_us/tests/policy/baseline/household/demographic/person/claimable_as_dependent_on_another_return.yaml b/policyengine_us/tests/policy/baseline/household/demographic/person/claimable_as_dependent_on_another_return.yaml new file mode 100644 index 00000000000..2530e578832 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/household/demographic/person/claimable_as_dependent_on_another_return.yaml @@ -0,0 +1,34 @@ +- name: An existing actual claim supplies the default claimability + period: 2025 + input: + claimed_as_dependent_on_another_return: true + output: + claimable_as_dependent_on_another_return: true + +- name: An existing false claim input preserves default independence + period: 2025 + input: + claimed_as_dependent_on_another_return: false + output: + claimable_as_dependent_on_another_return: false + +- name: No claim inputs preserves default independence + period: 2025 + input: + age: 26 + output: + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: false + +- name: A parent can claim the filer without making or expecting a claim + period: 2025 + input: + age: 26 + employment_income: 2_000 + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + output: + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + basic_standard_deduction: 2_450 + eitc_demographic_eligible: false diff --git a/policyengine_us/tests/policy/baseline/household/demographic/person/is_dependent_elsewhere_without_filing_exception.yaml b/policyengine_us/tests/policy/baseline/household/demographic/person/is_dependent_elsewhere_without_filing_exception.yaml new file mode 100644 index 00000000000..4164a45064a --- /dev/null +++ b/policyengine_us/tests/policy/baseline/household/demographic/person/is_dependent_elsewhere_without_filing_exception.yaml @@ -0,0 +1,36 @@ +- name: Unclaimed but claimable filer fails the dependent taxpayer test + period: 2025 + input: + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + output: + dependent_claimant_filing_exception: false + is_dependent_elsewhere_without_filing_exception: true + +- name: Nonrequired refund-only claimant restores dependent taxpayer eligibility + period: 2025 + input: + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + output: + # Publication 501 PDF p.11, Dependent Taxpayer Test exception. + is_dependent_elsewhere_without_filing_exception: false + claimable_as_dependent_on_another_return: true + +- name: Nonrequired claimant filing no return restores dependent taxpayer eligibility + period: 2025 + input: + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + output: + # Publication 596 PDF p.18 includes the nonrequired claimant who files no return. + is_dependent_elsewhere_without_filing_exception: false + claimable_as_dependent_on_another_return: true + +- name: The filing exception does not create claimability + period: 2025 + input: + claimable_as_dependent_on_another_return: false + dependent_claimant_filing_exception: true + output: + is_dependent_elsewhere_without_filing_exception: false diff --git a/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.yaml b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.yaml new file mode 100644 index 00000000000..8b9e439d173 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.yaml @@ -0,0 +1,119 @@ +- name: Claimable unclaimed head prevents claiming the return's own dependents + period: 2025 + input: + people: + person_a: + is_tax_unit_head: true + is_tax_unit_spouse: false + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + person_b: + is_tax_unit_head: false + is_tax_unit_spouse: true + claimable_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [person_a, person_b] + output: + head_or_spouse_is_dependent_elsewhere: true + head_or_spouse_is_dependent_elsewhere_without_filing_exception: true + +- name: Claimable unclaimed spouse prevents claiming the return's own dependents + period: 2025 + input: + people: + person_b: + is_tax_unit_head: true + is_tax_unit_spouse: false + claimable_as_dependent_on_another_return: false + person_a: + is_tax_unit_head: false + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: false + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_b, person_a] + output: + head_or_spouse_is_dependent_elsewhere: true + head_or_spouse_is_dependent_elsewhere_without_filing_exception: true + +- name: The head's nonrequired claimant filing exception restores own-dependent eligibility + period: 2025 + input: + people: + person_a: + is_tax_unit_head: true + is_tax_unit_spouse: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + person_b: + is_tax_unit_head: false + is_tax_unit_spouse: true + claimable_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [person_a, person_b] + output: + head_or_spouse_is_dependent_elsewhere: true + head_or_spouse_is_dependent_elsewhere_without_filing_exception: false + +- name: The spouse's nonrequired claimant filing exception restores own-dependent eligibility + period: 2025 + input: + people: + person_b: + is_tax_unit_head: true + is_tax_unit_spouse: false + claimable_as_dependent_on_another_return: false + person_a: + is_tax_unit_head: false + is_tax_unit_spouse: true + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + tax_units: + tax_unit: + members: [person_b, person_a] + output: + head_or_spouse_is_dependent_elsewhere: true + head_or_spouse_is_dependent_elsewhere_without_filing_exception: false + +- name: One exception is insufficient when the other spouse has an ordinary claimant + period: 2025 + input: + people: + head: + is_tax_unit_head: true + is_tax_unit_spouse: false + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + spouse: + is_tax_unit_head: false + is_tax_unit_spouse: true + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: false + tax_units: + tax_unit: + members: [head, spouse] + output: + head_or_spouse_is_dependent_elsewhere_without_filing_exception: true + +- name: A claimable child does not apply the dependent taxpayer test to independent filers + period: 2025 + input: + people: + head: + age: 40 + is_tax_unit_head: true + is_tax_unit_spouse: false + claimable_as_dependent_on_another_return: false + child: + age: 10 + is_tax_unit_head: false + is_tax_unit_spouse: false + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, child] + output: + head_or_spouse_is_dependent_elsewhere_without_filing_exception: false diff --git a/policyengine_us/tests/policy/contrib/congress/watca.yaml b/policyengine_us/tests/policy/contrib/congress/watca.yaml index 500ed7e863b..2b40103ff7f 100644 --- a/policyengine_us/tests/policy/contrib/congress/watca.yaml +++ b/policyengine_us/tests/policy/contrib/congress/watca.yaml @@ -440,7 +440,7 @@ gov.contrib.congress.watca.in_effect: true adjusted_gross_income: 30_000 filing_status: SINGLE - head_is_dependent_elsewhere: true + claimed_as_dependent_on_another_return: true output: # Even though income is below limit, not eligible because claimed as dependent watca_alternative_tax_eligible: false @@ -450,9 +450,18 @@ reforms: policyengine_us.reforms.congress.watca.working_americans_tax_cut_act.watca_reform_object input: gov.contrib.congress.watca.in_effect: true - adjusted_gross_income: 30_000 - filing_status: JOINT - spouse_is_dependent_elsewhere: true + people: + head: + is_tax_unit_head: true + claimed_as_dependent_on_another_return: false + spouse: + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + adjusted_gross_income: 30_000 + filing_status: JOINT output: watca_alternative_tax_eligible: false @@ -529,10 +538,18 @@ reforms: policyengine_us.reforms.congress.watca.working_americans_tax_cut_act.watca_reform_object input: gov.contrib.congress.watca.in_effect: true - adjusted_gross_income: 30_000 - filing_status: JOINT - head_is_dependent_elsewhere: true - spouse_is_dependent_elsewhere: true + people: + head: + is_tax_unit_head: true + claimed_as_dependent_on_another_return: true + spouse: + is_tax_unit_spouse: true + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [head, spouse] + adjusted_gross_income: 30_000 + filing_status: JOINT output: watca_alternative_tax_eligible: false diff --git a/policyengine_us/tests/policy/contrib/states/ct/hb5114/ct_hb5114.yaml b/policyengine_us/tests/policy/contrib/states/ct/hb5114/ct_hb5114.yaml index 9557ae1102e..bc07699ca08 100644 --- a/policyengine_us/tests/policy/contrib/states/ct/hb5114/ct_hb5114.yaml +++ b/policyengine_us/tests/policy/contrib/states/ct/hb5114/ct_hb5114.yaml @@ -427,11 +427,11 @@ age: 20 employment_income: 30_000 rent: 12_000 + claimed_as_dependent_on_another_return: true tax_units: tax_unit: members: [person1] filing_status: SINGLE - head_is_dependent_elsewhere: true households: household: members: [person1] diff --git a/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py b/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py index 053ca2799c0..9cb742b764f 100644 --- a/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py +++ b/policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py @@ -33,8 +33,12 @@ def formula(tax_unit, period, parameters): # IRC § 32(c)(1)(A)(ii)(III): without a qualifying child, the filer # must not be a dependent of another taxpayer; on a joint return, # "neither you nor your spouse can be claimed as a dependent by another - # person" (IRS Publication 596). - dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # person" (IRS Publication 596). A nonrequired claimant who files + # no return or only for a withholding/estimated-payment refund is + # excepted, without changing the standard-deduction limitation. + dependent_elsewhere = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) childless_eligible = ( tax_unit.any(meets_age_requirements & is_filer_or_spouse) & ~dependent_elsewhere diff --git a/policyengine_us/variables/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.py b/policyengine_us/variables/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.py index 6169e38bb5e..af27ae56bd4 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.py +++ b/policyengine_us/variables/gov/states/az/tax/income/exemptions/az_aged_exemption_eligible_person.py @@ -8,6 +8,7 @@ class az_aged_exemption_eligible_person(Variable): unit = USD definition_period = YEAR defined_for = StateCode.AZ + reference = "https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140i.pdf#page=6" def formula(person, period, parameters): head = person("is_tax_unit_head", period) @@ -17,9 +18,6 @@ def formula(person, period, parameters): filing_status = tax_unit("az_filing_status", period) separate = filing_status == filing_status.possible_values.SEPARATE - dependent_head = tax_unit("head_is_dependent_elsewhere", period) - - dependent_spouse = tax_unit("spouse_is_dependent_elsewhere", period) - spouse_eligible_condition = ~dependent_spouse * ~separate - - return (head & ~dependent_head) | (spouse & spouse_eligible_condition) + # Form 140, Box 8, excludes each spouse only when actually claimed. + claimed_elsewhere = person("claimed_as_dependent_on_another_return", period) + return ~claimed_elsewhere & (head | (spouse & ~separate)) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py index 220561807b8..a1c5b5ff4aa 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.py @@ -16,8 +16,9 @@ class hi_food_excise_credit(Variable): def formula(tax_unit, period, parameters): # HRS 235-55.85(a): only a taxpayer who cannot be claimed as a # dependent may claim the credit, for each qualified exemption; the - # exemption amount counts only filers who cannot be claimed when - # either can. Minor children receiving public support count for this + # exemption amount excludes own ordinary dependents when either + # filer can be claimed without the Dependent Taxpayer Test exception. + # Minor children receiving public support count for this # credit under 235-55.85(c), so they keep their amount unless every # filer can be claimed. every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py index c4cc41a8d42..15cb4a0c8de 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit_minor_child_count.py @@ -7,6 +7,10 @@ class hi_food_excise_credit_minor_child_count(Variable): label = "Minor child's number for the Hawaii Food/Excise Tax Credit" definition_period = YEAR defined_for = StateCode.HI + reference = ( + "https://files.hawaii.gov/tax/forms/2022/n311_i.pdf#page=1", + "https://files.hawaii.gov/tax/forms/2025/n311_i.pdf#page=1", + ) def formula(tax_unit, period, parameters): p = parameters(period).gov.states.hi.tax.income.credits.food_excise_tax @@ -19,10 +23,10 @@ def formula(tax_unit, period, parameters): # Form N-311 line 3 lists minor children who, among other tests, # "Cannot be claimed as a dependent by another taxpayer"; the filers # are listed on line 2. - claimed_elsewhere = person("claimed_as_dependent_on_another_return", period) + claimable_elsewhere = person("claimable_as_dependent_on_another_return", period) filer = person("is_tax_unit_head_or_spouse", period) eligible_minor_child = ( - is_child & minor & public_support_over_half & ~claimed_elsewhere & ~filer + is_child & minor & public_support_over_half & ~claimable_elsewhere & ~filer ) return tax_unit.sum(eligible_minor_child) diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py index c597ba1352b..09127fcd2c1 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py @@ -9,6 +9,7 @@ class hi_food_excise_exemption_amount(Variable): defined_for = StateCode.HI reference = ( "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=50", + "https://files.hawaii.gov/tax/forms/2022/n311_i.pdf#page=1", "https://files.hawaii.gov/tax/forms/2025/n311_i.pdf#page=1", "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", ) @@ -18,7 +19,6 @@ def formula(tax_unit, period, parameters): income = tax_unit("adjusted_gross_income", period) - minor_child_include = p.minor_child.in_effect # Count exemptions as number of people # The legal code defines exemptions as Hawaii exemptions, # which normally include additional exemptions for aged and @@ -43,23 +43,34 @@ def formula(tax_unit, period, parameters): p.amount.surviving_spouse.calc(income), ], ) - exemptions = tax_unit("exemptions_count", period) + # Both 2022 and 2025 N-311 lines 2-3 exclude every person who can + # be claimed by another taxpayer, including children. In 2022, + # lines 8-10 price ordinary persons and publicly supported minors + # separately; 2025 lines 8-9 combine the two qualified counts. + externally_claimable = tax_unit.sum( + tax_unit.members("claimable_as_dependent_on_another_return", period) + ) + exemptions = max_( + tax_unit("exemptions_count", period) - externally_claimable, 0 + ) minor_children = tax_unit("hi_food_excise_credit_minor_child_count", period) if p.minor_child.in_effect: # Reduce number of exemptions by the number of minor children, # who get a fixed amount instead. - claimable_exemptions = exemptions - minor_children + claimable_exemptions = max_(exemptions - minor_children, 0) minor_child_exemptions = 0 else: claimable_exemptions = exemptions minor_child_exemptions = minor_children # Form N-311 counts only people who cannot be claimed as a dependent # by another taxpayer. A return on which a filer can be claimed - # generally claims no dependents (IRS Publication 501; its exception - # for a claimer who files only for a refund is not modeled), so it - # counts the filers who cannot be claimed and, through HRS - # 235-55.85(c), their minor children receiving public support. - dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # generally claims no dependents (IRS Publication 501, Dependent + # Taxpayer Test). Its filing exception restores ordinary dependent + # entries, but never a claimable person's own exemption. Publicly + # supported minors count independently under HRS 235-55.85(c). + dependent_taxpayer = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period ) @@ -67,6 +78,8 @@ def formula(tax_unit, period, parameters): independent_filers > 0, minor_child_exemptions, 0 ) qualified_exemptions = where( - dependent_filer, mixed_return_exemptions, claimable_exemptions + dependent_taxpayer, mixed_return_exemptions, claimable_exemptions ) + every_filer_dependent = tax_unit("every_filer_is_dependent_elsewhere", period) + qualified_exemptions = where(every_filer_dependent, 0, qualified_exemptions) return qualified_exemptions * amount_per_exemption diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py index 734e6305b38..adc6f987c58 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py @@ -13,6 +13,7 @@ class hi_act_115_rebate(Variable): "https://data.capitol.hawaii.gov/sessions/session2022/bills/SB514_CD2_.HTM", "https://files.hawaii.gov/tax/news/announce/ann22-03.pdf#page=2", "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=45", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", ) def formula(tax_unit, period, parameters): @@ -44,12 +45,23 @@ def formula(tax_unit, period, parameters): # taxpayer claims the refund for the exemptions they are entitled to. # A filer who can be claimed has no exemption (HRS 235-54(a)), and a # return on which a filer can be claimed generally claims no dependents - # (IRS Publication 501; its exception for a claimer who files only for - # a refund is not modeled), so such a return counts only the filers - # who cannot be claimed. + # (IRS Publication 501, Dependent Taxpayer Test). Its filing exception + # restores those dependents, but does not restore the claimable + # filer's personal exemption or qualification as a claimant. dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period ) - qualified_exemptions = where(dependent_filer, independent_filers, exemptions) + dependent_taxpayer = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) + filers = add(tax_unit, period, ["is_tax_unit_head_or_spouse"]) + dependent_filers = filers - independent_filers + ordinary_exemptions = max_(exemptions - dependent_filers, 0) + qualified_exemptions = where( + dependent_taxpayer, independent_filers, ordinary_exemptions + ) + qualified_exemptions = where( + dependent_filer & (independent_filers == 0), 0, qualified_exemptions + ) return amount_per_exemption * qualified_exemptions diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py index f60088206d8..a744ce369bf 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py @@ -11,6 +11,7 @@ class hi_tax_credit_for_low_income_household_renters(Variable): reference = ( "https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=48", "https://files.hawaii.gov/tax/forms/2025/schx_i.pdf#page=1", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", ) def formula(tax_unit, period, parameters): @@ -19,9 +20,10 @@ def formula(tax_unit, period, parameters): # Schedule X lines 8-10 count only people who cannot be claimed as a # dependent by another taxpayer, with an extra exemption for each # such filer aged 65 or over. A return on which a filer can be - # claimed generally claims no dependents (IRS Publication 501; its - # exception for a claimer who files only for a refund is not modeled), - # so it counts only the filers who cannot be claimed. + # claimed generally claims no dependents (IRS Publication 501, + # Dependent Taxpayer Test). Its filing exception restores the + # return's own dependents, while claimable filers and their age + # additions remain excluded. aged_head = (tax_unit("age_head", period) >= p.aged_age_threshold) & ~tax_unit( "head_is_dependent_elsewhere", period ) @@ -30,15 +32,18 @@ def formula(tax_unit, period, parameters): ) & ~tax_unit("spouse_is_dependent_elsewhere", period) aged_exemptions = aged_head.astype(int) + aged_spouse.astype(int) - dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + dependent_taxpayer = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period ) - exemptions = where( - dependent_filer, - independent_filers, - tax_unit("exemptions_count", period), + filers = add(tax_unit, period, ["is_tax_unit_head_or_spouse"]) + dependent_filers = filers - independent_filers + ordinary_exemptions = max_( + tax_unit("exemptions_count", period) - dependent_filers, 0 ) + exemptions = where(dependent_taxpayer, independent_filers, ordinary_exemptions) total_exemptions = exemptions + aged_exemptions return p.amount * total_exemptions diff --git a/policyengine_us/variables/gov/states/me/tax/income/credits/me_affordability_payment.py b/policyengine_us/variables/gov/states/me/tax/income/credits/me_affordability_payment.py index b488cf00424..7f1a547ff0e 100644 --- a/policyengine_us/variables/gov/states/me/tax/income/credits/me_affordability_payment.py +++ b/policyengine_us/variables/gov/states/me/tax/income/credits/me_affordability_payment.py @@ -14,7 +14,7 @@ class me_affordability_payment(Variable): "payment from a Special Revenue Fund rather than a refundable tax " "credit. PolicyEngine folds the payment into Maine's refundable " "credit aggregation to surface it in tax-unit-level outputs. " - "Sec. T-1, sub-§1(C)(3) excludes individuals claimed as a " + "Sec. T-1, sub-§1(C)(3) excludes individuals who may be claimed as a " "dependent on another taxpayer's return, evaluated per recipient." ) @@ -24,6 +24,6 @@ def formula(tax_unit, period, parameters): is_recipient = person("is_tax_unit_head", period) | person( "is_tax_unit_spouse", period ) - dependent_elsewhere = person("claimed_as_dependent_on_another_return", period) + dependent_elsewhere = person("claimable_as_dependent_on_another_return", period) eligible_recipients = tax_unit.sum(is_recipient & ~dependent_elsewhere) return eligible_recipients * p.amount diff --git a/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py b/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py index 1940d6d1af8..7c9874052ea 100644 --- a/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py +++ b/policyengine_us/variables/gov/states/mi/tax/income/exemptions/mi_exemptions.py @@ -40,8 +40,9 @@ def formula(tax_unit, period, parameters): # individual, we apply it to each spouse, so the other keeps their own # personal exemption (and any stillbirth exemption). A joint return on # which either spouse can be claimed generally claims no dependents - # (IRS Publication 501, "Dependent Taxpayer Test"; its exception for a - # claimer who files only for a refund is not modeled). + # (IRS Publication 501, "Dependent Taxpayer Test"). The filing + # exception restores the return's own dependents, while each + # claimable filer keeps the $1,500 allowance. filers = add(tax_unit, period, ["is_tax_unit_head_or_spouse"]) independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period @@ -53,11 +54,19 @@ def formula(tax_unit, period, parameters): ) * p.personal dependent_filer_exemptions = dependent_filers * p.dependent_on_other_return + dependent_taxpayer = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) + own_dependents = max_(tax_unit("tax_unit_size", period) - filers, 0) + dependent_exemptions = where(dependent_taxpayer, 0, own_dependents) * p.personal + # Total exemptions return ( where( dependent_filers > 0, - independent_filer_exemptions + dependent_filer_exemptions, + independent_filer_exemptions + + dependent_filer_exemptions + + dependent_exemptions, personal_exemption, ) + disabled_exemption diff --git a/policyengine_us/variables/gov/states/mn/tax/property/homestead_credit_refund/mn_homestead_credit_refund_household_income.py b/policyengine_us/variables/gov/states/mn/tax/property/homestead_credit_refund/mn_homestead_credit_refund_household_income.py index ef104baa938..416d57eeb7a 100644 --- a/policyengine_us/variables/gov/states/mn/tax/property/homestead_credit_refund/mn_homestead_credit_refund_household_income.py +++ b/policyengine_us/variables/gov/states/mn/tax/property/homestead_credit_refund/mn_homestead_credit_refund_household_income.py @@ -33,7 +33,7 @@ def formula(tax_unit, period, parameters): people = tax_unit.members is_dependent = people("is_tax_unit_dependent", period) | people( - "claimed_as_dependent_on_another_return", period + "claimable_as_dependent_on_another_return", period ) social_security = people("social_security", period) taxable_social_security = people("taxable_social_security", period) diff --git a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py index 1ee85c8bfae..5f7a3dbbec3 100644 --- a/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py +++ b/policyengine_us/variables/gov/states/nm/tax/income/credits/nm_medical_expense_credit.py @@ -26,7 +26,7 @@ def formula(tax_unit, period, parameters): # dependent claim it when the other spouse is. So when a filer is a # dependent elsewhere, a filer who is not must be 65 or older. filer = person("is_tax_unit_head_or_spouse", period) - claimed = person("claimed_as_dependent_on_another_return", period) + claimed = person("claimable_as_dependent_on_another_return", period) independent_aged_filer = tax_unit.any(filer & ~claimed & aged) dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) age_eligible = where( diff --git a/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py b/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py index e222b7bf362..9a45b4bda79 100644 --- a/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py +++ b/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py @@ -16,7 +16,7 @@ def formula(person, period, parameters): # if they are not claimed as a dependent elsewhere head_or_spouse = person("is_tax_unit_head_or_spouse", period) dependent_on_another_return = person( - "claimed_as_dependent_on_another_return", period + "claimable_as_dependent_on_another_return", period ) # The personal exemption is also provided to dependents dependent = person("is_tax_unit_dependent", period) diff --git a/policyengine_us/variables/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.py b/policyengine_us/variables/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.py index 28c3dbbdf03..146db78e423 100644 --- a/policyengine_us/variables/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.py +++ b/policyengine_us/variables/gov/states/ut/tax/property/homeowner_renter_relief/ut_homeowner_renter_relief_pre_one_claimant_eligible.py @@ -36,9 +36,12 @@ def formula(tax_unit, period, parameters): claimant_is_tax_unit_dependent = tax_unit.any( claimants & tax_unit.members("is_tax_unit_dependent", period) ) - claimant_is_dependent_elsewhere = tax_unit( - "head_is_dependent_elsewhere", period - ) | tax_unit("spouse_is_dependent_elsewhere", period) + # Utah Code 59-2a-205(4) and 59-2a-305(2)(a) turn on another + # taxpayer actually claiming the exemption or dependent credit. + claimant_is_dependent_elsewhere = tax_unit.any( + claimants + & tax_unit.members("claimed_as_dependent_on_another_return", period) + ) claimant_is_dependent = ( claimant_is_tax_unit_dependent | claimant_is_dependent_elsewhere ) diff --git a/policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py b/policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py new file mode 100644 index 00000000000..eccd696bbec --- /dev/null +++ b/policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py @@ -0,0 +1,23 @@ +from policyengine_us.model_api import * + + +class claimable_as_dependent_on_another_return(Variable): + value_type = bool + entity = Person + definition_period = YEAR + label = "Can be claimed as a dependent elsewhere" + documentation = ( + "Whether another taxpayer can claim the person as a dependent: a " + "deduction under IRC section 151 for the person is allowable to " + "another taxpayer, whether or not claimed. Defaults to the actual " + "or expected claim input for compatibility with existing callers. " + "The dependent_claimant_filing_exception does not change this fact " + "or the dependent standard-deduction limit." + ) + reference = ( + "https://www.law.cornell.edu/uscode/text/26/151#c", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=24", + ) + + def formula(person, period, parameters): + return person("claimed_as_dependent_on_another_return", period) diff --git a/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py b/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py index f941fcb3254..cfaa9d32825 100644 --- a/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py +++ b/policyengine_us/variables/household/demographic/person/claimed_as_dependent_on_another_return.py @@ -7,11 +7,8 @@ class claimed_as_dependent_on_another_return(Variable): definition_period = YEAR label = "Is claimed as a dependent elsewhere" documentation = ( - "Whether another taxpayer can claim the person as a dependent, that " - "is, a deduction under IRC section 151 for the person is allowable to " - "another taxpayer, whether or not it is claimed. A person whose " - "would-be claimer is not required to file and files only to claim a " - "refund is not such a dependent (IRS Publications 501 and 596). Rules " - "that turn on actually being claimed also read this input; the model " - "has no separate input for that." + "Whether the person is actually claimed, or expected to be claimed, " + "as a dependent in another tax unit. Claimability, whether or not " + "another taxpayer claims the person, is represented separately by " + "claimable_as_dependent_on_another_return." ) diff --git a/policyengine_us/variables/household/demographic/person/dependent_claimant_filing_exception.py b/policyengine_us/variables/household/demographic/person/dependent_claimant_filing_exception.py new file mode 100644 index 00000000000..d4acf034fba --- /dev/null +++ b/policyengine_us/variables/household/demographic/person/dependent_claimant_filing_exception.py @@ -0,0 +1,21 @@ +from policyengine_us.model_api import * + + +class dependent_claimant_filing_exception(Variable): + value_type = bool + entity = Person + definition_period = YEAR + label = "Dependent's would-be claimant meets the filing exception" + documentation = ( + "Whether the person who could claim this person (all such claimants " + "if more than one) is not required to file an income tax return and " + "either files no return or files solely to obtain a refund of income " + "tax withheld or estimated tax paid. A return filed to claim refundable " + "tax credits, including EITC, does not qualify. This fact permits EITC and claiming " + "one's own dependents under the Dependent Taxpayer Test; it does not " + "remove general claimability or its standard-deduction limitation." + ) + reference = ( + "https://www.irs.gov/pub/irs-prior/p596--2025.pdf#page=18", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", + ) diff --git a/policyengine_us/variables/household/demographic/person/is_dependent_elsewhere_without_filing_exception.py b/policyengine_us/variables/household/demographic/person/is_dependent_elsewhere_without_filing_exception.py new file mode 100644 index 00000000000..79384c81b5e --- /dev/null +++ b/policyengine_us/variables/household/demographic/person/is_dependent_elsewhere_without_filing_exception.py @@ -0,0 +1,22 @@ +from policyengine_us.model_api import * + + +class is_dependent_elsewhere_without_filing_exception(Variable): + value_type = bool + entity = Person + definition_period = YEAR + label = "Claimable elsewhere without the claimant filing exception" + documentation = ( + "Whether the person is claimable as a dependent on another return " + "and the would-be claimant does not meet the nonrequired-filing " + "exception. Used for childless EITC and the Dependent Taxpayer Test." + ) + reference = ( + "https://www.irs.gov/pub/irs-prior/p596--2025.pdf#page=18", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", + ) + + def formula(person, period, parameters): + return person("claimable_as_dependent_on_another_return", period) & ~person( + "dependent_claimant_filing_exception", period + ) diff --git a/policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py index 161339f0358..e2135a89019 100644 --- a/policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py +++ b/policyengine_us/variables/household/demographic/tax_unit/every_filer_is_dependent_elsewhere.py @@ -5,9 +5,9 @@ class every_filer_is_dependent_elsewhere(Variable): value_type = bool entity = TaxUnit definition_period = YEAR - label = "Every head and spouse is a dependent elsewhere" + label = "Every head and spouse is claimable elsewhere" documentation = ( - "Whether the tax unit has a head or spouse claimed as a dependent in " + "Whether the tax unit has a head or spouse claimable as a dependent in " "another tax unit and none who is not. False for a tax unit with " "neither a head nor a spouse." ) diff --git a/policyengine_us/variables/household/demographic/tax_unit/head_is_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/head_is_dependent_elsewhere.py index 04064b39948..b8d43c53e5e 100644 --- a/policyengine_us/variables/household/demographic/tax_unit/head_is_dependent_elsewhere.py +++ b/policyengine_us/variables/household/demographic/tax_unit/head_is_dependent_elsewhere.py @@ -6,12 +6,12 @@ class head_is_dependent_elsewhere(Variable): entity = TaxUnit definition_period = YEAR label = "Is tax-unit head a dependent elsewhere" - documentation = "Whether the filer for this tax unit is claimed as a dependent in another tax unit." + documentation = "Whether the filer for this tax unit is claimable as a dependent in another tax unit." def formula(tax_unit, period, parameters): person = tax_unit.members - claimed_on_another_return = person( - "claimed_as_dependent_on_another_return", period + claimable_on_another_return = person( + "claimable_as_dependent_on_another_return", period ) is_head = person("is_tax_unit_head", period) - return tax_unit.any(claimed_on_another_return & is_head) + return tax_unit.any(claimable_on_another_return & is_head) diff --git a/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py index 493bf92c3c4..34f5593350b 100644 --- a/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py +++ b/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere.py @@ -5,17 +5,17 @@ class head_or_spouse_is_dependent_elsewhere(Variable): value_type = bool entity = TaxUnit definition_period = YEAR - label = "Head or spouse is a dependent elsewhere" + label = "Head or spouse is claimable elsewhere" documentation = ( - "Whether the head or the spouse of this tax unit is claimed as a " + "Whether the head or the spouse of this tax unit is claimable as a " "dependent in another tax unit. Unlike head_is_dependent_elsewhere, " "this does not depend on which spouse is labelled head." ) def formula(tax_unit, period, parameters): person = tax_unit.members - claimed_on_another_return = person( - "claimed_as_dependent_on_another_return", period + claimable_on_another_return = person( + "claimable_as_dependent_on_another_return", period ) filer = person("is_tax_unit_head_or_spouse", period) - return tax_unit.any(claimed_on_another_return & filer) + return tax_unit.any(claimable_on_another_return & filer) diff --git a/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.py b/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.py new file mode 100644 index 00000000000..26a1d3d3eb4 --- /dev/null +++ b/policyengine_us/variables/household/demographic/tax_unit/head_or_spouse_is_dependent_elsewhere_without_filing_exception.py @@ -0,0 +1,23 @@ +from policyengine_us.model_api import * + + +class head_or_spouse_is_dependent_elsewhere_without_filing_exception(Variable): + value_type = bool + entity = TaxUnit + definition_period = YEAR + label = "Either filer claimable elsewhere without the claimant filing exception" + documentation = ( + "Whether a tax-unit head or spouse is claimable on another return " + "without the claimant filing exception. Symmetric Dependent Taxpayer " + "Test gate; other claimability rules use the ordinary helper." + ) + reference = ( + "https://www.irs.gov/pub/irs-prior/p596--2025.pdf#page=18", + "https://www.irs.gov/pub/irs-prior/p501--2025.pdf#page=11", + ) + + def formula(tax_unit, period, parameters): + person = tax_unit.members + dependent = person("is_dependent_elsewhere_without_filing_exception", period) + filer = person("is_tax_unit_head_or_spouse", period) + return tax_unit.any(dependent & filer) diff --git a/policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py index 348b7a993a2..3d040cf683d 100644 --- a/policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py +++ b/policyengine_us/variables/household/demographic/tax_unit/head_spouse_count_not_dependent_elsewhere.py @@ -7,14 +7,14 @@ class head_spouse_count_not_dependent_elsewhere(Variable): definition_period = YEAR label = "Head and spouse count not dependent elsewhere" documentation = ( - "Number of tax unit heads and spouses who are not claimed as a " + "Number of tax unit heads and spouses who are not claimable as a " "dependent in another tax unit." ) def formula(tax_unit, period, parameters): person = tax_unit.members - claimed_on_another_return = person( - "claimed_as_dependent_on_another_return", period + claimable_on_another_return = person( + "claimable_as_dependent_on_another_return", period ) filer = person("is_tax_unit_head_or_spouse", period) - return tax_unit.sum(filer & ~claimed_on_another_return) + return tax_unit.sum(filer & ~claimable_on_another_return) diff --git a/policyengine_us/variables/household/demographic/tax_unit/spouse_is_dependent_elsewhere.py b/policyengine_us/variables/household/demographic/tax_unit/spouse_is_dependent_elsewhere.py index b8fb0bc9c5f..a8e0183e464 100644 --- a/policyengine_us/variables/household/demographic/tax_unit/spouse_is_dependent_elsewhere.py +++ b/policyengine_us/variables/household/demographic/tax_unit/spouse_is_dependent_elsewhere.py @@ -6,12 +6,12 @@ class spouse_is_dependent_elsewhere(Variable): entity = TaxUnit definition_period = YEAR label = "Tax-unit spouse is dependent elsewhere" - documentation = "Whether the spouse of the filer for this tax unit is claimed as a dependent in another tax unit." + documentation = "Whether the spouse of the filer for this tax unit is claimable as a dependent in another tax unit." def formula(tax_unit, period, parameters): person = tax_unit.members - claimed_on_another_return = person( - "claimed_as_dependent_on_another_return", period + claimable_on_another_return = person( + "claimable_as_dependent_on_another_return", period ) is_spouse = person("is_tax_unit_spouse", period) - return tax_unit.any(claimed_on_another_return & is_spouse) + return tax_unit.any(claimable_on_another_return & is_spouse) From c7f969f872be92689e1606f0b564cb3c8a121d16 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 13:16:55 -0400 Subject: [PATCH 15/25] Clarify claimability outside the current tax unit --- .../person/claimable_as_dependent_on_another_return.py | 3 ++- 1 file changed, 2 insertions(+), 1 deletion(-) diff --git a/policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py b/policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py index eccd696bbec..5643c2eb30d 100644 --- a/policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py +++ b/policyengine_us/variables/household/demographic/person/claimable_as_dependent_on_another_return.py @@ -7,7 +7,8 @@ class claimable_as_dependent_on_another_return(Variable): definition_period = YEAR label = "Can be claimed as a dependent elsewhere" documentation = ( - "Whether another taxpayer can claim the person as a dependent: a " + "Whether another taxpayer, in another tax unit, can claim the person " + "as a dependent: a " "deduction under IRC section 151 for the person is allowable to " "another taxpayer, whether or not claimed. Defaults to the actual " "or expected claim input for compatibility with existing callers. " From 3f8870261ca2ff4ec7c4b28e106d6c4cadcec935 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 13:39:43 -0400 Subject: [PATCH 16/25] Read the split dependency inputs from #10024 #10024 now separates three facts: is claimed, can be claimed, and the would-be claimant's filing exception. - IRC 152(b)(1) gates (child tax credit, credit for other dependents, under-13 care child and its expenses, dependents in exemptions_count, ARPA dependents, Ohio dependents, the Hawaii and Wisconsin reforms) read head_or_spouse_is_dependent_elsewhere_without_filing_exception, so a filer within the Publication 501 exception keeps their dependents. - Own exemptions, recovery rebates and the tuition deduction read claimability. - Education credits and student loan interest keep reading the claimed input. - Tests: the filing exception and a filer who can be claimed but is not. Co-Authored-By: Claude Opus 5.5 --- .../hi_dependent_exemption_reform.py | 4 +- .../wi_dependent_exemption_reform.py | 4 +- .../credits/cdcc/cdcc_relevant_expenses.yaml | 29 +++++ .../ctc/maximum/ctc_qualifying_child.yaml | 84 ++++++++++++++ ...gible_for_american_opportunity_credit.yaml | 26 ++++- .../recovery_rebate_credit.yaml | 19 +++ .../student_loan_interest_ald_eligible.yaml | 19 ++- .../tuition_and_fees_deduction_eligible.yaml | 18 +++ .../exemptions/exemptions_count.yaml | 109 ++++++++++++++++++ .../gov/irs/credits/cdcc/cdcc_eligible.py | 2 +- .../credits/cdcc/cdcc_relevant_expenses.py | 4 +- .../ctc/maximum/ctc_qualifying_child.py | 2 +- .../ctc_adult_individual_maximum.py | 2 +- .../rrc_adult_count_with_valid_ssn.py | 4 +- .../recovery_rebate_credit/rrc_arpa.py | 2 +- .../rrc_arpa_dependents_with_valid_ssn.py | 2 +- .../credits/recovery_rebate_credit/rrc_caa.py | 2 +- .../recovery_rebate_credit/rrc_cares.py | 2 +- .../exemptions/exemptions_count.py | 22 ++-- .../oh_personal_exemptions_eligible_person.py | 2 +- 20 files changed, 332 insertions(+), 26 deletions(-) diff --git a/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py b/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py index 3349f9a9f31..d1b0283f0b2 100644 --- a/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py +++ b/policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py @@ -18,7 +18,7 @@ def formula(tax_unit, period, parameters): # A return on which the filer (or, if joint, either spouse) can be # claimed as a dependent has no dependents (IRC 152(b)(1)). is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) # Apply age limit if in effect @@ -56,7 +56,7 @@ def formula(tax_unit, period, parameters): # A return on which the filer (or, if joint, either spouse) can be # claimed as a dependent has no dependents (IRC 152(b)(1)). is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) total_dependents = tax_unit.sum(is_dependent) eligible_dependent_exemptions = tax_unit( diff --git a/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py b/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py index 85e40eefe7f..0471bac9c9a 100644 --- a/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py +++ b/policyengine_us/reforms/states/wi/dependent_exemption/wi_dependent_exemption_reform.py @@ -18,7 +18,7 @@ def formula(tax_unit, period, parameters): # A return on which the filer (or, if joint, either spouse) can be # claimed as a dependent has no dependents (IRC 152(b)(1)). is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) # Apply age limit if in effect @@ -56,7 +56,7 @@ def formula(tax_unit, period, parameters): # A return on which the filer (or, if joint, either spouse) can be # claimed as a dependent has no dependents (IRC 152(b)(1)). is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) total_dependents = tax_unit.sum(is_dependent) eligible_dependent_exemptions = tax_unit( diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml index 15dfeb1fe4a..11084acd2b8 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml @@ -209,3 +209,32 @@ output: count_cdcc_eligible: 2 cdcc_relevant_expenses: 3000 + +# Publication 501, Dependent Taxpayer Test: a filer whose would-be claimant is not +# required to file and files no return or only for a refund can claim dependents. +- name: 2025 childcare for the child of a claimable filer within the filing exception counts + period: 2025 + input: + people: + parent: + age: 30 + employment_income: 5000 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child] + tax_unit_childcare_expenses: 3000 + households: + household: + members: [parent, child] + state_code: TX + output: + count_cdcc_eligible: 1 + cdcc_relevant_expenses: 3000 diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml index 0a40c086281..fc96d52a969 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/ctc_qualifying_child.yaml @@ -159,3 +159,87 @@ output: ctc_qualifying_child: [false, false, true] ctc_maximum: 2_200 + +# Publication 501, Dependent Taxpayer Test: a filer whose would-be claimant is not +# required to file and files no return or only for a refund can claim dependents. +- name: 2025 claimable single filer within the filing exception keeps the CTC-qualifying child + period: 2025 + input: + people: + parent: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + ctc_qualifying_child: [false, true] + +- name: 2025 joint return whose claimable spouse is within the filing exception keeps the CTC-qualifying child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + ctc_qualifying_child: [false, false, true] + +- name: 2025 joint return whose claimable spouse is within the filing exception keeps the CTC-qualifying child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: TX + output: + ctc_qualifying_child: [false, false, true] diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml index 908d3d3c657..b932cf52198 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml @@ -178,7 +178,6 @@ output: is_eligible_for_american_opportunity_credit: false - - name: 2024 student claimed as a dependent elsewhere cannot claim the credit period: 2024 input: @@ -307,3 +306,28 @@ state_code: TX output: is_eligible_for_american_opportunity_credit: [true, true] + +# IRC 25A(g)(3) and 26 CFR 1.25A-1(f): the bar applies to a student who is +# claimed; a student who can be claimed but is not keeps the credit. +- name: 2024 student who can be claimed but is not claimed keeps the credit + period: 2024 + input: + people: + person_a: + age: 20 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a] + households: + household: + members: [person_a] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: true diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml index 045236d3234..2aa4b19bdf1 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml @@ -311,3 +311,22 @@ state_code: TX output: rrc_arpa: 2800 + +# IRC 6428B(c)(2): an individual "who is a dependent of another taxpayer" is not +# eligible, whether or not that taxpayer claims them. +- name: 2021 single filer who can be claimed but is not claimed gets no ARPA rebate + period: 2021 + input: + people: + person_a: + age: 20 + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a] + households: + household: + members: [person_a] + state_code: TX + output: + rrc_arpa: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml index 97566eae089..e161077097f 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/student_loan_interest/student_loan_interest_ald_eligible.yaml @@ -38,7 +38,6 @@ output: student_loan_interest_ald_eligible: false - - name: 2024 single filer claimed as a dependent elsewhere cannot deduct student loan interest period: 2024 input: @@ -106,3 +105,21 @@ state_code: TX output: student_loan_interest_ald_eligible: [false, false] + +# IRC 221(c): the bar applies to an individual who is claimed. +- name: 2024 single filer who can be claimed but is not claimed can deduct student loan interest + period: 2024 + input: + people: + person_a: + age: 22 + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a] + households: + household: + members: [person_a] + state_code: TX + output: + student_loan_interest_ald_eligible: true diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml index dd6bcd8d147..c55f696055c 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tuition_and_fees_deduction_eligible.yaml @@ -116,3 +116,21 @@ state_code: TX output: tuition_and_fees_deduction_eligible: true + +- name: 2020 single filer who can be claimed but is not claimed is not eligible + period: 2020 + input: + people: + person_a: + age: 20 + claimable_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [person_a] + households: + household: + members: [person_a] + state_code: TX + output: + # IRC 222(c)(3): a section 151 deduction "may be allowed to another taxpayer". + tuition_and_fees_deduction_eligible: false diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml index 16c899b35cf..40ce1bf5142 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/exemptions/exemptions_count.yaml @@ -131,3 +131,112 @@ state_code: TX output: exemptions_count: 3 + +# Publication 501, Dependent Taxpayer Test: a filer whose would-be claimant is not +# required to file and files no return or only for a refund can claim dependents. +# The filer's own exemption is still zero (IRC 151(d)(2)). +- name: 2025 claimable single filer within the filing exception counts the child but not themselves + period: 2025 + input: + people: + parent: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + exemptions_count: 1 + +- name: 2025 joint return whose claimable spouse is within the filing exception counts the other spouse and the child (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + exemptions_count: 2 + +- name: 2025 joint return whose claimable spouse is within the filing exception counts the other spouse and the child (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: TX + output: + exemptions_count: 2 + +- name: 2025 filer who can be claimed but is not claimed has no own exemption and no dependents + period: 2025 + input: + people: + parent: + age: 30 + claimable_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + # Exemptions turn on whether the filer can be claimed, not on an actual claim. + exemptions_count: 0 diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py index 7e45d74c8f1..c7dbc104092 100644 --- a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_eligible.py @@ -31,7 +31,7 @@ def formula(person, period, parameters): # input for an IRC 152(e) release, so the 21(e)(5) child of a # custodial parent who can be claimed is not kept. filer_is_dependent = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) qualifies_by_age = ~head_or_spouse & (age < p.child_age) & ~filer_is_dependent # Subsections (b)(1)(B) (dependent) and (b)(1)(C) (spouse). Subsection diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py index 501d124e5b6..fba13665ad0 100644 --- a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py @@ -28,7 +28,9 @@ def formula(tax_unit, period, parameters): qualifying_child = person("is_cdcc_eligible", period) & ( person("age", period) < p.child_age ) - dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + dependent_filer = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) childcare = where( dependent_filer & ~tax_unit.any(qualifying_child), 0, childcare ) diff --git a/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py b/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py index 3bc002458d2..f8906588f5d 100644 --- a/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py +++ b/policyengine_us/variables/gov/irs/credits/ctc/maximum/ctc_qualifying_child.py @@ -30,6 +30,6 @@ def formula(person, period, parameters): # having no dependents, and on a joint return neither spouse may be # claimable (Publication 501, Dependent Taxpayer Test). filer_is_dependent = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) return age_eligible & meets_identification_requirements & ~filer_is_dependent diff --git a/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py b/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py index 23c93da7ba3..13c2ffd4c52 100644 --- a/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py +++ b/policyengine_us/variables/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.py @@ -29,7 +29,7 @@ def formula(person, period, parameters): # under IRC 152(b)(1) a return on which the filer (or, if joint, # either spouse) can be claimed as a dependent has no dependents. filer_is_dependent = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) return ( is_adult diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py index 7ef7231bb3b..63612661479 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py @@ -24,5 +24,5 @@ def formula(tax_unit, period, parameters): # whom a deduction under section 151 is allowable to another # taxpayer" (IRC 6428(d)(2), 6428A(d)(2)) or "who is a dependent of # another taxpayer" (IRC 6428B(c)(2)): a claimability test. - claimed = person("claimed_as_dependent_on_another_return", period) - return tax_unit.sum(head_or_spouse & has_valid_ssn & ~claimed) + claimable = person("claimable_as_dependent_on_another_return", period) + return tax_unit.sum(head_or_spouse & has_valid_ssn & ~claimable) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py index 2ea2796ed3c..0ffd5e954b4 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py @@ -31,7 +31,7 @@ def formula(tax_unit, period, parameters): person = tax_unit.members dependent_filers = tax_unit.sum( person("is_tax_unit_head_or_spouse", period) - & person("claimed_as_dependent_on_another_return", period) + & person("claimable_as_dependent_on_another_return", period) ) count_adults = where( armed_forces_exception, diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py index e91e2ee9a48..45245ce16a2 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa_dependents_with_valid_ssn.py @@ -17,7 +17,7 @@ def formula(tax_unit, period, parameters): # under 152(b)(1) a return on which the filer (or, if joint, either # spouse) can be claimed as a dependent has none. dependent_filer = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) is_dependent = person("is_tax_unit_dependent", period) & ~dependent_filer has_valid_ssn = person("meets_eitc_identification_requirements", period) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py index cc704eb482b..b0ee925ced1 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py @@ -28,7 +28,7 @@ def formula(tax_unit, period, parameters): person = tax_unit.members dependent_filers = tax_unit.sum( person("is_tax_unit_head_or_spouse", period) - & person("claimed_as_dependent_on_another_return", period) + & person("claimable_as_dependent_on_another_return", period) ) count_adults = where( armed_forces_exception, diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py index be4a6d8c1c0..c61fca0c9a7 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py @@ -28,7 +28,7 @@ def formula(tax_unit, period, parameters): person = tax_unit.members dependent_filers = tax_unit.sum( person("is_tax_unit_head_or_spouse", period) - & person("claimed_as_dependent_on_another_return", period) + & person("claimable_as_dependent_on_another_return", period) ) count_adults = where( armed_forces_exception, diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py b/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py index 2fec52064f4..57eaacb22f8 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/exemptions/exemptions_count.py @@ -10,7 +10,8 @@ class exemptions_count(Variable): documentation = ( "Number of personal exemptions on the federal return: one for each " "filer who cannot be claimed as a dependent by another taxpayer, plus " - "one for each dependent unless a filer can be claimed." + "one for each dependent unless a filer can be claimed and the " + "would-be claimant does not meet the filing exception." ) reference = ( "https://www.law.cornell.edu/uscode/text/26/151#d_2", @@ -25,13 +26,16 @@ class exemptions_count(Variable): ) def formula(tax_unit, period, parameters): - # IRC 151(d)(2) zeroes the exemption of a filer whom another taxpayer - # can claim, and IRC 152(b)(1) treats a return on which the filer (or, - # if joint, either spouse) can be claimed as having no dependents. So - # such a return counts only its filers who cannot be claimed. tax_unit_size = tax_unit("tax_unit_size", period) - filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) - independent_filers = tax_unit( - "head_spouse_count_not_dependent_elsewhere", period + # IRC 151(d)(2): no exemption for a filer whom another taxpayer can + # claim as a dependent. + claimable_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + own = tax_unit("head_spouse_count_not_dependent_elsewhere", period) + # IRC 152(b)(1): such a filer has no dependents, unless the would-be + # claimant is not required to file and files no return or only for a + # refund (Publication 501, Dependent Taxpayer Test). + no_dependents = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) - return where(filer_is_dependent, independent_filers, tax_unit_size) + dependents = where(no_dependents, 0, tax_unit("tax_unit_dependents", period)) + return where(claimable_filer, own + dependents, tax_unit_size) diff --git a/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py b/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py index d19c249a8e9..813a61fd698 100644 --- a/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py +++ b/policyengine_us/variables/gov/states/oh/tax/income/exemptions/oh_personal_exemptions_eligible_person.py @@ -22,7 +22,7 @@ def formula(person, period, parameters): # on which the filer (or, if joint, either spouse) can be claimed as a # dependent has none (IRC 152(b)(1)). dependent_filer = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) dependent = person("is_tax_unit_dependent", period) & ~dependent_filer return (~dependent_on_another_return & head_or_spouse) | dependent From b2771d2f15466f0850788b5577fe3f503681607f Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 14:58:06 -0400 Subject: [PATCH 17/25] Follow the corrected exemption count in three Hawaii credits #10024's food/excise credit, Act 115 rebate and renters credit took claimable filers off exemptions_count themselves. exemptions_count now leaves them out (and, outside the filing exception, the return's dependents), so those credits read it as it is; the filing-exception cases were one exemption short. The renters credit also leaves out a dependent who can be claimed by another taxpayer (Schedule X counts only people who cannot be), as the food/excise credit already did. Co-Authored-By: Claude Opus 5.5 --- ...w_income_household_renters_tax_credit.yaml | 126 ++++++++++++++++++ .../hi_food_excise_exemption_amount.py | 10 +- .../tax/income/credits/hi_act_115_rebate.py | 14 +- ...low_income_household_renters_tax_credit.py | 20 ++- 4 files changed, 150 insertions(+), 20 deletions(-) diff --git a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml index 25fa5e14ce5..cc6de0fb9ea 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.yaml @@ -166,3 +166,129 @@ state_code: HI output: hi_tax_credit_for_low_income_household_renters: 150 + +# Schedule X counts only people who cannot be claimed as a dependent by another +# taxpayer, so a child in the household who can be claimed elsewhere adds no +# exemption. +- name: Joint return with a child who can be claimed elsewhere counts the two filers + period: 2021 + input: + people: + person_a: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + claimable_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_tax_credit_for_low_income_household_renters: 100 + +- name: Joint return with a child who cannot be claimed elsewhere counts the child + period: 2021 + input: + people: + person_a: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_tax_credit_for_low_income_household_renters: 150 + +- name: Joint return within the filing exception with a child who can be claimed elsewhere counts only the other spouse (the claimable spouse is the head) + period: 2021 + input: + people: + person_a: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + claimable_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_a, person_b, child_1] + state_code: HI + output: + hi_tax_credit_for_low_income_household_renters: 50 + +- name: Joint return within the filing exception with a child who can be claimed elsewhere counts only the other spouse (the claimable spouse is the spouse) + period: 2021 + input: + people: + person_b: + age: 30 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child_1: + age: 5 + claimable_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child_1] + filing_status: JOINT + adjusted_gross_income: 4000 + hi_tax_credit_for_low_income_household_renters_eligible: true + households: + household: + members: [person_b, person_a, child_1] + state_code: HI + output: + hi_tax_credit_for_low_income_household_renters: 50 diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py index 09127fcd2c1..39bbb252a55 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_exemption_amount.py @@ -47,11 +47,15 @@ def formula(tax_unit, period, parameters): # be claimed by another taxpayer, including children. In 2022, # lines 8-10 price ordinary persons and publicly supported minors # separately; 2025 lines 8-9 combine the two qualified counts. - externally_claimable = tax_unit.sum( - tax_unit.members("claimable_as_dependent_on_another_return", period) + # exemptions_count already leaves out a filer who can be claimed, so + # only the dependents who can be claimed elsewhere come off here. + person = tax_unit.members + externally_claimable_dependents = tax_unit.sum( + person("is_tax_unit_dependent", period) + & person("claimable_as_dependent_on_another_return", period) ) exemptions = max_( - tax_unit("exemptions_count", period) - externally_claimable, 0 + tax_unit("exemptions_count", period) - externally_claimable_dependents, 0 ) minor_children = tax_unit("hi_food_excise_credit_minor_child_count", period) if p.minor_child.in_effect: diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py index adc6f987c58..f0c3d84ac13 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_act_115_rebate.py @@ -52,16 +52,10 @@ def formula(tax_unit, period, parameters): independent_filers = tax_unit( "head_spouse_count_not_dependent_elsewhere", period ) - dependent_taxpayer = tax_unit( - "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period - ) - filers = add(tax_unit, period, ["is_tax_unit_head_or_spouse"]) - dependent_filers = filers - independent_filers - ordinary_exemptions = max_(exemptions - dependent_filers, 0) - qualified_exemptions = where( - dependent_taxpayer, independent_filers, ordinary_exemptions - ) + # exemptions_count applies these rules: it leaves out a claimable + # filer's own exemption and, unless the filing exception applies, the + # return's dependents. qualified_exemptions = where( - dependent_filer & (independent_filers == 0), 0, qualified_exemptions + dependent_filer & (independent_filers == 0), 0, exemptions ) return amount_per_exemption * qualified_exemptions diff --git a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py index a744ce369bf..d55ac2607ca 100644 --- a/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py +++ b/policyengine_us/variables/gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_low_income_household_renters_tax_credit.py @@ -32,18 +32,24 @@ def formula(tax_unit, period, parameters): ) & ~tax_unit("spouse_is_dependent_elsewhere", period) aged_exemptions = aged_head.astype(int) + aged_spouse.astype(int) + # exemptions_count applies these rules to the filers and to the + # return's dependents. A dependent who can be claimed by another + # taxpayer is also left out; a return without dependents has none to + # take off. dependent_taxpayer = tax_unit( "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) - independent_filers = tax_unit( - "head_spouse_count_not_dependent_elsewhere", period + person = tax_unit.members + externally_claimable_dependents = tax_unit.sum( + person("is_tax_unit_dependent", period) + & person("claimable_as_dependent_on_another_return", period) ) - filers = add(tax_unit, period, ["is_tax_unit_head_or_spouse"]) - dependent_filers = filers - independent_filers - ordinary_exemptions = max_( - tax_unit("exemptions_count", period) - dependent_filers, 0 + exemptions_count = tax_unit("exemptions_count", period) + exemptions = where( + dependent_taxpayer, + exemptions_count, + max_(exemptions_count - externally_claimable_dependents, 0), ) - exemptions = where(dependent_taxpayer, independent_filers, ordinary_exemptions) total_exemptions = exemptions + aged_exemptions return p.amount * total_exemptions From 163fcd4cfa98345d5ec0c358d2d35c8516789334 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 15:23:57 -0400 Subject: [PATCH 18/25] Address the second federal claimable-filer review - Education credits: a dependent student is not eligible on a return whose filer can be claimed outside the filing exception (IRC 25A(f)(1)(A)(iii), 152(b)(1)); the filer's own eligibility still turns on an actual claim. - Recovery rebates: no credit when every filer is a dependent of another taxpayer (IRC 6428B(a)); the CARES and CAA child prerequisite is a spouse with a valid SSN, whether or not that spouse is an eligible individual. - Child and dependent care: cdcc_qualifying_childcare_expenses holds the expense rule, and the single-parent work requirement reform and California's expenses read it. - References: Georgia HB 136 page 3; one entry per recovery rebate statute; quote IRC 24(h)(4)(A) exactly in the test comment. - Tests: dependent students, the two rebate cases, the reform and California expenses, and the Hawaii, Wisconsin and Treasury reforms with a claimable filer under both labellings. Co-Authored-By: Claude Opus 5.5 --- .../cdcc_single_parent_work_requirement.py | 2 +- .../ctc_adult_individual_maximum.yaml | 2 +- ...gible_for_american_opportunity_credit.yaml | 166 ++++++++++++++++++ .../recovery_rebate_credit.yaml | 96 ++++++++++ .../ca_cdcc_relevant_expenses.yaml | 61 +++++++ .../hi/dependent_exemption_reform_test.yaml | 54 ++++++ .../wi/dependent_exemption_reform_test.yaml | 54 ++++++ .../treasury/repeal_dependent_exemptions.yaml | 43 +++++ .../cdcc_single_parent_work_requirement.yaml | 57 ++++++ .../cdcc_qualifying_childcare_expenses.py | 32 ++++ .../credits/cdcc/cdcc_relevant_expenses.py | 20 +-- ...ligible_for_american_opportunity_credit.py | 8 + ...s_eligible_for_lifetime_learning_credit.py | 8 + .../rrc_adult_count_with_valid_ssn.py | 10 +- .../recovery_rebate_credit/rrc_arpa.py | 6 +- .../credits/recovery_rebate_credit/rrc_caa.py | 10 +- .../recovery_rebate_credit/rrc_cares.py | 10 +- .../credits/ca_cdcc_relevant_expenses.py | 2 +- .../credits/ctc/ga_ctc_eligible_child.py | 2 +- 19 files changed, 615 insertions(+), 28 deletions(-) create mode 100644 policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py diff --git a/policyengine_us/reforms/cdcc/cdcc_single_parent_work_requirement.py b/policyengine_us/reforms/cdcc/cdcc_single_parent_work_requirement.py index b83cb1ab43d..a84182005de 100644 --- a/policyengine_us/reforms/cdcc/cdcc_single_parent_work_requirement.py +++ b/policyengine_us/reforms/cdcc/cdcc_single_parent_work_requirement.py @@ -30,7 +30,7 @@ class cdcc_relevant_expenses(Variable): ) def formula(tax_unit, period, parameters): - expenses = tax_unit("tax_unit_childcare_expenses", period) + expenses = tax_unit("cdcc_qualifying_childcare_expenses", period) cdcc_limit = tax_unit("cdcc_limit", period) eligible_capped_expenses = min_(expenses, cdcc_limit) diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml index 9c46915a88e..79cfb1685d3 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/ctc/maximum/individual/ctc_adult_individual_maximum.yaml @@ -61,7 +61,7 @@ members: [filer, sibling] state_code: TX output: - # IRC 24(h)(4) "any dependent of the taxpayer"; IRC 152(b)(1). + # IRC 24(h)(4)(A) "each dependent of the taxpayer"; IRC 152(b)(1). ctc_adult_individual_maximum: [0, 0] - name: 2025 joint return with one claimable spouse gets no credit for other dependents (the claimable spouse is the head) diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml index b932cf52198..5544205c3d5 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.yaml @@ -331,3 +331,169 @@ state_code: TX output: is_eligible_for_american_opportunity_credit: true + +# IRC 25A(f)(1)(A)(iii): a dependent's tuition counts only if the taxpayer is +# allowed a section 151 deduction for the dependent, and a return on which a filer +# can be claimed has no dependents (IRC 152(b)(1)), unless the would-be claimant +# meets the filing exception (Publication 501). +- name: 2024 dependent student of a filer who can be claimed is not eligible + period: 2024 + input: + people: + parent: + age: 45 + has_tin: true + claimable_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + student: + age: 19 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, student] + households: + household: + members: [parent, student] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [false, false] + +- name: 2024 dependent student of a claimable filer within the filing exception is eligible + period: 2024 + input: + people: + parent: + age: 45 + has_tin: true + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + student: + age: 19 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, student] + households: + household: + members: [parent, student] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [false, true] + +- name: 2024 dependent student of a filer who cannot be claimed is eligible + period: 2024 + input: + people: + parent: + age: 45 + has_tin: true + is_tax_unit_head: true + is_tax_unit_spouse: false + student: + age: 19 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, student] + households: + household: + members: [parent, student] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [false, true] + +- name: 2024 dependent student of a joint return with one claimable spouse is not eligible (the claimable spouse is the head) + period: 2024 + input: + people: + person_a: + age: 45 + has_tin: true + claimable_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 45 + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: true + student: + age: 19 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, student] + filing_status: JOINT + households: + household: + members: [person_a, person_b, student] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [false, false, false] + +- name: 2024 dependent student of a joint return with one claimable spouse is not eligible (the claimable spouse is the spouse) + period: 2024 + input: + people: + person_b: + age: 45 + has_tin: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 45 + has_tin: true + claimable_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + student: + age: 19 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, student] + filing_status: JOINT + households: + household: + members: [person_b, person_a, student] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [false, false, false] diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml index 2aa4b19bdf1..a1e77b517ef 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml @@ -330,3 +330,99 @@ state_code: TX output: rrc_arpa: 0 + +# IRC 6428B(a) allows the credit to an eligible individual, so a return whose only +# filer is a dependent of another taxpayer gets none, even when the filing +# exception lets that filer claim the child. +- name: 2021 claimable single filer within the filing exception gets no ARPA rebate for the child + period: 2021 + input: + people: + parent: + age: 30 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child] + households: + household: + members: [parent, child] + state_code: TX + output: + rrc_arpa: 0 + +# IRC 6428(g)(1)(C) and 6428A(g)(3): children count when a spouse has a valid SSN, +# whether or not that spouse is an eligible individual. Here the spouse with the +# SSN can be claimed (within the filing exception) and serves in the Armed +# Forces; the other spouse has no SSN. +- name: 2020 child payments need a spouse with an SSN, not an eligible spouse with one (the claimable spouse is the head) + period: 2020 + input: + people: + person_a: + age: 30 + is_military: true + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 30 + meets_eitc_identification_requirements: false + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, child] + filing_status: JOINT + households: + household: + members: [person_a, person_b, child] + state_code: TX + output: + # One adult payment under the Armed Forces exception plus the child's. + rrc_cares: 1700 + rrc_caa: 1200 + +- name: 2020 child payments need a spouse with an SSN, not an eligible spouse with one (the claimable spouse is the spouse) + period: 2020 + input: + people: + person_b: + age: 30 + meets_eitc_identification_requirements: false + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 30 + is_military: true + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + households: + household: + members: [person_b, person_a, child] + state_code: TX + output: + rrc_cares: 1700 + rrc_caa: 1200 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc_relevant_expenses.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc_relevant_expenses.yaml index 41bb2e8353e..e415e951776 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc_relevant_expenses.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/child_dependent_care/ca_cdcc_relevant_expenses.yaml @@ -117,3 +117,64 @@ dependent_care_assistance_exclusion: 4_000 # min(10_000 expenses, $6,000 two-child cap - $4,000 exclusion, 38_000) = 2_000. ca_cdcc_relevant_expenses: 2_000 + +# FTB 3506 counts expenses for qualifying persons. The child of a filer who can be +# claimed as a dependent is not one (IRC 152(b)(1)); the incapacitated relative is. +- name: 2025 childcare for the child of a claimable filer does not count + period: 2025 + input: + people: + parent: + age: 30 + employment_income: 5000 + claimable_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + relative: + age: 40 + is_incapable_of_self_care: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child, relative] + tax_unit_childcare_expenses: 3000 + households: + household: + members: [parent, child, relative] + state_code: CA + output: + ca_cdcc_relevant_expenses: 0 + +- name: 2025 the same household with a filer who cannot be claimed counts the childcare + period: 2025 + input: + people: + parent: + age: 30 + employment_income: 5000 + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 5 + is_tax_unit_head: false + is_tax_unit_spouse: false + relative: + age: 40 + is_incapable_of_self_care: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child, relative] + tax_unit_childcare_expenses: 3000 + households: + household: + members: [parent, child, relative] + state_code: CA + output: + ca_cdcc_relevant_expenses: 3000 diff --git a/policyengine_us/tests/policy/contrib/states/hi/dependent_exemption_reform_test.yaml b/policyengine_us/tests/policy/contrib/states/hi/dependent_exemption_reform_test.yaml index 8a11f290155..398865a7a4d 100644 --- a/policyengine_us/tests/policy/contrib/states/hi/dependent_exemption_reform_test.yaml +++ b/policyengine_us/tests/policy/contrib/states/hi/dependent_exemption_reform_test.yaml @@ -150,3 +150,57 @@ # exemptions from 3,432 to 1,144, widening taxable income and raising HI # income tax from 2,855.97 to 3,029.86 (about +173.89). output: {hi_income_tax: 3029.86} + +# As in the baseline, a filer who can be claimed as a dependent has no exemption of +# their own and, outside the claimant filing exception, no dependents. +- name: HI dependent exemption reform - claimable single filer has no exemptions + period: 2025 + reforms: policyengine_us.reforms.states.hi.dependent_exemption.hi_dependent_exemption_reform.hi_dependent_exemption_reform + input: + gov.contrib.states.hi.dependent_exemption.in_effect: true + people: + parent: {age: 40, employment_income: 60_000, claimable_as_dependent_on_another_return: true} + child1: {age: 10, is_tax_unit_dependent: true} + child2: {age: 12, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [parent, child1, child2], filing_status: SINGLE}} + households: {household: {members: [parent, child1, child2], state_name: HI}} + output: {hi_regular_exemptions: 0} + +- name: HI dependent exemption reform - the filing exception keeps the dependents only + period: 2025 + reforms: policyengine_us.reforms.states.hi.dependent_exemption.hi_dependent_exemption_reform.hi_dependent_exemption_reform + input: + gov.contrib.states.hi.dependent_exemption.in_effect: true + people: + parent: {age: 40, employment_income: 60_000, claimable_as_dependent_on_another_return: true, dependent_claimant_filing_exception: true} + child1: {age: 10, is_tax_unit_dependent: true} + child2: {age: 12, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [parent, child1, child2], filing_status: SINGLE}} + households: {household: {members: [parent, child1, child2], state_name: HI}} + output: {hi_regular_exemptions: 2_288} + +- name: HI dependent exemption reform - joint return with one claimable spouse keeps the other spouse only (the claimable spouse is the head) + period: 2025 + reforms: policyengine_us.reforms.states.hi.dependent_exemption.hi_dependent_exemption_reform.hi_dependent_exemption_reform + input: + gov.contrib.states.hi.dependent_exemption.in_effect: true + people: + person_a: {age: 40, claimable_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 40, employment_income: 60_000, is_tax_unit_head: false, is_tax_unit_spouse: true} + child1: {age: 10, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [person_a, person_b, child1], filing_status: JOINT}} + households: {household: {members: [person_a, person_b, child1], state_name: HI}} + output: {hi_regular_exemptions: 1_144} + +- name: HI dependent exemption reform - joint return with one claimable spouse keeps the other spouse only (the claimable spouse is the spouse) + period: 2025 + reforms: policyengine_us.reforms.states.hi.dependent_exemption.hi_dependent_exemption_reform.hi_dependent_exemption_reform + input: + gov.contrib.states.hi.dependent_exemption.in_effect: true + people: + person_b: {age: 40, employment_income: 60_000, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 40, claimable_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + child1: {age: 10, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [person_b, person_a, child1], filing_status: JOINT}} + households: {household: {members: [person_b, person_a, child1], state_name: HI}} + output: {hi_regular_exemptions: 1_144} diff --git a/policyengine_us/tests/policy/contrib/states/wi/dependent_exemption_reform_test.yaml b/policyengine_us/tests/policy/contrib/states/wi/dependent_exemption_reform_test.yaml index 05709219f00..c6cfa3a680a 100644 --- a/policyengine_us/tests/policy/contrib/states/wi/dependent_exemption_reform_test.yaml +++ b/policyengine_us/tests/policy/contrib/states/wi/dependent_exemption_reform_test.yaml @@ -137,3 +137,57 @@ # 50,594. Wis. Stat. 71.06(1r): 3.5% x 14,680 + 4.4% x (50,480 - 14,680) # + 5.3% x (50,594 - 50,480) = 2,095.04 (baseline 2,032.42). output: {wi_income_tax: 2095.04} + +# As in the baseline, a filer who can be claimed as a dependent has no exemption of +# their own and, outside the claimant filing exception, no dependents. +- name: WI dependent exemption reform - claimable single filer has no exemptions + period: 2025 + reforms: policyengine_us.reforms.states.wi.dependent_exemption.wi_dependent_exemption_reform.wi_dependent_exemption_reform + input: + gov.contrib.states.wi.dependent_exemption.in_effect: true + people: + parent: {age: 40, employment_income: 60_000, claimable_as_dependent_on_another_return: true} + child1: {age: 10, is_tax_unit_dependent: true} + child2: {age: 12, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [parent, child1, child2], filing_status: SINGLE}} + households: {household: {members: [parent, child1, child2], state_name: WI}} + output: {wi_base_exemption: 0} + +- name: WI dependent exemption reform - the filing exception keeps the dependents only + period: 2025 + reforms: policyengine_us.reforms.states.wi.dependent_exemption.wi_dependent_exemption_reform.wi_dependent_exemption_reform + input: + gov.contrib.states.wi.dependent_exemption.in_effect: true + people: + parent: {age: 40, employment_income: 60_000, claimable_as_dependent_on_another_return: true, dependent_claimant_filing_exception: true} + child1: {age: 10, is_tax_unit_dependent: true} + child2: {age: 12, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [parent, child1, child2], filing_status: SINGLE}} + households: {household: {members: [parent, child1, child2], state_name: WI}} + output: {wi_base_exemption: 1_400} + +- name: WI dependent exemption reform - joint return with one claimable spouse keeps the other spouse only (the claimable spouse is the head) + period: 2025 + reforms: policyengine_us.reforms.states.wi.dependent_exemption.wi_dependent_exemption_reform.wi_dependent_exemption_reform + input: + gov.contrib.states.wi.dependent_exemption.in_effect: true + people: + person_a: {age: 40, claimable_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 40, employment_income: 60_000, is_tax_unit_head: false, is_tax_unit_spouse: true} + child1: {age: 10, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [person_a, person_b, child1], filing_status: JOINT}} + households: {household: {members: [person_a, person_b, child1], state_name: WI}} + output: {wi_base_exemption: 700} + +- name: WI dependent exemption reform - joint return with one claimable spouse keeps the other spouse only (the claimable spouse is the spouse) + period: 2025 + reforms: policyengine_us.reforms.states.wi.dependent_exemption.wi_dependent_exemption_reform.wi_dependent_exemption_reform + input: + gov.contrib.states.wi.dependent_exemption.in_effect: true + people: + person_b: {age: 40, employment_income: 60_000, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 40, claimable_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + child1: {age: 10, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [person_b, person_a, child1], filing_status: JOINT}} + households: {household: {members: [person_b, person_a, child1], state_name: WI}} + output: {wi_base_exemption: 700} diff --git a/policyengine_us/tests/policy/contrib/treasury/repeal_dependent_exemptions.yaml b/policyengine_us/tests/policy/contrib/treasury/repeal_dependent_exemptions.yaml index ec4d5fb575f..42c59a9621b 100644 --- a/policyengine_us/tests/policy/contrib/treasury/repeal_dependent_exemptions.yaml +++ b/policyengine_us/tests/policy/contrib/treasury/repeal_dependent_exemptions.yaml @@ -63,3 +63,46 @@ output: exemptions_count: 2 exemptions: 0 + +# The personal exemptions that remain are the filers' own, and a filer who can be +# claimed as a dependent has none (IRC 151(d)(2)). +- name: Claimable single filer with a child has no personal exemption + period: 2022 + reforms: policyengine_us.reforms.treasury.repeal_dependent_exemptions.repeal_dependent_exemptions + input: + gov.contrib.treasury.repeal_dependent_exemptions: true + people: + parent: {age: 30, claimable_as_dependent_on_another_return: true} + child: {age: 5, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [parent, child]}} + households: {household: {members: [parent, child], state_code: TX}} + output: + exemptions_count: 0 + +- name: Joint return with one claimable spouse keeps the other spouse's exemption (the claimable spouse is the head) + period: 2022 + reforms: policyengine_us.reforms.treasury.repeal_dependent_exemptions.repeal_dependent_exemptions + input: + gov.contrib.treasury.repeal_dependent_exemptions: true + people: + person_a: {age: 30, claimable_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 30, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [person_a, person_b, child], filing_status: JOINT}} + households: {household: {members: [person_a, person_b, child], state_code: TX}} + output: + exemptions_count: 1 + +- name: Joint return with one claimable spouse keeps the other spouse's exemption (the claimable spouse is the spouse) + period: 2022 + reforms: policyengine_us.reforms.treasury.repeal_dependent_exemptions.repeal_dependent_exemptions + input: + gov.contrib.treasury.repeal_dependent_exemptions: true + people: + person_b: {age: 30, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 30, claimable_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + child: {age: 5, is_tax_unit_dependent: true} + tax_units: {tax_unit: {members: [person_b, person_a, child], filing_status: JOINT}} + households: {household: {members: [person_b, person_a, child], state_code: TX}} + output: + exemptions_count: 1 diff --git a/policyengine_us/tests/policy/reform/cdcc_single_parent_work_requirement.yaml b/policyengine_us/tests/policy/reform/cdcc_single_parent_work_requirement.yaml index b19d62d4314..5de44b287cf 100644 --- a/policyengine_us/tests/policy/reform/cdcc_single_parent_work_requirement.yaml +++ b/policyengine_us/tests/policy/reform/cdcc_single_parent_work_requirement.yaml @@ -152,3 +152,60 @@ min_head_spouse_earned: 0 # Reform: min($8,000, $3,000, max($0, $60,000)) = min($8,000, $3,000, $60,000) = $3,000 cdcc_relevant_expenses: 3_000 + +# The reform changes the earnings test only. Childcare for the child of a filer +# who can be claimed as a dependent still does not count (IRC 21(b)(2)(A)(ii)). +- name: Reform keeps out childcare for the child of a filer who can be claimed + period: 2024 + reforms: policyengine_us.reforms.cdcc.cdcc_single_parent_work_requirement.cdcc_single_parent_work_requirement + input: + people: + adult1: + age: 35 + is_tax_unit_head: true + employment_income: 50_000 + claimable_as_dependent_on_another_return: true + child: + age: 5 + is_tax_unit_dependent: true + relative: + age: 40 + is_tax_unit_dependent: true + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [adult1, child, relative] + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [adult1, child, relative] + state_code: TX + output: + cdcc_relevant_expenses: 0 + +- name: Reform counts the childcare when the filer cannot be claimed + period: 2024 + reforms: policyengine_us.reforms.cdcc.cdcc_single_parent_work_requirement.cdcc_single_parent_work_requirement + input: + people: + adult1: + age: 35 + is_tax_unit_head: true + employment_income: 50_000 + child: + age: 5 + is_tax_unit_dependent: true + relative: + age: 40 + is_tax_unit_dependent: true + is_incapable_of_self_care: true + tax_units: + tax_unit: + members: [adult1, child, relative] + tax_unit_childcare_expenses: 3_000 + households: + household: + members: [adult1, child, relative] + state_code: TX + output: + cdcc_relevant_expenses: 3_000 diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py new file mode 100644 index 00000000000..2162ccd2f87 --- /dev/null +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py @@ -0,0 +1,32 @@ +from policyengine_us.model_api import * + + +class cdcc_qualifying_childcare_expenses(Variable): + value_type = float + entity = TaxUnit + label = "Childcare expenses that count for the child and dependent care credit" + unit = USD + definition_period = YEAR + reference = ( + "https://www.law.cornell.edu/uscode/text/26/21#b_2_A", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + ) + + def formula(tax_unit, period, parameters): + childcare = tax_unit("tax_unit_childcare_expenses", period) + # IRC 21(b)(2)(A)(ii) counts only expenses "for the care of a + # qualifying individual". A return on which a filer can be claimed as + # a dependent (outside the claimant filing exception) has no + # qualifying child under 13 unless the child is incapable of + # self-care, so its childcare expenses do not count. The model records + # childcare as a tax-unit total, so it cannot leave out one child's + # share when another child qualifies. + p = parameters(period).gov.irs.credits.cdcc.eligibility + person = tax_unit.members + qualifying_child = person("is_cdcc_eligible", period) & ( + person("age", period) < p.child_age + ) + dependent_filer = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) + return where(dependent_filer & ~tax_unit.any(qualifying_child), 0, childcare) diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py index fba13665ad0..aa020f78a20 100644 --- a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_relevant_expenses.py @@ -18,22 +18,10 @@ def formula(tax_unit, period, parameters): # (tax_unit_childcare_expenses) plus care for a disabled qualifying # individual of any age — a disabled adult dependent or spouse # (care_expenses, a person-level yearly input). - childcare = tax_unit("tax_unit_childcare_expenses", period) - # IRC 21(b)(2)(A)(ii) counts only expenses "for the care of a - # qualifying individual". A return on which a filer can be claimed as - # a dependent has no qualifying child under 13 unless the child is - # incapable of self-care, so its childcare expenses do not count. - p = parameters(period).gov.irs.credits.cdcc.eligibility - person = tax_unit.members - qualifying_child = person("is_cdcc_eligible", period) & ( - person("age", period) < p.child_age - ) - dependent_filer = tax_unit( - "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period - ) - childcare = where( - dependent_filer & ~tax_unit.any(qualifying_child), 0, childcare - ) + # cdcc_qualifying_childcare_expenses leaves out childcare for a child + # who is not a qualifying individual because a filer can be claimed + # as a dependent. + childcare = tax_unit("cdcc_qualifying_childcare_expenses", period) adult_care = add(tax_unit, period, ["care_expenses"]) expenses = childcare + adult_care cdcc_limit = tax_unit("cdcc_limit", period) diff --git a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py index 91dd0cdffa3..28572bd8f05 100644 --- a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py @@ -27,6 +27,13 @@ def formula(person, period, parameters): filer = person("is_tax_unit_head_or_spouse", period) claimed = person("claimed_as_dependent_on_another_return", period) filer_claimed = tax_unit.any(filer & claimed) + # IRC 25A(f)(1)(A)(iii) counts the tuition of a dependent only if the + # taxpayer "is allowed a deduction under section 151" for them, and a + # return on which a filer can be claimed as a dependent (outside the + # claimant filing exception) has no dependents (IRC 152(b)(1)). + dependent_student_barred = person("is_tax_unit_dependent", period) & tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) requires_1098_t = aoc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( person("has_american_opportunity_credit_1098_t_or_exception", period) @@ -76,4 +83,5 @@ def formula(person, period, parameters): ) & filing_status_eligible & ~filer_claimed + & ~dependent_student_barred ) diff --git a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py index 0dba195cf08..c269b7f6f96 100644 --- a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py @@ -28,6 +28,13 @@ def formula(person, period, parameters): filer = person("is_tax_unit_head_or_spouse", period) claimed = person("claimed_as_dependent_on_another_return", period) filer_claimed = tax_unit.any(filer & claimed) + # IRC 25A(f)(1)(A)(iii) counts the tuition of a dependent only if the + # taxpayer "is allowed a deduction under section 151" for them, and a + # return on which a filer can be claimed as a dependent (outside the + # claimant filing exception) has no dependents (IRC 152(b)(1)). + dependent_student_barred = person("is_tax_unit_dependent", period) & tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) requires_1098_t = llc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( person("has_lifetime_learning_credit_1098_t_or_exception", period) @@ -55,4 +62,5 @@ def formula(person, period, parameters): ) & filing_status_eligible & ~filer_claimed + & ~dependent_student_barred ) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py index 63612661479..81b908901fd 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_adult_count_with_valid_ssn.py @@ -7,12 +7,12 @@ class rrc_adult_count_with_valid_ssn(Variable): definition_period = YEAR label = "Count of tax unit head/spouse with valid SSN for RRC" reference = ( - "https://www.law.cornell.edu/uscode/text/26/6428#g_1_A", - "https://www.law.cornell.edu/uscode/text/26/6428#g_1_B", + # Subsections (d)(2) and (g)(1)(A)-(B). + "https://www.law.cornell.edu/uscode/text/26/6428#g_1", + # Subsections (d)(2) and (g)(1)-(2). "https://www.law.cornell.edu/uscode/text/26/6428A#g_1", - "https://www.law.cornell.edu/uscode/text/26/6428A#g_2", - "https://www.law.cornell.edu/uscode/text/26/6428B#e_2_A", - "https://www.law.cornell.edu/uscode/text/26/6428B#e_2_B", + # Subsections (c)(2) and (e)(2)(A)-(B). + "https://www.law.cornell.edu/uscode/text/26/6428B#e_2", ) def formula(tax_unit, period, parameters): diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py index 0ffd5e954b4..e5f35eb2829 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_arpa.py @@ -47,4 +47,8 @@ def formula(tax_unit, period, parameters): excess = max_(0, agi - rrc.arpa.phase_out.threshold[filing_status]) payment_reduction_percent = excess / phase_out_length payment_reduction = max_payment * payment_reduction_percent - return max_(0, max_payment - payment_reduction) + # IRC 6428B(a) allows the credit to "an eligible individual", so a + # return whose every filer is a dependent of another taxpayer gets + # none, even for its own dependents. + no_eligible_filer = tax_unit("every_filer_is_dependent_elsewhere", period) + return where(no_eligible_filer, 0, max_(0, max_payment - payment_reduction)) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py index b0ee925ced1..7bd14989385 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_caa.py @@ -42,7 +42,15 @@ def formula(tax_unit, period, parameters): children_with_ssn = tax_unit( "rrc_cares_qualifying_children_with_valid_ssn", period ) - count_children = where(adults_with_ssn > 0, children_with_ssn, 0) + # This prerequisite is a spouse with a valid SSN, whether or not that + # spouse is an eligible individual; the credit itself needs a filer + # who is not a dependent of another taxpayer. + filer_has_ssn = tax_unit.any( + person("is_tax_unit_head_or_spouse", period) + & person("meets_eitc_identification_requirements", period) + ) + no_eligible_filer = tax_unit("every_filer_is_dependent_elsewhere", period) + count_children = where(filer_has_ssn & ~no_eligible_filer, children_with_ssn, 0) max_payment = ( rrc.caa.max.adult * count_adults + rrc.caa.max.child * count_children ) diff --git a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py index c61fca0c9a7..20868403722 100644 --- a/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py +++ b/policyengine_us/variables/gov/irs/credits/recovery_rebate_credit/rrc_cares.py @@ -42,7 +42,15 @@ def formula(tax_unit, period, parameters): children_with_ssn = tax_unit( "rrc_cares_qualifying_children_with_valid_ssn", period ) - count_children = where(adults_with_ssn > 0, children_with_ssn, 0) + # This prerequisite is a spouse with a valid SSN, whether or not that + # spouse is an eligible individual; the credit itself needs a filer + # who is not a dependent of another taxpayer. + filer_has_ssn = tax_unit.any( + person("is_tax_unit_head_or_spouse", period) + & person("meets_eitc_identification_requirements", period) + ) + no_eligible_filer = tax_unit("every_filer_is_dependent_elsewhere", period) + count_children = where(filer_has_ssn & ~no_eligible_filer, children_with_ssn, 0) max_payment = ( rrc.cares.max.adult * count_adults + rrc.cares.max.child * count_children ) diff --git a/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_cdcc_relevant_expenses.py b/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_cdcc_relevant_expenses.py index 25fe3bf1736..06462eec8cc 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_cdcc_relevant_expenses.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_cdcc_relevant_expenses.py @@ -20,7 +20,7 @@ def formula(tax_unit, period, parameters): # Qualifying expenses cover childcare plus care for a disabled # qualifying individual of any age (FTB 3506 instructions, # Section D). - childcare = tax_unit("tax_unit_childcare_expenses", period) + childcare = tax_unit("cdcc_qualifying_childcare_expenses", period) adult_care = add(tax_unit, period, ["care_expenses"]) expenses = childcare + adult_care # First, cap based on the number of eligible care receivers diff --git a/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py index dae5a093b99..2017b09d4b3 100644 --- a/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py +++ b/policyengine_us/variables/gov/states/ga/tax/income/credits/ctc/ga_ctc_eligible_child.py @@ -8,7 +8,7 @@ class ga_ctc_eligible_child(Variable): definition_period = YEAR defined_for = StateCode.GA reference = ( - "https://legiscan.com/GA/text/HB136/id/3204611/Georgia-2025-HB136-Enrolled.pdf#page=2", + "https://legiscan.com/GA/text/HB136/id/3204611/Georgia-2025-HB136-Enrolled.pdf#page=3", "https://www.law.cornell.edu/uscode/text/26/24#c", ) From 3d0864f778d9e87250e717be0c0882361749a5b3 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 15:51:52 -0400 Subject: [PATCH 19/25] Address the third federal claimable-filer review - Education credits: is_barred_from_education_credits_by_dependency holds the claimed-filer and dependent-student rules; both eligibility formulas and the reconciliation SSN reform's Lifetime Learning Credit read it, so the reform no longer turns a barred student's tuition into that credit. - Child and dependent care: childcare counts when any child under 18 is still a qualifying individual, so an incapacitated child aged 13 to 17 keeps it. Co-Authored-By: Claude Opus 5.5 --- .../reconciled_ssn_for_llc_and_aoc.py | 9 +- .../credits/cdcc/cdcc_relevant_expenses.yaml | 30 ++++ .../reconciled_ssn_for_llc_and_aoc.yaml | 162 ++++++++++++++++++ .../cdcc_qualifying_childcare_expenses.py | 14 +- ...ligible_for_american_opportunity_credit.py | 23 +-- ...ed_from_education_credits_by_dependency.py | 34 ++++ ...s_eligible_for_lifetime_learning_credit.py | 23 +-- 7 files changed, 253 insertions(+), 42 deletions(-) create mode 100644 policyengine_us/variables/gov/irs/credits/education/is_barred_from_education_credits_by_dependency.py diff --git a/policyengine_us/reforms/reconciliation/reconciled_ssn_for_llc_and_aoc.py b/policyengine_us/reforms/reconciliation/reconciled_ssn_for_llc_and_aoc.py index 86740f80b31..b145dbd15f7 100644 --- a/policyengine_us/reforms/reconciliation/reconciled_ssn_for_llc_and_aoc.py +++ b/policyengine_us/reforms/reconciliation/reconciled_ssn_for_llc_and_aoc.py @@ -25,8 +25,15 @@ def formula(tax_unit, period, parameters): is_aoc_eligible = person( "is_eligible_for_american_opportunity_credit", period ) + # This reform leaves the dependency rules of IRC 25A(g)(3) and + # 25A(f)(1)(A)(iii) in place. + barred_by_dependency = person( + "is_barred_from_education_credits_by_dependency", period + ) eligible_expenses = tax_unit.sum( - person("qualified_tuition_expenses", period) * ~is_aoc_eligible + person("qualified_tuition_expenses", period) + * ~is_aoc_eligible + * ~barred_by_dependency ) capped_expenses = min_(llc.expense_limit, eligible_expenses) maximum_amount = llc.rate * capped_expenses diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml index 11084acd2b8..d772de304e6 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/cdcc_relevant_expenses.yaml @@ -238,3 +238,33 @@ output: count_cdcc_eligible: 1 cdcc_relevant_expenses: 3000 + +# IRC 21(b)(1)(B): a dependent incapable of self-care is a qualifying individual at +# any age, determined without regard to IRC 152(b)(1), so the childcare of an +# incapacitated 14-year-old counts on a return with a claimable filer. +- name: 2025 childcare for the incapacitated teenager of a claimable filer counts + period: 2025 + input: + people: + parent: + age: 40 + employment_income: 5000 + claimable_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + child: + age: 14 + is_incapable_of_self_care: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, child] + tax_unit_childcare_expenses: 1000 + households: + household: + members: [parent, child] + state_code: TX + output: + count_cdcc_eligible: 1 + cdcc_relevant_expenses: 1000 diff --git a/policyengine_us/tests/policy/contrib/reconciliation/reconciled_ssn_for_llc_and_aoc.yaml b/policyengine_us/tests/policy/contrib/reconciliation/reconciled_ssn_for_llc_and_aoc.yaml index 8a61f5667d5..4740dfe0d8e 100644 --- a/policyengine_us/tests/policy/contrib/reconciliation/reconciled_ssn_for_llc_and_aoc.yaml +++ b/policyengine_us/tests/policy/contrib/reconciliation/reconciled_ssn_for_llc_and_aoc.yaml @@ -73,3 +73,165 @@ output: american_opportunity_credit: 1_000 lifetime_learning_credit: 0 + +# The reform keeps the dependency rules: a dependent student's tuition does not +# count on a return whose filer can be claimed as a dependent (IRC +# 25A(f)(1)(A)(iii), 152(b)(1)), under either credit. +- name: Dependent student of a filer who can be claimed gets neither credit + period: 2026 + reforms: policyengine_us.reforms.reconciliation.reconciled_ssn_for_llc_and_aoc.reconciled_ssn_for_llc_and_aoc + input: + gov.contrib.reconciliation.ssn_for_llc_and_aoc.in_effect: true + people: + parent: + age: 45 + ssn_card_type: CITIZEN + has_tin: true + claimable_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + student: + age: 19 + ssn_card_type: CITIZEN + has_tin: true + qualified_tuition_expenses: 4_000 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, student] + filing_status: HEAD_OF_HOUSEHOLD + households: + household: + members: [parent, student] + state_code: TX + output: + american_opportunity_credit: 0 + lifetime_learning_credit: 0 + +- name: Dependent student of a joint return with one claimable spouse gets neither credit (the claimable spouse is the head) + period: 2026 + reforms: policyengine_us.reforms.reconciliation.reconciled_ssn_for_llc_and_aoc.reconciled_ssn_for_llc_and_aoc + input: + gov.contrib.reconciliation.ssn_for_llc_and_aoc.in_effect: true + people: + person_a: + age: 45 + ssn_card_type: CITIZEN + has_tin: true + claimable_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 45 + ssn_card_type: CITIZEN + has_tin: true + is_tax_unit_head: false + is_tax_unit_spouse: true + student: + age: 19 + ssn_card_type: CITIZEN + has_tin: true + qualified_tuition_expenses: 4_000 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_a, person_b, student] + filing_status: JOINT + households: + household: + members: [person_a, person_b, student] + state_code: TX + output: + american_opportunity_credit: 0 + lifetime_learning_credit: 0 + +- name: Dependent student of a joint return with one claimable spouse gets neither credit (the claimable spouse is the spouse) + period: 2026 + reforms: policyengine_us.reforms.reconciliation.reconciled_ssn_for_llc_and_aoc.reconciled_ssn_for_llc_and_aoc + input: + gov.contrib.reconciliation.ssn_for_llc_and_aoc.in_effect: true + people: + person_b: + age: 45 + ssn_card_type: CITIZEN + has_tin: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 45 + ssn_card_type: CITIZEN + has_tin: true + claimable_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + student: + age: 19 + ssn_card_type: CITIZEN + has_tin: true + qualified_tuition_expenses: 4_000 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, student] + filing_status: JOINT + households: + household: + members: [person_b, person_a, student] + state_code: TX + output: + american_opportunity_credit: 0 + lifetime_learning_credit: 0 + +- name: Dependent student of a filer who cannot be claimed is eligible for the American Opportunity Credit, not the Lifetime Learning Credit + period: 2026 + reforms: policyengine_us.reforms.reconciliation.reconciled_ssn_for_llc_and_aoc.reconciled_ssn_for_llc_and_aoc + input: + gov.contrib.reconciliation.ssn_for_llc_and_aoc.in_effect: true + people: + parent: + age: 45 + ssn_card_type: CITIZEN + has_tin: true + is_tax_unit_head: true + is_tax_unit_spouse: false + student: + age: 19 + ssn_card_type: CITIZEN + has_tin: true + qualified_tuition_expenses: 4_000 + is_pursuing_credential_for_american_opportunity_credit: true + attends_eligible_educational_institution_for_american_opportunity_credit: true + is_enrolled_at_least_half_time_for_american_opportunity_credit: true + has_american_opportunity_credit_1098_t_or_exception: true + has_american_opportunity_credit_institution_ein: true + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [parent, student] + filing_status: HEAD_OF_HOUSEHOLD + households: + household: + members: [parent, student] + state_code: TX + output: + is_eligible_for_american_opportunity_credit: [false, true] + lifetime_learning_credit: 0 diff --git a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py index 2162ccd2f87..f7885005bbf 100644 --- a/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py +++ b/policyengine_us/variables/gov/irs/credits/cdcc/cdcc_qualifying_childcare_expenses.py @@ -17,14 +17,14 @@ def formula(tax_unit, period, parameters): # IRC 21(b)(2)(A)(ii) counts only expenses "for the care of a # qualifying individual". A return on which a filer can be claimed as # a dependent (outside the claimant filing exception) has no - # qualifying child under 13 unless the child is incapable of - # self-care, so its childcare expenses do not count. The model records - # childcare as a tax-unit total, so it cannot leave out one child's - # share when another child qualifies. - p = parameters(period).gov.irs.credits.cdcc.eligibility + # qualifying child unless the child is incapable of self-care, so its + # childcare expenses do not count otherwise. Childcare expenses are + # those of the tax unit's children under 18, recorded as a tax-unit + # total, so one child's share cannot be left out when another child + # qualifies. person = tax_unit.members - qualifying_child = person("is_cdcc_eligible", period) & ( - person("age", period) < p.child_age + qualifying_child = person("is_cdcc_eligible", period) & person( + "is_child", period ) dependent_filer = tax_unit( "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period diff --git a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py index 28572bd8f05..b3d5406e196 100644 --- a/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/american_opportunity_credit/is_eligible_for_american_opportunity_credit.py @@ -18,21 +18,11 @@ def formula(person, period, parameters): filing_status = tax_unit("filing_status", period) filing_status_values = filing_status.possible_values filing_status_eligible = filing_status != filing_status_values.SEPARATE - # IRC 25A(g)(3): no credit to an individual for whom a section 151 - # deduction "is allowed to another taxpayer", and the Form 1040 - # instructions extend this to "your spouse if filing jointly", so - # either filer being claimed bars the return's credit. This turns on - # an actual claim (26 CFR 1.25A-1(f)), so it reads the claimed input - # rather than a claimability helper. - filer = person("is_tax_unit_head_or_spouse", period) - claimed = person("claimed_as_dependent_on_another_return", period) - filer_claimed = tax_unit.any(filer & claimed) - # IRC 25A(f)(1)(A)(iii) counts the tuition of a dependent only if the - # taxpayer "is allowed a deduction under section 151" for them, and a - # return on which a filer can be claimed as a dependent (outside the - # claimant filing exception) has no dependents (IRC 152(b)(1)). - dependent_student_barred = person("is_tax_unit_dependent", period) & tax_unit( - "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + # The dependency rules of IRC 25A(g)(3) and 25A(f)(1)(A)(iii): a + # claimed filer bars the return, and a dependent student needs the + # return to have dependents. + barred_by_dependency = person( + "is_barred_from_education_credits_by_dependency", period ) requires_1098_t = aoc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( @@ -82,6 +72,5 @@ def formula(person, period, parameters): period, ) & filing_status_eligible - & ~filer_claimed - & ~dependent_student_barred + & ~barred_by_dependency ) diff --git a/policyengine_us/variables/gov/irs/credits/education/is_barred_from_education_credits_by_dependency.py b/policyengine_us/variables/gov/irs/credits/education/is_barred_from_education_credits_by_dependency.py new file mode 100644 index 00000000000..6a08d71c198 --- /dev/null +++ b/policyengine_us/variables/gov/irs/credits/education/is_barred_from_education_credits_by_dependency.py @@ -0,0 +1,34 @@ +from policyengine_us.model_api import * + + +class is_barred_from_education_credits_by_dependency(Variable): + value_type = bool + entity = Person + label = "Barred from the education credits by the dependency rules" + definition_period = YEAR + reference = ( + # Subsections (f)(1)(A)(iii) and (g)(3). + "https://www.law.cornell.edu/uscode/text/26/25A#g_3", + "https://www.law.cornell.edu/uscode/text/26/152#b_1", + "https://www.ecfr.gov/current/title-26/section-1.25A-1", + ) + + def formula(person, period, parameters): + tax_unit = person.tax_unit + # IRC 25A(g)(3): no credit to an individual for whom a section 151 + # deduction "is allowed to another taxpayer", and the Form 1040 + # instructions extend this to "your spouse if filing jointly", so + # either filer being claimed bars the return's credit. This turns on + # an actual claim (26 CFR 1.25A-1(f)), so it reads the claimed input + # rather than a claimability helper. + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + filer_claimed = tax_unit.any(filer & claimed) + # IRC 25A(f)(1)(A)(iii) counts the tuition of a dependent only if the + # taxpayer "is allowed a deduction under section 151" for them, and a + # return on which a filer can be claimed as a dependent (outside the + # claimant filing exception) has no dependents (IRC 152(b)(1)). + dependent_student_barred = person("is_tax_unit_dependent", period) & tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) + return filer_claimed | dependent_student_barred diff --git a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py index c269b7f6f96..1a7bbf0a847 100644 --- a/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py +++ b/policyengine_us/variables/gov/irs/credits/education/is_eligible_for_lifetime_learning_credit.py @@ -19,21 +19,11 @@ def formula(person, period, parameters): filing_status = tax_unit("filing_status", period) filing_status_values = filing_status.possible_values filing_status_eligible = filing_status != filing_status_values.SEPARATE - # IRC 25A(g)(3): no credit to an individual for whom a section 151 - # deduction "is allowed to another taxpayer", and the Form 1040 - # instructions extend this to "your spouse if filing jointly", so - # either filer being claimed bars the return's credit. This turns on - # an actual claim (26 CFR 1.25A-1(f)), so it reads the claimed input - # rather than a claimability helper. - filer = person("is_tax_unit_head_or_spouse", period) - claimed = person("claimed_as_dependent_on_another_return", period) - filer_claimed = tax_unit.any(filer & claimed) - # IRC 25A(f)(1)(A)(iii) counts the tuition of a dependent only if the - # taxpayer "is allowed a deduction under section 151" for them, and a - # return on which a filer can be claimed as a dependent (outside the - # claimant filing exception) has no dependents (IRC 152(b)(1)). - dependent_student_barred = person("is_tax_unit_dependent", period) & tax_unit( - "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + # The dependency rules of IRC 25A(g)(3) and 25A(f)(1)(A)(iii): a + # claimed filer bars the return, and a dependent student needs the + # return to have dependents. + barred_by_dependency = person( + "is_barred_from_education_credits_by_dependency", period ) requires_1098_t = llc.eligibility.requires_1098_t_or_exception has_1098_t_or_exception = ( @@ -61,6 +51,5 @@ def formula(person, period, parameters): period, ) & filing_status_eligible - & ~filer_claimed - & ~dependent_student_barred + & ~barred_by_dependency ) From 35a2cbcbb971f6b43d35db009d9bda41b76386a5 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 16:02:49 -0400 Subject: [PATCH 20/25] Give the spouse without an SSN a card type in the recovery rebate test Setting meets_eitc_identification_requirements on one person made it an input for every person, so the other spouse lost their SSN too. Co-Authored-By: Claude Opus 5.5 --- .../recovery_rebate_credit/recovery_rebate_credit.yaml | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml index a1e77b517ef..01ed4209665 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/credits/recovery_rebate_credit/recovery_rebate_credit.yaml @@ -375,7 +375,7 @@ is_tax_unit_spouse: false person_b: age: 30 - meets_eitc_identification_requirements: false + ssn_card_type: NONE is_tax_unit_head: false is_tax_unit_spouse: true child: @@ -401,7 +401,7 @@ people: person_b: age: 30 - meets_eitc_identification_requirements: false + ssn_card_type: NONE is_tax_unit_head: true is_tax_unit_spouse: false person_a: From 5fe95ac0ebe2577b833100b5bf2a4b441b4c4d19 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sun, 11 Oct 2026 12:19:33 -0400 Subject: [PATCH 21/25] Read the split claimability inputs from the federal base claimable-filer-federal (35a2cbcbb9) split the input: the plain helpers mean claimability, `claimed_as_dependent_on_another_return` means actually claimed, and `..._without_filing_exception` applies IRC 152(b)(1) with the refund-only exception (Publication 501). So: - Dependent counts (AZ dependent and family credits and 2021 rebate, AR dependent and generic disabled-dependent credits and low-income tables, CA dependent exemption credits, the three dependent credit reforms) and the childless CalEITC read the filing-exception helper. - California's own personal, senior and blind credits and its standard deduction read claimability. - Arizona's excise credit counts only filers who are not actually claimed (A.R.S. 43-1072.01/.02: "not claimed"); California's renter exclusion reads the actual claim (RTC 17053.5(d)(2): "claimed"). - Arkansas's care credit reads cdcc_qualifying_childcare_expenses, so a claimable return without a qualifying child counts no childcare. Co-Authored-By: Claude Opus 5.5 --- .../ar_dependent_credit_reform.py | 4 ++- .../az_dependent_credit_reform.py | 4 ++- .../ca_dependent_credit_reform.py | 4 ++- .../ar/tax/income/credits/ar_federal_cdcc.py | 5 ++- .../personal/ar_personal_credit_dependent.py | 4 ++- .../ar_personal_credit_disabled_dependent.py | 4 ++- .../low_income/ar_low_income_tax_joint.py | 4 ++- .../income/credits/az_families_tax_rebate.py | 6 +++- .../credits/az_increased_excise_tax_credit.py | 31 ++++++++++++------- ...az_increased_excise_tax_credit_eligible.py | 13 ++++---- .../az_dependent_tax_credit_potential.py | 6 +++- .../az_family_tax_credit_eligible.py | 6 +++- .../az_family_tax_credit_potential.py | 6 +++- .../ca/tax/income/credits/ca_renter_credit.py | 9 +++--- .../credits/earned_income/ca_eitc_eligible.py | 6 +++- .../ca/tax/income/exemptions/ca_exemptions.py | 15 +++++---- .../person/lives_with_claiming_taxpayer.py | 6 ++-- 17 files changed, 90 insertions(+), 43 deletions(-) diff --git a/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py b/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py index 2e62c73fc61..0225d496bd4 100644 --- a/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py +++ b/policyengine_us/reforms/states/ar/dependent_credit/ar_dependent_credit_reform.py @@ -20,8 +20,10 @@ def formula(person, period, parameters): p = parameters(period).gov.contrib.states.ar.dependent_credit # As in the baseline, a return on which the filer (or, if joint, # either spouse) can be claimed has no dependents (IRC 152(b)(1)). + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. filer_is_dependent = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) is_dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent if p.age_limit.in_effect: diff --git a/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py b/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py index 02395b753db..9021e4cc595 100644 --- a/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py +++ b/policyengine_us/reforms/states/az/dependent_credit/az_dependent_credit_reform.py @@ -24,8 +24,10 @@ def formula(tax_unit, period, parameters): # As in the baseline, a return on which the filer (or, if joint, # either spouse) can be claimed has no dependents (A.R.S. # 43-1001(3), IRC 152(b)(1)). + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. filer_is_dependent = tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( filer_is_dependent diff --git a/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py b/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py index 5b62c271a95..c773745e64d 100644 --- a/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py +++ b/policyengine_us/reforms/states/ca/dependent_credit/ca_dependent_credit_reform.py @@ -47,8 +47,10 @@ def formula(tax_unit, period, parameters): age = person("age", period) # As in the baseline, a return on which the filer (or, if joint, # either spouse) can be claimed has no dependents (IRC 152(b)(1)). + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. filer_is_dependent = tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) is_dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( filer_is_dependent diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/ar_federal_cdcc.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/ar_federal_cdcc.py index 781301b7760..68d6867a843 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/credits/ar_federal_cdcc.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/ar_federal_cdcc.py @@ -28,7 +28,10 @@ def formula(tax_unit, period, parameters): # AR2441 header: the IRC § 21(e)(2) and (4) special rules apply. eligible = tax_unit("cdcc_filing_status_eligible", period) # AR2441 lines 2-3: qualified expenses, capped per qualifying person. - childcare = tax_unit("tax_unit_childcare_expenses", period) + # Childcare counts only for a qualifying individual (IRC 21(b)(2)(A)); + # cdcc_qualifying_childcare_expenses leaves it out when a filer can be + # claimed as a dependent and no child qualifies. + childcare = tax_unit("cdcc_qualifying_childcare_expenses", period) adult_care = add(tax_unit, period, ["care_expenses"]) expenses = childcare + adult_care count_eligible = min_( diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py index 877498e6ac7..70db28210b7 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_dependent.py @@ -21,8 +21,10 @@ def formula(person, period, parameters): # 152 (Act 675 of 2005, sec. 14), and under IRC 152(b)(1) a return on # which the filer (or, if joint, either spouse) can be claimed as a # dependent has no dependents. The filers' own credits remain. + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. filer_is_dependent = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) dependent = person("is_tax_unit_dependent", period) & ~filer_is_dependent p = parameters(period).gov.states.ar.tax.income.credits.personal.amount diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py index 8af79bf01d2..496b4ce1954 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py @@ -28,8 +28,10 @@ def formula(person, period, parameters): # Code 26-51-503, Act 417 of 1999). A return on which the filer (or, if joint, either # spouse) can be claimed as a dependent has no IRC 152 dependents # (IRC 152(b)(1)), so only the filers' own children still qualify. + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. filer_is_dependent = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) # A filer's child: a parent id that names a head or spouse of the # tax unit. Parent ids name natural, adoptive and step-parents alike, diff --git a/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py b/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py index 31a75dac553..bff1a9815f5 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/low_income/ar_low_income_tax_joint.py @@ -21,8 +21,10 @@ def formula(person, period, parameters): # which the filer (or, if joint, either spouse) can be claimed as a # dependent has none (IRC 152(b)(1)). This changes only which table # applies, not the filing status. + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. filer_is_dependent = person.tax_unit( - "head_or_spouse_is_dependent_elsewhere", period + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) dependents = where( filer_is_dependent, 0, person.tax_unit("tax_unit_dependents", period) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py index c846662852a..43fbe37b630 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_families_tax_rebate.py @@ -53,7 +53,11 @@ def formula(tax_unit, period, parameters): # (or, if joint, either spouse) can be claimed as a dependent has none # (IRC 152(b)(1)). The rebate is computed on the 2021 return, so this # reads the 2021 inputs. - filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. + filer_is_dependent = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( filer_is_dependent ) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py index 5f97ff1f927..43140a8a89b 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.py @@ -21,18 +21,27 @@ def formula(tax_unit, period, parameters): # personal or dependent exemption can be claimed for # (A.R.S. 43-1072.01(C)); from 2021, 43-1072.02(C) allows $25 for each # person "who is either the taxpayer, the taxpayer's spouse who does - # not file a return or a dependent". The Form 140 worksheet counts the - # filers and the dependents "provided that person(s) qualifies as a - # dependent for federal purposes", and the instructions let a joint - # filer claim the credit but not for a spouse who is barred. So a - # filer whom another taxpayer can claim is not counted, and a return - # on which the filer (or, if joint, either spouse) can be claimed - # counts no dependents (IRC 152(b)(1)). - filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # not file a return or a dependent". Both sections allow it only "for + # a taxpayer who is not claimed as a dependent by any other + # taxpayer", and the Form 140 instructions let a joint filer claim the + # credit but not for a spouse who is barred, so a filer whom another + # taxpayer claims is not counted. The worksheet counts dependents + # "provided that person(s) qualifies as a dependent for federal + # purposes": none on a return on which the filer (or, if joint, + # either spouse) can be claimed (IRC 152(b)(1)), unless the would-be + # claimant files only for a refund (Publication 501). + person = tax_unit.members + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + claimed_filers = tax_unit.sum(filer & claimed) + unclaimed_filers = tax_unit.sum(filer & ~claimed) + no_dependents = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) persons = where( - filer_is_dependent, - tax_unit("head_spouse_count_not_dependent_elsewhere", period), - tax_unit("tax_unit_size", period), + no_dependents, + unclaimed_filers, + tax_unit("tax_unit_size", period) - claimed_filers, ) uncapped_credit = persons * p.amount return min_(uncapped_credit, p.max_amount) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py index 9c4b90ad87a..9c2eba49a6d 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/az_increased_excise_tax_credit_eligible.py @@ -21,9 +21,10 @@ def formula(tax_unit, period, parameters): max_income = p.income_threshold[filing_status] # A.R.S. 43-1072.01(A) and, from 2021, 43-1072.02(A) allow the credit # only "for a taxpayer who is not claimed as a dependent by any other - # taxpayer". On a joint return a spouse who is not claimed can still - # claim it. - every_filer_is_dependent = tax_unit( - "every_filer_is_dependent_elsewhere", period - ) - return (agi <= max_income) & ~every_filer_is_dependent + # taxpayer" (actually claimed). On a joint return a spouse who is not + # claimed can still claim it. + person = tax_unit.members + filer = person("is_tax_unit_head_or_spouse", period) + claimed = person("claimed_as_dependent_on_another_return", period) + has_unclaimed_filer = tax_unit.any(filer & ~claimed) + return (agi <= max_income) & has_unclaimed_filer diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py b/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py index 9483c70f3b1..150e0922fdd 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.py @@ -20,7 +20,11 @@ def formula(tax_unit, period, parameters): # A.R.S. 43-1001(3) gives "dependent" the IRC 152 meaning, and under # IRC 152(b)(1) a return on which the filer (or, if joint, either # spouse) can be claimed as a dependent has no dependents. - filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. + filer_is_dependent = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) dependent = person("is_tax_unit_dependent", period) & ~tax_unit.project( filer_is_dependent ) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py index e35ae45f124..b28a49436db 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py @@ -25,7 +25,11 @@ def formula(tax_unit, period, parameters): # The thresholds count dependents in the IRC 152 sense (A.R.S. # 43-1001(3)); a return on which the filer (or, if joint, either # spouse) can be claimed as a dependent has none (IRC 152(b)(1)). - filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. + filer_is_dependent = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) dependents = where( filer_is_dependent, 0, tax_unit("tax_unit_dependents", period) ) diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py index 6424f33e22f..005d83c1390 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_potential.py @@ -25,7 +25,11 @@ def formula(tax_unit, period, parameters): # the taxpayer, but "dependent" has the IRC 152 meaning (A.R.S. # 43-1001(3)), so under IRC 152(b)(1) a return on which the filer (or, # if joint, either spouse) can be claimed counts no dependents. - filer_is_dependent = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 501) restores the dependents. + filer_is_dependent = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) person = tax_unit.members filers = tax_unit.sum(person("is_tax_unit_head_or_spouse", period)) persons = where(filer_is_dependent, filers, tax_unit("tax_unit_size", period)) diff --git a/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py b/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py index 86c28f97713..e8c72796bd8 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/credits/ca_renter_credit.py @@ -25,11 +25,10 @@ def formula(tax_unit, period, parameters): # RTC 17053.5(d)(2): a qualified renter does not include "an # individual whose principal place of residence for more than 50 # percent of the taxable year is with another person who claimed that - # individual as a dependent" (the qualification record asks whether - # someone can claim you and, if so, whether you lived in that - # person's home for more than half the year). Being claimable alone - # does not bar the credit, and on a joint return a spouse who is a - # qualified renter still gets the joint amount (17053.5(a)(1)(A)). + # individual as a dependent", read as actually claimed (the + # qualification record words it as "can claim you"). Being claimable + # alone does not bar the credit, and on a joint return a spouse who is + # a qualified renter still gets the joint amount (17053.5(a)(1)(A)). person = tax_unit.members filer = person("is_tax_unit_head_or_spouse", period) excluded = person("claimed_as_dependent_on_another_return", period) & person( diff --git a/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py b/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py index 438626a3bc9..971e9f31658 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/credits/earned_income/ca_eitc_eligible.py @@ -49,7 +49,11 @@ def formula(tax_unit, period, parameters): has_qualifying_child = tax_unit.any( person("ca_is_qualifying_child_for_caleitc", period) ) - dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # The would-be claimant's filing exception (not required to file and + # filing only for a refund, Publication 596) restores the credit. + dependent_elsewhere = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) meets_dependency_requirements = has_qualifying_child | ~dependent_elsewhere return ( diff --git a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py index f50dad2636a..e36cc370acf 100644 --- a/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py +++ b/policyengine_us/variables/gov/states/ca/tax/income/exemptions/ca_exemptions.py @@ -13,18 +13,18 @@ def ca_personal_aged_blind_exemption_count(tax_unit, period, p, filing_status): """ person = tax_unit.members filer = person("is_tax_unit_head_or_spouse", period) - claimed = person("claimed_as_dependent_on_another_return", period) + claimable = person("claimable_as_dependent_on_another_return", period) dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) personal_exemption_count = where( dependent_elsewhere, tax_unit("head_spouse_count_not_dependent_elsewhere", period), p.personal_scale[filing_status], ) - claimed_aged_blind_count = tax_unit.sum( - (filer & claimed) + claimable_aged_blind_count = tax_unit.sum( + (filer & claimable) * (person("is_irs_aged", period).astype(int) + person("is_blind", period)) ) - aged_blind_count = tax_unit("aged_blind_count", period) - claimed_aged_blind_count + aged_blind_count = tax_unit("aged_blind_count", period) - claimable_aged_blind_count return personal_exemption_count + aged_blind_count @@ -63,8 +63,11 @@ def formula(tax_unit, period, parameters): # Dependent exemptions: the dependents must be those claimed on the # federal return, and a return on which the filer (or, if joint, - # either spouse) can be claimed has none (IRC 152(b)(1)). - dependent_elsewhere = tax_unit("head_or_spouse_is_dependent_elsewhere", period) + # either spouse) can be claimed has none (IRC 152(b)(1)), unless the + # would-be claimant files only for a refund (Publication 501). + dependent_elsewhere = tax_unit( + "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period + ) dependents = where( dependent_elsewhere, 0, tax_unit("tax_unit_dependents", period) ) diff --git a/policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py b/policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py index 59d7cc8de4d..4d2c4d0ad55 100644 --- a/policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py +++ b/policyengine_us/variables/household/demographic/person/lives_with_claiming_taxpayer.py @@ -5,11 +5,11 @@ class lives_with_claiming_taxpayer(Variable): value_type = bool entity = Person definition_period = YEAR - label = "Lives with the taxpayer who can claim them as a dependent" + label = "Lives with the taxpayer who claims them as a dependent" documentation = ( "Whether, for more than half the year, the person's principal place " - "of residence was the home of the taxpayer who can claim them as a " + "of residence was the home of the taxpayer who claims them as a " "dependent (see claimed_as_dependent_on_another_return). Rules read " - "it only for a person who can be claimed." + "it only for a person who is claimed." ) reference = ("https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf#page=25",) From 3ed80a0d94cfba603f44ba102c4850f142f4223d Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sun, 11 Oct 2026 12:21:15 -0400 Subject: [PATCH 22/25] Add filing-exception, actual-claim and Arkansas care cases; clarify the property test's excise identity Co-Authored-By: Claude Opus 5.5 --- ...est_claimable_filer_az_ar_ca_invariants.py | 4 +- .../tax/income/credits/ar_cdcc_potential.yaml | 28 ++++++++++++ .../az_increased_excise_tax_credit.yaml | 44 +++++++++++++++++++ .../az_dependent_tax_credit_potential.yaml | 24 ++++++++++ .../credits/renter/ca_renter_credit.yaml | 24 ++++++++++ 5 files changed, 123 insertions(+), 1 deletion(-) diff --git a/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py b/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py index 6e45ea4059b..c5b9f1a8812 100644 --- a/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py +++ b/policyengine_us/tests/core/test_claimable_filer_az_ar_ca_invariants.py @@ -18,7 +18,9 @@ deduction or eligibility below. 3. Identities: a return with a claimable filer gets no Arizona dependent credit or families rebate and no Arkansas dependent credit, and a return - on which every filer can be claimed gets no Arizona excise credit. + on which every filer is claimed gets no Arizona excise credit (the cases + set the claim input, so claimability follows it and the filing exception + is off). """ import numpy as np diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml index 3541dea11ec..f13782bdccd 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_cdcc_potential.yaml @@ -421,3 +421,31 @@ state_code: AR output: ar_cdcc_potential: 40 + +- name: 2025 single filer who can be claimed counts no childcare for a child who is not a qualifying person + period: 2025 + input: + people: + filer: + age: 30 + employment_income: 50_000 + claimed_as_dependent_on_another_return: true + disabled_adult: + age: 30 + is_incapable_of_self_care: true + child: + age: 2 + tax_units: + tax_unit: + members: [filer, disabled_adult, child] + filing_status: SINGLE + tax_unit_childcare_expenses: 1_000 + households: + household: + members: [filer, disabled_adult, child] + state_code: AR + output: + # The disabled adult is a qualifying person (IRC 21(b)(1)(B)), but the + # child's care is not for a qualifying individual (21(b)(2)(A)), and the + # adult has no care expenses: $0. + ar_cdcc_potential: 0 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml index 729598d9408..6a9f5414780 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml @@ -403,3 +403,47 @@ # $25 for the spouse who cannot be claimed. A tax unit size of 4 does not say who the # other two are; a return with a claimable filer counts no dependents. az_increased_excise_tax_credit: 25 + +- name: 2025 single filer who can be claimed but is not claimed gets the excise credit + period: 2025 + input: + people: + filer: + age: 19 + claimable_as_dependent_on_another_return: true + claimed_as_dependent_on_another_return: false + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: AZ + output: + # 43-1072.02(A) bars a taxpayer "claimed as a dependent", not one who + # merely can be claimed: $25 x 1. + az_increased_excise_tax_credit: 25 + +- name: 2025 single filer who can be claimed but is not claimed counts no child + period: 2025 + input: + people: + filer: + age: 19 + claimable_as_dependent_on_another_return: true + claimed_as_dependent_on_another_return: false + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + households: + household: + members: [filer, child] + state_code: AZ + output: + # The filer counts ($25), but the child is not a federal dependent of a + # claimable filer (IRC 152(b)(1)). + az_increased_excise_tax_credit: 25 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml index 91ad27a3aa1..8edd2f9024b 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/dependent_credit/az_dependent_tax_credit_potential.yaml @@ -221,3 +221,27 @@ state_code: AZ output: az_dependent_tax_credit_potential: 125 + +- name: 2025 single filer who can be claimed by a claimant who files only for a refund gets $100 for a child + period: 2025 + input: + people: + filer: + age: 19 + claimable_as_dependent_on_another_return: true + dependent_claimant_filing_exception: true + child: + age: 5 + tax_units: + tax_unit: + members: [filer, child] + filing_status: SINGLE + adjusted_gross_income: 10_000 + households: + household: + members: [filer, child] + state_code: AZ + output: + # Publication 501, Dependent Taxpayer Test: the exception restores the + # filer's own dependents. + az_dependent_tax_credit_potential: 100 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml index cce211742cf..5d1a91aa908 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/renter/ca_renter_credit.yaml @@ -264,3 +264,27 @@ state_code: CA output: ca_renter_credit: 0 + +- name: 2025 single filer who can be claimed but is not claimed is a qualified renter even living with that person + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + rent: 6_000 + claimable_as_dependent_on_another_return: true + claimed_as_dependent_on_another_return: false + lives_with_claiming_taxpayer: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # 17053.5(d)(2) excludes an individual living with "another person who + # claimed that individual as a dependent". + ca_renter_credit: 60 From ff5a45308b522db1075e41fd98aa470df7151439 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sun, 11 Oct 2026 14:34:15 -0400 Subject: [PATCH 23/25] Address review r2: taxable wages in the dependent worksheet, a stepchild input for Arkansas, joint AB 2591 cases - dependent_standard_deduction_earned_income uses irs_employment_income (after elective deferrals, Form 1040 line 1z) plus self-employment and farm income, less the deductible part of self-employment tax. - ar_personal_credit_disabled_child_of_filer (new, overridable) carries the credit's birth-or-adoption child route, defaulting from parent ids (or true without ids); an input marks a stepchild. - Joint AB 2591 cases under both labellings, election off and on; 401(k) and stepchild cases; changelog matches the split inputs. Co-Authored-By: Claude Opus 5.5 --- changelog.d/claimable-filer-az-ar-ca.fixed.md | 2 +- ...dent_standard_deduction_earned_income.yaml | 34 +++++++++ ...rsonal_credit_disabled_child_of_filer.yaml | 51 +++++++++++++ ...ar_personal_credit_disabled_dependent.yaml | 26 +++++++ .../standard/ca_standard_deduction.yaml | 73 +++++++++++++++++++ .../contrib/states/ca/ab2591/ca_ab2591.yaml | 54 ++++++++++++++ ...endent_standard_deduction_earned_income.py | 22 ++++-- ...personal_credit_disabled_child_of_filer.py | 33 +++++++++ .../ar_personal_credit_disabled_dependent.py | 26 ++----- 9 files changed, 293 insertions(+), 28 deletions(-) create mode 100644 policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml create mode 100644 policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.py diff --git a/changelog.d/claimable-filer-az-ar-ca.fixed.md b/changelog.d/claimable-filer-az-ar-ca.fixed.md index ea05dfaab95..b120802c414 100644 --- a/changelog.d/claimable-filer-az-ar-ca.fixed.md +++ b/changelog.d/claimable-filer-az-ar-ca.fixed.md @@ -1 +1 @@ -Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent. A return on which the filer (or, if joint, either spouse) can be claimed counts no dependents for Arizona's dependent credit, family credit and 2021 families rebate, Arkansas's dependent credit, disabled-dependent credit (except for a filer's own child) and low-income tables, or California's dependent exemption credit, and gets no childless CalEITC or foster youth credit. A claimable filer loses California's personal, senior and blind credits and is not counted for Arizona's excise credit. California's standard deduction follows its dependent worksheet, and its renter credit excludes a claimable filer who lived in the claimer's home (new input `lives_with_claiming_taxpayer`). California's 2025 joint renter credit income limit is now $107,988. Arizona's 2021 families rebate counts at most three dependents on a joint return, as on every other return (Laws 2023, ch. 147, sec. 3(E)). The Arizona, Arkansas and California dependent credit reforms, the state dependent exemption repeal and California's AB 2591 reform keep these rules, and the California dependent worksheet counts farm income as earned income (new `dependent_standard_deduction_earned_income`). +Apply Arizona, Arkansas and California rules for a filer who can be claimed as a dependent. A return on which the filer (or, if joint, either spouse) can be claimed, unless the would-be claimant files only for a refund, counts no dependents for Arizona's dependent credit, family credit and 2021 families rebate, Arkansas's dependent credit, disabled-dependent credit (except for a filer's own child, new input `ar_personal_credit_disabled_child_of_filer`) and low-income tables, or California's dependent exemption credit, and gets no childless CalEITC or foster youth credit. A claimable filer loses California's personal, senior and blind credits, and California's standard deduction follows its dependent worksheet, with earned income from the new `dependent_standard_deduction_earned_income` (taxable wages, self-employment and farm income). A filer who is claimed is not counted for Arizona's excise credit and, if they lived in the claimer's home, is not a qualified renter for California's renter credit (new input `lives_with_claiming_taxpayer`). Arkansas's care credit counts only childcare for a qualifying person. The Arizona, Arkansas and California dependent credit reforms, the state dependent exemption repeal and California's AB 2591 reform keep these rules. Arizona's 2021 families rebate counts at most three dependents on a joint return, as on every other return (Laws 2023, ch. 147, sec. 3(E)), and California's 2025 joint renter credit income limit is now $107,988. diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml index 87a69669c3e..368b25ed4c3 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml @@ -64,3 +64,37 @@ members: [filer] output: dependent_standard_deduction_earned_income: 0 + +- name: 2025 wages count after elective 401(k) deferrals + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + traditional_401k_contributions: 1_000 + tax_units: + tax_unit: + members: [filer] + output: + # Form 1040 line 1z (W-2 box 1) leaves out elective deferrals. + dependent_standard_deduction_earned_income: 1_000 + +- name: 2025 joint return counts each spouse's taxable wages + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 2_000 + traditional_401k_contributions: 1_000 + person_b: + age: 22 + employment_income: 500 + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + output: + # $1,000 + $500. + dependent_standard_deduction_earned_income: 1_500 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml new file mode 100644 index 00000000000..8a3a8f9111b --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml @@ -0,0 +1,51 @@ +# Defaults: a parent id that names a head or spouse of the tax unit, or no +# parent ids at all (the relationship is unknown). Parent ids also name +# step-parents, so a stepchild needs the input set to false. + +- name: 2025 a parent id naming the filer makes the dependent the filer's child + period: 2025 + input: + people: + filer: {age: 30, person_id: 1} + child: {age: 8, person_id: 2, parent_1_id: 1} + tax_units: + tax_unit: + members: [filer, child] + households: + household: + members: [filer, child] + state_code: AR + output: + ar_personal_credit_disabled_child_of_filer: [false, true] + +- name: 2025 a parent id naming someone outside the tax unit does not + period: 2025 + input: + people: + filer: {age: 30, person_id: 1} + niece: {age: 8, person_id: 2, parent_1_id: 99} + tax_units: + tax_unit: + members: [filer, niece] + households: + household: + members: [filer, niece] + state_code: AR + output: + ar_personal_credit_disabled_child_of_filer: [false, false] + +- name: 2025 a dependent without parent ids is treated as the filer's child + period: 2025 + input: + people: + filer: {age: 30} + child: {age: 8} + tax_units: + tax_unit: + members: [filer, child] + households: + household: + members: [filer, child] + state_code: AR + output: + ar_personal_credit_disabled_child_of_filer: [true, true] diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml index d77a4855722..60cac84e283 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.yaml @@ -489,3 +489,29 @@ # child_a has no parent ids of their own, so the relationship is unknown # and the child route stays open; child_b is not disabled. ar_personal_credit_disabled_dependent: [0, 500, 0, 0] + +- name: 2025 single filer who can be claimed gets no credit for a disabled stepchild marked as not their child by birth or adoption + period: 2025 + input: + people: + filer: + age: 30 + person_id: 1 + claimed_as_dependent_on_another_return: true + stepchild: + age: 8 + person_id: 2 + parent_1_id: 1 + is_disabled: true + ar_personal_credit_disabled_child_of_filer: false + tax_units: + tax_unit: + members: [filer, stepchild] + filing_status: SINGLE + households: + household: + members: [filer, stepchild] + state_code: AR + output: + # A stepchild needs the dependent route, which IRC 152(b)(1) bars here. + ar_personal_credit_disabled_dependent: [0, 0] diff --git a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml index 9e629ea4553..8904fcfb164 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ca/tax/income/deductions/standard/ca_standard_deduction.yaml @@ -237,3 +237,76 @@ # Federal worksheet earned income includes Schedule 1 line 6 (farm) less # line 15: $2,000 - $2,000 x 0.9235 x 0.153 / 2 = $1,858.70; plus $450. ca_standard_deduction: 2_308.70 + +- name: 2025 single filer who can be claimed counts wages after a 401(k) deferral on the dependent worksheet + period: 2025 + input: + people: + filer: + age: 19 + employment_income: 2_000 + traditional_401k_contributions: 1_000 + claimed_as_dependent_on_another_return: true + tax_units: + tax_unit: + members: [filer] + filing_status: SINGLE + households: + household: + members: [filer] + state_code: CA + output: + # max($1,350, $1,000 + $450) = $1,450. + ca_standard_deduction: 1_450 + +- name: 2025 joint return with one claimable spouse counts wages after a 401(k) deferral (the claimable spouse is the head) + period: 2025 + input: + people: + person_a: + age: 20 + employment_income: 2_000 + traditional_401k_contributions: 1_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: true + is_tax_unit_spouse: false + person_b: + age: 22 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_a, person_b] + filing_status: JOINT + households: + household: + members: [person_a, person_b] + state_code: CA + output: + ca_standard_deduction: 1_450 + +- name: 2025 joint return with one claimable spouse counts wages after a 401(k) deferral (the claimable spouse is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 2_000 + traditional_401k_contributions: 1_000 + claimed_as_dependent_on_another_return: true + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + households: + household: + members: [person_b, person_a] + state_code: CA + output: + ca_standard_deduction: 1_450 diff --git a/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml b/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml index e63768d4b34..9ad2730a836 100644 --- a/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml +++ b/policyengine_us/tests/policy/contrib/states/ca/ab2591/ca_ab2591.yaml @@ -255,3 +255,57 @@ output: # min($16,334 one-person FPL, max($1,400, $0 + $500)) = $1,400. ca_standard_deduction: 1_400 + +- name: Joint return with one claimable spouse uses the dependent worksheet in a year the election is not in effect (the claimable spouse is the head). + period: 2025 + reforms: policyengine_us.reforms.states.ca.ab2591.ab2591.ca_ab2591 + input: + people: + person_a: {age: 20, employment_income: 1_000, claimed_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 22, employment_income: 1_000, is_tax_unit_head: false, is_tax_unit_spouse: true} + tax_units: {tax_unit: {members: [person_a, person_b], filing_status: JOINT}} + households: {household: {members: [person_a, person_b], state_code: CA}} + output: + # max($1,350, $2,000 + $450) = $2,450 < $11,412. + ca_standard_deduction: 2_450 + +- name: Joint return with one claimable spouse uses the dependent worksheet in a year the election is not in effect (the claimable spouse is the spouse). + period: 2025 + reforms: policyengine_us.reforms.states.ca.ab2591.ab2591.ca_ab2591 + input: + people: + person_b: {age: 22, employment_income: 1_000, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 20, employment_income: 1_000, claimed_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + tax_units: {tax_unit: {members: [person_b, person_a], filing_status: JOINT}} + households: {household: {members: [person_b, person_a], state_code: CA}} + output: + ca_standard_deduction: 2_450 + +- name: Joint return with one claimable spouse and no earnings is limited to the dependent minimum under the election (the claimable spouse is the head). + period: 2027 + absolute_error_margin: 1 + reforms: policyengine_us.reforms.states.ca.ab2591.ab2591.ca_ab2591 + input: + gov.contrib.states.ca.ab2591.in_effect: true + people: + person_a: {age: 20, claimed_as_dependent_on_another_return: true, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_b: {age: 22, is_tax_unit_head: false, is_tax_unit_spouse: true} + tax_units: {tax_unit: {members: [person_a, person_b], filing_status: JOINT}} + households: {household: {members: [person_a, person_b], state_code: CA}} + output: + # min($22,147 two-person FPL, max($1,400, $0 + $500)) = $1,400. + ca_standard_deduction: 1_400 + +- name: Joint return with one claimable spouse and no earnings is limited to the dependent minimum under the election (the claimable spouse is the spouse). + period: 2027 + absolute_error_margin: 1 + reforms: policyengine_us.reforms.states.ca.ab2591.ab2591.ca_ab2591 + input: + gov.contrib.states.ca.ab2591.in_effect: true + people: + person_b: {age: 22, is_tax_unit_head: true, is_tax_unit_spouse: false} + person_a: {age: 20, claimed_as_dependent_on_another_return: true, is_tax_unit_head: false, is_tax_unit_spouse: true} + tax_units: {tax_unit: {members: [person_b, person_a], filing_status: JOINT}} + households: {household: {members: [person_b, person_a], state_code: CA}} + output: + ca_standard_deduction: 1_400 diff --git a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py index 7e6f0bacdcb..18c8aca88f9 100644 --- a/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py +++ b/policyengine_us/variables/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.py @@ -8,9 +8,9 @@ class dependent_standard_deduction_earned_income(Variable): unit = USD documentation = ( "The filers' earned income as the Standard Deduction Worksheet for " - "Dependents defines it: wages, self-employment income and farm " - "income, less the deductible part of self-employment tax, and not " - "below zero." + "Dependents defines it: taxable wages (after pre-tax payroll " + "deductions), self-employment income and farm income, less the " + "deductible part of self-employment tax, and not below zero." ) definition_period = YEAR reference = ( @@ -24,10 +24,18 @@ class dependent_standard_deduction_earned_income(Variable): def formula(tax_unit, period, parameters): person = tax_unit.members filer = person("is_tax_unit_head_or_spouse", period) - # earned_income leaves out Schedule F farm income, which the - # worksheet counts (Schedule 1 line 6). - earned = person("earned_income", period) + person( - "farm_operations_income", period + # Form 1040 line 1z carries taxable wages (W-2 box 1, after elective + # deferrals); Schedule 1 lines 3 and 6 carry business and farm + # income. earned_income has gross wages and leaves out farm income. + earned = add( + person, + period, + [ + "irs_employment_income", + "self_employment_income", + "sstb_self_employment_income", + "farm_operations_income", + ], ) return max_( tax_unit.sum(filer * earned) - tax_unit("self_employment_tax_ald", period), diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.py new file mode 100644 index 00000000000..ecdf97261ae --- /dev/null +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.py @@ -0,0 +1,33 @@ +from policyengine_us.model_api import * +from policyengine_us.variables.household.demographic.person._parent_links import ( + has_parent_ids, + tax_unit_parent_indices, +) + + +class ar_personal_credit_disabled_child_of_filer(Variable): + value_type = bool + entity = Person + label = "Child of a filer by birth or adoption for the Arkansas developmentally disabled credit" + documentation = ( + "Whether the person is a child of the head or spouse by birth or " + "adoption, the credit's route that does not need an IRC 152 " + "dependent. Defaults to whether a parent id names a head or spouse of " + "the tax unit, and to true when the person has no parent ids (the " + "relationship is unknown). Parent ids also name step-parents, so set " + "this to false for a stepchild who is no filer's child by birth or " + "adoption." + ) + definition_period = YEAR + reference = ( + "https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F1999%2FPublic%2FACT417.pdf#page=2", + ) + defined_for = StateCode.AR + + def formula(person, period, parameters): + filer = person("is_tax_unit_head_or_spouse", period) + first, second = tax_unit_parent_indices(person, period) + names_filer = np.where(first >= 0, filer[first], False) | np.where( + second >= 0, filer[second], False + ) + return names_filer | ~has_parent_ids(person, period) diff --git a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py index 496b4ce1954..82403c4b368 100644 --- a/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py +++ b/policyengine_us/variables/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_dependent.py @@ -1,8 +1,4 @@ from policyengine_us.model_api import * -from policyengine_us.variables.household.demographic.person._parent_links import ( - has_parent_ids, - tax_unit_parent_indices, -) class ar_personal_credit_disabled_dependent(Variable): @@ -25,28 +21,18 @@ def formula(person, period, parameters): disabled = person("is_disabled", period) # The credit covers an individual who is "a child of the taxpayer's # blood, an adopted child, or a dependent" in the IRC 152 sense (Ark. - # Code 26-51-503, Act 417 of 1999). A return on which the filer (or, if joint, either - # spouse) can be claimed as a dependent has no IRC 152 dependents + # Code 26-51-503, Act 417 of 1999). A return on which the filer (or, + # if joint, either spouse) can be claimed has no IRC 152 dependents # (IRC 152(b)(1)), so only the filers' own children still qualify. # The would-be claimant's filing exception (not required to file and # filing only for a refund, Publication 501) restores the dependents. filer_is_dependent = person.tax_unit( "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period ) - # A filer's child: a parent id that names a head or spouse of the - # tax unit. Parent ids name natural, adoptive and step-parents alike, - # so a single filer's stepchild also passes here, though the - # statute's child route covers only blood and adopted children; on a - # joint return a stepchild of one spouse is usually the other's own - # child. A dependent with no parent ids of their own leaves the - # relationship unknown, and the child route stays open. - filer = person("is_tax_unit_head_or_spouse", period) - first, second = tax_unit_parent_indices(person, period) - child_of_filer = np.where(first >= 0, filer[first], False) | np.where( - second >= 0, filer[second], False - ) - relationship_unknown = ~has_parent_ids(person, period) - qualifies = ~filer_is_dependent | child_of_filer | relationship_unknown + # The child route: a filer's child by birth or adoption (from parent + # ids by default; an input can mark a stepchild). + child_of_filer = person("ar_personal_credit_disabled_child_of_filer", period) + qualifies = ~filer_is_dependent | child_of_filer disabled_dependent = disabled & dependent & qualifies p = parameters(period).gov.states.ar.tax.income.credits.personal.amount return disabled_dependent * p.disabled_dependent From f0327d0df77a87067ed7c4e32ba3c6fb56573189 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Fri, 16 Oct 2026 09:58:25 -0400 Subject: [PATCH 24/25] Fix Arkansas disabled-child helper test expectations --- .../ar_personal_credit_disabled_child_of_filer.yaml | 6 ++++-- 1 file changed, 4 insertions(+), 2 deletions(-) diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml index 8a3a8f9111b..81b58e148d8 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml @@ -1,6 +1,8 @@ # Defaults: a parent id that names a head or spouse of the tax unit, or no # parent ids at all (the relationship is unknown). Parent ids also name # step-parents, so a stepchild needs the input set to false. +# The filer also has no parent ids, so the helper's unknown-relationship +# fallback is true for them. The credit separately excludes filers. - name: 2025 a parent id naming the filer makes the dependent the filer's child period: 2025 @@ -16,7 +18,7 @@ members: [filer, child] state_code: AR output: - ar_personal_credit_disabled_child_of_filer: [false, true] + ar_personal_credit_disabled_child_of_filer: [true, true] - name: 2025 a parent id naming someone outside the tax unit does not period: 2025 @@ -32,7 +34,7 @@ members: [filer, niece] state_code: AR output: - ar_personal_credit_disabled_child_of_filer: [false, false] + ar_personal_credit_disabled_child_of_filer: [true, false] - name: 2025 a dependent without parent ids is treated as the filer's child period: 2025 From b39eb1b909079700f739774ff6ae3c8d7834e3e3 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sun, 18 Oct 2026 19:00:24 -0400 Subject: [PATCH 25/25] test: address round-3 claimable filer review --- ...dent_standard_deduction_earned_income.yaml | 63 ++++++++++++++++++- ...rsonal_credit_disabled_child_of_filer.yaml | 17 ++++- .../az_increased_excise_tax_credit.yaml | 46 +++++++------- 3 files changed, 100 insertions(+), 26 deletions(-) diff --git a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml index 368b25ed4c3..5ad37920895 100644 --- a/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml +++ b/policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/standard_deduction/dependent_standard_deduction_earned_income.yaml @@ -31,19 +31,25 @@ # $2,000 x 0.9235 x 0.153 / 2 = $141.30 deductible. dependent_standard_deduction_earned_income: 1_858.70 -- name: 2025 joint return adds both spouses' earnings and leaves out a dependent's +- name: 2025 joint return adds both spouses' earnings and leaves out a dependent's (person_a is the head) period: 2025 input: people: person_a: age: 20 employment_income: 1_000 + is_tax_unit_head: true + is_tax_unit_spouse: false person_b: age: 22 employment_income: 1_500 + is_tax_unit_head: false + is_tax_unit_spouse: true child: age: 16 employment_income: 5_000 + is_tax_unit_head: false + is_tax_unit_spouse: false tax_units: tax_unit: members: [person_a, person_b, child] @@ -51,6 +57,32 @@ output: dependent_standard_deduction_earned_income: 2_500 +- name: 2025 joint return adds both spouses' earnings and leaves out a dependent's (person_a is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + employment_income: 1_500 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 1_000 + is_tax_unit_head: false + is_tax_unit_spouse: true + child: + age: 16 + employment_income: 5_000 + is_tax_unit_head: false + is_tax_unit_spouse: false + tax_units: + tax_unit: + members: [person_b, person_a, child] + filing_status: JOINT + output: + dependent_standard_deduction_earned_income: 2_500 + - name: 2025 a farm loss larger than wages leaves zero period: 2025 input: @@ -80,7 +112,7 @@ # Form 1040 line 1z (W-2 box 1) leaves out elective deferrals. dependent_standard_deduction_earned_income: 1_000 -- name: 2025 joint return counts each spouse's taxable wages +- name: 2025 joint return counts each spouse's taxable wages (person_a is the head) period: 2025 input: people: @@ -88,9 +120,13 @@ age: 20 employment_income: 2_000 traditional_401k_contributions: 1_000 + is_tax_unit_head: true + is_tax_unit_spouse: false person_b: age: 22 employment_income: 500 + is_tax_unit_head: false + is_tax_unit_spouse: true tax_units: tax_unit: members: [person_a, person_b] @@ -98,3 +134,26 @@ output: # $1,000 + $500. dependent_standard_deduction_earned_income: 1_500 + +- name: 2025 joint return counts each spouse's taxable wages (person_a is the spouse) + period: 2025 + input: + people: + person_b: + age: 22 + employment_income: 500 + is_tax_unit_head: true + is_tax_unit_spouse: false + person_a: + age: 20 + employment_income: 2_000 + traditional_401k_contributions: 1_000 + is_tax_unit_head: false + is_tax_unit_spouse: true + tax_units: + tax_unit: + members: [person_b, person_a] + filing_status: JOINT + output: + # $500 + $1,000. + dependent_standard_deduction_earned_income: 1_500 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml index 81b58e148d8..d09831067fc 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/personal/ar_personal_credit_disabled_child_of_filer.yaml @@ -4,12 +4,20 @@ # The filer also has no parent ids, so the helper's unknown-relationship # fallback is true for them. The credit separately excludes filers. -- name: 2025 a parent id naming the filer makes the dependent the filer's child +- name: 2025 a claimable disabled filer gets no credit for themselves but keeps the credit for their disabled child period: 2025 input: people: - filer: {age: 30, person_id: 1} - child: {age: 8, person_id: 2, parent_1_id: 1} + filer: + age: 30 + person_id: 1 + is_disabled: true + claimable_as_dependent_on_another_return: true + child: + age: 8 + person_id: 2 + parent_1_id: 1 + is_disabled: true tax_units: tax_unit: members: [filer, child] @@ -18,7 +26,10 @@ members: [filer, child] state_code: AR output: + # No parent ids makes the helper true for the filer, but the credit + # excludes filers. The parent's own disabled child still gets $500. ar_personal_credit_disabled_child_of_filer: [true, true] + ar_personal_credit_disabled_dependent: [0, 500] - name: 2025 a parent id naming someone outside the tax unit does not period: 2025 diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml index 6a9f5414780..62a3bf6f4e6 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_increased_excise_tax_credit.yaml @@ -119,12 +119,14 @@ # file a return or a dependent"), up to $100, but only "for a taxpayer who is # not claimed as a dependent by any other taxpayer". The Form 140 line 56 # worksheet counts the filers and the dependents "provided that person(s) -# qualifies as a dependent for federal purposes", and the instructions let a -# joint filer claim the credit but not for a spouse who is barred. So a filer -# who can be claimed is not counted, and a return on which either filer can -# be claimed counts no dependents (IRC 152(b)(1)). Income is zero. +# qualifies as a dependent for federal purposes". The instructions' example +# lets a joint filer claim the credit but not for an imprisoned spouse; +# applying that analogy here, a filer actually claimed by another taxpayer +# is not counted. A return on which either filer can be claimed counts no +# dependents (IRC 152(b)(1)), unless the would-be claimant is not required +# to file and files only for a refund (Publication 501). Income is zero. -- name: 2025 single filer who can be claimed as a dependent gets no excise credit +- name: 2025 single filer who is actually claimed as a dependent gets no excise credit period: 2025 input: people: @@ -142,7 +144,7 @@ output: az_increased_excise_tax_credit: 0 -- name: 2025 single filer who cannot be claimed gets the excise credit for the filer +- name: 2025 single filer who is not actually claimed gets the excise credit for the filer period: 2025 input: people: @@ -160,7 +162,7 @@ # $25 x 1. az_increased_excise_tax_credit: 25 -- name: 2025 joint return with one claimable spouse gets the excise credit only for the other spouse (the claimable spouse is the head) +- name: 2025 joint return with one spouse actually claimed gets the excise credit only for the other spouse (the actually claimed spouse is the head) period: 2025 input: people: @@ -185,7 +187,7 @@ # $25 x 1. az_increased_excise_tax_credit: 25 -- name: 2025 joint return with one claimable spouse gets the excise credit only for the other spouse (the claimable spouse is the spouse) +- name: 2025 joint return with one spouse actually claimed gets the excise credit only for the other spouse (the actually claimed spouse is the spouse) period: 2025 input: people: @@ -210,7 +212,7 @@ # $25 x 1. az_increased_excise_tax_credit: 25 -- name: 2025 joint return with both spouses claimable gets no excise credit +- name: 2025 joint return with both spouses actually claimed gets no excise credit period: 2025 input: people: @@ -231,7 +233,7 @@ output: az_increased_excise_tax_credit: 0 -- name: 2025 joint return with neither spouse claimable gets the excise credit for both spouses +- name: 2025 joint return with neither spouse actually claimed gets the excise credit for both spouses period: 2025 input: people: @@ -251,7 +253,7 @@ # $25 x 2. az_increased_excise_tax_credit: 50 -- name: 2025 joint return with one claimable spouse with a child gets the excise credit only for the other spouse (the claimable spouse is the head) +- name: 2025 joint return with a child and one spouse actually claimed gets the excise credit only for the other spouse (the actually claimed spouse is the head) period: 2025 input: people: @@ -278,7 +280,7 @@ # $25 x 1; the child is not counted. az_increased_excise_tax_credit: 25 -- name: 2025 joint return with one claimable spouse with a child gets the excise credit only for the other spouse (the claimable spouse is the spouse) +- name: 2025 joint return with a child and one spouse actually claimed gets the excise credit only for the other spouse (the actually claimed spouse is the spouse) period: 2025 input: people: @@ -305,7 +307,7 @@ # $25 x 1; the child is not counted. az_increased_excise_tax_credit: 25 -- name: 2025 joint return with both spouses claimable with a child gets no excise credit +- name: 2025 joint return with a child and both spouses actually claimed gets no excise credit period: 2025 input: people: @@ -328,7 +330,7 @@ output: az_increased_excise_tax_credit: 0 -- name: 2025 joint return with neither spouse claimable with a child gets the excise credit for both spouses and the child +- name: 2025 joint return with a child and neither spouse actually claimed gets the excise credit for both spouses and the child period: 2025 input: people: @@ -350,7 +352,7 @@ # $25 x 3. az_increased_excise_tax_credit: 75 -- name: 2025 joint return with one claimable spouse and a tax unit size input counts only the filers (the claimable spouse is the head) +- name: 2025 joint return with one spouse actually claimed and a tax unit size input counts only the filers (the actually claimed spouse is the head) period: 2025 input: people: @@ -373,11 +375,12 @@ members: [person_a, person_b] state_code: AZ output: - # $25 for the spouse who cannot be claimed. A tax unit size of 4 does not say who the - # other two are; a return with a claimable filer counts no dependents. + # $25 for the spouse not actually claimed. A tax unit size of 4 does not + # say who the other two are; absent the filing exception, a return with + # a claimable filer counts no dependents. az_increased_excise_tax_credit: 25 -- name: 2025 joint return with one claimable spouse and a tax unit size input counts only the filers (the claimable spouse is the spouse) +- name: 2025 joint return with one spouse actually claimed and a tax unit size input counts only the filers (the actually claimed spouse is the spouse) period: 2025 input: people: @@ -400,8 +403,9 @@ members: [person_b, person_a] state_code: AZ output: - # $25 for the spouse who cannot be claimed. A tax unit size of 4 does not say who the - # other two are; a return with a claimable filer counts no dependents. + # $25 for the spouse not actually claimed. A tax unit size of 4 does not + # say who the other two are; absent the filing exception, a return with + # a claimable filer counts no dependents. az_increased_excise_tax_credit: 25 - name: 2025 single filer who can be claimed but is not claimed gets the excise credit @@ -445,5 +449,5 @@ state_code: AZ output: # The filer counts ($25), but the child is not a federal dependent of a - # claimable filer (IRC 152(b)(1)). + # claimable filer absent the filing exception (IRC 152(b)(1)). az_increased_excise_tax_credit: 25