Apply Oregon, Maine and Hawaii rules for a filer who can be claimed as a dependent

changelog.d/claimable-filer-or-me-hi.fixed.md

@@ -0,0 +1 @@
+Apply Oregon, Maine and Hawaii rules for a filer who can be claimed as a dependent: Maine's personal exemption counts only filers who may not be claimed (1040ME line 13), and Maine's dependent exemption credit, expanded childless EITC and 2021 relief rebate, Oregon's Kids Credit, disabled child exemption, higher EITC rate for a dependent under three and working family household and dependent care credit child (with its expenses and column), and Hawaii's age-65 exemption and child care credit qualifying individuals and expenses follow the dependent taxpayer rules; Oregon's working family credit now counts a disabled spouse under either head/spouse label.

policyengine_us/reforms/states/hi/dependent_exemption/hi_dependent_exemption_reform.py

@@ -89,8 +89,9 @@ def formula(tax_unit, period, parameters):
             # exactly as the baseline computes it).
             person = tax_unit.members
             head_or_spouse = person("is_tax_unit_head_or_spouse", period)
+            claimed = person("claimable_as_dependent_on_another_return", period)
             aged = person("age", period) >= p.aged_threshold
-            aged_head_spouse_count = tax_unit.sum(aged & head_or_spouse)
+            aged_head_spouse_count = tax_unit.sum(aged & head_or_spouse & ~claimed)
 
             personal_amount = (personal_count + aged_head_spouse_count) * p.base
 

policyengine_us/reforms/states/oregon/dependent_exemption_credit/or_dependent_exemption_credit_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_without_filing_exception", period
+            )
 
             # Apply age limit if in effect
             age_threshold = p.age_limit.threshold
@@ -39,7 +43,11 @@ class or_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_without_filing_exception", period
+            )
             total_dependents = tax_unit.sum(is_dependent)
             eligible_dependents = tax_unit("or_eligible_dependents_count", period)
             return max_(0, total_dependents - eligible_dependents)
@@ -87,9 +95,13 @@ def formula(tax_unit, period, parameters):
 
             qualifies = federal_agi <= p.income_limit.regular[filing_status]
 
-            # Count head and spouse only (1 for single/hoh, 2 for joint)
+            # Count the filers' own exemptions: none for a filer whom another
+            # taxpayer can claim (ORS 316.085(1)(b)).
+            dependent_filer = tax_unit("head_or_spouse_is_dependent_elsewhere", period)
             head_spouse_count = where(
-                filing_status == filing_status.possible_values.JOINT, 2, 1
+                dependent_filer,
+                tax_unit("head_spouse_count_not_dependent_elsewhere", period),
+                tax_unit("head_spouse_count", period),
             )
 
             # Add older dependents (those excluded from dependent credit by age limit)

policyengine_us/tests/core/test_claimable_filer_or_me_hi_invariants.py

@@ -0,0 +1,121 @@
+"""Oregon, Maine and Hawaii rules for a filer who can be claimed as a dependent.
+
+Each state denies such a filer their own exemption, and several credits need
+dependents that a return with a claimable filer cannot have (IRC 152(b)(1)).
+
+For couples with either, both or neither spouse claimed:
+
+1. Swap invariance: each output is the same under either head/spouse
+   labelling (Hypothesis batches, the seeded population and the crafted
+   incapacity cases).
+2. Monotonicity: marking another filer as claimed never raises an output
+   (seeded population and crafted cases only).
+
+The crafted cases add adults and a dependent who are incapable of self-care,
+with care expenses, which the generated population never has. The contributed
+reforms and the Oregon credit's column are covered by YAML cases only.
+"""
+
+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,
+    _crafted_cases,
+    _seeded_couples,
+    adults,
+    dependents,
+)
+
+STATES = ["OR", "ME", "HI"]
+YEARS = [2021, 2025, 2026]
+OUTPUTS = [
+    "or_exemption_credit",
+    "or_ctc",
+    "or_wfhdc_has_qualified_individual_eligible",
+    "me_personal_exemption_deduction",
+    "me_dependent_exemption_credit",
+    "me_pro_forma_childless_eitc",
+    "me_relief_rebate",
+    "me_property_tax_fairness_credit_benefit_base",
+    "hi_regular_exemptions",
+    "hi_disabled_exemptions",
+    "hi_cdcc_eligible",
+    "hi_cdcc_qualifying_individuals",
+    "hi_cdcc",
+]
+
+
+def _incapacity_cases():
+    # Both spouses and an adult dependent incapable of self-care, with care
+    # expenses, and a young child with childcare expenses.
+    earner = {
+        "age": 45,
+        "employment_income": 10_000.0,
+        "is_disabled": True,
+        "is_incapable_of_self_care": True,
+        "pre_subsidy_care_expenses": 2_000.0,
+    }
+    other = {
+        "age": 44,
+        "employment_income": 3_000.0,
+        "is_disabled": True,
+        "is_incapable_of_self_care": True,
+        "pre_subsidy_care_expenses": 1_000.0,
+    }
+    relative = {
+        "age": 30,
+        "is_disabled": True,
+        "is_incapable_of_self_care": True,
+        "pre_subsidy_care_expenses": 1_500.0,
+    }
+    child = {"age": 4, "pre_subsidy_childcare_expenses": 3_000.0}
+    return [
+        {
+            "state": state,
+            "adults": couple,
+            "dependents": others,
+            "claimed": claimed,
+        }
+        for state in ("OR", "HI")
+        for couple in ([earner, other], [earner, {"age": 44}])
+        for others in ([], [child], [child, relative])
+        for claimed in [(True, False), (False, True), (True, True)]
+    ]
+
+
+@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_or_me_hi_claimable_filer_rules_are_label_free(year, units):
+    check_swap(units, year, OUTPUTS)
+
+
+@pytest.mark.parametrize("year", YEARS)
+def test_or_me_hi_claimable_filer_rules_seeded_population(year):
+    units = (
+        _seeded_couples(STATES, per_state=3)
+        + _crafted_cases(STATES)
+        + _incapacity_cases()
+    )
+    check_swap(units, year, OUTPUTS)
+    check_monotone(units, year, OUTPUTS)

policyengine_us/tests/policy/baseline/gov/states/hi/tax/income/credits/cdcc/hi_cdcc.yaml

@@ -130,3 +130,127 @@
   output:
     # Line 11 cap is $7,500, so line 22 = 10_000 - 4_000 = 6_000; 6_000 * 22%.
     hi_cdcc: 1_320
+
+# Both spouses are incapable of self-care and one can be claimed as a dependent.
+# Only that spouse is a qualifying individual (of the spouse who cannot be
+# claimed), so only care expenses for that spouse count (HRS 235-55.6(b)(2)).
+- name: 2025 care expenses of the spouse who is not a qualifying individual do not count (the claimable spouse is the head)
+  period: 2025
+  input:
+    people:
+      person_a:
+        age: 45
+        is_incapable_of_self_care: true
+        claimed_as_dependent_on_another_return: true
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_b:
+        age: 45
+        employment_income: 10000
+        is_incapable_of_self_care: true
+        pre_subsidy_care_expenses: 2000
+        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: HI
+  output:
+    hi_cdcc_qualifying_individuals: 1
+    hi_dependent_care_benefits: 0
+    hi_cdcc: 0
+
+- name: 2025 care expenses of the spouse who is not a qualifying individual do not count (the claimable spouse is the spouse)
+  period: 2025
+  input:
+    people:
+      person_b:
+        age: 45
+        employment_income: 10000
+        is_incapable_of_self_care: true
+        pre_subsidy_care_expenses: 2000
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_a:
+        age: 45
+        is_incapable_of_self_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: HI
+  output:
+    hi_cdcc_qualifying_individuals: 1
+    hi_dependent_care_benefits: 0
+    hi_cdcc: 0
+
+- name: 2025 care expenses of the claimable incapacitated spouse count (the claimable spouse is the head)
+  period: 2025
+  input:
+    people:
+      person_a:
+        age: 45
+        is_incapable_of_self_care: true
+        pre_subsidy_care_expenses: 2000
+        claimed_as_dependent_on_another_return: true
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_b:
+        age: 45
+        employment_income: 10000
+        is_incapable_of_self_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: HI
+  output:
+    # 25% x min(2,000 expenses, $10,000 limit, 10,000 earned)
+    hi_cdcc_qualifying_individuals: 1
+    hi_dependent_care_benefits: 2000
+    hi_cdcc: 500
+
+- name: 2025 care expenses of the claimable incapacitated spouse count (the claimable spouse is the spouse)
+  period: 2025
+  input:
+    people:
+      person_b:
+        age: 45
+        employment_income: 10000
+        is_incapable_of_self_care: true
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_a:
+        age: 45
+        is_incapable_of_self_care: true
+        pre_subsidy_care_expenses: 2000
+        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: HI
+  output:
+    hi_cdcc_qualifying_individuals: 1
+    hi_dependent_care_benefits: 2000
+    hi_cdcc: 500