From 6447abbecf54a7066364b55c6a33f31846ea19a8 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Tue, 20 Oct 2026 16:05:55 -0400 Subject: [PATCH 1/4] Fix Wisconsin itemized credit charitable deduction base --- .../wi-itemized-credit-2021-charity.fixed.md | 1 + .../income/wi_itemized_deduction_credit.yaml | 94 +++++++++++++++++++ .../wi_itemized_deduction_credit_potential.py | 20 +++- 3 files changed, 112 insertions(+), 3 deletions(-) create mode 100644 changelog.d/wi-itemized-credit-2021-charity.fixed.md diff --git a/changelog.d/wi-itemized-credit-2021-charity.fixed.md b/changelog.d/wi-itemized-credit-2021-charity.fixed.md new file mode 100644 index 00000000000..165b108d217 --- /dev/null +++ b/changelog.d/wi-itemized-credit-2021-charity.fixed.md @@ -0,0 +1 @@ +Fixed Wisconsin's itemized deduction credit counting the federal non-itemizer charitable allowance in addition to the same charitable gifts in 2020-2021, and excluded miscellaneous deductions from the credit base. diff --git a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml index 38850b7f5cd..eaf8f2dbd67 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml @@ -25,3 +25,97 @@ state_code: WI output: wi_itemized_deduction_credit_potential: 0 + +# Wis. Stat. 71.07(5)(a)-(c): +# https://docs.legis.wisconsin.gov/statutes/statutes/71/i/07/5 +# 2021 Schedule 1 instructions (hypothetical Schedule A): +# https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf#page=16 +# 2021 Form 1, Schedule 1, lines 3 and 5-9: +# https://www.revenue.wi.gov/TaxForms2021/2021-Form1.pdf#page=4 +# Cash gifts = 10,000; WI standard deduction = 0 at this income. +# 2021 standard-deduction table, final row: all statuses zero above 128,113. +# https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf#page=36 +# The same gift is counted once: (10,000 - 0) * .05 = 500. +# The federal 300 nonitemizer allowance is not an additional contribution. +- name: Wisconsin 2021 credit counts each charitable gift once + period: 2021 + absolute_error_margin: 0.01 + input: + people: + person: + age: 40 + employment_income: 150_000 + charitable_cash_donations: 10_000 + tax_units: + tax_unit: + members: [person] + households: + household: + members: [person] + state_code: WI + output: + wi_standard_deduction: 0 + wi_itemized_deduction_credit_potential: 500 + wi_itemized_deduction_credit: 500 + +# 2022 has no federal nonitemizer allowance, and should already pass. +- name: Wisconsin 2022 charitable credit control + period: 2022 + absolute_error_margin: 0.01 + input: + people: + person: + age: 40 + employment_income: 150_000 + charitable_cash_donations: 10_000 + tax_units: + tax_unit: + members: [person] + households: + household: + members: [person] + state_code: WI + output: + wi_standard_deduction: 0 + wi_itemized_deduction_credit_potential: 500 + wi_itemized_deduction_credit: 500 + +# 2022 Schedule 1, lines 1-9: +# https://www.revenue.wi.gov/TaxForms2022/2022-Form1.pdf#page=4 +# Medical deduction = 15,000 - (150,000 * .075) = 3,750. +# Credit = (3,750 + 10,000 interest + 10,000 charity - 0) * .05. +- name: Wisconsin 2022 medical interest and charitable credit control + period: 2022 + absolute_error_margin: 0.01 + input: + people: + person: + age: 40 + employment_income: 150_000 + charitable_cash_donations: 10_000 + other_medical_expenses: 15_000 + deductible_interest_expense: 10_000 + tax_units: + tax_unit: + members: [person] + households: + household: + members: [person] + state_code: WI + output: + medical_expense_deduction: 3_750 + wi_standard_deduction: 0 + wi_itemized_deduction_credit_potential: 1_187.50 + wi_itemized_deduction_credit: 1_187.50 + +# Wis. Stat. 71.07(5)(a)2 and 7 exclude SALT and miscellaneous deductions. +- name: Wisconsin credit excludes miscellaneous deductions and SALT + period: 2022 + absolute_error_margin: 0.01 + input: + state_code: WI + wi_standard_deduction: 0 + misc_deduction: 5_000 + salt_deduction: 8_000 + output: + wi_itemized_deduction_credit_potential: 0 diff --git a/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py index da76fe63638..9c6da0a2ac2 100644 --- a/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py +++ b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py @@ -8,14 +8,28 @@ class wi_itemized_deduction_credit_potential(Variable): unit = USD definition_period = YEAR reference = ( - "https://www.revenue.wi.gov/TaxForms2021/2021-Form1f.pdf#page=4", - "https://www.revenue.wi.gov/TaxForms2022/2022-Form1f.pdf#page=4", + "https://docs.legis.wisconsin.gov/statutes/statutes/71/i/07/5", + "https://www.revenue.wi.gov/TaxForms2021/2021-Form1.pdf#page=4", + "https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf#page=16", + "https://www.revenue.wi.gov/TaxForms2022/2022-Form1.pdf#page=4", "https://docs.legis.wisconsin.gov/misc/lfb/informational_papers/january_2023/0002_individual_income_tax_informational_paper_2.pdf#page=19", ) defined_for = StateCode.WI def formula(tax_unit, period, parameters): - wi_itmded = tax_unit("itemized_deductions_less_salt", period) + # Schedule 1 uses actual or hypothetical Schedule A components, + # excluding SALT, miscellaneous deductions, and the federal + # charitable allowance for non-itemizers. + wi_itmded = add( + tax_unit, + period, + [ + "medical_expense_deduction", + "interest_deduction", + "charitable_deduction", + "casualty_loss_deduction", + ], + ) wi_stdded = tax_unit("wi_standard_deduction", period) excess_itmded = max_(0, wi_itmded - wi_stdded) p = parameters(period).gov.states.wi.tax.income From 516a3e2047cbc7a0991812537b4519093e1ba3be Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Thu, 22 Oct 2026 04:42:09 -0400 Subject: [PATCH 2/4] Fix 2020 Wisconsin itemized credit charitable component Subtract the modeled federal non-itemizer allowance only when claimed in 2020. Preserve full charitable gifts for federal itemizers and from 2021, and cite the historical five-percent rate. --- .../wi-itemized-credit-2021-charity.fixed.md | 2 +- .../credits/itemized_deduction/rate.yaml | 4 +- .../income/wi_itemized_deduction_credit.yaml | 39 ++++++++++++++ ...deduction_credit_charitable_deduction.yaml | 52 +++++++++++++++++++ ...d_deduction_credit_charitable_deduction.py | 32 ++++++++++++ .../wi_itemized_deduction_credit_potential.py | 2 +- 6 files changed, 128 insertions(+), 3 deletions(-) create mode 100644 policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml create mode 100644 policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py diff --git a/changelog.d/wi-itemized-credit-2021-charity.fixed.md b/changelog.d/wi-itemized-credit-2021-charity.fixed.md index 165b108d217..84f6d4377f7 100644 --- a/changelog.d/wi-itemized-credit-2021-charity.fixed.md +++ b/changelog.d/wi-itemized-credit-2021-charity.fixed.md @@ -1 +1 @@ -Fixed Wisconsin's itemized deduction credit counting the federal non-itemizer charitable allowance in addition to the same charitable gifts in 2020-2021, and excluded miscellaneous deductions from the credit base. +Fixed Wisconsin's itemized deduction credit counting charitable gifts twice in 2021 and reusing gifts deducted above the line in 2020, and excluded miscellaneous deductions from the credit base. diff --git a/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml b/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml index 3a8f77e8028..3adad27f864 100644 --- a/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml +++ b/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml @@ -3,6 +3,8 @@ metadata: period: year unit: /1 reference: + - title: 2020 Wisconsin Form 1, Schedule 1 + href: https://www.revenue.wi.gov/TaxForms2020/2020-Form1.pdf#page=5 - title: 2021 Wisconsin Form 1, Schedule 1 href: https://www.revenue.wi.gov/TaxForms2021/2021-Form1f.pdf#page=4 - title: 2022 Wisconsin Form 1, Schedule 1 @@ -15,4 +17,4 @@ metadata: href: https://www.revenue.wi.gov/TaxForms2025/2025-Form1.pdf#page=4 values: - 2021-01-01: 0.05 + 2020-01-01: 0.05 diff --git a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml index 926b566eccc..dc166fa1b12 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml @@ -26,6 +26,45 @@ output: wi_itemized_deduction_credit_potential: 0 +# 2020 Form 1 instructions, PDF p. 17 (printed p. 15), line 11: +# https://www.revenue.wi.gov/TaxForms2020/2020-Form1-inst.pdf#page=17 +# Schedule 1, PDF p. 5, lines 3 and 8-9: +# https://www.revenue.wi.gov/TaxForms2020/2020-Form1.pdf#page=5 +# Eligible charity = 10,000 - 300 = 9,700; credit = 9,700 * .05 = 485. +- name: Wisconsin 2020 credit excludes gifts already deducted above the line + period: 2020 + absolute_error_margin: 0.01 + input: + state_code: WI + tax_unit_itemizes: false + charitable_deduction: 10_000 + charitable_deduction_for_non_itemizers: 300 + wi_standard_deduction: 0 + medical_expense_deduction: 0 + interest_deduction: 0 + deductible_mortgage_insurance_premiums: 0 + casualty_loss_deduction: 0 + output: + wi_itemized_deduction_credit_charitable_deduction: 9_700 + wi_itemized_deduction_credit_potential: 485 + +- name: Wisconsin 2020 credit retains gifts for federal itemizers + period: 2020 + absolute_error_margin: 0.01 + input: + state_code: WI + tax_unit_itemizes: true + charitable_deduction: 10_000 + charitable_deduction_for_non_itemizers: 300 + wi_standard_deduction: 0 + medical_expense_deduction: 0 + interest_deduction: 0 + deductible_mortgage_insurance_premiums: 0 + casualty_loss_deduction: 0 + output: + wi_itemized_deduction_credit_charitable_deduction: 10_000 + wi_itemized_deduction_credit_potential: 500 + # Wis. Stat. 71.07(5)(a)-(c): # https://docs.legis.wisconsin.gov/statutes/statutes/71/i/07/5 # 2021 Schedule 1 instructions (hypothetical Schedule A): diff --git a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml new file mode 100644 index 00000000000..f49a0174729 --- /dev/null +++ b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml @@ -0,0 +1,52 @@ +# 2020 Form 1 instructions, PDF p. 17 (printed p. 15), line 11: +# https://www.revenue.wi.gov/TaxForms2020/2020-Form1-inst.pdf#page=17 +# Gifts used for the federal line 10b deduction cannot also count for this credit. +- name: Wisconsin 2020 charitable component excludes the claimed federal allowance + period: 2020 + input: + state_code: WI + tax_unit_itemizes: false + charitable_deduction: 10_000 + charitable_deduction_for_non_itemizers: 300 + output: + wi_itemized_deduction_credit_charitable_deduction: 9_700 + +- name: Wisconsin 2020 federal itemizers retain their full charitable component + period: 2020 + input: + state_code: WI + tax_unit_itemizes: true + charitable_deduction: 10_000 + charitable_deduction_for_non_itemizers: 300 + output: + wi_itemized_deduction_credit_charitable_deduction: 10_000 + +- name: Wisconsin 2020 subtracts the actual allowance below the federal cap + period: 2020 + input: + state_code: WI + tax_unit_itemizes: false + charitable_deduction: 1_000 + charitable_deduction_for_non_itemizers: 100 + output: + wi_itemized_deduction_credit_charitable_deduction: 900 + +- name: Wisconsin 2020 charitable component cannot be negative + period: 2020 + input: + state_code: WI + tax_unit_itemizes: false + charitable_deduction: 200 + charitable_deduction_for_non_itemizers: 300 + output: + wi_itemized_deduction_credit_charitable_deduction: 0 + +- name: Wisconsin 2021 retains the full gift without adding the federal allowance + period: 2021 + input: + state_code: WI + tax_unit_itemizes: false + charitable_deduction: 10_000 + charitable_deduction_for_non_itemizers: 300 + output: + wi_itemized_deduction_credit_charitable_deduction: 10_000 diff --git a/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py new file mode 100644 index 00000000000..c578421b91c --- /dev/null +++ b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py @@ -0,0 +1,32 @@ +from policyengine_us.model_api import * + + +class wi_itemized_deduction_credit_charitable_deduction(Variable): + value_type = float + entity = TaxUnit + label = "Charitable deduction for Wisconsin's itemized deduction credit" + unit = USD + definition_period = YEAR + reference = ( + "https://docs.legis.wisconsin.gov/statutes/statutes/71/i/07/5", + "https://www.revenue.wi.gov/TaxForms2020/2020-Form1-inst.pdf#page=17", + "https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf#page=16", + ) + defined_for = StateCode.WI + + def formula(tax_unit, period, parameters): + return tax_unit("charitable_deduction", period) + + def formula_2020(tax_unit, period, parameters): + charitable = tax_unit("charitable_deduction", period) + # The federal variable is a potential allowance, including for itemizers. + # Only non-itemizers claim it on Form 1040 line 10b in 2020. + claimed_above_the_line = where( + tax_unit("tax_unit_itemizes", period), + 0, + tax_unit("charitable_deduction_for_non_itemizers", period), + ) + return max_(0, charitable - claimed_above_the_line) + + def formula_2021(tax_unit, period, parameters): + return tax_unit("charitable_deduction", period) diff --git a/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py index 8cbd1367fd2..20d76bf3e70 100644 --- a/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py +++ b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_potential.py @@ -27,7 +27,7 @@ def formula(tax_unit, period, parameters): [ "medical_expense_deduction", "interest_deduction", - "charitable_deduction", + "wi_itemized_deduction_credit_charitable_deduction", "casualty_loss_deduction", ], ) From 7869d9713aebe0397752badc0bb6d38163f40d7d Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Thu, 22 Oct 2026 08:22:49 -0400 Subject: [PATCH 3/4] Cover Wisconsin's pre-2020 charitable component with a 2019 case The base formula (before 2020) had no test, so codecov/patch reported one uncovered line. At $150,000 of wages the 2019 Wisconsin standard deduction is 0, so 5% of a $10,000 gift gives $500. Co-Authored-By: Claude Opus 5.5 --- .../income/wi_itemized_deduction_credit.yaml | 22 +++++++++++++++++++ 1 file changed, 22 insertions(+) diff --git a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml index dc166fa1b12..b72a1b8c9a8 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml @@ -97,6 +97,28 @@ wi_itemized_deduction_credit_potential: 500 wi_itemized_deduction_credit: 500 +# Before 2020 the base formula applies: the federal charitable deduction, unchanged. +- name: Wisconsin 2019 credit counts the federal charitable deduction + period: 2019 + absolute_error_margin: 0.01 + input: + people: + person: + age: 40 + employment_income: 150_000 + charitable_cash_donations: 10_000 + tax_units: + tax_unit: + members: [person] + households: + household: + members: [person] + state_code: WI + output: + wi_standard_deduction: 0 + wi_itemized_deduction_credit_potential: 500 + wi_itemized_deduction_credit: 500 + # 2022 has no federal nonitemizer allowance, and should already pass. - name: Wisconsin 2022 charitable credit control period: 2022 From d84a976854196715bd74533fc5950720c3d6654e Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Thu, 22 Oct 2026 22:34:11 -0400 Subject: [PATCH 4/4] Fix Wisconsin 2020 credit subtraction after charitable ALD move --- .../wi-itemized-credit-2021-charity.fixed.md | 2 +- .../credits/itemized_deduction/rate.yaml | 8 ++- .../income/wi_itemized_deduction_credit.yaml | 69 ++++++++++++++++++- ...deduction_credit_charitable_deduction.yaml | 9 +-- ...d_deduction_credit_charitable_deduction.py | 12 ++-- 5 files changed, 83 insertions(+), 17 deletions(-) diff --git a/changelog.d/wi-itemized-credit-2021-charity.fixed.md b/changelog.d/wi-itemized-credit-2021-charity.fixed.md index 84f6d4377f7..11acc2a1d8d 100644 --- a/changelog.d/wi-itemized-credit-2021-charity.fixed.md +++ b/changelog.d/wi-itemized-credit-2021-charity.fixed.md @@ -1 +1 @@ -Fixed Wisconsin's itemized deduction credit counting charitable gifts twice in 2021 and reusing gifts deducted above the line in 2020, and excluded miscellaneous deductions from the credit base. +Wisconsin's itemized deduction credit now uses only the Schedule 1 medical, interest, charitable, and casualty components, excluding miscellaneous deductions and SALT, and subtracts the charitable deduction actually claimed above the line in 2020. diff --git a/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml b/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml index 3adad27f864..ec49a4f4f93 100644 --- a/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml +++ b/policyengine_us/parameters/gov/states/wi/tax/income/credits/itemized_deduction/rate.yaml @@ -3,12 +3,16 @@ metadata: period: year unit: /1 reference: + - title: Wisconsin Statutes 71.07(5)(c) + href: https://docs.legis.wisconsin.gov/statutes/statutes/71/i/07/5 + - title: 2019 Wisconsin Statutes 71.07(5)(c) + href: https://docs.legis.wisconsin.gov/2019/statutes/statutes/71/i/07/5 - title: 2020 Wisconsin Form 1, Schedule 1 href: https://www.revenue.wi.gov/TaxForms2020/2020-Form1.pdf#page=5 - title: 2021 Wisconsin Form 1, Schedule 1 - href: https://www.revenue.wi.gov/TaxForms2021/2021-Form1f.pdf#page=4 + href: https://www.revenue.wi.gov/TaxForms2021/2021-Form1.pdf#page=4 - title: 2022 Wisconsin Form 1, Schedule 1 - href: https://www.revenue.wi.gov/TaxForms2022/2022-Form1f.pdf#page=4 + href: https://www.revenue.wi.gov/TaxForms2022/2022-Form1.pdf#page=4 - title: 2023 Wisconsin Form 1, Schedule 1 href: https://www.revenue.wi.gov/TaxForms2023/2023-Form1.pdf#page=4 - title: 2024 Wisconsin Form 1, Schedule 1 diff --git a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml index b72a1b8c9a8..f49e4bdeb3b 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit.yaml @@ -38,7 +38,7 @@ state_code: WI tax_unit_itemizes: false charitable_deduction: 10_000 - charitable_deduction_for_non_itemizers: 300 + charitable_contributions_ald: 300 wi_standard_deduction: 0 medical_expense_deduction: 0 interest_deduction: 0 @@ -55,16 +55,81 @@ state_code: WI tax_unit_itemizes: true charitable_deduction: 10_000 - charitable_deduction_for_non_itemizers: 300 + charitable_cash_donations: 10_000 wi_standard_deduction: 0 medical_expense_deduction: 0 interest_deduction: 0 deductible_mortgage_insurance_premiums: 0 casualty_loss_deduction: 0 output: + charitable_contributions_ald: 0 wi_itemized_deduction_credit_charitable_deduction: 10_000 wi_itemized_deduction_credit_potential: 500 +# 2020 instructions, PDF p. 37: the standard deduction is zero at 126,499 or over. +# https://www.revenue.wi.gov/TaxForms2020/2020-Form1-inst.pdf#page=37 +# ALD = min(10,000, 300) = 300; AGI = 150,000 - 300 = 149,700. +# Eligible charity = 10,000 - 300 = 9,700; potential credit = 9,700 * .05 = 485. +- name: Wisconsin 2020 non-itemizer credit computes the claimed deduction from gifts + period: 2020 + absolute_error_margin: 0.01 + input: + people: + person: + age: 40 + employment_income: 150_000 + charitable_cash_donations: 10_000 + tax_units: + tax_unit: + members: [person] + tax_unit_itemizes: false + households: + household: + members: [person] + state_code: WI + output: + charitable_contributions_ald: 300 + adjusted_gross_income: 149_700 + charitable_deduction: 10_000 + wi_itemized_deduction_credit_charitable_deduction: 9_700 + wi_standard_deduction: 0 + wi_itemized_deduction_credit_potential: 485 + +# Schedule A is at most 10,000 gifts + 10,000 SALT = 20,000, below the +# 24,800 joint standard deduction, so the computed federal choice is not to itemize. +# ALD = 300; AGI = 130,000 - 300 = 129,700; WI standard deduction = 0. +# Eligible charity = 9,700; potential credit = 9,700 * .05 = 485. +- name: Wisconsin 2020 joint credit computes federal non-itemization and the claimed deduction + period: 2020 + absolute_error_margin: 0.01 + input: + people: + head: + age: 40 + employment_income: 130_000 + charitable_cash_donations: 10_000 + spouse: + age: 40 + tax_units: + tax_unit: + members: [head, spouse] + marital_units: + marital_unit: + members: [head, spouse] + households: + household: + members: [head, spouse] + state_code: WI + output: + filing_status: JOINT + tax_unit_itemizes: false + charitable_contributions_ald: 300 + adjusted_gross_income: 129_700 + charitable_deduction: 10_000 + wi_itemized_deduction_credit_charitable_deduction: 9_700 + wi_standard_deduction: 0 + wi_itemized_deduction_credit_potential: 485 + # Wis. Stat. 71.07(5)(a)-(c): # https://docs.legis.wisconsin.gov/statutes/statutes/71/i/07/5 # 2021 Schedule 1 instructions (hypothetical Schedule A): diff --git a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml index f49a0174729..e3a0e4b2488 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/wi/tax/income/wi_itemized_deduction_credit_charitable_deduction.yaml @@ -7,7 +7,7 @@ state_code: WI tax_unit_itemizes: false charitable_deduction: 10_000 - charitable_deduction_for_non_itemizers: 300 + charitable_contributions_ald: 300 output: wi_itemized_deduction_credit_charitable_deduction: 9_700 @@ -17,8 +17,9 @@ state_code: WI tax_unit_itemizes: true charitable_deduction: 10_000 - charitable_deduction_for_non_itemizers: 300 + charitable_cash_donations: 10_000 output: + charitable_contributions_ald: 0 wi_itemized_deduction_credit_charitable_deduction: 10_000 - name: Wisconsin 2020 subtracts the actual allowance below the federal cap @@ -27,7 +28,7 @@ state_code: WI tax_unit_itemizes: false charitable_deduction: 1_000 - charitable_deduction_for_non_itemizers: 100 + charitable_contributions_ald: 100 output: wi_itemized_deduction_credit_charitable_deduction: 900 @@ -37,7 +38,7 @@ state_code: WI tax_unit_itemizes: false charitable_deduction: 200 - charitable_deduction_for_non_itemizers: 300 + charitable_contributions_ald: 300 output: wi_itemized_deduction_credit_charitable_deduction: 0 diff --git a/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py index c578421b91c..2d8811ad295 100644 --- a/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py +++ b/policyengine_us/variables/gov/states/wi/tax/income/credits/itemized_deduction/wi_itemized_deduction_credit_charitable_deduction.py @@ -9,7 +9,8 @@ class wi_itemized_deduction_credit_charitable_deduction(Variable): definition_period = YEAR reference = ( "https://docs.legis.wisconsin.gov/statutes/statutes/71/i/07/5", - "https://www.revenue.wi.gov/TaxForms2020/2020-Form1-inst.pdf#page=17", + # PDF pages 2, 17 + "https://www.revenue.wi.gov/TaxForms2020/2020-Form1-inst.pdf#page=2", "https://www.revenue.wi.gov/TaxForms2021/2021-Form1-Inst.pdf#page=16", ) defined_for = StateCode.WI @@ -19,13 +20,8 @@ def formula(tax_unit, period, parameters): def formula_2020(tax_unit, period, parameters): charitable = tax_unit("charitable_deduction", period) - # The federal variable is a potential allowance, including for itemizers. - # Only non-itemizers claim it on Form 1040 line 10b in 2020. - claimed_above_the_line = where( - tax_unit("tax_unit_itemizes", period), - 0, - tax_unit("charitable_deduction_for_non_itemizers", period), - ) + # Gifts claimed on federal Form 1040 line 10b; zero for itemizers. + claimed_above_the_line = tax_unit("charitable_contributions_ald", period) return max_(0, charitable - claimed_above_the_line) def formula_2021(tax_unit, period, parameters):