Compare completed years in the childless EITC age ceiling

changelog.d/eitc-age-ceiling-completed-years.fixed.md

@@ -0,0 +1 @@
+Compare completed years in the childless EITC age ceiling, so a filer aged 64.5, who has not attained 65, meets IRC 32(c)(1)(A)(ii)(II).

policyengine_us/parameters/gov/irs/credits/eitc/eligibility/age/max.yaml

@@ -1,4 +1,4 @@
-description: The US limits EITC eligibility for filers without children to those below this age.
+description: The US limits EITC eligibility for filers without children to those whose completed age is at most this value.
 metadata:
   unit: year
   label: EITC maximum childless age

policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_demographic_eligible_fractional_age.yaml

@@ -0,0 +1,219 @@
+# IRC 32(c)(1)(A)(ii)(II): a filer without a qualifying child must have
+# "attained age 25 but not attained age 65 before the close of the taxable
+# year". gov.irs.credits.eitc.eligibility.age.max is the highest completed age
+# that qualifies (64; no limit in 2021 under ARPA's 32(n)(2)), so the test
+# compares completed years.
+
+- name: Childless filer aged 64.0 meets the age test, 2024
+  period: 2024
+  input:
+    people:
+      filer:
+        age: 64.0
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # Completed age 64 <= 64.
+    eitc_demographic_eligible: true
+    # 7.65% x $8,000 = $612, under the $632 maximum and the $10,330 phase-out start.
+    eitc: 612
+
+- name: Childless filer aged 64.5 has not attained 65 and meets the age test, 2024
+  period: 2024
+  input:
+    people:
+      filer:
+        age: 64.5
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # Completed age 64 <= 64; main tested 64.5 <= 64 and failed.
+    eitc_demographic_eligible: true
+    # 7.65% x $8,000 = $612, under the $632 maximum and the $10,330 phase-out start.
+    eitc: 612
+
+- name: Childless filer aged 65.0 has attained 65 and fails the age test, 2024
+  period: 2024
+  input:
+    people:
+      filer:
+        age: 65.0
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # Completed age 65 > 64.
+    eitc_demographic_eligible: false
+    eitc: 0
+
+- name: Childless filer aged 64.5 meets the age test, 2026
+  period: 2026
+  input:
+    people:
+      filer:
+        age: 64.5
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # Completed age 64 <= 64.
+    eitc_demographic_eligible: true
+
+- name: Childless filer aged 64.5 meets the age test in 2021, with no upper limit
+  period: 2021
+  input:
+    people:
+      filer:
+        age: 64.5
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # ARPA 32(n)(2) removed the upper limit for 2021.
+    eitc_demographic_eligible: true
+
+- name: Childless filer aged 80.5 meets the age test in 2021, with no upper limit
+  period: 2021
+  input:
+    people:
+      filer:
+        age: 80.5
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # ARPA 32(n)(2) removed the upper limit for 2021.
+    eitc_demographic_eligible: true
+
+- name: Childless filer aged 24.5 has not attained 25 and fails the age test, 2024
+  period: 2024
+  input:
+    people:
+      filer:
+        age: 24.5
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # The minimum is unchanged: 24.5 < 25.
+    eitc_demographic_eligible: false
+
+- name: Childless filer aged 64.99 has not attained 65 and meets the age test, 2024
+  period: 2024
+  input:
+    people:
+      filer:
+        age: 64.99
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+    tax_units:
+      unit:
+        members: [filer]
+        filing_status: SINGLE
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+  output:
+    # Completed age 64 <= 64; rounding 64.99 to 65 would fail it.
+    eitc_demographic_eligible: true
+    # 7.65% x $8,000 = $612, under the $632 maximum and the $10,330 phase-out start.
+    eitc: 612
+
+- name: Joint filers aged 70 and 64.5 meet the age test through the spouse, 2024
+  period: 2024
+  input:
+    people:
+      head:
+        age: 70
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+      spouse:
+        age: 64.5
+        is_tax_unit_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      unit:
+        members: [head, spouse]
+        filing_status: JOINT
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+    marital_units:
+      mu:
+        members: [head, spouse]
+  output:
+    # Either spouse may meet 32(c)(1)(A)(ii)(II); the spouse's completed age is 64.
+    eitc_demographic_eligible: true
+    # 7.65% x $8,000 = $612, under the $632 maximum and the joint phase-out start.
+    eitc: 612
+
+- name: Joint filers aged 70 and 65 don't meet the age test, 2024
+  period: 2024
+  input:
+    people:
+      head:
+        age: 70
+        is_tax_unit_head: true
+        ssn_card_type: CITIZEN
+        employment_income: 8_000
+      spouse:
+        age: 65.0
+        is_tax_unit_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      unit:
+        members: [head, spouse]
+        filing_status: JOINT
+        would_file_taxes_voluntarily: true
+        takes_up_eitc: true
+    marital_units:
+      mu:
+        members: [head, spouse]
+  output:
+    # Neither spouse's completed age (70, 65) is at most 64.
+    eitc_demographic_eligible: false
+    eitc: 0

policyengine_us/tests/policy/baseline/gov/states/me/tax/income/credits/me_eitc.yaml

@@ -606,3 +606,31 @@
     eitc: 0
     me_pro_forma_childless_eitc: 765
     me_eitc: 153
+
+- name: 2024 federally eligible couple aged 23 and 64.5 that does not take up the federal EITC gets no Maine credit
+  # The 64.5-year-old has not attained 65, so the couple fails the Maine cohort
+  # and takes the federal path. If the federal test goes back to the exact age,
+  # the cohort flag and the pro forma credit return, and me_eitc pays 306.
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      head:
+        age: 64.5
+      spouse:
+        age: 23
+        employment_income: 8_000
+    tax_units:
+      tax_unit:
+        members: [head, spouse]
+        filing_status: JOINT
+        takes_up_eitc: false
+    households:
+      household:
+        members: [head, spouse]
+        state_code: ME
+  output:
+    me_childless_eitc_age_eligible: false
+    eitc: 0
+    me_pro_forma_childless_eitc: 0
+    me_eitc: 0

policyengine_us/tests/test_me_childless_eitc_age_gate.py

@@ -125,7 +125,7 @@ def filers(h):
 def meets_federal_age(h, year):
     minimum, student_minimum, maximum = federal_age_limits(year)
     return any(
-        (student_minimum if student else minimum) <= age <= maximum
+        (student_minimum if student else minimum) <= age < maximum + 1
         for age, student in filers(h)
     )
 

policyengine_us/tests/test_me_childless_eitc_age_gate_property.py

@@ -13,10 +13,8 @@
 
 # Filers are 18 or older: the model makes a married 17-year-old a dependent,
 # not a spouse. The YAML cases and the under-18 witness cover age 17. The
-# fractional ages test "has not attained 25". None falls between 64 and 65:
-# the federal test (eitc_demographic_eligible, unchanged here) compares the
-# exact age with 64, and the oracle copies it.
-fractional_ages = st.sampled_from([18.5, 23.5, 24.5, 24.99])
+# fractional ages test "has not attained 25" and "not attained age 65".
+fractional_ages = st.sampled_from([18.5, 23.5, 24.5, 24.99, 64.5, 64.99])
 spouse_strategy = st.fixed_dictionaries(
     {
         "age": st.one_of(st.integers(18, 80), fractional_ages),

policyengine_us/variables/gov/irs/credits/earned_income/eligibility/eitc_demographic_eligible.py

@@ -26,7 +26,13 @@ def formula(tax_unit, period, parameters):
         student = person("is_full_time_student", period)
         min_age = where(student, min_age_student, min_age_non_student)
         max_age = parameters.gov.irs.credits.eitc.eligibility.age.max(period)
-        meets_age_requirements = (age >= min_age) & (age <= max_age)
+        # IRC 32(c)(1)(A)(ii)(II): "attained age 25 but not attained age 65
+        # before the close of the taxable year". The parameter is the highest
+        # completed age that qualifies, so compare completed years: a filer
+        # aged 64.5 has not attained 65. The minimum already works for
+        # fractional ages. This reads `age` as the age at the close of the
+        # taxable year.
+        meets_age_requirements = (age >= min_age) & (np.floor(age) <= max_age)
         # 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)

policyengine_us/variables/gov/states/me/tax/income/credits/eitc/me_childless_eitc_age_eligible.py

@@ -52,7 +52,7 @@ def formula(tax_unit, period, parameters):
         )
         meets_federal_age = (
             (age >= federal_min_age)
-            & (age <= federal_age.max(period))
+            & (np.floor(age) <= federal_age.max(period))
             & is_head_or_spouse
         )