Make rules for a filer claimed elsewhere independent of which spouse is labelled head

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; 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.

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:
@@ -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

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

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

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):

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

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)