From 1f0cd1b0f918fc3e51441ae08711e65a9ca8d181 Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Thu, 8 Oct 2026 11:03:59 -0400 Subject: [PATCH 01/15] 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 02/15] 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 03/15] 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 04/15] 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 05/15] 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 06/15] 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 07/15] 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 4597c55a869b45c17376673fbe4aa70f72ca0f3c Mon Sep 17 00:00:00 2001 From: Max Ghenis Date: Sat, 10 Oct 2026 09:35:20 -0400 Subject: [PATCH 08/15] 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 09/15] 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 10/15] 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 11/15] 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 12/15] 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 13/15] 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 14/15] 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 15/15] 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: