Apply the federal rules for a filer who can be claimed as a dependent

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 (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)).

changelog.d/head-dependent-elsewhere-swap.fixed.md

@@ -0,0 +1 @@
+The federal standard deduction and the New York, Michigan, Oregon, Virginia, Missouri, New Mexico, Maine and Hawaii rules for a filer claimed as a dependent elsewhere no longer depend on which spouse is labelled head; each follows its jurisdiction's rule for a joint return where one spouse can be claimed. New York's $3,100 dependent standard deduction now applies only to single filers; Hawaii now limits the standard deduction of a filer who can be claimed as a dependent; the federal EITC without a qualifying child now requires that no filer can be claimed as a dependent; and New Mexico's medical care credit requires a filer who is both 65 or older and not a dependent when a filer is a dependent elsewhere. Separate actual dependency claims from claimability and the nonrequired claimant filing exception, preserving dependent deduction limits while restoring EITC and lawful own-dependent counts. Exclude externally claimable children from Hawaii food/excise ordinary exemptions.

policyengine_us/parameters/gov/states/hi/tax/income/deductions/itemized/threshold/dependent.yaml

@@ -1,4 +1,4 @@
-description: Hawaii allows for itemized deductions for dependent filers with deductions above this amount.
+description: Hawaii limits the standard deduction of a filer who can be claimed as a dependent to the greater of this amount or earned income, and lets such a filer itemize deductions above that limit.
 values:
   2018-01-01: 500
 metadata:
@@ -16,6 +16,6 @@ metadata:
     - title: 2018 Hawaii Resident Income Tax Instructions Itemized Deductions Worksheet
       href: https://files.hawaii.gov/tax/forms/2018/n11ins.pdf#page=38
     - title: Hawaii Income Tax Law, Chapter 235, Section 235-2.4, (a)(3)
-      href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=10
+      href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=11
     - title: 2025 Hawaii N-11 Instructions Itemized Deductions
       href: https://files.hawaii.gov/tax/forms/current/n11ins.pdf#page=32

policyengine_us/parameters/gov/states/mi/tax/income/exemptions/dependent_on_other_return.yaml

@@ -1,21 +1,10 @@
-description: Michigan provides this exemption amount for a taxpayer who can be claimed as a dependent on someone else’s return. 
-SINGLE:
-  2021-01-01: 1_500
-JOINT:
-  2021-01-01: 3_000
-HEAD_OF_HOUSEHOLD:
-  2021-01-01: 1_500
-SURVIVING_SPOUSE:
-  2021-01-01: 1_500
-SEPARATE:
+description: Michigan provides this exemption amount to each individual who can be claimed as a dependent on another taxpayer's return, in place of that individual's personal exemption.
+values:
   2021-01-01: 1_500
 metadata:
-  propagate_metadata_to_children: true
   unit: currency-USD
   period: year
-  breakdown:
-  - filing_status
-  label: Michigan dependent on other return exemption amount
+  label: Michigan exemption amount per individual claimable as a dependent elsewhere
   reference:
     - title: Michigan Legal Code Section 206.30 - (4)
       href: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-30

policyengine_us/parameters/gov/states/ny/tax/income/deductions/standard/dependent_elsewhere.yaml

@@ -1,10 +1,10 @@
-description: New York standard deduction for filers who can be claimed as a dependent elsewhere.
+description: New York provides this standard deduction to single filers who can be claimed as a dependent on another taxpayer's federal return.
 values:
   2020-01-01: 3_100
 metadata:
   unit: currency-USD
   period: year
-  label: New York standard deduction for dependent filers
+  label: New York standard deduction for single dependent filers
   reference:
     - title: 2021 NY Form IT-201 Instructions Line 34
       href: https://www.tax.ny.gov/pdf/2021/inc/it201i_2021.pdf#page=19

policyengine_us/reforms/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)
 

policyengine_us/reforms/congress/watca/working_americans_tax_cut_act.py

@@ -52,7 +52,11 @@ class watca_alternative_tax_eligible(Variable):
         label = "Eligible for WATCA alternative maximum tax"
         definition_period = YEAR
         reference = WATCA_REFERENCES
-        documentation = "Section 1A(b): MAGI < 175% of exemption, and not claimed as dependent on another return."
+        documentation = (
+            "Section 1A(b): MAGI < 175% of exemption. Retains the reform's "
+            "modeled actual-dependent-claim restriction, which is not stated "
+            "in the cited bill's section 1A(b)(2)."
+        )
 
         def formula(tax_unit, period, parameters):
             magi = tax_unit("watca_alternative_tax_magi", period)
@@ -61,9 +65,10 @@ def formula(tax_unit, period, parameters):
             exemption_amount = p.amount[filing_status]
             income_limit = exemption_amount * p.income_limit_multiple
             income_eligible = magi < income_limit
-            head_dependent = tax_unit("head_is_dependent_elsewhere", period)
-            spouse_dependent = tax_unit("spouse_is_dependent_elsewhere", period)
-            not_dependent = ~head_dependent & ~spouse_dependent
+            person = tax_unit.members
+            claimed = person("claimed_as_dependent_on_another_return", period)
+            filer = person("is_tax_unit_head_or_spouse", period)
+            not_dependent = ~tax_unit.any(claimed & filer)
             return income_eligible & not_dependent
 
     class watca_alternative_max_tax(Variable):

policyengine_us/reforms/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

policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py

@@ -93,7 +93,7 @@ def formula(person, period, parameters):
             # if they are not claimed as a dependent elsewhere
             head_or_spouse = person("is_tax_unit_head_or_spouse", period)
             dependent_on_another_return = person(
-                "claimed_as_dependent_on_another_return", period
+                "claimable_as_dependent_on_another_return", period
             )
             # The personal exemption is also provided to dependents
             return ~dependent_on_another_return & head_or_spouse

policyengine_us/reforms/states/ct/hb5114/ct_hb5114.py

@@ -19,11 +19,12 @@ def formula(tax_unit, period, parameters):
             rent = add(tax_unit, period, ["rent"])
             pays_rent = rent > 0
 
-            # Must not be claimed as a dependent on another return
-            head_is_dependent_elsewhere = tax_unit(
-                "head_is_dependent_elsewhere", period
-            )
-            not_dependent = ~head_is_dependent_elsewhere
+            # Preserve the modeled actual-claim gate; the cited bill does
+            # not state this restriction.
+            person = tax_unit.members
+            claimed = person("claimed_as_dependent_on_another_return", period)
+            head = person("is_tax_unit_head", period)
+            not_dependent = ~tax_unit.any(claimed & head)
 
             # Income eligibility
             filing_status = tax_unit("filing_status", period)

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

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

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_without_filing_exception", 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_without_filing_exception", 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).

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_without_filing_exception", 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_without_filing_exception", 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
             )

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):