Apply the unearned income filing test only to filers who can be claimed as dependents

changelog.d/fix-filing-requirement-dependents.fixed.md

@@ -0,0 +1 @@
+Stop testing every filer's unearned income against $500 in the federal filing requirement (26 U.S.C. 6012): the unearned income test now applies only to a head or spouse who can be claimed as a dependent on another return, uses the section 63(c)(5)(A) amount for the year ($1,350 in 2025) plus that person's own additional standard deduction for age or blindness, and counts that person's gross income other than wages, business income and farm income (the earned income of the IRS dependent worksheet), so a self-employment loss no longer counts as unearned income.

policyengine_us/parameters/gov/irs/income/filing_requirement/dependent/earned_income_sources.yaml

@@ -0,0 +1,24 @@
+description: The Internal Revenue Service counts these gross income sources as earned income when it tests the unearned income of a filer who can be claimed as a dependent; every other gross income source is unearned income.
+values:
+  2010-01-01:
+    # Form 1040 line 1z (wages).
+    - irs_employment_income
+    # Schedule 1 line 3 (business income, Schedule C).
+    - self_employment_income
+    - sstb_self_employment_income
+    # Schedule 1 line 6 (farm income, Schedule F).
+    - farm_operations_income
+metadata:
+  unit: list
+  period: year
+  label: IRS earned income sources for the dependent unearned income filing test
+  reference:
+    - title: 26 U.S. Code § 6012(a)(1)(C)(i)(I) and (f)(2)(D) - income other than earned income
+      href: https://www.law.cornell.edu/uscode/text/26/6012
+    # "Generally, your earned income is the total of the amount(s) you
+    # reported on Form 1040 or 1040-SR, line 1z, and Schedule 1, lines 3, 6,
+    # 8r, 8t, and 8u minus the amount, if any, on Schedule 1, line 15."
+    # Schedule 1 line 5 (rents, royalties, partnerships, S corporations and
+    # trusts) is not on the list.
+    - title: 2025 Form 1040 instructions, Standard Deduction Worksheet for Dependents
+      href: https://www.irs.gov/pub/irs-prior/i1040gi--2025.pdf#page=35