Count SSI, TANF and workers' compensation in Montana's elderly homeowner/renter credit income (MCA 15-30-2337(9)(a)(vi))

changelog.d/mt-elderly-credit-government-assistance.fixed.md

@@ -0,0 +1 @@
+Montana's elderly homeowner/renter credit now counts SSI, TANF, workers' compensation and guaranteed income payments received by household members in gross household income (MCA 15-30-2337(9)(a); Schedule 2EC line 16).

policyengine_us/parameters/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/gross_income_sources.yaml

@@ -4,27 +4,31 @@ metadata:
   period: year
   label: Montana elderly homeowner or renter credit gross income sources
   reference:
-  - title: HB191 (2021), section 1(9), all nontaxable income
-    href: https://archive.legmt.gov/bills/2021/HB0199/HB0191_X.pdf#page=2
-  - title: Montana 2022 Form2 Individual Income Tax Instructions, Page47, Gross Household Income
-    href: https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2022_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=47
+  - title: MCA 15-30-2337(9)(a), all nontaxable income, including (vi) cash public assistance and relief
+    href: https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0230/section_0370/0150-0300-0230-0370.html
+  - title: MCA 15-30-2337(9)(a) (2009), the same definition
+    href: https://archive.legmt.gov/bills/2009/mca/15/30/15-30-2337.htm
   - title: 2022 Montana Code Annotated, Title 15, Chapter 30, Part 23, 15-30-2337 (9)
     href: https://law.justia.com/codes/montana/2022/title-15/chapter-30/part-23/section-15-30-2337/
-  - title: 2024 Montana Individual Income Tax Return
-    href: https://revenuefiles.mt.gov/files/Forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=46
+  - title: HB191 (2021), section 1(9), all nontaxable income
+    href: https://archive.legmt.gov/bills/2021/HB0199/HB0191_X.pdf#page=2
   - title: ARM 42.4.301(2) as in effect 8/20/2004 to 11/9/2017 ("elderly homeowner/renter credit refunds received")
     href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/788508cc-8418-41c8-926d-3dfb11af3fd6
   - title: ARM 42.4.301(2) as in effect 11/10/2017 to 9/6/2024 ("federal refundable credits received" and "any state refundable credits received")
     href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/297c7a8d-f6f4-4b70-a7b7-fe1cedee53e7
   - title: ARM 42.4.301(2) as in effect from 9/7/2024 ("federal refundable tax credits received" and "any state refundable tax credits received")
     href: https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/768c8344-24ee-4950-9d5e-9d8fc97ec0f7
-  - title: 2017 Montana Form 2EC instructions, Gross Household Income Worksheet, item 4 ("Any federal or state refundable credits including the 2EC credit")
-    href: https://taxsim.nber.org/historical_state_tax_forms/MT/2017/Form%202%202017%20Booklet.pdf#page=65
-  - title: 2023 Montana Form 2 instructions, Elderly Homeowner/Renter Credit Schedule, line 7, refundable credits received
+  - title: 2016 Montana Form 2EC instructions, Part II, disability benefits including SSI payments and workers' compensation, and cash public assistance and relief
+    href: https://taxsim.nber.org/historical_state_tax_forms/MT/2016/Form_2_booklet_2016.pdf#page=74
+  - title: "2017 Montana Form 2EC instructions, Part II, disability benefits including SSI payments and workers' compensation, and cash public assistance and relief; Gross Household Income Worksheet, items 4 and 5 #page 64-65"
+    href: https://taxsim.nber.org/historical_state_tax_forms/MT/2017/Form%202%202017%20Booklet.pdf#page=64
+  - title: "2022 Montana Form 2 instructions, Elderly Homeowner/Renter Credit Schedule, gross household income; line 8, disability benefits including SSI payments and workers' compensation #page 47-48"
+    href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2022_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=47
+  - title: "2023 Montana Form 2 instructions, Elderly Homeowner/Renter Credit Schedule, line 7, refundable credits received; line 8, disability benefits including SSI payments and workers' compensation #page 51-52"
     href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2023_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=51
-  - title: 2024 Montana Form 2 instructions, Schedule 2EC, line 8, refundable credits received
-    href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=47
-  - title: 2025 Montana Form 2 instructions, Schedule 2EC, line 8, refundable credits received
+  - title: "2024 Montana Form 2 instructions, Schedule 2EC, gross household income; line 8, refundable credits received; line 16, government assistance #page 46-48"
+    href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=46
+  - title: "2025 Montana Form 2 instructions, Schedule 2EC, line 8, refundable credits received; line 16, government assistance #page 45-46"
     href: https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2025_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=45
 
 values:
@@ -43,6 +47,19 @@ values:
     - child_support_received # § 15-30-2337(9)(a)(iv) – support money
     - strike_benefits # § 15-30-2337(9)(a)(v) – nontaxable strike benefits
     - general_assistance # § 15-30-2337(9)(a)(vi) – cash public assistance
+    # Government assistance (Schedule 2EC line 16 from 2024; "disability
+    # benefits including ... SSI payments and workers' compensation" and
+    # "cash public assistance and relief" in earlier instructions). TANF is
+    # held for the SPM unit; tanf_person is each member's per capita share,
+    # so the household sum counts the unit's TANF once. LIEAP and SNAP are
+    # not cash public assistance (2014-2017 Form 2EC instructions).
+    - ssi
+    - tanf_person
+    - workers_compensation
+    # Guaranteed income pilot payments are outside federal AGI here, and
+    # (9)(a) counts all nontaxable income; a government-funded pilot is also
+    # "any other government assistance" (Schedule 2EC line 16).
+    - gi_cash_assistance
     # Refundable credits received (2023 schedule line 7, Schedule 2EC line 8
     # from 2024): Montana's refundable credits other than this credit,
     # and this credit as received during the year (ARM 42.4.301(2)(c)).
@@ -60,6 +77,10 @@ values:
     - child_support_received
     - strike_benefits
     - general_assistance
+    - ssi
+    - tanf_person
+    - workers_compensation
+    - gi_cash_assistance
     - mt_refundable_credits_before_renter_credit
     - mt_elderly_homeowner_or_renter_credit_received
     - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits
@@ -76,6 +97,10 @@ values:
     - child_support_received
     - strike_benefits
     - general_assistance
+    - ssi
+    - tanf_person
+    - workers_compensation
+    - gi_cash_assistance
     - mt_refundable_credits_before_renter_credit
     - mt_elderly_homeowner_or_renter_credit_received
     - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits

policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/mt_elderly_homeowner_or_renter_credit.yaml

@@ -351,6 +351,304 @@
     mt_elderly_homeowner_or_renter_credit_net_household_income: [870, 0]
     mt_elderly_homeowner_or_renter_credit: [1_130, 0]
 
+# Government assistance in gross household income. § 15-30-2337(9)(a)
+# counts "all nontaxable income, including but not limited to ... (vi) cash
+# public assistance and relief". 2024 and 2025 Schedule 2EC line 16 names
+# SSI payments, workers' compensation "and any other government assistance";
+# the 2014-2023 instructions list "Disability benefits including, but not
+# limited to, veteran's disability, SSI payments and workers' compensation".
+
+- name: 2024 Schedule 2EC worked case, the claimant's SSI counts on line 16
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        taxable_pension_income: 15_000
+        ssi: 6_000
+        real_estate_taxes: 1_200
+    tax_units:
+      tax_unit:
+        members: [person1]
+    households:
+      household:
+        members: [person1]
+        state_name: MT
+  output:
+    # Line 5 pensions 15_000; line 16 SSI 6_000; line 18 = 21_000.
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: 21_000
+    # Line 19 12_600; line 20 = 8_400; line 21 = 0.039 (8_000 to 8_999);
+    # line 22 = 8_400 x 0.039 = 327.60.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: 327.60
+    # Line 23 = 1_200; line 26 = 1_200; line 27 = 1_200 - 327.60 = 872.40;
+    # line 28 = 872.40 (under 1_150); line 29 = 100%; line 30 = 872.40.
+    # Without the SSI, line 18 = 15_000, line 22 = 2_400 x 0.006 = 14.40 and
+    # the credit would be the 1_150 cap.
+    mt_elderly_homeowner_or_renter_credit: 872.40
+
+
+- name: 2025 Schedule 2EC worked case, a household member's workers' compensation counts on line 17
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 72
+        taxable_pension_income: 18_000
+        real_estate_taxes: 1_500
+      person2:
+        age: 45
+        workers_compensation: 9_000
+    tax_units:
+      tax_unit1:
+        members: [person1]
+      tax_unit2:
+        members: [person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_name: MT
+  output:
+    # The claimant's adult son lives in the household and files his own
+    # return. Line 5 pensions 18_000; line 17 his workers' compensation, a
+    # line 16 item for another member, 9_000; line 18 = 27_000.
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: [18_000, 9_000]
+    # Line 20 = 27_000 - 12_600 = 14_400; line 21 = 0.05; line 22 = 720.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: [720, 0]
+    # Line 27 = 1_500 - 720 = 780; line 28 = 780; line 29 = 100%; line 30 =
+    # 780. Without his workers' compensation, line 18 = 18_000, line 22 =
+    # 5_400 x 0.028 = 151.20 and the credit would be the 1_150 cap.
+    mt_elderly_homeowner_or_renter_credit: [780, 0]
+
+
+- name: 2024 Schedule 2EC worked case, a household member's guaranteed income payments count on line 17
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        taxable_pension_income: 16_000
+        real_estate_taxes: 1_200
+      person2:
+        age: 35
+        gi_cash_assistance: 6_000
+    tax_units:
+      tax_unit1:
+        members: [person1]
+      tax_unit2:
+        members: [person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_name: MT
+  output:
+    # The claimant's daughter files her own return and receives 6_000 from a
+    # guaranteed income pilot, which is outside federal AGI. § 15-30-2337(9)(a)
+    # counts "all nontaxable income", and line 16 counts "any other
+    # government assistance". Line 5 = 16_000; line 17 = 6_000; line 18 =
+    # 22_000.
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: [16_000, 6_000]
+    # Line 20 = 9_400; line 21 = 0.042; line 22 = 394.80.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: [394.80, 0]
+    # Line 27 = 1_200 - 394.80 = 805.20; line 28 = 805.20; line 29 = 100%;
+    # line 30 = 805.20. Without the payments, line 18 = 16_000, line 22 =
+    # 3_400 x 0.016 = 54.40 and the credit 1_145.60.
+    mt_elderly_homeowner_or_renter_credit: [805.20, 0]
+
+
+- name: 2024 Schedule 2EC worked case, TANF in a shared SPM unit counts once across two returns
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        taxable_pension_income: 20_000
+        real_estate_taxes: 1_500
+      person2:
+        age: 30
+      person3:
+        age: 5
+    tax_units:
+      tax_unit1:
+        members: [person1]
+      tax_unit2:
+        members: [person2, person3]
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        tanf: 4_800
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_name: MT
+  output:
+    # The claimant's daughter and granddaughter live with her; the daughter
+    # files her own return and receives 4_800 of TANF. Line 5 pensions
+    # 20_000; line 17 the TANF 4_800; line 18 = 24_800. The model holds TANF
+    # for the SPM unit and counts each member's per capita share
+    # (tanf_person, 1_600 each), so the household total counts it once.
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: [21_600, 1_600, 1_600]
+    # Line 20 = 24_800 - 12_600 = 12_200; line 21 = 0.05; line 22 = 610.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: [610, 0, 0]
+    # Line 27 = 1_500 - 610 = 890; line 28 = 890; line 29 = 100%; line 30 =
+    # 890. Without the TANF, line 18 = 20_000, line 22 = 7_400 x 0.035 = 259
+    # and the credit would be the 1_150 cap. Counting the whole 4_800 for
+    # each of the three members would give line 18 = 34_400 and a credit of
+    # 1_500 - 1_090 = 410.
+    mt_elderly_homeowner_or_renter_credit: [890, 0, 0]
+
+
+- name: 2024 Schedule 2EC worked case, Montana TANF paid to a separate SPM unit counts on line 17
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        taxable_pension_income: 20_000
+        real_estate_taxes: 1_500
+      person2:
+        age: 30
+      person3:
+        age: 5
+    tax_units:
+      tax_unit1:
+        members: [person1]
+      tax_unit2:
+        members: [person2, person3]
+    spm_units:
+      spm_unit1:
+        members: [person1]
+      spm_unit2:
+        members: [person2, person3]
+        mt_tanf: 4_800
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_name: MT
+  output:
+    # The same household with the daughter's family in its own SPM unit and
+    # the payment entered as Montana TANF (ARM 37.78), which tanf sums with
+    # the other states' programs. Line 17 = 4_800; line 18 = 24_800.
+    tanf: [0, 4_800]
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: [20_000, 2_400, 2_400]
+    # Line 22 = (24_800 - 12_600) x 0.05 = 610; line 27 = 890; line 30 = 890.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: [610, 0, 0]
+    mt_elderly_homeowner_or_renter_credit: [890, 0, 0]
+
+
+- name: 2023 Elderly Homeowner/Renter Credit Schedule worked case, workers' compensation and a spouse's SSI count on line 8
+  period: 2023
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 66
+        taxable_pension_income: 14_000
+        workers_compensation: 6_000
+        real_estate_taxes: 1_000
+      person2:
+        age: 64
+        ssi: 5_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_name: MT
+  output:
+    # Joint return. Line 1 federal AGI 14_000; line 8 "Disability benefits
+    # including, but not limited to, veteran's disability, SSI payments, and
+    # workers' compensation": 6_000 + 5_000 = 11_000; line 10 = 25_000.
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: [20_000, 5_000]
+    # Line 11 12_600; line 12 = 12_400; line 13 = 0.05; line 14 = 620.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: [620, 0]
+    # Line 15 = 1_000; line 18 = 1_000; line 19 = 1_000 - 620 = 380; line 20
+    # = 380; line 21 = 100%; line 22 = 380. Without either amount, line 10 =
+    # 14_000, line 12 = 1_400 at a 0 rate and the credit would be 1_000.
+    mt_elderly_homeowner_or_renter_credit: [380, 0]
+
+
+- name: 2017 Form 2EC worked case, a household member's SSI counts in gross household income
+  period: 2017
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        taxable_pension_income: 15_000
+        real_estate_taxes: 1_000
+      person2:
+        age: 40
+        # 2017 federal benefit rate: 735 a month.
+        ssi: 8_820
+    tax_units:
+      tax_unit1:
+        members: [person1]
+      tax_unit2:
+        members: [person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_name: MT
+  output:
+    # The claimant's adult son receives SSI. Gross Household Income
+    # Worksheet: line 6 pensions 15_000; line 7 income of other household
+    # members, his SSI 8_820 ("Disability benefits including ... SSI
+    # payments"); line 8 = 23_820, Form 2EC line 1.
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: [15_000, 8_820]
+    # Line 2 6_300; line 3 = 17_520; line 4 = 0.05; line 5 = 876.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: [876, 0]
+    # Line 6 = 1_000; line 9 = 1_000; line 10 = 1_000 - 876 = 124; line 11 =
+    # 124 (under 1_000); line 12 = 100%; line 13 = 124. Without his SSI, line
+    # 1 = 15_000, line 5 = 8_700 x 0.039 = 339.30 and the credit 660.70.
+    mt_elderly_homeowner_or_renter_credit: [124, 0]
+
+
+- name: 2016 Form 2EC worked case, cash public assistance received by another household member counts
+  period: 2016
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 70
+        taxable_pension_income: 12_000
+        real_estate_taxes: 900
+      person2:
+        age: 30
+      person3:
+        age: 5
+    tax_units:
+      tax_unit1:
+        members: [person1]
+      tax_unit2:
+        members: [person2, person3]
+    spm_units:
+      spm_unit1:
+        members: [person1]
+      spm_unit2:
+        members: [person2, person3]
+        tanf: 5_400
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_name: MT
+  output:
+    # Gross Household Income Worksheet: line 8 pensions 12_000; the
+    # daughter's 5_400 of TANF, cash public assistance (line 7), as income of
+    # another household member (line 9); line 10 = 17_400, Form 2EC line 1.
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: [12_000, 2_700, 2_700]
+    # Line 2 6_300; line 3 = 11_100; line 4 = 0.048; line 5 = 532.80.
+    mt_elderly_homeowner_or_renter_credit_net_household_income: [532.80, 0, 0]
+    # Line 6 = 900; line 10 = 900 - 532.80 = 367.20; line 11 = 367.20; line
+    # 12 = 100%; line 13 = 367.20. Without the TANF, line 1 = 12_000, line 5
+    # = 5_700 x 0.028 = 159.60 and the credit 740.40.
+    mt_elderly_homeowner_or_renter_credit: [367.20, 0, 0]
+
 - name: 2024 Schedule 2EC worked case, a dependent's wages move the credit into the 40 percent band
   period: 2024
   absolute_error_margin: 0.01