Count South Carolina TANF unearned income at gross amounts and leave SSI recipients out of the benefit group

changelog.d/sc-tanf-unearned-gross.fixed.md

@@ -0,0 +1 @@
+South Carolina TANF now counts Social Security, unemployment compensation, pensions, retirement account withdrawals and interest at their gross amounts; adds child support, alimony, veterans benefits, workers' compensation, disability insurance, survivor and railroad retirement benefits, cash contributions, guaranteed income and trust income; counts capital gains, rent, partnership, trust and other net income only when positive, so a loss no longer offsets other income; drops discharged debt; treats farm income as earned; excludes the first $400 a year of a benefit group's interest and dividends; and leaves SSI recipients, their income and their resources out of the benefit group, as the TANF Policy Manual requires.

policyengine_us/parameters/gov/states/sc/tanf/income/earned/earned.yaml

@@ -4,10 +4,11 @@ values:
     - employment_income_before_lsr
     - self_employment_income_before_lsr
     - sstb_self_employment_income_before_lsr
+    - farm_operations_income # Farm income is self-employment income
 metadata:
   unit: list
-  period: month 
-  label: South Carolina TANF earned income 
+  period: month
+  label: South Carolina TANF earned income
   reference:
-    - title: SC DSS TANF Policy Manual Section 7.1
-      href: https://dss.sc.gov/media/ojqddxsk/tanf-policy-manual-volume-65.pdf#page=101
+    - title: "SC DSS TANF Policy Manual (Volume 67), Sections 7.1 and 7.7 #page 102,112"
+      href: https://dss.sc.gov/media/bxwc1jdj/tanf-policy-manual-volume-67-final.pdf#page=102

policyengine_us/parameters/gov/states/sc/tanf/income/unearned/interest_and_dividends/exclusion.yaml

@@ -0,0 +1,11 @@
+description: South Carolina excludes this amount of interest, dividends and royalties per benefit group each year under the Temporary Assistance for Needy Families program.
+values:
+  1996-07-01: 400
+
+metadata:
+  unit: currency-USD
+  period: year
+  label: South Carolina TANF interest and dividend exclusion
+  reference:
+    - title: SC DSS TANF Policy Manual (Volume 67), Section 7.7
+      href: https://dss.sc.gov/media/bxwc1jdj/tanf-policy-manual-volume-67-final.pdf#page=113

policyengine_us/parameters/gov/states/sc/tanf/income/unearned/interest_and_dividends/sources.yaml

@@ -0,0 +1,14 @@
+description: South Carolina counts these income sources as unearned income after the interest, dividend and royalty exclusion under the Temporary Assistance for Needy Families program.
+values:
+  1996-07-01:
+    - interest_income
+    - dividend_income
+    # Royalties are included in rental income, which has no separate
+    # royalty input, so they are counted without this exclusion.
+metadata:
+  unit: list
+  period: year
+  label: South Carolina TANF interest and dividend sources
+  reference:
+    - title: SC DSS TANF Policy Manual (Volume 67), Section 7.7
+      href: https://dss.sc.gov/media/bxwc1jdj/tanf-policy-manual-volume-67-final.pdf#page=113

policyengine_us/parameters/gov/states/sc/tanf/income/unearned/positive_sources.yaml

@@ -0,0 +1,19 @@
+description: South Carolina counts the positive amount of each of these income sources as unearned income under the Temporary Assistance for Needy Families program.
+values:
+  1996-07-01:
+    # These are net amounts that can be losses. Income is money received
+    # (Section 7.1), so a net loss counts as zero rather than offsetting other
+    # income; Section 8.16 allows no deduction for one.
+    - capital_gains # Capital gains (other)
+    - rental_income # Rent payments, after the cost of doing business; includes royalties
+    - farm_rent_income
+    - partnership_s_corp_income
+    - estate_income # Trust and estate income; estate settlements are resources (Section 6.6)
+    - miscellaneous_income
+metadata:
+  unit: list
+  period: month
+  label: South Carolina TANF unearned income sources counted when positive
+  reference:
+    - title: "SC DSS TANF Policy Manual (Volume 67), Sections 6.6, 7.1, 7.7 and 8.16 #page 92,102,108,116,134"
+      href: https://dss.sc.gov/media/bxwc1jdj/tanf-policy-manual-volume-67-final.pdf#page=92

policyengine_us/parameters/gov/states/sc/tanf/income/unearned/sources.yaml

@@ -0,0 +1,31 @@
+description: South Carolina counts these income sources, along with interest and dividends, as unearned income under the Temporary Assistance for Needy Families program.
+values:
+  1996-07-01:
+    # Section 7.1 defines income as money received from any source, and the
+    # Section 7.7 chart counts each source below at its gross amount.
+    # Interest and dividends are counted separately, after the $400
+    # exclusion (see interest_and_dividends), and net amounts that can be
+    # losses only when positive (see positive_sources).
+    - social_security # SSA benefits: count the gross amount
+    - total_unemployment_compensation # Reported, or modeled state UI
+    - pension_income # Pension; annuities and endowment contracts
+    - retirement_distributions # IRA and 401(k) withdrawals: money received
+    - railroad_benefits # Retirement Pay (Railroad Retirement)
+    - survivor_benefits # Pension and retirement pay to survivors
+    - veterans_benefits
+    - workers_compensation
+    - disability_benefits # Income maintenance insurance, including disability insurance
+    - child_support_received # Child support/direct
+    - alimony_income
+    - financial_assistance # Cash contributions
+    - gi_cash_assistance
+    - illicit_income
+    # Not listed: farm operations income is earned self-employment income
+    # (Section 7.7), and discharged debt is not money received (Section 7.1).
+metadata:
+  unit: list
+  period: month
+  label: South Carolina TANF unearned income sources
+  reference:
+    - title: "SC DSS TANF Policy Manual (Volume 67), Sections 7.1 and 7.7 #page 102,107-120"
+      href: https://dss.sc.gov/media/bxwc1jdj/tanf-policy-manual-volume-67-final.pdf#page=102

policyengine_us/tests/policy/baseline/gov/states/sc/tanf/integration.yaml

@@ -24,7 +24,7 @@
     sc_tanf: 435.28
     # tanf_fpg for size 3 (2025-01, uses 2024-10 FPG) = 2151.67/month
     # need_standard = 2151.67 * 0.5 = 1075.83
-    # benefit = 1075.83 * 0.4046 = 435.49
+    # benefit = 1075.83 * 0.4046 = 435.28
 
 - name: Case 2, single parent with earned income.
   absolute_error_margin: 0.1
@@ -115,7 +115,7 @@
       person1:
         age: 35
         employment_income_before_lsr: 0
-        taxable_social_security: 3_600
+        social_security_disability: 3_600
       person2:
         age: 8
         is_child_dependent: true
@@ -129,6 +129,7 @@
         state_code: SC
   output:
     sc_tanf: 223.20
+    # SSA benefits count at the gross amount (Section 7.7, page 116)
     # monthly unearned = 3,600/12 = 300
     # tanf_fpg for size 2 = 1703.33
     # need_standard = 1703.33 * 0.5 = 851.67
@@ -222,3 +223,134 @@
     sc_tanf: 0
     # Both members are undocumented, so no one qualifies as
     # citizen or legal immigrant -> ineligible
+
+- name: Case 9, child support, a child's Social Security and interest above the exclusion.
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 0
+        child_support_received: 3_600
+        taxable_interest_income: 1_000
+      person2:
+        age: 9
+        is_child_dependent: true
+        social_security_survivors: 4_800
+      person3:
+        age: 6
+        is_child_dependent: true
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        spm_unit_cash_assets: 500
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: SC
+  output:
+    sc_tanf_gross_income: 750
+    sc_tanf: 131.83
+    # SC DSS TANF Policy Manual (Volume 67), Section 7.7:
+    # child support paid directly = 3,600/12 = 300 (page 108)
+    # child's SSA benefits, gross = 4,800/12 = 400 (page 116)
+    # interest = (1,000 - 400 exclusion)/12 = 50 (page 113)
+    # gross income = 300 + 400 + 50 = 750
+    # tanf_fpg for size 3 = 2151.67; need standard = 1075.83
+    # gross income limit = 1075.83 * 1.85 = 1990.29; 750 passes
+    # benefit = (1075.83 - 750) * 0.4046 = 131.83
+
+- name: Case 10, an SSI child and the child's income are excluded from the benefit group.
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 0
+      person2:
+        age: 9
+        is_child_dependent: true
+        receives_ssi: true
+        taxable_private_pension_income: 3_600
+      person3:
+        age: 6
+        is_child_dependent: true
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+        spm_unit_cash_assets: 500
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: SC
+  output:
+    sc_tanf_benefit_group_size: 2
+    sc_tanf_gross_income: 0
+    sc_tanf_need_standard: 851.67
+    sc_tanf: 344.58
+    # SC DSS TANF Policy Manual (Volume 67), Section 3.6 (page 56) and
+    # Section 7.7 (page 117): exclude the SSI recipient, his/her income and
+    # resources. The benefit group is the parent and the other child.
+    # FPG for 2 = 1703.33; need standard = 851.67
+    # benefit = 851.67 * 0.4046 = 344.58
+
+- name: Case 11, when the only child receives SSI, the parent is the only benefit group member.
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 0
+      person2:
+        age: 9
+        is_child_dependent: true
+        receives_ssi: true
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        spm_unit_cash_assets: 500
+    households:
+      household:
+        members: [person1, person2]
+        state_code: SC
+  output:
+    sc_tanf_benefit_group_size: 1
+    sc_tanf: 253.89
+    # Section 3.6 (page 56): "If an SSI child is the only child in the home,
+    # include the parent(s) as the only BG member."
+    # FPG for 1 = 1255; need standard = 627.50
+    # benefit = 627.50 * 0.4046 = 253.89
+
+- name: Case 12, an SSI child's savings do not count against the resource limit.
+  period: 2025-01
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 0
+        bank_account_assets: 800
+      person2:
+        age: 9
+        is_child_dependent: true
+        receives_ssi: true
+        bank_account_assets: 1_800
+      person3:
+        age: 6
+        is_child_dependent: true
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: SC
+  output:
+    sc_tanf_countable_resources: 800
+    sc_tanf: 344.58
+    # Sections 3.6 (page 56) and 7.7 (page 117) exclude the SSI child's
+    # resources: 2,600 - 1,800 = 800, within the $2,500 limit (page 91).
+    # Benefit group of 2: need standard 851.67; benefit = 851.67 * 0.4046

policyengine_us/tests/policy/baseline/gov/states/sc/tanf/sc_tanf.yaml

@@ -5,10 +5,10 @@
     state_code: SC
     sc_tanf_countable_income: 0
     sc_tanf_eligible: true
-    spm_unit_size: 2
+    sc_tanf_benefit_group_size: 2
   output:
     sc_tanf: 344.58
-    # tanf_fpg for size 2 (2025-01, uses 2024-10 FPG) = 1703.33/month
+    # FPG for a benefit group of 2 (2025-01, uses 2024-10 FPG) = 1703.33/month
     # need_standard = 1703.33 * 0.5 = 851.67
     # benefit = 851.67 * 0.4046 = 344.59
 
@@ -18,7 +18,7 @@
     state_code: SC
     sc_tanf_countable_income: 1_000
     sc_tanf_eligible: false
-    spm_unit_size: 2
+    sc_tanf_benefit_group_size: 2
   output:
     sc_tanf: 0
 
@@ -29,10 +29,10 @@
     state_code: SC
     sc_tanf_countable_income: 500
     sc_tanf_eligible: true
-    spm_unit_size: 2
+    sc_tanf_benefit_group_size: 2
   output:
     sc_tanf: 142.28
-    # tanf_fpg for size 2 (2025-01) = 1703.33/month
+    # FPG for a benefit group of 2 (2025-01) = 1703.33/month
     # need_standard = 1703.33 * 0.5 = 851.67
     # excess = 851.67 - 500 = 351.67
     # benefit = 351.67 * 0.4046 = 142.31

policyengine_us/tests/policy/baseline/gov/states/sc/tanf/sc_tanf_benefit_group_size.yaml

@@ -0,0 +1,63 @@
+# SC DSS TANF Policy Manual (Volume 67), Section 3.6 (page 56) and Section 7.7
+# (page 117): exclude an SSI recipient living with the benefit group.
+
+- name: Case 1, everyone in the unit is in the benefit group.
+  period: 2025-01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 9
+      person3:
+        age: 6
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: SC
+  output:
+    sc_tanf_benefit_group_size: 3
+
+- name: Case 2, an SSI recipient is left out.
+  period: 2025-01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 9
+        receives_ssi: true
+      person3:
+        age: 6
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: SC
+  output:
+    sc_tanf_benefit_group_size: 2
+
+- name: Case 3, a unit of SSI recipients has no benefit group members.
+  period: 2025-01
+  input:
+    people:
+      person1:
+        age: 30
+        receives_ssi: true
+      person2:
+        age: 9
+        receives_ssi: true
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: SC
+  output:
+    sc_tanf_benefit_group_size: 0