Keep federally excluded income in Michigan household resources (MI-1040CR line 30) by MaxGhenis · Pull Request #9795 · PolicyEngine/policyengine-us

MaxGhenis · 2026-10-05T16:49:56Z

Summary

MI-1040CR line 30 is "total adjustments from your U.S. Form 1040, Schedule 1". After #9790, mi_household_resources takes line 30 as the federal above-the-line list without loss_ald. That list still holds four federal exclusions from gross income that are not Schedule 1 adjustments:

variable	federal rule	where the form counts it
`us_bonds_for_higher_ed`	IRC 135, Form 8815, Schedule B line 3	line 15, "All interest and dividend income (including nontaxable interest)"
`qualified_adoption_assistance_expense`	IRC 137, Form 8839 Part III; W-2 box 12 code T, not box 1	line 14, "any other amounts reported to you on Form W-2"
`specified_possession_income`	IRC 931	"all income exempt or excluded from AGI" (page 26)
`puerto_rico_income`	IRC 933	"all income exempt or excluded from AGI" (page 26)

Because the federal list subtracts each of these from gross income, the excluded amount is entered in the income it comes from (savings bond interest in interest income, adoption benefits in wages), and line 30 then took it back out of household resources. Example: wages 30,000 and interest 2,000, of which 1,500 is excluded under section 135. The model gave 30,500; MI-1040CR line 33 is 32,000.

This PR lists the Schedule 1 Part II adjustments in a Michigan parameter. Line 30 sums the ones the federal list deducts.

#9790 has merged (4732913a0e), so this PR now sits on main. Its own change is git diff $(git merge-base upstream/main HEAD) HEAD. On 2026-10-07 the US + core hub merged main into the branch (99a9ba31da) with no conflicts, and the PR's diff is byte-identical to the one reviewed at 6d436afaaf.

The law and the forms

MCL 206.508(4): "'Total household resources' means all income received by all persons of a household in a tax year while members of a household, ... and increased by the following deductions from federal gross income: (a) Any net business loss after netting all business income and loss. (b) Any net rental or royalty loss. (c) Any carryback or carryforward of a net operating loss ..." The statute adds back only those three deductions. An exclusion is not a deduction from gross income: the amount never enters gross income, but it is still income received.

2025 MI-1040 book (page 26): total household resources "are AGI, excluding net business and farm losses, net rent and royalty losses, and any carryover of a net operating loss, plus all income exempt or excluded from AGI." None of the four is on the page 27 list of items total household resources do not include.

MI-1040CR (2025 form; book pages 31 and 32):

Line 14: "Enter all compensation received as an employee. Include strike pay, supplemental unemployment benefits (SUB pay), sick pay, or long-term disability benefits, including income protection insurance, and any other amounts reported to you on Form W-2."
Line 15 (form): "All interest and dividend income (including nontaxable interest)".
Line 30: "Enter total adjustments from your U.S. Form 1040, Schedule 1." It lists IRA and SEP payments, student loan interest, Armed Forces moving expenses, the self-employment tax deduction, self-employed health insurance, the early withdrawal penalty, alimony paid, jury duty pay given to an employer, Archer MSA and HSA deductions, and "Any other adjustments to gross income included on your 2025 U.S. Form 1040, Schedule 1."
The 2024 instructions (page 33) have the same line 30 text.

Federal.

2025 Schedule 1, Part II, lines 11 to 26, is the adjustments to income. The four exclusions are not on it.
IRC 135(a): "no amount shall be includible in gross income by reason of the redemption during such year of any qualified United States savings bond". Form 8815 line 14 goes to Schedule B line 3, "Excludable interest on series EE and I U.S. savings bonds issued after 1989."
IRC 137(a)(1): "Gross income of an employee does not include amounts paid or expenses incurred by the employer for qualified adoption expenses". The 2025 W-2 instructions say such amounts "are not reportable in box 1" and must be reported "in box 12 with code T".
IRC 931(a): "gross income shall not include— (1) income derived from sources within any specified possession".
IRC 933: "The following items shall not be included in gross income and shall be exempt from taxation under this subtitle".
By contrast, IRC 62(a) defines adjusted gross income as "gross income minus the following deductions"; Schedule 1 Part II reports those deductions.

Changes

New parameter gov.states.mi.tax.income.household_resources_adjustments (from 2021): the federal above-the-line deductions that are Schedule 1 Part II adjustments. Each entry carries its line in a comment: educator expenses (line 11), HSA (13), self-employment tax (15), SEP, SIMPLE and qualified plans (16), self-employed health insurance (17), early withdrawal penalty (18), alimony paid (19a), IRA (20) and student loan interest (21).
mi_household_resources, line 30: sums that list, keeping only the entries gov.irs.ald.deductions also lists. So a reform that repeals a federal adjustment by removing it from the federal list removes it here too, as on the federal Schedule 1. loss_ald drops off with the four exclusions, so the formula no longer special-cases it.
tests/test_mi_household_resources_losses.py (from Net Michigan business and rental losses in household resources (MI-1040CR lines 16, 17 and 30) #9790): its line 30 helper now reads the Michigan list, as the formula does. Its households have no exclusions, so no expected value changes.
Line 30 is the claimant's own Schedule 1 (MCL 206.508(3)). Person-level adjustments are summed over the head and spouse with tax_unit_non_dep_add(..., include_dependents=gov.irs.ald.filer_amounts_recorded_on_dependents), the same call above_the_line_deductions makes (6d436afaaf, after review r5). A dependent's IRA deduction, early withdrawal penalty or educator expenses no longer reduce the claimant's line 30.

Tests

5 new YAML cases in mi_household_resources.yaml, with MI-1040CR line comments and expected values worked out from the form. Each also checks federal AGI, to show the exclusion is in effect federally.

case	federal AGI	line 33 before	line 33 now
Section 135 savings bond interest: wages 30,000, interest 2,000, 1,500 excluded	30,500	30,500	32,000
Section 137 adoption benefits: wages 60,000 including 5,000 of benefits	55,000	55,000	60,000
Section 933 Puerto Rico income: wages 45,000 including 15,000 earned in Puerto Rico	30,000	30,000	45,000
Section 931 possession income: wages 40,000 including 8,000	32,000	32,000	40,000
Exclusions plus Schedule 1 adjustments: IRA 2,000, penalty 300, student loan interest 1,000 (line 30 = 3,300) and premiums 1,200	44,700	43,500	48,500

All 5 fail on #9790's head (giving the "before" column) and pass here.

tests/test_mi_household_resources_adjustments.py (4 tests). A 1,542-household grid: every combination of wages, interest, nontaxable interest, Schedule C income, six exclusion patterns, three Schedule 1 adjustments and premiums (1,536), plus each exclusion pattern in the student loan interest phase-out (6). A Hypothesis test runs 25 examples of up to 40 households, each household paired with a copy without exclusions. Invariants, for every input:

Classification. The Michigan list equals SCHEDULE_1_ADJUSTMENTS, the nine variables written in the test from the 2025 Schedule 1 with their line numbers. Every federal above-the-line deduction from 2021 on is either one of them or one of loss_ald and the four exclusions, never both, and each is a federal deduction. This is checked for every year 2021-2035 and every date either list changes. A new federal deduction fails the test until someone classifies it for line 30.
Differential against the form. mi_household_resources = max(0, wages + all interest + max(0, Schedule C) − Schedule 1 adjustments − premiums). Which variables count as adjustments comes from the test's own list, not the parameter. Their amounts are read from the model, since the self-employment tax and student loan interest deductions depend on income. The reference subtracts none of the exclusions.
Exclusions reach household resources only through the student loan interest deduction. That deduction's MAGI applies sections 135 and 137 (IRC 221(b)(2)(C)). Against the copy without exclusions, with D the change in that deduction: household resources = max(0, resources without − D), and federal AGI is lower by the exclusions plus D. In the grid's phase-out households, test_grid checks each exclusion separately. Savings bond interest and adoption benefits must change the deduction (D > 0). Puerto Rico income, which the student loan MAGI adds back, must leave it unchanged (D = 0). Possession income is not checked separately in this grid. Main's merged Add back income excluded under sections 911, 931 and 933 in modified AGIs (student loan interest and 11 siblings) #9817 now adds back specified_possession_income (section 931) in the student loan interest MAGI, alongside puerto_rico_income (section 933), so possession income also leaves that deduction unchanged (D = 0).
Line 30 follows the federal list. A reform removes the early withdrawal penalty, the IRA deduction, us_bonds_for_higher_ed and puerto_rico_income from gov.irs.ald.deductions. The penalty and IRA deduction then leave line 30, and household resources still match the form.

On #9790's head, 3 of the 4 tests fail: the grid, the reform test and the Hypothesis test. The classification test reads only parameters, so it passes there, as it should. The file runs in about 30 s, with a 2.2 GB peak.

6d436afaaf adds a sixth YAML case, "A dependent's own Schedule 1 adjustments are not on the claimant's line 30": the claimant earns 50,000, and a dependent student has a 2,000 IRA contribution, a 100 early withdrawal penalty and 300 of educator expenses. Line 30 is 0 and line 33 is 50,000.

On head 94024821ab, all 619 Michigan YAML tests pass, as do the 9 tests in this file and test_mi_household_resources_losses.py (39 s, 2.3 GB peak).

Hub microsimulation impact (current head)

A real microsimulation on the default dataset, main at the merge base b7e4229d86 against this PR's head c5842079b7, for 2026. The runs went one at a time under the shared heavy-job lock. Sums are weighted.

Output	2026 change	2026 records changed (weighted)
`mi_household_resources`	+2.50M	2 (3,224)
`mi_refundable_credits`	+0	0 (0)
`mi_income_tax`	+0	0 (0)
`state_income_tax`	+0	0 (0)
`income_tax`	+0	0 (0)
`household_net_income`	+0	0 (0)
`household_benefits`	+0	0 (0)

Comparison files are in fixes/9795-impact/ on the hub host.

Microsimulation (historical run, default dataset, 2026)

Historical run at 6d436afaaf, before the main merge and the educator-expense fix requested in review r7. Base: main at the merge base d3978dfc31. Branch: 6d436afaaf. These results do not establish impact at the current head. The US + core hub will rerun the impact at the new head against current main after the r8 educator-expense fix, because #9833 and that fix change the amounts summed on line 30. Both historical runs ran one at a time under the shared heavy-job lock (US + core hub driver, finished 2026-10-07) on populace_us_2024.h5@populace-us-2024-spm-20260909: 79,729 tax units, 1,939 with nonzero Michigan household resources.

variable (tax unit)	base	branch	change	records changed
`mi_household_resources`	$521.541bn	$521.544bn	+$2.97M	8, all up (12,112 weighted tax units); largest +$1,125
`mi_refundable_credits`	$1.592bn	$1.592bn	−$0.0003	1 record (weight 0.003), −$0.13
`mi_income_tax`	$13.241bn	$13.241bn	+$0.0003	the same record, +$0.13
`state_income_tax`	$580.02bn	$580.02bn	+$0.0003	the same record
`income_tax`	$2,589.73bn	$2,589.73bn	$0	0
`household_net_income` (household)	$17,171.86bn	$17,171.86bn	−$0.0003	the same record

The earlier run on the same dataset (base 0a2ca21b4a, branch b845167f07, before the head-and-spouse change) was bitwise identical. The dataset has no amounts for the four exclusions this PR moves off line 30 (us_bonds_for_higher_ed, qualified_adoption_assistance_expense, specified_possession_income, puerto_rico_income). So the 8 records that changed in this historical comparison come from the head-and-spouse summation: dependents' own adjustments no longer reduce the claimant's household resources. In that historical sample, this moved Michigan's credits and tax by less than $1 in total. Compare file: ~/reviews/us-hub/fixes/9795-impact/compare.2026.json.

Not in this PR

How the other lines treat dependents is the scope of Count only the claimant and spouse in Michigan household resources (MI-1040CR lines 14-27, 30 and 31) #9796 (claimant and spouse only, MI-1040CR lines 14 to 27, 30 and 31). It also edits line 30, so it merges after this PR.
Federal: main's merged Add back income excluded under sections 911, 931 and 933 in modified AGIs (student loan interest and 11 siblings) #9817 already adds back specified_possession_income (section 931) in the student loan interest MAGI, alongside puerto_rico_income (section 933), as IRC 221(b)(2)(C) requires. That federal fix is included through the main merge and is not introduced by this PR.

axiom: TheAxiomFoundation/rulespec-us#1491 queued (to be extended with the federal exclusions and line 30 companion tests)

🤖 Generated with Claude Code

A filer with capital losses or other capital gains enters capital gain distributions on Schedule D line 13 (2025 Instructions for Schedule D), so they net against the losses before the 26 U.S.C. 1211(b) limit on line 21. The model added distributions (non_sch_d_capital_gains) to gross income and deducted min(3,000, losses) separately: a 5,000 long-term loss with 3,000 of distributions gave 0 in AGI instead of -2,000. - capital_losses_allowed_against_gains (new): losses allowed up to the gains in gross income, distributions included (1211(b), first part). - limited_capital_loss: the net loss up to the limit (1211(b)(1)-(2), Schedule D line 21). loss_ald deducts both. This also nets spouses' gains and losses on a joint return. - loss_limited_net_capital_gains (+ person version): Form 1040 line 7a, max(-limit, LT + ST + distributions). Net investment income no longer adds the distributions separately (Form 8960 line 5a). - has_qdiv_or_ltcg: qualified dividends, or Schedule D lines 15 and 16 both above zero (Form 1040 instructions, line 16). - dependent_taxable_ss_magi: the same netting on the dependent's return. - dc_self_employment_loss_addition: subtracts both capital parts of loss_ald. Tests: YAML cases with form line comments; grid, Hypothesis property and monotonicity tests. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

…ons-agi # Conflicts: # policyengine_us/parameters/gov/irs/investment/income/sources.yaml

filer_loss_limited_net_capital_gains (from #9784) now nets the head and spouse's capital gain distributions with their Schedule D gains and losses before the 1211(b) limit, and net investment income no longer adds the distributions separately. The invariant test's reference computation follows: distributions move from the person-level Form 8960 amounts to the Schedule D inputs. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

capital_losses_allowed_against_gains counts only the capital gains that gov.irs.gross_income.sources includes, and dependent_taxable_ss_magi nets distributions only when both sources are listed. Cover both branches with reforms that drop non_sch_d_capital_gains or capital_gains. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

From the independent review of #9788: - mi_household_resources subtracted all above-the-line deductions, including the capital loss already netted in the capital gains line (MI-1040CR line 30 is U.S. Schedule 1 adjustments only). It now leaves out capital_losses_allowed_against_gains and limited_capital_loss. The two existing loss-limit cases double counted the loss: 44,000 -> 47,000 and 47,000 -> 48,500. - has_qdiv_or_ltcg figures Schedule D lines 15 and 16 over the head and spouse, so a dependent's loss cannot switch off the filer's worksheet. - Distributions are floored at zero per person in every line 7a variable (box 2a is not negative), as irs_gross_income does. - Capital losses are deductible only while capital_gains is a gross income source, matching dependent_taxable_ss_magi under such a reform. - Test that the two loss-limit parameters agree; rename the #9784 invariant test that no longer compares with the pre-change formula. - loss_ald label: "Business and capital loss ALD". Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

…ons-agi

CI caught two tests written against the old capital loss formula: - test_dependent_losses_agi_invariants (#9647) compared limited_capital_loss with min(cap, sum of losses), which does not net one spouse's gains against the other's losses. Its reference now splits 1211(b) the same way: losses allowed up to the gains, plus the excess up to the cap. Renamed ..._match_all_member_formula. - md_capital_gains_surtax "partial offset" set capital_losses (a formula variable, max(0, -capital_gains)) to 50,000 next to 150,000 of net gains, a state no inputs can produce, and its comment applied the $3,000 cap to losses within gains. It now inputs the short-term loss directly (30,000 gains less 50,000 losses = -20,000): Schedule D line 16 and Form 502CG line 1 are 100,000, surtax 2,000 (same on main). Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

MCL 206.508(4) adds back "any net business loss after netting all business income and loss" and "any net rental or royalty loss". The MI-1040CR nets line 16 (Schedule C, Form 4797 Part II, Schedule E Parts II and III, Schedule F) and line 17 (Schedule E Parts I and V) and floors each total at zero. Line 30 is the U.S. Schedule 1 adjustments, so loss_ald, which holds business, rental and capital losses, is no longer subtracted there. Estate and trust income and Form 4797 ordinary gains now count on line 16. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

MCL 206.508(3): "'Household' means a claimant and spouse." Netting every tax unit member's sources let a dependent's business or rental loss offset the claimant's income (a 15-year-old's Schedule C loss of 20,000 took the claimant's household resources from 70,000 to 50,000). Lines 16 and 17 now sum only non-dependents, as loss_ald and irs_gross_income do. Tests: three dependent YAML cases and a deterministic dependent property test. The loss_ald reform check now runs once, on the grid, instead of on every Hypothesis example; test_properties drops from 931 s in CI to about 8 s. The deterministic tests no longer need hypothesis. Small inputs are drawn at $100 or more, the tolerance docstring is corrected, and comments list Schedule E Part IV (REMIC) on line 17. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

Line 30 is "total adjustments from your U.S. Form 1040, Schedule 1". It used the federal above-the-line list without loss_ald, which still held four exclusions from gross income: us_bonds_for_higher_ed (IRC 135), qualified_adoption_assistance_expense (137), specified_possession_income (931) and puerto_rico_income (933). Total household resources include "all income exempt or excluded from AGI" (2025 MI-1040 book, page 26), and the excluded amounts already sit in the line 14 and 15 sources (line 15 is "All interest and dividend income (including nontaxable interest)"; adoption benefits are reported on Form W-2, box 12 code T), so line 30 took them back out. A new parameter, gov.states.mi.tax.income.household_resources_adjustments, lists the federal above-the-line deductions that are Schedule 1 Part II adjustments. Line 30 sums those the federal list deducts, so a federal reform that drops one drops it here too. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

codecov · 2026-10-05T17:16:55Z

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (909176a) to head (f1425da).
⚠️ Report is 320 commits behind head on main.

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Review r1 on #9795: - The formula comment stated as model behaviour what is an input convention: because the federal list subtracts each exclusion from gross income, the excluded amount is entered in the income it comes from. - The differential reference took line 30's variables from the parameter under test. It now uses SCHEDULE_1_ADJUSTMENTS, written in the test from the 2025 Schedule 1, and the classification test asserts the parameter equals it. - Invariant 3 skipped every household with student loan interest. It now allows for the change D in that deduction (household resources = max(0, without - D); AGI lower by the exclusions plus D), and the grid adds six phase-out households so that case is exercised. - test_worked_example duplicated a YAML case and is dropped. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

… grid Review r2 on #9795: in the phase-out households, savings bond interest and adoption benefits must change the student loan interest deduction and Puerto Rico income (added back under IRC 221(b)(2)(C)) must not; the grid now asserts each instead of "at least one". Possession income is left unchecked, since its effect depends on the federal modified AGI's treatment of section 931. The formula comment adds possession and Puerto Rico income to the input convention. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

…ons-agi # Conflicts: # policyengine_us/tests/core/test_dependent_losses_agi_invariants.py # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

… and move the distributions comment Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

…to mi-household-resources-business-losses # Conflicts: # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

…change in the changelog Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

…s-losses' into mi-household-resources-schedule-1-adjustments

…ces-business-losses # Conflicts: # policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/mi_household_resources.yaml # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

…s-losses' into mi-household-resources-schedule-1-adjustments

MaxGhenis · 2026-10-06T06:05:37Z

Hand-off to the US + core hub. Head 94024821ab.

Since r3's APPROVE at 3b26b046e0: two clean merges (Net Michigan business and rental losses in household resources (MI-1040CR lines 16, 17 and 30) #9790's new head 0a2ca21b4a, then 14bfcbc7f8 after Net capital gain distributions inside the capital loss limit in AGI #9788 landed). This PR's own change is unchanged: git diff 14bfcbc7f8 94024821ab has the same +/- lines as before.
Microsim (2026; base 0a2ca21b4a, branch b845167f07): bitwise no change. The dataset has none of the four exclusions this PR takes off line 30. Body updated.
Review: delta r4 (Opus 5.5) is APPROVE at 94024821ab, with no findings (~/reviews/pe-us-mi-line30-2026-10-05/review-r4.md).
Tests on 94024821ab: 619 MI YAML; 9 tests in the adjustments and losses files.
Pending: CI on 94024821ab (MERGEABLE, no failures so far). The 4 failures on the old head 3b26b046e0 were Full Suite shards that stopped at 1h45m-2h, which looks like the runner incident.
Order: merge after Net Michigan business and rental losses in household resources (MI-1040CR lines 16, 17 and 30) #9790. Count only the claimant and spouse in Michigan household resources (MI-1040CR lines 14-27, 30 and 31) #9796 also edits line 30; whichever lands second keeps this PR's household_resources_adjustments list with Count only the claimant and spouse in Michigan household resources (MI-1040CR lines 14-27, 30 and 31) #9796's head-and-spouse summation.

…ces-schedule-1-adjustments # Conflicts: # policyengine_us/tests/test_mi_household_resources_losses.py # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

Review r5: since #9801, the federal above-the-line total leaves dependents' person-level items out, but line 30 summed educator_expense, early_withdrawal_penalty and traditional_ira_contributions over every member with add. It now uses tax_unit_non_dep_add, as above_the_line_deductions does. Regression case: a dependent's IRA 2,000, penalty 100 and educator expenses 300 gave 47,600; the form gives 50,000. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

MaxGhenis · 2026-10-09T03:51:57Z

US + core hub merge audit, us#9795 at f1425da81b (branch updated from main; PR diff lines identical to the reviewed c5842079b7) (squash): Michigan household resources keep federally excluded income (MI-1040CR line 30).

Review: independent delta review APPROVE at this head (Subfleet; ~/reviews/us-hub/reviews-gen/us-9795/). The review's open gate, a missing current impact, is now filled in the body. MI chain order: this PR, then Count only the claimant and spouse in Michigan household resources (MI-1040CR lines 14-27, 30 and 31) #9796, then Subtract Michigan premiums once and exclude the first $300 of gambling winnings and gifts (MI-1040CR lines 20, 24, 30 and 31) #9840.
Gates checked live at merge:
- gh pr checks exits 0;
- the latest Pull request run at the head concluded success;
- MERGEABLE;
- not a draft;
- no CHANGES_REQUESTED review;
- the semantic-overlap guard;
- head pinned.
Impact: a hub microsim on the default dataset, the merge base against this head; the table is in the body. 2026: mi_household_resources +$2.5M on 2 records. No change to Michigan credits or taxes.
--admin: used only because a required approving review is the sole block.

Resolve line 30 with #9795's Michigan Schedule 1 adjustment list, including capped educator expenses, and #9796's claimant-and-spouse summation. Preserve all 48 household resources cases and their expected values.

MaxGhenis and others added 11 commits October 4, 2026 15:13

Merge remote-tracking branch 'upstream/main' into sch-d-cg-distributi…

9afd5aa

…ons-agi # Conflicts: # policyengine_us/parameters/gov/irs/investment/income/sources.yaml

Merge remote-tracking branch 'upstream/main' into sch-d-cg-distributi…

fb5ccb2

…ons-agi

Merge upstream/main into mi-household-resources-business-losses

8d5163e

Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

This was referenced Oct 5, 2026

Encode MCL 206.508(4) Michigan total household resources (net business and rental loss add-backs) TheAxiomFoundation/rulespec-us#1491

Open

Count only the claimant and spouse in Michigan household resources (MI-1040CR lines 14-27, 30 and 31) #9796

Merged

MaxGhenis and others added 6 commits October 5, 2026 13:40

Merge remote-tracking branch 'upstream/main' into sch-d-cg-distributi…

68f36eb

…ons-agi # Conflicts: # policyengine_us/tests/core/test_dependent_losses_agi_invariants.py # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

Add the combined #9781 regression case, a joint Maryland surtax case,…

638c794

… and move the distributions comment Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

Merge remote-tracking branch 'upstream/sch-d-cg-distributions-agi' in…

c45512e

…to mi-household-resources-business-losses # Conflicts: # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

Use tax_unit_non_dep_add for lines 16 and 17; describe the dependent …

0a2ca21

…change in the changelog Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>

This was referenced Oct 6, 2026

Net capital gain distributions inside the capital loss limit in AGI #9788

Merged

Net Michigan business and rental losses in household resources (MI-1040CR lines 16, 17 and 30) #9790

Merged

Merge remote-tracking branch 'upstream/mi-household-resources-busines…

b845167

…s-losses' into mi-household-resources-schedule-1-adjustments

MaxGhenis mentioned this pull request Oct 6, 2026

Subtract Michigan premiums once and exclude the first $300 of gambling winnings and gifts (MI-1040CR lines 20, 24, 30 and 31) #9840

Open

MaxGhenis added 2 commits October 6, 2026 01:50

Merge remote-tracking branch 'upstream/main' into mi-household-resour…

14bfcbc

…ces-business-losses # Conflicts: # policyengine_us/tests/policy/baseline/gov/states/mi/tax/income/mi_household_resources.yaml # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

Merge remote-tracking branch 'upstream/mi-household-resources-busines…

9402482

…s-losses' into mi-household-resources-schedule-1-adjustments

MaxGhenis and others added 3 commits October 6, 2026 04:31

Merge remote-tracking branch 'upstream/main' into mi-household-resour…

9089ce9

…ces-schedule-1-adjustments # Conflicts: # policyengine_us/tests/test_mi_household_resources_losses.py # policyengine_us/variables/gov/states/mi/tax/income/mi_household_resources.py

Merge branch 'main' into mi-household-resources-schedule-1-adjustments

99a9ba3

MaxGhenis added 2 commits October 8, 2026 11:52

Restore capped educator expenses in Michigan household resources

c584207

Merge branch 'main' into mi-household-resources-schedule-1-adjustments

f1425da

MaxGhenis merged commit f8bad3f into main Oct 9, 2026
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MaxGhenis deleted the mi-household-resources-schedule-1-adjustments branch October 9, 2026 03:51

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Keep federally excluded income in Michigan household resources (MI-1040CR line 30) - #9795

Keep federally excluded income in Michigan household resources (MI-1040CR line 30)#9795
MaxGhenis merged 25 commits into
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mi-household-resources-schedule-1-adjustments

MaxGhenis commented Oct 5, 2026 •

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Summary

The law and the forms

Changes

Tests

Hub microsimulation impact (current head)

Microsimulation (historical run, default dataset, 2026)

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MaxGhenis commented Oct 5, 2026 •

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