Leave tax unit dependents' income out of Alabama AGI

changelog.d/al-agi-exclude-dependents.fixed.md

@@ -0,0 +1 @@
+Leave tax unit dependents' income and deductions out of Alabama adjusted gross income; dependents report them on their own Alabama returns.

changelog.d/al-dependent-exemption-boundary.fixed.md

@@ -0,0 +1 @@
+Pay Alabama's $1,000 dependent exemption at AGI of exactly $20,000 (2021 and before) or $50,000 (2022 on), and $500 at exactly $100,000, as Ala. Code 40-18-19(a)(9) provides.

policyengine_us/parameters/gov/states/al/tax/income/agi/deductions.yaml

@@ -1,30 +1,27 @@
 description: Alabama provides these deductions for the state adjusted gross income.
+# Alabama adjusted gross income leaves out a tax unit dependent's income and
+# deductions, which belong on the dependent's own return (Ala. Code
+# §§ 40-18-2(a)(1) and 40-18-27(a); Ala. Admin. Code r. 810-3-27-.01(1)).
 values:
   2021-01-01:
   # IRA distributions prior to 1982 are not deductible.
     - traditional_ira_contributions # Line 1
     - alimony_expense # Line 4
     - early_withdrawal_penalty # Line 5
     - self_employed_health_insurance_ald # Line 7
-    # Alabama AGI counts dependents' income, so their deductions too.
-    - dependents_self_employed_health_insurance_ald
     - health_savings_account_ald # Line 8
     - self_employed_pension_contribution_ald # Line 9
-    - dependents_self_employed_pension_contribution_ald
-    - us_govt_interest
+    - us_govt_interest_person
     - taxable_public_pension_income
   2023-01-01:
   # IRA distributions prior to 1982 are not deductible.
     - traditional_ira_contributions # Line 1
     - alimony_expense # Line 4
     - early_withdrawal_penalty # Line 5
     - self_employed_health_insurance_ald # Line 7
-    # Alabama AGI counts dependents' income, so their deductions too.
-    - dependents_self_employed_health_insurance_ald
     - health_savings_account_ald # Line 8
     - self_employed_pension_contribution_ald # Line 9
-    - dependents_self_employed_pension_contribution_ald
-    - us_govt_interest
+    - us_govt_interest_person
     - al_retirement_exemption #Schedule RS Line 10
     - taxable_public_pension_income
 

policyengine_us/reforms/states/al/dependent_exemption/al_dependent_exemption_reform.py

@@ -23,7 +23,9 @@ def formula(tax_unit, period, parameters):
             else:
                 eligible = is_dependent
             count = tax_unit.sum(eligible)
-            per_dependent = where(p.amount < 0, p_base.dependent.calc(al_agi), p.amount)
+            per_dependent = where(
+                p.amount < 0, p_base.dependent.calc(al_agi, right=True), p.amount
+            )
             return count * per_dependent
 
     class reform(Reform):

policyengine_us/reforms/states/al/hb527/al_hb527_overtime_deduction.py

@@ -20,7 +20,10 @@ def formula(tax_unit, period, parameters):
             overtime_income = person("fsla_overtime_premium", period)
             # Cap at per-taxpayer limit per AL HB527 Section 40-18-15(a)(29)
             person_capped = min_(overtime_income, p.cap)
-            return tax_unit.sum(person_capped)
+            # A dependent's overtime is on the dependent's own return, like the
+            # rest of their income (see al_agi).
+            is_dependent = person("is_tax_unit_dependent", period)
+            return tax_unit.sum(person_capped * ~is_dependent)
 
     class al_agi(Variable):
         value_type = float
@@ -39,8 +42,8 @@ def formula(tax_unit, period, parameters):
                 period
             ).gov.states.al.tax.income.agi.gross_income_sources
             deductions = parameters(period).gov.states.al.tax.income.agi.deductions
-            gross_income = add(tax_unit, period, gross_sources)
-            agi_deductions = add(tax_unit, period, deductions)
+            gross_income = tax_unit_non_dep_add(tax_unit, period, gross_sources)
+            agi_deductions = tax_unit_non_dep_add(tax_unit, period, deductions)
             base_al_agi = gross_income - agi_deductions
             # If HB527 is in effect, subtract the overtime deduction
             overtime_deduction = tax_unit("al_hb527_overtime_deduction", period)