policyengine-us 1.400.1__py3-none-any.whl → 1.400.2__py3-none-any.whl

policyengine_us/parameters/gov/states/household/state_itemized_deductions.yaml

@@ -7,27 +7,27 @@ values:
     - ca_itemized_deductions  # California
     # Connecticut adopts federal itemized deductions
     - dc_itemized_deductions  # DC
-    - de_itemized_deductions  # Delaware
+    - de_itemized_deductions_unit  # Delaware
     # Georgia adopts federal itemized deductions
     - hi_itemized_deductions  # Hawaii
-    - ia_itemized_deductions  # Iowa
+    # Iowa allows for a married filing separately structure which requires two separate itemized deductions.
     - id_itemized_deductions  # Idaho
     # Illinois doesn't have deductions.
     - ks_itemized_deductions  # Kansas
-    - ky_itemized_deductions  # Kentucky
+    - ky_itemized_deductions_unit  # Kentucky
     - la_itemized_deductions  # Louisiana
     # Massachusetts doesn't have deductions in a standard form.
     - md_itemized_deductions  # Maryland
     - me_itemized_deductions_pre_phaseout  # Maine phases out deductions after choosing itemization.
     - mn_itemized_deductions  # Minnesota
     - mo_itemized_deductions  # Missouri
-    - ms_itemized_deductions  # Mississippi
-    - mt_itemized_deductions  # Montana
+    - ms_itemized_deductions_unit  # Mississippi
+    # Montana allows for a married filing separately structure which requires two separate itemized deductions.
     - nc_itemized_deductions  # North Carolina
     # North Dakota adopts federal deductions.
     - ne_itemized_deductions  # Nebraska
     # New Jersey doesn't have a conventional itemized deduction system.
-    # New Mexico adopts federal itemized deductions with a separate salt addback structure.
+    - nm_itemized_deductions  # New Mexico adopts federal itemized deductions
     - ny_itemized_deductions  # New York
     # Ohio doesn't have a conventional itemized deduction system.
     - ok_itemized_deductions  # Oklahoma

policyengine_us/parameters/gov/states/household/state_standard_deductions.yaml

@@ -2,20 +2,20 @@ description: All state standard deduction variables.
 values:
   0000-01-01:
     - al_standard_deduction  # Alabama
-    - ar_standard_deduction  # Arkansas
+    # Arkansas allows for a married filing separately structure which requires two separate standard deductions.
     - az_standard_deduction  # Arizona
     - ca_standard_deduction  # California
     # Connecticut adopts federal standard deduction
     - dc_standard_deduction  # DC
-    - de_standard_deduction  # Delaware
+    # Delaware allows for a married filing separately structure which requires two separate standard deductions.
     - ga_standard_deduction  # Georgia
     - hi_standard_deduction  # Hawaii
-    - ia_standard_deduction  # Iowa
+    # Iowa allows for a married filing separately structure which requires two separate standard deductions.
     # Idaho adopts federal standard deduction.
     # Illinois doesn't have a standard deduction.
     # Indiana doesn't have deductions (taxes AGI directly).
     - ks_standard_deduction  # Kansas
-    - ky_standard_deduction  # Kentucky
+    # Kentucky allows for a married filing separately structure which requires two separate standard deductions.
     - la_standard_deduction  # Louisiana
     # Massachusetts doesn't have deductions in a standard form.
     - md_standard_deduction  # Maryland
@@ -23,8 +23,8 @@ values:
     - mi_standard_deduction  # Michigan
     - mn_standard_deduction  # Minnesota
     # Missouri adopts federal standard deduction
-    - ms_standard_deduction  # Mississippi
-    - mt_standard_deduction  # Montana
+    # Mississippi allows for a married filing separately structure which requires two separate standard deductions.
+    # Montana allows for a married filing separately structure which requires two separate standard deductions.
     - nc_standard_deduction  # North Carolina
     # North Dakota adopts federal deductions.
     - ne_standard_deduction  # Nebraska

policyengine_us/parameters/gov/states/la/tax/income/deductions/itemized/relevant_federal_deductions.yaml

@@ -1,7 +1,7 @@
 description: Louisiana subtracts from adjusted gross income the excess of these relevant federal deductions over the standard deduction, based on year.
 values:
   2021-01-01: 
-    - taxable_income_deductions_if_itemizing
+    - itemized_taxable_income_deductions
   2022-01-01: 
     - medical_expense_deduction
 

policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/deductions/tax_unit_itemizes.yaml

@@ -0,0 +1,109 @@
+- name: When branching, itemization is based on tax liability
+  period: 2024
+  input:
+    gov.simulation.branch_to_determine_itemization: true
+    state_itemized_deductions: 14_000
+    state_standard_deduction: 11_000
+    tax_liability_if_itemizing: 10_000
+    tax_liability_if_not_itemizing: 1_000
+  output:
+    tax_unit_itemizes: False
+
+- name: When branching, itemization is based on tax liability, unit does not itemize
+  period: 2024
+  input:
+    gov.simulation.branch_to_determine_itemization: true
+    state_itemized_deductions: 14_000
+    state_standard_deduction: 11_000
+    tax_liability_if_itemizing: 10_000
+    tax_liability_if_not_itemizing: 11_000
+  output:
+    tax_unit_itemizes: True
+
+- name: When tax liability is equal, itemization is based on state deductions
+  period: 2024
+  input:
+    gov.simulation.branch_to_determine_itemization: true
+    state_itemized_deductions: 14_000
+    state_standard_deduction: 11_000
+    tax_liability_if_itemizing: 10_000
+    tax_liability_if_not_itemizing: 10_000
+  output:
+    tax_unit_itemizes: True
+
+- name: When tax liability is equal, itemization is based on state deductions, unit itemizes
+  period: 2024
+  input:
+    gov.simulation.branch_to_determine_itemization: true
+    state_itemized_deductions: 14_000
+    state_standard_deduction: 16_000
+    tax_liability_if_itemizing: 10_000
+    tax_liability_if_not_itemizing: 10_000
+  output:
+    tax_unit_itemizes: False
+
+- name: Without branching, itemization is based on deduction amount
+  period: 2024
+  input:
+    gov.simulation.branch_to_determine_itemization: false
+    state_itemized_deductions: 20_000
+    state_standard_deduction: 16_000
+    tax_liability_if_itemizing: 10_000
+    tax_liability_if_not_itemizing: 9_000
+    standard_deduction: 16_000
+    itemized_taxable_income_deductions: 13_000
+  output:
+    tax_unit_itemizes: False
+
+- name: Integration test which fails without tolerance in the itemization choice
+  period: 2024
+  absolute_error_margin: 0.1
+  input:
+    people:
+      person1:
+        age: 47
+        employment_income: 0.0
+        taxable_interest_income: 31428.572
+        is_tax_unit_head: true
+      person2:
+        age: 4
+        employment_income: 0
+        is_tax_unit_dependent: true
+        is_tax_unit_head: false
+        is_tax_unit_spouse: false
+      person3:
+        age: 11
+        employment_income: 0
+        is_tax_unit_dependent: true
+        is_tax_unit_head: false
+        is_tax_unit_spouse: false
+      person4:
+        age: 19
+        employment_income: 0
+        is_tax_unit_dependent: true
+        is_tax_unit_head: false
+        is_tax_unit_spouse: false
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3, person4]
+        premium_tax_credit: 0
+        local_income_tax: 0
+        state_sales_tax: 0
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3, person4]
+        snap: 0
+        tanf: 0
+    households:
+      household:
+        members: [person1, person2, person3, person4]
+        state_fips: 45
+  output:
+    tax_liability_if_itemizing: 0
+    tax_liability_if_not_itemizing: 0
+    itemized_taxable_income_deductions: 401
+    standard_deduction: 21_900
+    state_itemized_deductions: 401
+    state_standard_deduction: 21_900
+    tax_unit_itemizes: False
+    sc_income_tax: 0

policyengine_us/tests/policy/baseline/gov/states/la/tax/income/deductions/la_itemized_deductions.yaml

@@ -33,11 +33,13 @@
     state_code: LA
     standard_deduction: 12_550
     medical_expense_deduction: 20_000
-    taxable_income_deductions_if_itemizing: 30_000
+    itemized_taxable_income_deductions: 30_000
+    qualified_business_income_deduction: 1_000
     tax_unit_itemizes: true
   output:
     la_itemized_deductions: 17_450
     #30_000-12_550
+    # QBID does not affect the state itemized deductions 
 
 - name: 2021 Louisiana deduction given Single status, with federal itemized deductions 10_000
   period: 2021
@@ -45,7 +47,7 @@
     state_code: LA
     standard_deduction: 12_550
     medical_expense_deduction: 20_000
-    taxable_income_deductions_if_itemizing: 10_000
+    itemized_taxable_income_deductions: 10_000
     tax_unit_itemizes: true
   output:
     la_itemized_deductions: 0

policyengine_us/tests/policy/baseline/gov/states/me/tax/income/taxable_income/deductions/me_deductions.yaml

@@ -9,24 +9,29 @@
   output:
     me_deductions: 0
 
-- name: Maine deduction is itemized deductions minus phaseout.
+- name: Maine deduction is standard deduction minus phaseout.
   period: 2022
   absolute_error_margin: 0
   input:
     state_code: ME
-    me_deduction_phaseout_percentage: 0.40
-    standard_deduction: 20_000
-    me_itemized_deductions_pre_phaseout: 25_000
+    me_deduction_phaseout_percentage: 0.90
+    standard_deduction: 25_000
+    me_itemized_deductions_pre_phaseout: 20_000
   output:
-    me_deductions: 15_000
+    me_deductions: 2_500
 
-- name: Maine deduction is standard deduction minus phaseout.
+- name: Maine deduction is itemized deductions minus phaseout.
   period: 2022
   absolute_error_margin: 0
   input:
+    gov.simulation.branch_to_determine_itemization: true
     state_code: ME
-    me_deduction_phaseout_percentage: 0.90
-    standard_deduction: 25_000
-    me_itemized_deductions_pre_phaseout: 20_000
+    me_deduction_phaseout_percentage: 0.40
+    standard_deduction: 10_000
+    me_itemized_deductions_pre_phaseout: 15_000
   output:
-    me_deductions: 2_500
+    tax_liability_if_itemizing: 0
+    tax_liability_if_not_itemizing: 0
+    state_standard_deduction: 10_000
+    state_itemized_deductions: 15_000
+    me_deductions: 9_000

policyengine_us/tests/policy/baseline/gov/states/me/tax/income/taxable_income/deductions/me_itemized_deductions_pre_phaseout.yaml

@@ -53,12 +53,15 @@
         tax_unit_itemizes: false
         medical_expense_deduction: 500
         charitable_deduction: 10_000
+        standard_deduction: 5_000
     households:
       household:
         members: [person1]
         state_code: ME
   output:
-    me_itemized_deductions_pre_phaseout: 0
+    me_itemized_deductions_pre_phaseout: 11_500
+    me_deductions: 5_000
+    
 
 - name: Maine itemized deduction is capped.
   period: 2022

policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/deductions/itemized/federal_itemization/mt_federal_income_tax_deduction_for_federal_itemization.yaml

@@ -0,0 +1,57 @@
+- name: Test case filing separate with income tax over limit
+  period: 2021
+  input:
+     filing_status: SEPARATE
+     mt_withheld_income_tax: 6_000 # >5,000
+     state_code: MT
+  output:
+    mt_federal_income_tax_deduction_for_federal_itemization: 5_000
+
+- name: Test case filing single with income tax below limit
+  period: 2021
+  input:
+     filing_status: SINGLE
+     mt_withheld_income_tax: 2_000 # <5,000
+     state_code: MT
+  output:
+    mt_federal_income_tax_deduction_for_federal_itemization: 2_000
+
+- name: Test case filing joint with income tax below limit
+  period: 2021
+  input:
+     filing_status: JOINT
+     mt_withheld_income_tax: 7_000 #<10,000
+     state_code: MT
+  output:
+    mt_federal_income_tax_deduction_for_federal_itemization: 7_000
+
+- name: Test case filing joint with income tax below limit
+  period: 2021
+  input:
+     filing_status: JOINT
+     mt_withheld_income_tax: 7_000 #<10,000
+     state_code: MT
+  output:
+    mt_federal_income_tax_deduction_for_federal_itemization: 7_000
+
+- name: Amount distributed to the head
+  period: 2021
+  absolute_error_margin: 1
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        mt_withheld_income_tax: 3_000
+      person2:
+        is_tax_unit_head: false
+        mt_withheld_income_tax: 4_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person1, person2]
+        state_code: MT
+  output:
+    mt_federal_income_tax_deduction_for_federal_itemization: 7_000

policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/deductions/itemized/federal_itemization/mt_federal_income_tax_deduction_for_federal_itemization_indiv.yaml

@@ -0,0 +1,39 @@
+- name: Deductions split evenly 
+  period: 2021
+  input:
+    people:
+      person1:
+        mt_agi: 500
+      person2:
+        mt_agi: 500
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        mt_federal_income_tax_deduction_for_federal_itemization: 3_000
+        state_filing_status_if_married_filing_separately_on_same_return: SEPARATE
+    households:
+      household:
+        members: [person1, person2]
+        state_code: MT
+  output:
+    mt_federal_income_tax_deduction_for_federal_itemization_indiv: [1_500, 1_500]
+
+- name: Deductions capped at max amount individually
+  period: 2021
+  input:
+    people:
+      person1:
+        mt_agi: 100
+      person2:
+        mt_agi: 900
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        mt_federal_income_tax_deduction_for_federal_itemization: 10_000
+        state_filing_status_if_married_filing_separately_on_same_return: SEPARATE
+    households:
+      household:
+        members: [person1, person2]
+        state_code: MT
+  output:
+    mt_federal_income_tax_deduction_for_federal_itemization_indiv: [1_000, 5_000]

policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/deductions/itemized/federal_itemization/mt_itemized_deductions_for_federal_itemization_indiv.yaml

@@ -0,0 +1,76 @@
+- name: Test case 1 # filing separate
+  period: 2021
+  input:
+     charitable_deduction: 800
+     investment_interest_expense: 265
+     mt_salt_deduction: 5_000
+     mt_medical_expense_deduction_indiv: 1_000
+     casualty_loss_deduction: 400
+     mt_child_dependent_care_expense_deduction: 123
+     mt_federal_income_tax_deduction_for_federal_itemization_indiv: 2_000
+     state_code: MT
+  output:
+    mt_itemized_deductions_for_federal_itemization_indiv: 9_188 
+
+- name: Test case 2 #salt has a cap of 10000 for single, head of household and joint
+  period: 2022
+  input:
+     charitable_deduction: 0
+     investment_interest_expense: 1_234
+     mt_salt_deduction: 10_000
+     mt_medical_expense_deduction_indiv: 3_000 
+     casualty_loss_deduction: 0
+     mt_child_dependent_care_expense_deduction: 0
+     mt_federal_income_tax_deduction_for_federal_itemization_indiv: 2_000
+     state_code: MT
+  output:
+    mt_itemized_deductions_for_federal_itemization_indiv: 16_234
+
+- name: Test case 3 #sum all terms
+  period: 2021
+  input:
+     charitable_deduction: 1_000
+     mortgage_interest: 34
+     mt_salt_deduction: 1_035
+     mt_medical_expense_deduction_indiv: 3_000
+     casualty_loss_deduction: 745
+     mt_child_dependent_care_expense_deduction: 1_004
+     mt_federal_income_tax_deduction_for_federal_itemization_indiv: 2_000
+     state_code: MT
+  output:
+    mt_itemized_deductions_for_federal_itemization_indiv: 8_318
+
+- name: Amount only distributed to the head and spouse
+  period: 2021
+  absolute_error_margin: 1
+  input:
+    people:
+      person1:
+        is_tax_unit_head_or_spouse: true
+        mt_misc_deductions: 100
+        mt_medical_expense_deduction_indiv: 200
+        mt_salt_deduction: 300
+        mt_federal_income_tax_deduction_for_federal_itemization_indiv: 400
+      person2:
+        is_tax_unit_head_or_spouse: true
+        mt_misc_deductions: 100
+        mt_medical_expense_deduction_indiv: 200
+        mt_salt_deduction: 300
+        mt_federal_income_tax_deduction_for_federal_itemization_indiv: 100
+      person3:
+        is_tax_unit_head_or_spouse: false
+        is_tax_unit_dependent: true
+        mt_misc_deductions: 100
+        mt_medical_expense_deduction_indiv: 12
+        mt_salt_deduction: 200
+        mt_federal_income_tax_deduction_for_federal_itemization_indiv: 100
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+        charitable_deduction: 0
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: MT
+  output:
+    mt_itemized_deductions_for_federal_itemization_indiv: [1_000, 700, 0]

policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/deductions/itemized/federal_itemization/mt_itemized_deductions_for_federal_itemization_joint.yaml

@@ -0,0 +1,76 @@
+- name: Test case 1 # filing separate
+  period: 2021
+  input:
+     filing_status: SEPARATE
+     charitable_deduction: 800
+     investment_interest_expense: 265
+     mt_salt_deduction: 5_000
+     mt_medical_expense_deduction_joint: 1_000
+     casualty_loss_deduction: 400
+     mt_child_dependent_care_expense_deduction: 123
+     mt_federal_income_tax_deduction_for_federal_itemization: 2_000
+     state_code: MT
+  output:
+    mt_itemized_deductions_for_federal_itemization_joint: 9_588 
+
+- name: Test case 2 #salt has a cap of 10000 for single, head of household and joint
+  period: 2022
+  input:
+     filing_status: HEAD_OF_HOUSEHOLD
+     charitable_deduction: 0
+     mortgage_interest: 1_234
+     mt_salt_deduction: 10_000
+     mt_medical_expense_deduction_joint: 3_000 
+     casualty_loss_deduction: 0
+     mt_child_dependent_care_expense_deduction: 0
+     mt_federal_income_tax_deduction_for_federal_itemization: 2_000
+     state_code: MT
+  output:
+    mt_itemized_deductions_for_federal_itemization_joint: 16_234
+
+- name: Test case 3 #sum all terms
+  period: 2021
+  input:
+     filing_status: SINGLE
+     charitable_deduction: 1_000
+     mortgage_interest: 34
+     mt_salt_deduction: 1_035
+     mt_medical_expense_deduction_joint: 3_000
+     casualty_loss_deduction: 745
+     mt_child_dependent_care_expense_deduction: 1_004
+     mt_federal_income_tax_deduction_for_federal_itemization: 2_000
+     state_code: MT
+  output:
+    mt_itemized_deductions_for_federal_itemization_joint: 8_818
+
+- name: Amount only distributed to the head 
+  period: 2021
+  absolute_error_margin: 1
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        mt_misc_deductions: 100
+        mt_medical_expense_deduction_joint: 200
+        mt_salt_deduction: 300
+        investment_interest_expense: 100
+      person2:
+        is_tax_unit_head: false
+        mt_misc_deductions: 100
+        mt_medical_expense_deduction_joint: 200
+        mt_salt_deduction: 300
+      person3:
+        is_tax_unit_head: false
+        mt_misc_deductions: 100
+        mt_medical_expense_deduction_joint: 12
+        mt_salt_deduction: 200
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: MT
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+        mt_federal_income_tax_deduction_for_federal_itemization: 600
+  output:
+    mt_itemized_deductions_for_federal_itemization_joint: [2_212, 0, 0]

policyengine_us/tests/policy/baseline/gov/states/nm/tax/income/deductions/nm_itemized_deductions.yaml

@@ -0,0 +1,47 @@
+- name: New Mexico adopts federal itemized deductions
+  period: 2023
+  input:
+    state_code: NM
+    filing_status: SINGLE
+    age_head: 35
+    charitable_deduction: 5_000
+    interest_deduction: 8_000
+    salt_deduction: 10_000
+    medical_expense_deduction: 2_000
+  output:
+    # Federal itemized deductions total
+    total_itemized_taxable_income_deductions: 25_000
+    # NM uses federal itemized deductions
+    nm_itemized_deductions: 25_000
+    # Should flow through to state_itemized_deductions
+    state_itemized_deductions: 25_000
+
+- name: New Mexico itemized deductions for married couple
+  period: 2023
+  input:
+    state_code: NM
+    filing_status: JOINT
+    age_head: 45
+    age_spouse: 43
+    charitable_deduction: 10_000
+    interest_deduction: 15_000
+    salt_deduction: 10_000
+  output:
+    total_itemized_taxable_income_deductions: 35_000
+    nm_itemized_deductions: 35_000
+    state_itemized_deductions: 35_000
+
+- name: New Mexico itemized deductions for head of household
+  period: 2023
+  input:
+    state_code: NM
+    filing_status: HEAD_OF_HOUSEHOLD
+    age_head: 38
+    charitable_deduction: 3_000
+    interest_deduction: 7_000
+    salt_deduction: 8_000
+    medical_expense_deduction: 1_500
+  output:
+    total_itemized_taxable_income_deductions: 19_500
+    nm_itemized_deductions: 19_500
+    state_itemized_deductions: 19_500