policyengine-us 1.400.2__py3-none-any.whl → 1.401.0__py3-none-any.whl

policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional/benefit_cap.yaml

@@ -0,0 +1,11 @@
+description: Social Security benefits are taxable at this maximum rate for taxpayers with combined income above the adjusted base threshold.
+values:
+  1993-01-01: 0.85
+
+metadata:
+  unit: /1
+  period: year
+  label: Social Security taxability tier 2 benefit cap rate
+  reference:
+    - title: 26 U.S. Code § 86(a)(2)(B)
+      href: https://www.law.cornell.edu/uscode/text/26/86#a_2_B

policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional/bracket.yaml

@@ -0,0 +1,11 @@
+description: The IRS includes this portion of the difference between adjusted base and base thresholds when calculating tier 2 Social Security taxability.
+values:
+  1984-01-01: 0.5
+
+metadata:
+  unit: /1
+  period: year
+  label: Social Security taxability tier 1 bracket rate
+  reference:
+    - title: 26 U.S. Code § 86(a)(2)(A)(ii)
+      href: https://www.law.cornell.edu/uscode/text/26/86#a_2_A_ii

policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional/excess.yaml

@@ -0,0 +1,11 @@
+description: The IRS taxes Social Security benefits at this rate applied to the excess of combined income over the adjusted base threshold for taxpayers in the second tier.
+values:
+  1993-01-01: 0.85
+
+metadata:
+  unit: /1
+  period: year
+  label: Social Security taxability tier 2 excess rate
+  reference:
+    - title: 26 U.S. Code § 86(a)(2)(A)(i)
+      href: https://www.law.cornell.edu/uscode/text/26/86#a_2_A_i

policyengine_us/parameters/gov/irs/social_security/taxability/rate/base/benefit_cap.yaml

@@ -0,0 +1,11 @@
+description: Social Security benefits are taxable at this rate for taxpayers with combined income between the base and adjusted base thresholds.
+values:
+  1984-01-01: 0.5
+
+metadata:
+  unit: /1
+  period: year
+  label: Social Security taxability tier 1 benefit cap rate
+  reference:
+    - title: 26 U.S. Code § 86(a)(1)(A)
+      href: https://www.law.cornell.edu/uscode/text/26/86#a_1_A

policyengine_us/parameters/gov/irs/social_security/taxability/rate/base/excess.yaml

@@ -0,0 +1,11 @@
+description: The IRS taxes Social Security benefits at this rate applied to the excess of combined income over the base threshold for taxpayers in the first tier.
+values:
+  1984-01-01: 0.5
+
+metadata:
+  unit: /1
+  period: year
+  label: Social Security taxability tier 1 excess rate
+  reference:
+    - title: 26 U.S. Code § 86(a)(1)(B)
+      href: https://www.law.cornell.edu/uscode/text/26/86#a_1_B

policyengine_us/tests/policy/baseline/gov/irs/social_security/taxable_social_security.yaml

@@ -0,0 +1,71 @@
+- name: Test SS taxation with zero values
+  period: 2024
+  input:
+    people:
+      person1:
+        age: 67
+        social_security: 0
+        interest_income: 0
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+    households:
+      household:
+        members: [person1]
+        state_code: TX
+  output:
+    # No income = no taxable SS
+    tax_unit_taxable_social_security: 0
+
+- name: Test flat 85% SS taxation with minimal parametric reform
+  period: 2024
+  input:
+    # These 3 parameter changes achieve flat 85% taxation
+    gov.irs.social_security.taxability.combined_income_ss_fraction: 1.0
+    gov.irs.social_security.taxability.threshold.base.main.SINGLE: 0
+    gov.irs.social_security.taxability.threshold.adjusted_base.main.SINGLE: 0
+    people:
+      person1:
+        age: 67
+        social_security: 20_000
+        interest_income: 0
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+    households:
+      household:
+        members: [person1]
+        state_code: TX
+  output:
+    # With thresholds at 0 and fraction at 1.0:
+    # Combined income = 0 + 1.0 * 20k = 20k
+    # Excess over base (0) = 20k
+    # Excess over adjusted (0) = 20k
+    # Since both thresholds are 0, we're in tier 2
+    # tier2_taxable = min(0.85 * 20k + 0, 0.85 * 20k) = 17_000
+    tax_unit_taxable_social_security: 17_000
+
+- name: Test flat 85% taxation with higher benefits
+  period: 2024
+  input:
+    gov.irs.social_security.taxability.combined_income_ss_fraction: 1.0
+    gov.irs.social_security.taxability.threshold.base.main.SINGLE: 0
+    gov.irs.social_security.taxability.threshold.adjusted_base.main.SINGLE: 0
+    people:
+      person1:
+        age: 67
+        social_security: 40_000
+        interest_income: 0
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+    households:
+      household:
+        members: [person1]
+        state_code: TX
+  output:
+    # 85% of 40_000 = 34_000
+    tax_unit_taxable_social_security: 34_000

policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/tax_unit_taxable_social_security.py

@@ -49,26 +49,42 @@ class tax_unit_taxable_social_security(Variable):
             0, combined_income - adjusted_base_amount
         )
 
-        amount_if_under_second_threshold = p.rate.base * min_(
-            combined_income_excess, gross_ss
+        # Tier 1: Between base and adjusted base thresholds
+        # Per IRC §86(a)(1), "the amount determined under paragraph (1)"
+        # Taxable amount is lesser of:
+        # - base.benefit_cap * SS benefits [§86(a)(1)(A)]
+        # - base.excess * excess over base [§86(a)(1)(B)]
+        amount_under_paragraph_1 = min_(
+            p.rate.base.benefit_cap * gross_ss,
+            p.rate.base.excess * combined_income_excess,
         )
+
+        # Tier 2: Above adjusted base threshold
+        # Per IRC §86(a)(2)(A)(ii), the lesser of:
+        # - "the amount determined under paragraph (1)" (calculated above)
+        # - "one-half of the difference between the adjusted base amount and the base amount"
+        bracket_amount = min_(
+            amount_under_paragraph_1,
+            p.rate.additional.bracket * (adjusted_base_amount - base_amount),
+        )
+
+        # Per IRC §86(a)(2), the lesser of:
+        # (A) 85% of excess over adjusted base + bracket amount, or
+        # (B) 85% of social security benefits
         amount_if_over_second_threshold = min_(
-            p.rate.additional * excess_over_adjusted_base
-            + min_(
-                amount_if_under_second_threshold,
-                p.rate.base * (adjusted_base_amount - base_amount),
-            ),
-            p.rate.additional * gross_ss,
+            p.rate.additional.excess * excess_over_adjusted_base
+            + bracket_amount,
+            p.rate.additional.benefit_cap * gross_ss,
         )
+
         return select(
             [
                 under_first_threshold,
                 under_second_threshold,
-                True,
             ],
             [
                 0,
-                amount_if_under_second_threshold,
-                amount_if_over_second_threshold,
+                amount_under_paragraph_1,
             ],
+            default=amount_if_over_second_threshold,
         )

{policyengine_us-1.400.2.dist-info → policyengine_us-1.401.0.dist-info}/METADATA

@@ -1,6 +1,6 @@
 Metadata-Version: 2.4
 Name: policyengine-us
-Version: 1.400.2
+Version: 1.401.0
 Summary: Add your description here.
 Author-email: PolicyEngine <hello@policyengine.org>
 License-File: LICENSE

{policyengine_us-1.400.2.dist-info → policyengine_us-1.401.0.dist-info}/RECORD

@@ -746,8 +746,11 @@ policyengine_us/parameters/gov/irs/self_employment/rate/social_security.yaml,sha
 policyengine_us/parameters/gov/irs/social_security/README.md,sha256=htok4YcXCdYFwOsxNtEtU4P9Ykf2yDrpa2DPFyww9JE,18
 policyengine_us/parameters/gov/irs/social_security/taxability/combined_income_ss_fraction.yaml,sha256=fvuKjwx8UBTaGs6J5Z6M8-LomIu8sS280JzWoQ4vBdQ,491
 policyengine_us/parameters/gov/irs/social_security/taxability/income/revoked_deductions.yaml,sha256=X9ts8sZ5G_pfbxY7TOAqR99e0Jsn0e7pf_W2qritgw4,562
-policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional.yaml,sha256=BHbmDfYtuQdcWN88fZo1GrsnwDM2c44toDRQTx_MCGg,430
-policyengine_us/parameters/gov/irs/social_security/taxability/rate/base.yaml,sha256=C1dY1-XbegpqOGxQ7gjhaB5GI0vslK2d5mbzbt6ZlKc,425
+policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional/benefit_cap.yaml,sha256=dFdr22Ns-cvnj1WUNVhnC1QUL33Zw0C1NTJt2Gr9hR8,383
+policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional/bracket.yaml,sha256=9NatrNWb5YHvV2bNMMfJMTlJD9BoQn0gkEBzdaIp0Zk,399
+policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional/excess.yaml,sha256=vD_QjP8NiPLjPZrpgFjumLGd_XaokZIfS8pVZ5Zq_Gg,415
+policyengine_us/parameters/gov/irs/social_security/taxability/rate/base/benefit_cap.yaml,sha256=nJaFaW7dSAqorYHCCCTXlm45uCcHZUjLxglNAQNULHM,386
+policyengine_us/parameters/gov/irs/social_security/taxability/rate/base/excess.yaml,sha256=MixXzyhrU0Oxr3Qw6IwQtD88QANmqYSwaWxKbT4dMws,399
 policyengine_us/parameters/gov/irs/social_security/taxability/threshold/adjusted_base/main.yaml,sha256=ga2H21QF4WveSBSezgTUF1giWRcg1BepG52enDxPAeQ,579
 policyengine_us/parameters/gov/irs/social_security/taxability/threshold/adjusted_base/separate_cohabitating.yaml,sha256=PkP6Wf658F3ewXzG5tBAFFoNyQDj1cCXrPmmqxld6cQ,461
 policyengine_us/parameters/gov/irs/social_security/taxability/threshold/base/main.yaml,sha256=i-6qoYRem6LKSFVWPc8AblNjRHWu3BehcvJ2Bw6vwuk,592
@@ -3489,6 +3492,7 @@ policyengine_us/tests/policy/baseline/gov/irs/payroll/social_security/taxable_ea
 policyengine_us/tests/policy/baseline/gov/irs/self_employment/self_employment_medicare_tax.yaml,sha256=GQF0ekmINx3Ta8Opn7RHKuWo_aiceSMI-ee33QxRGgQ,262
 policyengine_us/tests/policy/baseline/gov/irs/self_employment/self_employment_social_security_tax.yaml,sha256=CMCZRWdAhngih3tUYT4U3cEIOzwDvcpqgeSLSJJS3H0,303
 policyengine_us/tests/policy/baseline/gov/irs/self_employment/taxable_self_employment_income.yaml,sha256=R62CYHdJPD7MyqwCw7M4JCqdoQoXggZIb67wD8Iy0TY,543
+policyengine_us/tests/policy/baseline/gov/irs/social_security/taxable_social_security.yaml,sha256=X_jAfJS8EHbAzBrOaHziJ4L6vOouyii8bW3TAkjrGGQ,2040
 policyengine_us/tests/policy/baseline/gov/irs/tax/estate/estate_tax.yaml,sha256=-ojQCxQ7cb81zDd23mBVBTYjFkzcdVwhIeuAUKlg41s,317
 policyengine_us/tests/policy/baseline/gov/irs/tax/estate/estate_tax_before_credits.yaml,sha256=jXecmWpAqK5UkN36IOl_Lbw0kfh3xCwDpQuWHlAmugc,705
 policyengine_us/tests/policy/baseline/gov/irs/tax/federal_income/additional_medicare_tax.yaml,sha256=GzXA_sGrfTWHxK6HXlBgIRpgZGBbVTFJKwt8lh-Vjms,456
@@ -5690,7 +5694,7 @@ policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/ir
 policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/tax_unit_combined_income_for_social_security_taxability.py,sha256=nFIRNtKGve9raB6hUZfZlMtPRhGDtaCuvqm32HHN6cE,1006
 policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/tax_unit_social_security.py,sha256=lgQIQOgtnvkbnDfvIFMnzryDaISDaD9VenOZNyr-Fd0,243
 policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/tax_unit_ss_combined_income_excess.py,sha256=AWj1VzfU-DzUNP_9f_dpxuSSixtwyPn6N35n34b9fGo,1409
-policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/tax_unit_taxable_social_security.py,sha256=JanN2ySey1AMdlsCGN4-RILtvkIetsMaNSL7LRJ0sqI,2817
+policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/tax_unit_taxable_social_security.py,sha256=S-WUOzbUsdwj0DLzZaleYE_ru8GPmdi8RxGu6ZVE1a4,3604
 policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/taxable_social_security.py,sha256=KlNVAoZaB1I1I2vdPti5-hmPOFeBQA7HFBAGTqwbgwo,1326
 policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/social_security/taxable_ss_magi.py,sha256=ZtnZ79E1uv3Fy-3Sfu77_qj5ipUMw9pG2iFHLQXfe6A,1982
 policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/irs_gross_income/unemployment_insurance/tax_exempt_unemployment_compensation.py,sha256=LcfEa0LR71l0fJJ2mDykKuHMxHIwbF_ir7XJ7cDAWGM,330
@@ -8441,8 +8445,8 @@ policyengine_us/variables/input/farm_income.py,sha256=BEKxYmHNNnWJAAvULl5qZJigy5
 policyengine_us/variables/input/geography.py,sha256=Ux0ueAf0rhZaflyEqz81UuXP3xKCKBDvoO3CrKhiQEc,5421
 policyengine_us/variables/input/self_employment_income.py,sha256=PwsGz8R4lRikKWUYOhsC0qosNNLXq4f5SQmfw4S3mk8,511
 policyengine_us/variables/input/self_employment_income_before_lsr.py,sha256=E8fcX9Nlyqz8dziHhQv_euutdmoIwFMMWePUwbbwv_w,379
-policyengine_us-1.400.2.dist-info/METADATA,sha256=inhb6H3YPAmsowwao5iSZgxqdwVAL0zLz36tsLwKUcU,1649
-policyengine_us-1.400.2.dist-info/WHEEL,sha256=qtCwoSJWgHk21S1Kb4ihdzI2rlJ1ZKaIurTj_ngOhyQ,87
-policyengine_us-1.400.2.dist-info/entry_points.txt,sha256=MLaqNyNTbReALyKNkde85VkuFFpdPWAcy8VRG1mjczc,57
-policyengine_us-1.400.2.dist-info/licenses/LICENSE,sha256=2N5ReRelkdqkR9a-KP-y-shmcD5P62XoYiG-miLTAzo,34519
-policyengine_us-1.400.2.dist-info/RECORD,,
+policyengine_us-1.401.0.dist-info/METADATA,sha256=y1IleqhIafxPgWLoOBbcqHcuGFMSB-TrrezhXW2yCW0,1649
+policyengine_us-1.401.0.dist-info/WHEEL,sha256=qtCwoSJWgHk21S1Kb4ihdzI2rlJ1ZKaIurTj_ngOhyQ,87
+policyengine_us-1.401.0.dist-info/entry_points.txt,sha256=MLaqNyNTbReALyKNkde85VkuFFpdPWAcy8VRG1mjczc,57
+policyengine_us-1.401.0.dist-info/licenses/LICENSE,sha256=2N5ReRelkdqkR9a-KP-y-shmcD5P62XoYiG-miLTAzo,34519
+policyengine_us-1.401.0.dist-info/RECORD,,

policyengine_us/parameters/gov/irs/social_security/taxability/rate/additional.yaml

@@ -1,11 +0,0 @@
-description: The IRS includes this additional portion of Social Security benefits in taxable income for filers whose modified adjusted gross income exceeds the additional threshold.
-values:
-  2013-01-01: 0.85
-
-metadata:
-  breakdown: filing_status
-  unit: /1
-  label: Social Security benefit additional taxable rate
-  reference: 
-    - title: 26 U.S. Code § 86(a)(2)
-      href: https://www.law.cornell.edu/uscode/text/26/86#a_2 

policyengine_us/parameters/gov/irs/social_security/taxability/rate/base.yaml

@@ -1,11 +0,0 @@
-description: The IRS includes this portion of Social Security benefits in taxable income for filers whose modified adjusted gross income is between the base and additional thresholds.
-values:
-  2013-01-01: 0.5
-
-metadata:
-  breakdown: filing_status
-  unit: /1
-  label: Social Security benefit base taxable rate
-  reference: 
-    - title: 26 U.S. Code § 86(a)(1)
-      href: https://www.law.cornell.edu/uscode/text/26/86#a_1