taxcalc 4.6.3__py3-none-any.whl → 5.0.4__py3-none-any.whl

taxcalc/calcfunctions.py

@@ -16,7 +16,6 @@ Note: the parameter_indexing_CPI_offset parameter is no longer used.
 # pylint: disable=too-many-locals
 
 import math
-import copy
 import numpy as np
 from taxcalc.decorators import iterate_jit, JIT
 
@@ -349,7 +348,12 @@ def Adj(e03150, e03210, c03260,
         ALD_EarlyWithdraw_hc, ALD_AlimonyPaid_hc, ALD_AlimonyReceived_hc,
         ALD_EducatorExpenses_hc, ALD_HSADeduction_hc, ALD_IRAContributions_hc,
         ALD_DomesticProduction_hc, ALD_Tuition_hc,
-        c02900):
+        MARS, earned,
+        overtime_income, ALD_OvertimeIncome_hc, ALD_OvertimeIncome_c,
+        ALD_OvertimeIncome_ps, ALD_OvertimeIncome_prt,
+        tip_income, ALD_TipIncome_hc, ALD_TipIncome_c,
+        ALD_TipIncome_ps, ALD_TipIncome_prt,
+        c02900, ALD_OvertimeIncome, ALD_TipIncome):
     """
     Adj calculates Form 1040 AGI adjustments (i.e., Above-the-Line Deductions).
 
@@ -403,11 +407,40 @@ def Adj(e03150, e03210, c03260,
         Domestic production haircut
     ALD_Tuition_hc: float
         Tuition and fees haircut
+    MARS: int
+        Filing marital status (1=single, 2=joint, 3=separate,
+                               4=household-head, 5=widow(er))
+    earned: float
+        Earned income used to phase-out ALD_OvertimeIncome and ALD_TipIncome
+    overtime_income: float
+        Overtime income qualified for an above-the-line deduction
+    ALD_OvertimeIncome_hc: float
+        ALD_OvertimeIncome haircut
+    ALD_OvertimeIncome_c: list[float]
+        ALD_OvertimeIncome cap
+    ALD_OvertimeIncome_ps: list[float]
+        ALD_OvertimeIncome phase-out earned income start
+    ALD_OvertimeIncome_prt: float
+        ALD_OvertimeIncome phase-out rate
+    tip_income: float
+        Tip income qualified for an above-the-line deduction
+    ALD_TipIncome_hc: float
+        ALD_TipIncome haircut
+    ALD_TipIncome_c: list[float]
+        ALD_TipIncome cap
+    ALD_TipIncome_ps: list[float]
+        ALD_TipIncome phase-out earned income start
+    ALD_TipIncome_prt: float
+        ALD_TipIncome phase-out rate
 
     Returns
     -------
     c02900: float
         Total of all "above the line" income adjustments to get AGI
+    ALD_OvertimeIncome: float
+        Overtime ALD amount included in c02900
+    ALD_TipIncome: float
+        Tip ALD amount included in c02900
     """
     # Form 2555 foreign earned income exclusion is assumed to be zero
     # Form 1040 adjustments that are included in expanded income:
@@ -424,7 +457,29 @@ def Adj(e03150, e03210, c03260,
               (1. - ALD_IRAContributions_hc) * e03150 +
               (1. - ALD_KEOGH_SEP_hc) * e03300 +
               care_deduction)
-    return c02900
+    # calculate ALD_OvertimeIncome
+    ALD_OvertimeIncome = 0.
+    if overtime_income > 0. and ALD_OvertimeIncome_hc < 1.0:
+        ded = min(overtime_income, ALD_OvertimeIncome_c[MARS - 1])
+        po_start = ALD_OvertimeIncome_ps[MARS - 1]
+        if earned > po_start:
+            excess = earned - po_start
+            po_amount = excess * ALD_OvertimeIncome_prt
+            ded = max(0., ded - po_amount)
+        ALD_OvertimeIncome = ded
+    # calculate ALD_TipIncome
+    ALD_TipIncome = 0.
+    if tip_income > 0. and ALD_TipIncome_hc < 1.0:
+        ded = min(tip_income, ALD_TipIncome_c[MARS - 1])
+        po_start = ALD_TipIncome_ps[MARS - 1]
+        if earned > po_start:
+            excess = earned - po_start
+            po_amount = excess * ALD_TipIncome_prt
+            ded = max(0., ded - po_amount)
+        ALD_TipIncome = ded
+    # return results
+    c02900 += ALD_OvertimeIncome + ALD_TipIncome
+    return (c02900, ALD_OvertimeIncome, ALD_TipIncome)
 
 
 @iterate_jit(nopython=True)
@@ -606,7 +661,7 @@ def CapGains(p23250, p22250, sep, ALD_StudentLoan_hc,
 
 
 @iterate_jit(nopython=True)
-def SSBenefits(MARS, ymod, e02400, SS_all_in_agi, SS_thd50, SS_thd85,
+def SSBenefits(MARS, ymod, e02400, SS_all_in_agi, SS_thd1, SS_thd2,
                SS_percentage1, SS_percentage2, c02500):
     """
     Calculates OASDI benefits included in AGI, c02500.
@@ -622,9 +677,9 @@ def SSBenefits(MARS, ymod, e02400, SS_all_in_agi, SS_thd50, SS_thd85,
         Total social security (OASDI) benefits
     SS_all_in_agi: bool
         Whether all social security benefits are included in AGI
-    SS_thd50: list
+    SS_thd1: list
         Threshold for social security benefit taxability (1)
-    SS_thd85: list
+    SS_thd2: list
         Threshold for social security benefit taxability (2)
     SS_percentage1: float
         Social security taxable income decimal fraction (1)
@@ -638,15 +693,15 @@ def SSBenefits(MARS, ymod, e02400, SS_all_in_agi, SS_thd50, SS_thd85,
     c02500: float
         Social security (OASDI) benefits included in AGI
     """
-    if ymod < SS_thd50[MARS - 1]:
+    if ymod < SS_thd1[MARS - 1]:
         c02500 = 0.
-    elif ymod < SS_thd85[MARS - 1]:
-        c02500 = SS_percentage1 * min(ymod - SS_thd50[MARS - 1], e02400)
+    elif ymod < SS_thd2[MARS - 1]:
+        c02500 = SS_percentage1 * min(ymod - SS_thd1[MARS - 1], e02400)
     else:
-        c02500 = min(SS_percentage2 * (ymod - SS_thd85[MARS - 1]) +
+        c02500 = min(SS_percentage2 * (ymod - SS_thd2[MARS - 1]) +
                      SS_percentage1 *
-                     min(e02400, SS_thd85[MARS - 1] -
-                         SS_thd50[MARS - 1]), SS_percentage2 * e02400)
+                     min(e02400, SS_thd2[MARS - 1] -
+                         SS_thd1[MARS - 1]), SS_percentage2 * e02400)
     if SS_all_in_agi:
         c02500 = e02400
     return c02500
@@ -698,7 +753,7 @@ def UBI(nu18, n1820, n21, UBI_u18, UBI_1820, UBI_21, UBI_ecrt,
 
 @iterate_jit(nopython=True)
 def AGI(ymod1, c02500, c02900, XTOT, MARS, sep, DSI, exact, nu18, taxable_ubi,
-        II_em, II_em_ps, II_prt, II_no_em_nu18,
+        II_em, II_em_ps, II_em_prt, II_no_em_nu18,
         e02300, UI_thd, UI_em, c00100, pre_c04600, c04600):
     """
     Computes Adjusted Gross Income (AGI), c00100, and
@@ -731,7 +786,7 @@ def AGI(ymod1, c02500, c02900, XTOT, MARS, sep, DSI, exact, nu18, taxable_ubi,
         Personal and dependent exemption amount
     II_em_ps: list
         Personal exemption phaseout starting income
-    II_prt: float
+    II_em_prt: float
         Personal exemption phaseout rate
     II_no_em_nu18: float
         Repeal personal exemptions for dependents under age 18
@@ -776,10 +831,10 @@ def AGI(ymod1, c02500, c02900, XTOT, MARS, sep, DSI, exact, nu18, taxable_ubi,
     if exact == 1:  # exact calculation as on tax forms
         line5 = max(0., c00100 - II_em_ps[MARS - 1])
         line6 = math.ceil(line5 / (2500. / sep))
-        line7 = II_prt * line6
+        line7 = II_em_prt * line6
         c04600 = max(0., pre_c04600 * (1. - line7))
     else:  # smoothed calculation needed for sensible mtr calculation
-        dispc_numer = II_prt * (c00100 - II_em_ps[MARS - 1])
+        dispc_numer = II_em_prt * (c00100 - II_em_ps[MARS - 1])
         dispc_denom = 2500. / sep
         dispc = min(1., max(0., dispc_numer / dispc_denom))
         c04600 = pre_c04600 * (1. - dispc)
@@ -787,145 +842,65 @@ def AGI(ymod1, c02500, c02900, XTOT, MARS, sep, DSI, exact, nu18, taxable_ubi,
 
 
 @iterate_jit(nopython=True)
-def ItemDedCap(e17500, e18400, e18500, e19200, e19800, e20100, e20400, g20500,
-               c00100, ID_AmountCap_rt, ID_AmountCap_Switch, e17500_capped,
-               e18400_capped, e18500_capped, e19200_capped, e19800_capped,
-               e20100_capped, e20400_capped, g20500_capped):
+def AutoLoanInterestDed(auto_loan_interest, MARS, c00100, exact,
+                        AutoLoanInterestDed_c,
+                        AutoLoanInterestDed_ps,
+                        AutoLoanInterestDed_po_step_size,
+                        AutoLoanInterestDed_po_rate_per_step,
+                        auto_loan_interest_deduction):
     """
-    Applies a cap to gross itemized deductions.
+    Calculates below-the-line deduction on qualified auto loan interest paid.
 
     Parameters
     ----------
-    e17500: float
-        Itemizable medical and dental expenses
-    e18400: float
-        Itemizable state and local income/sales taxes
-    e18500: float
-        Itemizable real-estate taxes paid
-    e19200: float
-        Itemizable interest paid
-    e19800: float
-        Itemizable charitable giving: cash/check contributions
-    e20100: float
-        Itemizable charitable giving: other than cash/check contributions
-    e20400: float
-        Itemizable gross (before 10% AGI disregard) casualty or theft loss
-    g20500: float
-        Itemizable gross (before 10% AGI disregard) casualty or theft loss
+    auto_loan_interest: float
+        Qualified auto loan interest paid
+    MARS: int
+        Filing marital status (1=single, 2=joint, 3=separate,
+                               4=household-head, 5=widow(er))
     c00100: float
-        Adjusted gross income (AGI)
-    ID_AmountCap_rt: float
-        Ceiling on the gross amount of itemized deductions allowed;
-        expressed as decimal fraction of AGI
-    ID_AmountCap_Switch: list
-        Deductions subject to the cap on itemized deduction benefits
-    e17500_capped: float
-        Schedule A: medical expenses, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e18400_capped: float
-        Schedule A: state and local income taxes deductlbe, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e18500_capped: float
-        Schedule A: state and local real estate taxes deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e19200_capped: float
-        Schedule A: interest deduction deductible, capped by
-        ItemDedCap as decimal fraction of AGI
-    e19800_capped: float
-        Schedule A: charity cash contributions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e20100_capped: float
-        Schedule A: charity noncash contributions deductible, capped by
-        ItemDedCap s a decimal fraction of AGI
-    e20400_capped: float
-        Schedule A: gross miscellaneous deductions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    g20500_capped: float
-        Schedule A: gross casualty or theft loss deductible, capped by
-        ItemDedCap s a decimal fraction of AGI
+        Adjusted gross income
+    exact: int
+        Whether or not to smooth the deduction phase out
+    AutoLoanInterestDed_c: float
+        Deduction cap
+    AutoLoanInterestDed_ps: float
+        Deduction phase-out starts above this AGI
+    AutoLoanInterestDed_po_step_size: float
+        Deduction phase-out AGI step size
+    AutoLoanInterestDed_po_rate_per_step: float
+        Deduction phase-out rate per AGI step
+    auto_loan_interest_deduction: float
+        Deduction available to both itemizers and nonitemizers
 
     Returns
     -------
-    e17500_capped: float
-        Schedule A: medical expenses, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e18400_capped: float
-        Schedule A: state and local income taxes deductlbe, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e18500_capped: float
-        Schedule A: state and local real estate taxes deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e19200_capped: float
-        Schedule A: interest deduction deductible, capped by
-        ItemDedCap as decimal fraction of AGI
-    e19800_capped: float
-        Schedule A: charity cash contributions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e20100_capped: float
-        Schedule A: charity noncash contributions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e20400_capped: float
-        Schedule A: gross miscellaneous deductions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    g20500_capped: float
-        Schedule A: gross casualty or theft loss deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    """
-    # pylint: disable=too-many-branches
-
-    cap = max(0., ID_AmountCap_rt * c00100)
-
-    gross_ded_amt = 0
-    if ID_AmountCap_Switch[0]:  # medical
-        gross_ded_amt += e17500
-    if ID_AmountCap_Switch[1]:  # statelocal
-        gross_ded_amt += e18400
-    if ID_AmountCap_Switch[2]:  # realestate
-        gross_ded_amt += e18500
-    if ID_AmountCap_Switch[3]:  # casualty
-        gross_ded_amt += g20500
-    if ID_AmountCap_Switch[4]:  # misc
-        gross_ded_amt += e20400
-    if ID_AmountCap_Switch[5]:  # interest
-        gross_ded_amt += e19200
-    if ID_AmountCap_Switch[6]:  # charity
-        gross_ded_amt += e19800 + e20100
-
-    overage = max(0., gross_ded_amt - cap)
-
-    e17500_capped = e17500
-    e18400_capped = e18400
-    e18500_capped = e18500
-    g20500_capped = g20500
-    e20400_capped = e20400
-    e19200_capped = e19200
-    e19800_capped = e19800
-    e20100_capped = e20100
-
-    if overage > 0. and c00100 > 0.:
-        if ID_AmountCap_Switch[0]:  # medical
-            e17500_capped -= (e17500 / gross_ded_amt) * overage
-        if ID_AmountCap_Switch[1]:  # statelocal
-            e18400_capped -= (e18400 / (gross_ded_amt) * overage)
-        if ID_AmountCap_Switch[2]:  # realestate
-            e18500_capped -= (e18500 / gross_ded_amt) * overage
-        if ID_AmountCap_Switch[3]:  # casualty
-            g20500_capped -= (g20500 / gross_ded_amt) * overage
-        if ID_AmountCap_Switch[4]:  # misc
-            e20400_capped -= (e20400 / gross_ded_amt) * overage
-        if ID_AmountCap_Switch[5]:  # interest
-            e19200_capped -= (e19200 / gross_ded_amt) * overage
-        if ID_AmountCap_Switch[6]:  # charity
-            e19800_capped -= (e19800 / gross_ded_amt) * overage
-            e20100_capped -= (e20100 / gross_ded_amt) * overage
-
-    return (e17500_capped, e18400_capped, e18500_capped, g20500_capped,
-            e20400_capped, e19200_capped, e19800_capped, e20100_capped)
+    auto_loan_interest_deduction: float
+        Deduction available to both itemizers and nonitemizers
+    """
+    auto_loan_interest_deduction = 0.
+    if AutoLoanInterestDed_c > 0. and auto_loan_interest > 0.:
+        # cap deduction
+        ded = min(auto_loan_interest, AutoLoanInterestDed_c)
+        po_start = AutoLoanInterestDed_ps[MARS - 1]
+        if c00100 > po_start:
+            # phase out deduction
+            excess_agi = c00100 - po_start
+            po_rate = AutoLoanInterestDed_po_rate_per_step
+            if exact == 1:  # exact calculation as on tax forms
+                step_size = AutoLoanInterestDed_po_step_size
+                steps = math.ceil(excess_agi / step_size)
+                po_amount = steps * step_size * po_rate
+            else:  # smoothed calculation needed for sensible mtr calculation
+                po_amount = excess_agi * po_rate
+            ded = max(0., ded - po_amount)
+        auto_loan_interest_deduction = ded
+    return auto_loan_interest_deduction
 
 
 @iterate_jit(nopython=True)
-def ItemDed(e17500_capped, e18400_capped, e18500_capped, e19200_capped,
-            e19800_capped, e20100_capped, e20400_capped, g20500_capped,
+def ItemDed(e17500, e18400, e18500, e19200,
+            e19800, e20100, e20400, g20500,
             MARS, age_head, age_spouse, c00100, c04470, c21040, c21060,
             c17000, c18300, c19200, c19700, c20500, c20800,
             ID_ps, ID_Medical_frt, ID_Medical_frt_add4aged, ID_Medical_hc,
@@ -942,30 +917,22 @@ def ItemDed(e17500_capped, e18400_capped, e18500_capped, e19200_capped,
 
     Parameters
     ----------
-    e17500_capped: float
-        Schedule A: medical expenses, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e18400_capped: float
-        Schedule A: state and local income taxes deductlbe, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e18500_capped: float
-        Schedule A: state and local real estate taxes deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e19200_capped: float
-        Schedule A: interest deduction deductible, capped by
-        ItemDedCap as decimal fraction of AGI
-    e19800_capped: float
-        Schedule A: charity cash contributions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e20100_capped: float
-        Schedule A: charity noncash contributions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    e20400_capped: float
-        Schedule A: gross miscellaneous deductions deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
-    g20500_capped: float
-        Schedule A: gross casualty or theft loss deductible, capped by
-        ItemDedCap as a decimal fraction of AGI
+    e17500: float
+        Schedule A: medical expenses
+    e18400: float
+        Schedule A: state and local income taxes deductlbe
+    e18500: float
+        Schedule A: state and local real estate taxes deductible
+    e19200: float
+        Schedule A: interest deduction deductible
+    e19800: float
+        Schedule A: charity cash contributions deductible
+    e20100: float
+        Schedule A: charity noncash contributions deductible
+    e20400: float
+        Schedule A: gross miscellaneous deductions deductible
+    g20500: float
+        Schedule A: gross casualty or theft loss deductible
     MARS: int
         Filing marital status (1=single, 2=joint, 3=separate,
                                4=household-head, 5=widow(er))
@@ -1093,12 +1060,12 @@ def ItemDed(e17500_capped, e18400_capped, e18500_capped, e19200_capped,
     if age_head >= 65 or (MARS == 2 and age_spouse >= 65):
         medical_frt += ID_Medical_frt_add4aged
     c17750 = medical_frt * posagi
-    c17000 = max(0., e17500_capped - c17750) * (1. - ID_Medical_hc)
+    c17000 = max(0., e17500 - c17750) * (1. - ID_Medical_hc)
     c17000 = min(c17000, ID_Medical_c[MARS - 1])
     # State and local taxes
-    c18400 = min((1. - ID_StateLocalTax_hc) * max(e18400_capped, 0.),
+    c18400 = min((1. - ID_StateLocalTax_hc) * max(e18400, 0.),
                  ID_StateLocalTax_c[MARS - 1])
-    c18500 = min((1. - ID_RealEstate_hc) * e18500_capped,
+    c18500 = min((1. - ID_RealEstate_hc) * e18500,
                  ID_RealEstate_c[MARS - 1])
     # following two statements implement a cap on c18400 and c18500 in a way
     # that those with negative AGI, c00100, are not capped under current law,
@@ -1108,22 +1075,22 @@ def ItemDed(e17500_capped, e18400_capped, e18500_capped, e19200_capped,
     c18300 = (c18400 + c18500) * (1. - ID_AllTaxes_hc)
     c18300 = min(c18300, ID_AllTaxes_c[MARS - 1])
     # Interest paid
-    c19200 = e19200_capped * (1. - ID_InterestPaid_hc)
+    c19200 = e19200 * (1. - ID_InterestPaid_hc)
     c19200 = min(c19200, ID_InterestPaid_c[MARS - 1])
     # Charity
-    charity_ded_cash = min(ID_Charity_crt_cash * posagi, e19800_capped)
-    charity_ded_noncash = min(ID_Charity_crt_noncash * posagi, e20100_capped)
+    charity_ded_cash = min(ID_Charity_crt_cash * posagi, e19800)
+    charity_ded_noncash = min(ID_Charity_crt_noncash * posagi, e20100)
     c19700 = charity_ded_cash + charity_ded_noncash
     # charity floor is zero in present law
     charity_floor = max(ID_Charity_frt * posagi, ID_Charity_f[MARS - 1])
     c19700 = max(0., c19700 - charity_floor) * (1. - ID_Charity_hc)
     c19700 = min(c19700, ID_Charity_c[MARS - 1])
     # Casualty
-    c20500 = (max(0., g20500_capped - ID_Casualty_frt * posagi) *
+    c20500 = (max(0., g20500 - ID_Casualty_frt * posagi) *
               (1. - ID_Casualty_hc))
     c20500 = min(c20500, ID_Casualty_c[MARS - 1])
     # Miscellaneous
-    c20400 = e20400_capped
+    c20400 = e20400
     c20750 = ID_Miscellaneous_frt * posagi
     c20800 = max(0., c20400 - c20750) * (1. - ID_Miscellaneous_hc)
     c20800 = min(c20800, ID_Miscellaneous_c[MARS - 1])
@@ -1278,8 +1245,9 @@ def StdDed(DSI, earned, STD, age_head, age_spouse, STD_Aged, STD_Dep,
 
 @iterate_jit(nopython=True)
 def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, c03260, e26270,
-           e02100, e27200, e00650, c01000, PT_SSTB_income,
-           PT_binc_w2_wages, PT_ubia_property, PT_qbid_rt,
+           e02100, e27200, e00650, c01000, auto_loan_interest_deduction,
+           PT_SSTB_income, PT_binc_w2_wages, PT_ubia_property,
+           PT_qbid_rt, PT_qbid_limited,
            PT_qbid_taxinc_thd, PT_qbid_taxinc_gap, PT_qbid_w2_wages_rt,
            PT_qbid_alt_w2_wages_rt, PT_qbid_alt_property_rt, c04800,
            PT_qbid_ps, PT_qbid_prt, qbided):
@@ -1314,6 +1282,8 @@ def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, c03260, e26270,
         Qualified dividends included in ordinary dividends
     c01000: float
         Limitation on capital losses
+    auto_loan_interest_deduction: float
+        Deduction for qualified auto loan interest paid
     PT_SSTB_income: int
         Value of one implies business income is from a specified service
           trade or business (SSTB)
@@ -1327,6 +1297,8 @@ def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, c03260, e26270,
         pass-through business
     PT_qbid_rt: float
         Pass-through qualified business income deduction rate
+    PT_qbid_limited: bool
+        Whether or not TCJA QBID limits are active
     PT_qbid_taxinc_thd: list
         Lower threshold of pre-QBID taxable income
     PT_qbid_taxinc_gap: list
@@ -1356,10 +1328,9 @@ def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, c03260, e26270,
     # calculate taxable income before qualified business income deduction
     pre_qbid_taxinc = max(0., c00100 - max(c04470, standard) - c04600)
     # calculate qualified business income deduction
-    qbided = 0.
     qbinc = max(0., e00900 - c03260 + e26270 + e02100 + e27200)
-    if qbinc > 0. and PT_qbid_rt > 0.:
-        qbid_before_limits = qbinc * PT_qbid_rt
+    qbid_before_limits = qbinc * PT_qbid_rt
+    if PT_qbid_limited:
         lower_thd = PT_qbid_taxinc_thd[MARS - 1]
         if pre_qbid_taxinc <= lower_thd:
             qbided = qbid_before_limits
@@ -1389,189 +1360,117 @@ def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, c03260, e26270,
                     prt = (pre_qbid_taxinc - lower_thd) / pre_qbid_taxinc_gap
                     adj = prt * (qbid_adjusted - cap_adjusted)
                     qbided = qbid_adjusted - adj
-
         # apply taxinc cap (assuming cap rate is equal to PT_qbid_rt)
-        net_cg = e00650 + c01000  # per line 34 in 2018 Pub 535 Worksheet 12-A
+        #   net_cg is defined on line 34 of 2018 Pub 535 Worksheet 12-A
+        net_cg = e00650 + c01000
         taxinc_cap = PT_qbid_rt * max(0., pre_qbid_taxinc - net_cg)
         qbided = min(qbided, taxinc_cap)
-
         # apply qbid phaseout
         if qbided > 0. and pre_qbid_taxinc > PT_qbid_ps[MARS - 1]:
             excess = pre_qbid_taxinc - PT_qbid_ps[MARS - 1]
             qbided = max(0., qbided - PT_qbid_prt * excess)
+    else:  # if PT_qbid_limited is false
+        qbided = qbid_before_limits
 
     # calculate taxable income after qualified business income deduction
-    c04800 = max(0., pre_qbid_taxinc - qbided)
+    c04800 = max(0., pre_qbid_taxinc - qbided - auto_loan_interest_deduction)
     return (c04800, qbided)
 
 
 @JIT(nopython=True)
-def SchXYZ(taxable_income, MARS, e00900, e26270, e02000, e00200,
-           PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5,
-           PT_rt6, PT_rt7, PT_rt8,
-           PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5,
-           PT_brk6, PT_brk7,
+def SchXYZ(taxable_income, MARS,
            II_rt1, II_rt2, II_rt3, II_rt4, II_rt5,
            II_rt6, II_rt7, II_rt8,
            II_brk1, II_brk2, II_brk3, II_brk4, II_brk5,
-           II_brk6, II_brk7, PT_EligibleRate_active,
-           PT_EligibleRate_passive, PT_wages_active_income,
-           PT_top_stacking):
+           II_brk6, II_brk7):
     """
-    Returns Schedule X, Y, Z tax amount for specified taxable_income.
+    Taxes function returns tax amount given the progressive tax rate
+    schedule specified by the II_rt? and (upper) II_brk? parameters and
+    given taxable income and filing status (MARS).
 
     Parameters
     ----------
     taxable_income: float
-        Taxable income
+        Regular taxable income
     MARS: int
         Filing (marital) status. (1=single, 2=joint, 3=separate,
                                   4=household-head, 5=widow(er))
-    e00900: float
-        Schedule C business net profit/loss for filing unit
-    e26270: float
-        Schedule E: combined partnership and S-corporation net income/loss
-    e02000: float
-        Schedule E total rental, royalty, parternship, S-corporation,
-        etc, income/loss
-    e00200: float
-        Wages, salaries, and tips for filing unit net of pension contributions
-    PT_rt1: float
-        Pass through income tax rate 1
-    PT_rt2: float
-        Pass through income tax rate 2
-    PT_rt3: float
-        Pass through income tax rate 3
-    PT_rt4: float
-        Pass through income tax rate 4
-    PT_rt5: float
-        Pass through income tax rate 5
-    PT_rt6: float
-        Pass through income tax rate 6
-    PT_rt7: float
-        Pass through income tax rate 7
-    PT_rt8: float
-        Pass through income tax rate 8
-    PT_brk1: list
-        Pass through income tax bracket (upper threshold) 1
-    PT_brk2: list
-        Pass through income tax bracket (upper threshold) 2
-    PT_brk3: list
-        Pass through income tax bracket (upper threshold) 3
-    PT_brk4: list
-        Pass through income tax bracket (upper threshold) 4
-    PT_brk5: list
-        Pass through income tax bracket (upper threshold) 5
-    PT_brk6: list
-        Pass through income tax bracket (upper threshold) 6
-    PT_brk7: list
-        Pass through income tax bracket (upper threshold) 7
     II_rt1: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 1
+        Personal income (regular/non-AMT) tax rate 1
     II_rt2: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 2
+        Personal income (regular/non-AMT) tax rate 2
     II_rt3: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 3
+        Personal income (regular/non-AMT) tax rate 3
     II_rt4: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 4
+        Personal income (regular/non-AMT) tax rate 4
     II_rt5: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 5
+        Personal income (regular/non-AMT) tax rate 5
     II_rt6: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 6
+        Personal income (regular/non-AMT) tax rate 6
     II_rt7: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 7
+        Personal income (regular/non-AMT) tax rate 7
     II_rt8: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 8
+        Personal income (regular/non-AMT) tax rate 8
     II_brk1: list
-        Personal income (regular/non-AMT/non-pass/through)
-        tax bracket (upper threshold) 1
+        Personal income (regular/non-AMT) tax bracket (upper threshold) 1
     II_brk2: list
-        Personal income (regular/non-AMT/non-pass/through)
-        tax bracket (upper threshold) 2
+        Personal income (regular/non-AMT) tax bracket (upper threshold) 2
     II_brk3: list
-        Personal income (regular/non-AMT/non-pass/through)
-        tax bracket (upper threshold) 3
+        Personal income (regular/non-AMT) tax bracket (upper threshold) 3
     II_brk4: list
-        Personal income (regular/non-AMT/non-pass/through)
-        tax bracket (upper threshold) 4
+        Personal income (regular/non-AMT) tax bracket (upper threshold) 4
     II_brk5: list
-        Personal income (regular/non-AMT/non-pass/through)
-        tax bracket (upper threshold) 5
+        Personal income (regular/non-AMT) tax bracket (upper threshold) 5
     II_brk6: list
-        Personal income (regular/non-AMT/non-pass/through)
-        tax bracket (upper threshold) 6
+        Personal income (regular/non-AMT) tax bracket (upper threshold) 6
     II_brk7: list
-        Personal income (regular/non-AMT/non-pass/through)
-        tax bracket (upper threshold) 7
-    PT_EligibleRate_active: float
-        Share of active business income eligible for PT rate schedule
-    PT_EligibleRate_passive: float
-        Share of passive business income eligible for PT rate schedule
-    PT_wages_active_income: bool
-        Wages included in (positive) active business eligible for PT rates
-    PT_top_stacking: bool
-        PT taxable income stacked on top of regular taxable income
+        Personal income (regular/non-AMT) tax bracket (upper threshold) 7
 
     Returns
     -------
-    reg_tax: float
-        Individual income tax liability on non-pass-through income
-    pt_tax: float
-        Individual income tax liability from pass-through income
-    """
-    # separate non-negative taxable income into two non-negative components,
-    # doing this in a way so that the components add up to taxable income
-    # define pass-through income eligible for PT schedule
-    pt_passive = PT_EligibleRate_passive * (e02000 - e26270)
-    pt_active_gross = e00900 + e26270
-    if (pt_active_gross > 0) and PT_wages_active_income:
-        pt_active_gross = pt_active_gross + e00200
-    pt_active = PT_EligibleRate_active * pt_active_gross
-    pt_active = min(pt_active, e00900 + e26270)
-    pt_taxinc = max(0., pt_passive + pt_active)
-    if pt_taxinc >= taxable_income:
-        pt_taxinc = taxable_income
-        reg_taxinc = 0.
-    else:
-        # pt_taxinc is unchanged
-        reg_taxinc = taxable_income - pt_taxinc
-    # determine stacking order
-    if PT_top_stacking:
-        reg_tbase = 0.
-        pt_tbase = reg_taxinc
-    else:
-        reg_tbase = pt_taxinc
-        pt_tbase = 0.
-    # compute Schedule X,Y,Z tax using the two components of taxable income
-    if reg_taxinc > 0.:
-        reg_tax = Taxes(reg_taxinc, MARS, reg_tbase,
-                        II_rt1, II_rt2, II_rt3, II_rt4,
-                        II_rt5, II_rt6, II_rt7, II_rt8, II_brk1, II_brk2,
-                        II_brk3, II_brk4, II_brk5, II_brk6, II_brk7)
-    else:
-        reg_tax = 0.
-    if pt_taxinc > 0.:
-        pt_tax = Taxes(pt_taxinc, MARS, pt_tbase,
-                       PT_rt1, PT_rt2, PT_rt3, PT_rt4,
-                       PT_rt5, PT_rt6, PT_rt7, PT_rt8, PT_brk1, PT_brk2,
-                       PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7)
-    else:
-        pt_tax = 0.
-    return reg_tax + pt_tax
+    Regular individual income tax liability on all taxable income
+    """
+    # pylint: disable=too-many-return-statements
+    if taxable_income <= 0.:
+        return 0.
+    tax = 0.
+    brk0 = 0.
+    brk1 = II_brk1[MARS - 1]
+    if taxable_income <= brk1:
+        return tax + II_rt1 * (taxable_income - brk0)
+    tax = tax + II_rt1 * (brk1 - brk0)
+    brk2 = II_brk2[MARS - 1]
+    if taxable_income <= brk2:
+        return tax + II_rt2 * (taxable_income - brk1)
+    tax = tax + II_rt2 * (brk2 - brk1)
+    brk3 = II_brk3[MARS - 1]
+    if taxable_income <= brk3:
+        return tax + II_rt3 * (taxable_income - brk2)
+    tax = tax + II_rt3 * (brk3 - brk2)
+    brk4 = II_brk4[MARS - 1]
+    if taxable_income <= brk4:
+        return tax + II_rt4 * (taxable_income - brk3)
+    tax = tax + II_rt4 * (brk4 - brk3)
+    brk5 = II_brk5[MARS - 1]
+    if taxable_income <= brk5:
+        return tax + II_rt5 * (taxable_income - brk4)
+    tax = tax + II_rt5 * (brk5 - brk4)
+    brk6 = II_brk6[MARS - 1]
+    if taxable_income <= brk6:
+        return tax + II_rt6 * (taxable_income - brk5)
+    tax = tax + II_rt6 * (brk6 - brk5)
+    brk7 = II_brk7[MARS - 1]
+    if taxable_income <= brk7:
+        return tax + II_rt7 * (taxable_income - brk6)
+    return tax + II_rt8 * (taxable_income - brk7)
 
 
 @iterate_jit(nopython=True)
-def SchXYZTax(c04800, MARS, e00900, e26270, e02000, e00200,
-              PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5,
-              PT_rt6, PT_rt7, PT_rt8,
-              PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5,
-              PT_brk6, PT_brk7,
+def SchXYZTax(c04800, MARS,
               II_rt1, II_rt2, II_rt3, II_rt4, II_rt5,
               II_rt6, II_rt7, II_rt8,
               II_brk1, II_brk2, II_brk3, II_brk4, II_brk5,
-              II_brk6, II_brk7, PT_EligibleRate_active,
-              PT_EligibleRate_passive, PT_wages_active_income,
-              PT_top_stacking, c05200):
+              II_brk6, II_brk7, c05200):
     """
     SchXYZTax calls SchXYZ function and sets c05200 to returned amount.
 
@@ -1582,120 +1481,65 @@ def SchXYZTax(c04800, MARS, e00900, e26270, e02000, e00200,
     MARS: int
         Filing (marital) status. (1=single, 2=joint, 3=separate,
                                   4=household-head, 5=widow(er))
-    e00900: float
-        Schedule C business net profit/loss for filing unit
-    e26270: float
-        Schedule E: combined partnership and S-corporation net income/loss
-    e02000: float
-        Farm net income/loss for filing unit from Schedule F
-    e00200: float
-        Farm net income/loss for filing unit from Schedule F
-    PT_rt1: float
-        Pass through income tax rate 1
-    PT_rt2: float
-        Pass through income tax rate 2
-    PT_rt3: float
-        Pass through income tax rate 3
-    PT_rt4: float
-        Pass through income tax rate 4
-    PT_rt5: float
-        Pass through income tax rate 5
-    PT_rt6: float
-        Pass through income tax rate 6
-    PT_rt7: float
-        Pass through income tax rate 7
-    PT_rt8: float
-        Pass through income tax rate 8
-    PT_brk1: list
-        Pass through income tax bracket (upper threshold) 1
-    PT_brk2: list
-        Pass through income tax bracket (upper threshold) 2
-    PT_brk3: list
-        Pass through income tax bracket (upper threshold) 3
-    PT_brk4: list
-        Pass through income tax bracket (upper threshold) 4
-    PT_brk5: list
-        Pass through income tax bracket (upper threshold) 5
-    PT_brk6: list
-        Pass through income tax bracket (upper threshold) 6
-    PT_brk7: list
-        Pass through income tax bracket (upper threshold) 7
     II_rt1: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 1
+        Personal income (regular/non-AMT) tax rate 1
     II_rt2: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 2
+        Personal income (regular/non-AMT) tax rate 2
     II_rt3: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 3
+        Personal income (regular/non-AMT) tax rate 3
     II_rt4: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 4
+        Personal income (regular/non-AMT) tax rate 4
     II_rt5: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 5
+        Personal income (regular/non-AMT) tax rate 5
     II_rt6: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 6
+        Personal income (regular/non-AMT) tax rate 6
     II_rt7: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 7
+        Personal income (regular/non-AMT) tax rate 7
     II_rt8: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 8
+        Personal income (regular/non-AMT) tax rate 8
     II_brk1: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 1
     II_brk2: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 2
     II_brk3: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 3
     II_brk4: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 4
     II_brk5: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 5
     II_brk6: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 6
     II_brk7: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 7
-    PT_EligibleRate_active: float
-        Share of active business income eligible for PT rate schedule
-    PT_EligibleRate_passive: float
-        Share of passive business income eligible for PT rate schedule
-    PT_wages_active_income: bool
-        Wages included in (positive) active business eligible for PT rates
-    PT_top_stacking: bool
-        PT taxable income stacked on top of regular taxable income
     c05200: float
         Tax amount from Schedule X,Y,Z tables
 
     Returns
     -------
     c05200: float
-        Tax aount from Schedule X, Y, Z tables
-    """
-    c05200 = SchXYZ(c04800, MARS, e00900, e26270, e02000, e00200,
-                    PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5,
-                    PT_rt6, PT_rt7, PT_rt8,
-                    PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5,
-                    PT_brk6, PT_brk7,
-                    II_rt1, II_rt2, II_rt3, II_rt4, II_rt5,
-                    II_rt6, II_rt7, II_rt8,
-                    II_brk1, II_brk2, II_brk3, II_brk4, II_brk5,
-                    II_brk6, II_brk7, PT_EligibleRate_active,
-                    PT_EligibleRate_passive, PT_wages_active_income,
-                    PT_top_stacking)
+        Tax amount from Schedule X, Y, Z tables
+    """
+    c05200 = SchXYZ(
+        c04800, MARS,
+        II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8,
+        II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7
+    )
     return c05200
 
 
 @iterate_jit(nopython=True)
-def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990, e00200,
-             e24515, e24518, MARS, c04800, c05200, e00900, e26270, e02000,
+def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990,
+             e24515, e24518, MARS, c04800, c05200,
              II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8,
              II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7,
-             PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5, PT_rt6, PT_rt7, PT_rt8,
-             PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7,
-             CG_nodiff, PT_EligibleRate_active, PT_EligibleRate_passive,
-             PT_wages_active_income, PT_top_stacking,
+             CG_nodiff,
              CG_rt1, CG_rt2, CG_rt3, CG_rt4, CG_brk1, CG_brk2, CG_brk3,
              dwks10, dwks13, dwks14, dwks19, dwks43, c05700, taxbc):
     """
@@ -1717,8 +1561,6 @@ def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990, e00200,
         Capital gains distributions not reported on Schedule D
     e58990: float
         Investment income elected amount from Form 4952
-    e00200: float
-        Wages, salaries, and tips for filing unit net of pension contributions
     e24515: float
         Schedule D: un-recaptured section 1250 Gain
     e24518: float
@@ -1730,91 +1572,46 @@ def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990, e00200,
         Regular taxable income
     c05200: float
         Tax amount from Schedule X,Y,Z tables
-    e00900: float
-        Schedule C business net profit/loss for filing unit
-    e26270: float
-        Schedule E: combined partnership and S-corporation net income/loss
-    e02000: float
-        Schedule E total rental, royalty, partnership, S-corporation,
-        etc, income/loss
     II_rt1: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 1
+        Personal income (regular/non-AMT) tax rate 1
     II_rt2: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 2
+        Personal income (regular/non-AMT) tax rate 2
     II_rt3: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 3
+        Personal income (regular/non-AMT) tax rate 3
     II_rt4: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 4
+        Personal income (regular/non-AMT) tax rate 4
     II_rt5: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 5
+        Personal income (regular/non-AMT) tax rate 5
     II_rt6: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 6
+        Personal income (regular/non-AMT) tax rate 6
     II_rt7: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 7
+        Personal income (regular/non-AMT) tax rate 7
     II_rt8: float
-        Personal income (regular/non-AMT/non-pass-through) tax rate 8
+        Personal income (regular/non-AMT) tax rate 8
     II_brk1: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 1
     II_brk2: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 2
     II_brk3: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 3
     II_brk4: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 4
     II_brk5: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 5
     II_brk6: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 6
     II_brk7: list
-        Personal income (regular/non-AMT/non-pass/through)
+        Personal income (regular/non-AMT)
         tax bracket (upper threshold) 7
-    PT_rt1: float
-        Pass through income tax rate 1
-    PT_rt2: float
-        Pass through income tax rate 2
-    PT_rt3: float
-        Pass through income tax rate 3
-    PT_rt4: float
-        Pass through income tax rate 4
-    PT_rt5: float
-        Pass through income tax rate 5
-    PT_rt6: float
-        Pass through income tax rate 6
-    PT_rt7: float
-        Pass through income tax rate 7
-    PT_rt8: float
-        Pass through income tax rate 8
-    PT_brk1: list
-        Pass through income tax bracket (upper threshold) 1
-    PT_brk2: list
-        Pass through income tax bracket (upper threshold) 2
-    PT_brk3: list
-        Pass through income tax bracket (upper threshold) 3
-    PT_brk4: list
-        Pass through income tax bracket (upper threshold) 4
-    PT_brk5: list
-        Pass through income tax bracket (upper threshold) 5
-    PT_brk6: list
-        Pass through income tax bracket (upper threshold) 6
-    PT_brk7: list
-        Pass through income tax bracket (upper threshold) 7
     CG_nodiff: bool
         Long term capital gains and qualified dividends taxed no differently
         than regular taxable income
-    PT_EligibleRate_active: float
-        Share of active business income eligible for PT rate schedule
-    PT_EligibleRate_passive: float
-        Share of passive business income eligible for PT rate schedule
-    PT_wages_active_income: bool
-        Wages included in (positive) active business eligible for PT rates
-    PT_top_stacking: bool
-        PT taxable income stacked on top of regular taxable income
     CG_rt1: float
         Long term capital gain and qualified dividends (regular/non-AMT) rate 1
     CG_rt2: float
@@ -1929,17 +1726,11 @@ def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990, e00200,
         dwks39 = dwks19 + dwks20 + dwks28 + dwks31 + dwks37
         dwks40 = dwks1 - dwks39
         dwks41 = 0.28 * dwks40
-        dwks42 = SchXYZ(dwks19, MARS, e00900, e26270, e02000, e00200,
-                        PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5,
-                        PT_rt6, PT_rt7, PT_rt8,
-                        PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5,
-                        PT_brk6, PT_brk7,
+        dwks42 = SchXYZ(dwks19, MARS,
                         II_rt1, II_rt2, II_rt3, II_rt4, II_rt5,
                         II_rt6, II_rt7, II_rt8,
                         II_brk1, II_brk2, II_brk3, II_brk4, II_brk5,
-                        II_brk6, II_brk7, PT_EligibleRate_active,
-                        PT_EligibleRate_passive, PT_wages_active_income,
-                        PT_top_stacking)
+                        II_brk6, II_brk7)
         dwks43 = (dwks29 + dwks32 + dwks38 + dwks41 + dwks42 +
                   lowest_rate_tax + highest_rate_incremental_tax)
         dwks44 = c05200
@@ -2245,9 +2036,10 @@ def NetInvIncTax(e00300, e00600, e02000, e26270, c01000,
 
 
 @iterate_jit(nopython=True)
-def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
-          exact, c00100, CDCC_ps, CDCC_ps2, CDCC_crt, CDCC_frt,
-          CDCC_po_step_size, CDCC_po_rate_per_step, CDCC_refundable,
+def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800, exact, c00100,
+          CDCC_ps1, CDCC_ps2, CDCC_po1_rate_max, CDCC_po1_rate_min,
+          CDCC_po2_rate_min, CDCC_po1_step_size, CDCC_po2_step_size,
+          CDCC_po_rate_per_step, CDCC_refundable,
           c05800, e07300, c32800, c07180, CDCC_refund):
     """
     Calculates Form 2441 child and dependent care expense credit, c07180.
@@ -2271,16 +2063,20 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
         Whether or not to do rounding of phaseout fraction
     c00100: float
         Adjusted Gross Income (AGI)
-    CDCC_ps: float
+    CDCC_ps1: float
         Child/dependent care credit first phaseout start
-    CDCC_ps2: float
+    CDCC_ps2: list[float]
         Child/dependent care credit second phaseout start
-    CDCC_crt: float
-        Child/dependent care credit phaseout rate ceiling
-    CDCC_frt: float
-        Child/dependent care credit phaseout rate floor
-    CDCC_po_step_size: float
-        Child/dependent care credit phaseout AGI step size
+    CDCC_po1_rate_max: float
+        Child/dependent care credit first phaseout rate maximum
+    CDCC_po1_rate_min: float
+        Child/dependent care credit first phaseout rate minimum
+    CDCC_po2_rate_min: float
+        Child/dependent care credit second phaseout rate minimum
+    CDCC_po1_step_size: float
+        Child/dependent care credit first phaseout AGI step size
+    CDCC_po2_step_size: float
+        Child/dependent care credit second phaseout AGI step size
     CDCC_po_rate_per_step: float
         Child/dependent care credit phaseout rate per step size
     CDCC_refundable: bool
@@ -2314,21 +2110,32 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
         c32890 = earned_p
     c33000 = max(0., min(c32800, c32880, c32890))
     # credit rate is limited at high AGI
-    # ... first phase-down from CDCC_crt to CDCC_frt
-    steps_fractional = max(0., c00100 - CDCC_ps) / CDCC_po_step_size
-    if exact == 1:  # exact calculation as on tax forms
-        steps = math.ceil(steps_fractional)
-    else:
-        steps = steps_fractional
-    crate = max(CDCC_frt, CDCC_crt - steps * CDCC_po_rate_per_step)
-    # ... second phase-down from CDCC_frt to zero
-    if c00100 > CDCC_ps2:
-        steps_fractional = (c00100 - CDCC_ps2) / CDCC_po_step_size
+    crate = CDCC_po1_rate_max
+    ps1 = CDCC_ps1
+    if c00100 > ps1:
+        # ... first phase-down from CDCC_po1_rate_max to CDCC_po1_rate_min
+        steps_fractional = (c00100 - ps1) / CDCC_po1_step_size
         if exact == 1:  # exact calculation as on tax forms
             steps = math.ceil(steps_fractional)
         else:
             steps = steps_fractional
-        crate = max(0., CDCC_frt - steps * CDCC_po_rate_per_step)
+        crate = max(
+            CDCC_po1_rate_min,
+            CDCC_po1_rate_max - steps * CDCC_po_rate_per_step
+        )
+        # ... second phase-down from CDCC_po1_rate_min to CDCC_po2_rate_min
+        ps2 = CDCC_ps2[MARS - 1]
+        assert ps2 >= ps1, "CDCC_ps2 must be no less than CDCC_ps1"
+        if c00100 > ps2:
+            steps_fractional = (c00100 - ps2) / CDCC_po2_step_size[MARS - 1]
+            if exact == 1:  # exact calculation as on tax forms
+                steps = math.ceil(steps_fractional)
+            else:
+                steps = steps_fractional
+            crate = max(
+                CDCC_po2_rate_min,
+                CDCC_po1_rate_min - steps * CDCC_po_rate_per_step
+            )
     c33200 = c33000 * crate
     # credit is limited by tax liability if not refundable
     if CDCC_refundable:
@@ -3536,202 +3343,6 @@ def IITAX(c59660, c11070, c10960, personal_refundable_credit, ctc_new, rptc,
             iitax, combined)
 
 
-@JIT(nopython=True)
-def Taxes(income, MARS, tbrk_base,
-          rate1, rate2, rate3, rate4, rate5, rate6, rate7, rate8,
-          tbrk1, tbrk2, tbrk3, tbrk4, tbrk5, tbrk6, tbrk7):
-    """
-    Taxes function returns tax amount given the progressive tax rate
-    schedule specified by the rate* and (upper) tbrk* parameters and
-    given income, filing status (MARS), and tax bracket base (tbrk_base).
-
-    Parameters
-    ----------
-    income: float
-        Taxable income
-    MARS: int
-        Filing (marital) status. (1=single, 2=joint, 3=separate,
-                                  4=household-head, 5=widow(er))
-    tbrk_base: float
-        Amount of income used to determine the braket the filer is in
-    rate1: list
-        Income tax rate 1
-    rate2: list
-        Income tax rate 2
-    rate3: list
-        Income tax rate 3
-    rate4: list
-        Income tax rate 4
-    rate5: list
-        Income tax rate 5
-    rate6: list
-        Income tax rate 6
-    rate7: list
-        Income tax rate 7
-    rate8: list
-        Income tax rate 8
-    tbrk1: list
-        Income tax bracket (upper threshold) 1
-    tbrk2: list
-        Income tax bracket (upper threshold) 2
-    tbrk3: list
-        Income tax bracket (upper threshold) 3
-    tbrk4: list
-        Income tax bracket (upper threshold) 4
-    tbrk5: list
-        Income tax bracket (upper threshold) 5
-    tbrk6: list
-        Income tax bracket (upper threshold) 6
-    tbrk7: list
-        Income tax bracket (upper threshold) 7
-
-    Returns
-    -------
-    None
-    """
-    if tbrk_base > 0.:
-        brk1 = max(tbrk1[MARS - 1] - tbrk_base, 0.)
-        brk2 = max(tbrk2[MARS - 1] - tbrk_base, 0.)
-        brk3 = max(tbrk3[MARS - 1] - tbrk_base, 0.)
-        brk4 = max(tbrk4[MARS - 1] - tbrk_base, 0.)
-        brk5 = max(tbrk5[MARS - 1] - tbrk_base, 0.)
-        brk6 = max(tbrk6[MARS - 1] - tbrk_base, 0.)
-        brk7 = max(tbrk7[MARS - 1] - tbrk_base, 0.)
-    else:
-        brk1 = tbrk1[MARS - 1]
-        brk2 = tbrk2[MARS - 1]
-        brk3 = tbrk3[MARS - 1]
-        brk4 = tbrk4[MARS - 1]
-        brk5 = tbrk5[MARS - 1]
-        brk6 = tbrk6[MARS - 1]
-        brk7 = tbrk7[MARS - 1]
-    return (rate1 * min(income, brk1) +
-            rate2 * min(brk2 - brk1, max(0., income - brk1)) +
-            rate3 * min(brk3 - brk2, max(0., income - brk2)) +
-            rate4 * min(brk4 - brk3, max(0., income - brk3)) +
-            rate5 * min(brk5 - brk4, max(0., income - brk4)) +
-            rate6 * min(brk6 - brk5, max(0., income - brk5)) +
-            rate7 * min(brk7 - brk6, max(0., income - brk6)) +
-            rate8 * max(0., income - brk7))
-
-
-def ComputeBenefit(calc, ID_switch):
-    """
-    Calculates the value of the benefits accrued from itemizing.
-
-    Parameters
-    ----------
-    calc: Calculator object
-        calc represents the reform while self represents the baseline
-    ID_switch: list
-        Deductions subject to the surtax on itemized deduction benefits
-
-    Returns
-    -------
-    benefit: float
-        Imputed benefits from itemizing deductions
-    """
-    # compute income tax liability with no itemized deductions allowed for
-    # the types of itemized deductions covered under the BenefitSurtax
-    no_ID_calc = copy.deepcopy(calc)
-    if ID_switch[0]:
-        no_ID_calc.policy_param('ID_Medical_hc', [1.])
-    if ID_switch[1]:
-        no_ID_calc.policy_param('ID_StateLocalTax_hc', [1.])
-    if ID_switch[2]:
-        no_ID_calc.policy_param('ID_RealEstate_hc', [1.])
-    if ID_switch[3]:
-        no_ID_calc.policy_param('ID_Casualty_hc', [1.])
-    if ID_switch[4]:
-        no_ID_calc.policy_param('ID_Miscellaneous_hc', [1.])
-    if ID_switch[5]:
-        no_ID_calc.policy_param('ID_InterestPaid_hc', [1.])
-    if ID_switch[6]:
-        no_ID_calc.policy_param('ID_Charity_hc', [1.])
-    no_ID_calc._calc_one_year()  # pylint: disable=protected-access
-    diff_iitax = no_ID_calc.array('iitax') - calc.array('iitax')
-    benefit = np.where(diff_iitax > 0., diff_iitax, 0.)
-    return benefit
-
-
-def BenefitSurtax(calc):
-    """
-    Computes itemized-deduction-benefit surtax and adds the surtax amount
-    to income tax, combined tax, and surtax liabilities.
-
-    Parameters
-    ----------
-    calc: Calculator object
-        calc represents the reform while self represents the baseline
-
-    Returns
-    -------
-    None:
-        The function modifies calc
-    """
-    if calc.policy_param('ID_BenefitSurtax_crt') != 1.:
-        ben = ComputeBenefit(calc,
-                             calc.policy_param('ID_BenefitSurtax_Switch'))
-        agi = calc.array('c00100')
-        ben_deduct = calc.policy_param('ID_BenefitSurtax_crt') * agi
-        ben_exempt_array = calc.policy_param('ID_BenefitSurtax_em')
-        ben_exempt = ben_exempt_array[calc.array('MARS') - 1]
-        ben_dedem = ben_deduct + ben_exempt
-        ben_surtax = (calc.policy_param('ID_BenefitSurtax_trt') *
-                      np.where(ben > ben_dedem, ben - ben_dedem, 0.))
-        # add ben_surtax to income & combined taxes and to surtax subtotal
-        calc.incarray('iitax', ben_surtax)
-        calc.incarray('combined', ben_surtax)
-        calc.incarray('surtax', ben_surtax)
-
-
-def BenefitLimitation(calc):
-    """
-    Limits the benefits of select itemized deductions to a fraction of
-    deductible expenses.
-
-    Parameters
-    ----------
-    calc: Calculator object
-        calc represents the reform while self represents the baseline
-
-    Returns
-    -------
-    None:
-        The function modifies calc
-    """
-    if calc.policy_param('ID_BenefitCap_rt') != 1.:
-        benefit = ComputeBenefit(calc,
-                                 calc.policy_param('ID_BenefitCap_Switch'))
-        # Calculate total deductible expenses under the cap
-        deduct_exps = 0.
-        if calc.policy_param('ID_BenefitCap_Switch')[0]:  # medical
-            deduct_exps += calc.array('c17000')
-        if calc.policy_param('ID_BenefitCap_Switch')[1]:  # statelocal
-            one_minus_hc = 1. - calc.policy_param('ID_StateLocalTax_hc')
-            deduct_exps += (one_minus_hc *
-                            np.maximum(calc.array('e18400_capped'), 0.))
-        if calc.policy_param('ID_BenefitCap_Switch')[2]:  # realestate
-            one_minus_hc = 1. - calc.policy_param('ID_RealEstate_hc')
-            deduct_exps += one_minus_hc * calc.array('e18500_capped')
-        if calc.policy_param('ID_BenefitCap_Switch')[3]:  # casualty
-            deduct_exps += calc.array('c20500')
-        if calc.policy_param('ID_BenefitCap_Switch')[4]:  # misc
-            deduct_exps += calc.array('c20800')
-        if calc.policy_param('ID_BenefitCap_Switch')[5]:  # interest
-            deduct_exps += calc.array('c19200')
-        if calc.policy_param('ID_BenefitCap_Switch')[6]:  # charity
-            deduct_exps += calc.array('c19700')
-        # Calculate cap value for itemized deductions
-        benefit_limit = deduct_exps * calc.policy_param('ID_BenefitCap_rt')
-        # Add the difference between the actual benefit and capped benefit
-        # to income tax and combined tax liabilities.
-        excess_benefit = np.maximum(benefit - benefit_limit, 0)
-        calc.incarray('iitax', excess_benefit)
-        calc.incarray('surtax', excess_benefit)
-        calc.incarray('combined', excess_benefit)
-
-
 @iterate_jit(nopython=True)
 def FairShareTax(c00100, MARS, ptax_was, setax, ptax_amc,
                  FST_AGI_trt, FST_AGI_thd_lo, FST_AGI_thd_hi,