Employer side Payroll Tax Offset function

.github/workflows/build_and_test.yml

@@ -36,7 +36,7 @@ jobs:
         run: |
           pytest -m 'not requires_pufcsv and not pre_release and not local' --cov=./ --cov-report=xml
       - name: Upload coverage to Codecov
-        uses: codecov/codecov-action@v1
+        uses: codecov/codecov-action@v3
         with:
           token: ${{ secrets.CODECOV_TOKEN }} # not required for public repos
           file: ./coverage.xml

README.md

@@ -10,8 +10,8 @@ Tax-Calculator
 Tax-Calculator is an open-source microsimulation model for static
 analysis of USA federal income and payroll taxes.
 
-We are seeking contributors and maintainers. If you are interested in joining the project as a contributor or maintainer, 
-contact [email protected] or jump right in. 
+We are seeking contributors and maintainers. If you are interested in joining the project as a contributor or maintainer,
+open a new [issue](https://github.com/PSLmodels/Tax-Calculator/issues) and ping @MattHJensen or @jdebacker -- or just jump right in.
 
 Complete documentation is available
 [here](https://PSLmodels.github.io/Tax-Calculator/).

setup.py

@@ -12,7 +12,7 @@
     'description': 'taxcalc',
     'long_description': longdesc,
     'version': version,
-    'license': 'CC0 1.0 Universal public domain dedication',
+    'license': 'CC0 1.0 Universal (CC0 1.0) Public Domain Dedication',
     'packages': ['taxcalc', 'taxcalc.cli'],
     'include_package_data': True,
     'name': 'taxcalc',
@@ -21,7 +21,7 @@
         'Development Status :: 4 - Beta',
         'Intended Audience :: Developers',
         'Natural Language :: English',
-        'License :: CC0 1.0 Universal public domain dedication',
+        'License :: CC0 1.0 Universal (CC0 1.0) Public Domain Dedication',
         'Operating System :: OS Independent',
         'Programming Language :: Python',
         'Programming Language :: Python :: 3',

taxcalc.egg-info/PKG-INFO

@@ -4,11 +4,11 @@ Version: 3.3.0
 Summary: taxcalc
 Home-page: https://github.com/PSLmodels/Tax-Calculator
 Download-URL: https://github.com/PSLmodels/Tax-Calculator
-License: CC0 1.0 Universal public domain dedication
+License: CC0 1.0 Universal (CC0 1.0) Public Domain Dedication
 Classifier: Development Status :: 4 - Beta
 Classifier: Intended Audience :: Developers
 Classifier: Natural Language :: English
-Classifier: License :: CC0 1.0 Universal public domain dedication
+Classifier: License :: CC0 1.0 Universal (CC0 1.0) Public Domain Dedication
 Classifier: Operating System :: OS Independent
 Classifier: Programming Language :: Python
 Classifier: Programming Language :: Python :: 3
@@ -29,8 +29,8 @@ Tax-Calculator
 Tax-Calculator is an open-source microsimulation model for static
 analysis of USA federal income and payroll taxes.
 
-We are seeking contributors and maintainers. If you are interested in joining the project as a contributor or maintainer, 
-contact [email protected] or jump right in. 
+We are seeking contributors and maintainers. If you are interested in joining the project as a contributor or maintainer,
+open a new [issue](https://github.com/PSLmodels/Tax-Calculator/issues) and ping @MattHJensen or @jdebacker -- or just jump right in.
 
 Complete documentation is available
 [here](https://PSLmodels.github.io/Tax-Calculator/).

taxcalc/calcfunctions.py

@@ -664,7 +664,7 @@ 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,
-        c00100, pre_c04600, c04600):
+        e02300, UI_thd, UI_em, c00100, pre_c04600, c04600):
     """
     Computes Adjusted Gross Income (AGI), c00100, and
     compute personal exemption amount, c04600.
@@ -699,12 +699,19 @@ def AGI(ymod1, c02500, c02900, XTOT, MARS, sep, DSI, exact, nu18, taxable_ubi,
         Personal exemption phaseout rate
     II_no_em_nu18: float
         Repeal personal exemptions for dependents under age 18
+    e02300: float
+        Unemployment compensation
+    UI_thd: list
+        AGI threshold for unemployment compensation exclusion
+    UI_em: float
+        Amount of unemployment compensation excluded from AGI
     c00100: float
         Adjusted Gross Income (AGI)
     pre_c04600: float
         Personal exemption before phase-out
     c04600: float
         Personal exemptions after phase-out
+
     Returns
     -------
     c00100: float
@@ -716,6 +723,12 @@ def AGI(ymod1, c02500, c02900, XTOT, MARS, sep, DSI, exact, nu18, taxable_ubi,
     """
     # calculate AGI assuming no foreign earned income exclusion
     c00100 = ymod1 + c02500 - c02900 + taxable_ubi
+    # calculate UI exclusion (e.g., from 2020 AGI due to ARPA)
+    if (c00100 - e02300) <= UI_thd[MARS - 1]:
+        ui_excluded = min(e02300, UI_em)
+    else:
+        ui_excluded = 0.
+    c00100 -= ui_excluded
     # calculate personal exemption amount
     if II_no_em_nu18:  # repeal of personal exemptions for deps. under 18
         pre_c04600 = max(0, XTOT - nu18) * II_em
@@ -1183,12 +1196,11 @@ 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, e26270,
-           e02100, e27200, e00650, c01000, e02300, PT_SSTB_income,
+           e02100, e27200, e00650, c01000, PT_SSTB_income,
            PT_binc_w2_wages, PT_ubia_property, PT_qbid_rt,
            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, PT_qbid_limit_switch,
-           UI_em, UI_thd):
+           PT_qbid_ps, PT_qbid_prt, qbided, PT_qbid_limit_switch):
     """
     Calculates taxable income, c04800, and
     qualified business income deduction, qbided.
@@ -1254,14 +1266,8 @@ def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, e26270,
     qbided: float
         Qualified Business Income (QBI) deduction
     """
-    # calculate UI excluded from taxable income
-    if (c00100 - e02300) <= UI_thd[MARS - 1]:
-        ui_excluded = min(e02300, UI_em)
-    else:
-        ui_excluded = 0.
     # calculate taxable income before qualified business income deduction
-    pre_qbid_taxinc = max(0., c00100 - max(c04470, standard) - c04600 -
-                          ui_excluded)
+    pre_qbid_taxinc = max(0., c00100 - max(c04470, standard) - c04600)
     # calculate qualified business income deduction
     qbided = 0.
     qbinc = max(0., e00900 + e26270 + e02100 + e27200)
@@ -2200,26 +2206,27 @@ def EITCamount(basic_frac, phasein_rate, earnings, max_amount,
 
     Parameters
     ----------
-    basic_frac: list
+    basic_frac: float
         Fraction of maximum earned income credit paid at zero earnings
-    phasein_rate: list
+    phasein_rate: float
         Earned income credit phasein rate
     earnings: float
         Earned income for filing unit
-    max_amount: list
+    max_amount: float
         Maximum earned income credit
-    phaseout_start: list
+    phaseout_start: float
         Earned income credit phaseout start AGI
     agi: float
         Adjusted Gross Income (AGI)
-    phaseout_rate: list
+    phaseout_rate: float
         Earned income credit phaseout rate
 
     Returns
     -------
     eitc: float
         Earned Income Credit
     """
+    # calculate qualified business income de
     eitc = min((basic_frac * max_amount +
                 (1.0 - basic_frac) * phasein_rate * earnings), max_amount)
     if earnings > phaseout_start or agi > phaseout_start:
@@ -2235,8 +2242,7 @@ def EITC(MARS, DSI, EIC, c00100, e00300, e00400, e00600, c01000,
          EITC_ps, EITC_MinEligAge, EITC_MaxEligAge, EITC_ps_MarriedJ,
          EITC_rt, EITC_c, EITC_prt, EITC_basic_frac,
          EITC_InvestIncome_c, EITC_excess_InvestIncome_rt,
-         EITC_indiv, EITC_sep_filers_elig,
-         c59660):
+         EITC_indiv, EITC_sep_filers_elig, c59660):
     """
     Computes EITC amount, c59660.
 
@@ -2512,7 +2518,7 @@ def ChildDepTaxCredit(age_head, age_spouse, nu18, n24, MARS, c00100, XTOT, num,
         line15 = max(0., line13 - line14)
         if CTC_refundable:
             c07220 = line10 * line1 / line3
-            odc = min(max(0., line10 - c07220), line15)
+            odc = max(0., line10 - c07220)
             codtc_limited = max(0., line10 - c07220 - odc)
         else:
             line16 = min(line10, line15)  # credit is capped by tax liability
@@ -2991,9 +2997,9 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
     if not CTC_refundable:
         c07220 = min(c07220, avail)
         avail = avail - c07220
-    # Other dependent credit
-    odc = min(odc, avail)
-    avail = avail - odc
+        # Other dependent credit
+        odc = min(odc, avail)
+        avail = avail - odc
     # Residential energy credit - Form 5695
     c07260 = min(e07260 * (1. - CR_ResidentialEnergy_hc), avail)
     avail = avail - c07260
@@ -3022,7 +3028,7 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
 @iterate_jit(nopython=True)
 def AdditionalCTC(codtc_limited, ACTC_c, n24, earned, ACTC_Income_thd,
                   ACTC_rt, nu06, ACTC_rt_bonus_under6family, ACTC_ChildNum,
-                  CTC_refundable, CTC_include17, XTOT, n21, n1820, num,
+                  CTC_refundable, CTC_include17, age_head, age_spouse, MARS, nu18,
                   ptax_was, c03260, e09800, c59660, e11200,
                   c11070):
     """
@@ -3074,7 +3080,9 @@ def AdditionalCTC(codtc_limited, ACTC_c, n24, earned, ACTC_Income_thd,
         line4 = 0.
     else:
         if CTC_include17:
-            childnum = n24 + max(0, XTOT - n21 - n1820 - n24 - num)
+            tu18 = int(age_head < 18)   # taxpayer is under age 18
+            su18 = int(MARS == 2 and age_spouse < 18)  # spouse is under age 18
+            childnum = n24 + max(0, nu18 - tu18 - su18 - n24)
         else:
             childnum = n24
         line4 = ACTC_c * childnum
@@ -3186,7 +3194,7 @@ def CTC_new(CTC_new_c, CTC_new_rt, CTC_new_c_under6_bonus,
             CTC_new_ps, CTC_new_prt, CTC_new_for_all, CTC_include17,
             CTC_new_refund_limited, CTC_new_refund_limit_payroll_rt,
             CTC_new_refund_limited_all_payroll, payrolltax,
-            n24, nu06, XTOT, n21, n1820, num, c00100, MARS, ptax_oasdi,
+            n24, nu06, age_head, age_spouse, nu18, c00100, MARS, ptax_oasdi,
             c09200, ctc_new):
     """
     Computes new refundable child tax credit using specified parameters.
@@ -3235,7 +3243,9 @@ def CTC_new(CTC_new_c, CTC_new_rt, CTC_new_c_under6_bonus,
         New refundable child tax credit
     """
     if CTC_include17:
-        childnum = n24 + max(0, XTOT - n21 - n1820 - n24 - num)
+            tu18 = int(age_head < 18)   # taxpayer is under age 18
+            su18 = int(MARS == 2 and age_spouse < 18)  # spouse is under age 18
+            childnum = n24 + max(0, nu18 - tu18 - su18 - n24)
     else:
         childnum = n24
     if childnum > 0:

taxcalc/consumption.json

@@ -6,7 +6,7 @@
                 "validators": {
                     "range": {
                         "min": 2013,
-                        "max": 2031
+                        "max": 2032
                     }
                 }
             },

taxcalc/growdiff.json

@@ -6,7 +6,7 @@
                 "validators": {
                     "range": {
                         "min": 2013,
-                        "max": 2031
+                        "max": 2032
                     }
                 }
             },

taxcalc/growdiff.py

@@ -27,7 +27,7 @@ class instance: GrowDiff
     """
 
     JSON_START_YEAR = 2013  # must be same as Policy.JSON_START_YEAR
-    DEFAULT_NUM_YEARS = 19  # must be same as Policy.DEFAULT_NUM_YEARS
+    DEFAULT_NUM_YEARS = 20  # must be same as Policy.DEFAULT_NUM_YEARS
     DEFAULTS_FILE_NAME = 'growdiff.json'
     DEFAULTS_FILE_PATH = os.path.abspath(os.path.dirname(__file__))