diff --git a/taxcalc/calcfunctions.py b/taxcalc/calcfunctions.py index 1439c8077..47a3c3e39 100644 --- a/taxcalc/calcfunctions.py +++ b/taxcalc/calcfunctions.py @@ -2809,7 +2809,7 @@ def SchR(age_head, age_spouse, MARS, c00100, @iterate_jit(nopython=True) -def EducationTaxCredit(exact, e87530, MARS, c00100, num, c05800, +def EducationTaxCredit(exact, e87530, MARS, c00100, c05800, e07300, c07180, c07200, c87668, LLC_Expense_c, ETC_pe_Single, ETC_pe_Married, CR_Education_hc, @@ -2828,8 +2828,6 @@ def EducationTaxCredit(exact, e87530, MARS, c00100, num, c05800, Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) c00100: float Adjusted Gross Income (AGI) - num: int - 2 when MARS is 2 (married filing jointly), otherwise 1 c05800: float Total (regular + AMT) income tax liability before credits e07300: float @@ -2860,14 +2858,19 @@ def EducationTaxCredit(exact, e87530, MARS, c00100, num, c05800, ----- Tax Law Parameters that are not parameterized: 0.2: Lifetime Learning Credit ratio against expense + 10000.0: AGI range bewteen ETC_pe_Single and single phase-out start; + twice this amount for ETC_pe_Married """ c87560 = 0.2 * min(e87530, LLC_Expense_c) + # on the following credit phase-out law see: + # https://www.law.cornell.edu/uscode/text/26/25A#d_1 if MARS == 2: c87570 = ETC_pe_Married * 1000. + c87600 = 20000. else: c87570 = ETC_pe_Single * 1000. + c87600 = 10000. c87590 = max(0., c87570 - c00100) - c87600 = 10000. * num if exact == 1: # exact calculation as on tax forms c87610 = min(1., round(c87590 / c87600, 3)) else: diff --git a/taxcalc/policy_current_law.json b/taxcalc/policy_current_law.json index a4030ab11..6750c62b7 100644 --- a/taxcalc/policy_current_law.json +++ b/taxcalc/policy_current_law.json @@ -19804,13 +19804,13 @@ } }, "ETC_pe_Single": { - "title": "Education tax credit phaseout ends (Single)", - "description": "The education tax credit will be zero for those taxpayers of single filing status with modified AGI (in thousands) higher than this level.", + "title": "Education tax credit phaseout ends (single and other non-joint)", + "description": "The education tax credit will be zero for those taxpayers of non-joint filing status with modified AGI (in thousands) higher than this level.", "notes": "", "section_1": "", "section_2": "", "indexable": true, - "indexed": true, + "indexed": false, "type": "float", "value": [ { @@ -19851,7 +19851,7 @@ }, { "year": 2022, - "value": 80.0 + "value": 90.0 } ], "validators": { @@ -19866,13 +19866,13 @@ } }, "ETC_pe_Married": { - "title": "Education tax credit phaseout ends (Married)", - "description": "The education tax credit will be zero for those taxpayers of married filing status with modified AGI level (in thousands) higher than this level.", + "title": "Education tax credit phaseout ends (joint)", + "description": "The education tax credit will be zero for those taxpayers of married filing joint status with modified AGI level (in thousands) higher than this level.", "notes": "", "section_1": "", "section_2": "", "indexable": true, - "indexed": true, + "indexed": false, "type": "float", "value": [ { diff --git a/taxcalc/reforms/rounding2022.json b/taxcalc/reforms/rounding2022.json index d338dd818..fb07bc18a 100644 --- a/taxcalc/reforms/rounding2022.json +++ b/taxcalc/reforms/rounding2022.json @@ -129,7 +129,7 @@ "ETC_pe_Single": {"2019": 68, "2020": 69, "2021": 90, - "2022": 80}, + "2022": 90}, "ETC_pe_Married": {"2019": 136, "2020": 138, "2021": 180, diff --git a/taxcalc/tests/puf_var_wght_means_by_year.csv b/taxcalc/tests/puf_var_wght_means_by_year.csv index 30e5bef87..034ea783c 100644 --- a/taxcalc/tests/puf_var_wght_means_by_year.csv +++ b/taxcalc/tests/puf_var_wght_means_by_year.csv @@ -6,7 +6,7 @@ c04600,Post-phase-out personal exemption, 7105, 7131, 7163, 7217, c04800,Federal regular taxable income, 35753, 39297, 39663, 39591, 42568, 44523, 45416, 46476, 55959, 54603, 57322, 58386, 60072, 61575, 63147, 64912, 66832, 68828, 70916, 73686, 74836, 76970 c05200,Regular tax on taxable income, 7671, 8731, 8725, 8584, 9499, 10001, 10138, 10475, 13361, 12576, 13165, 13230, 13561, 13847, 14165, 14544, 14965, 15398, 15840, 16404, 16817, 17279 c07180,Child care credit, 17, 17, 17, 17, 17, 17, 17, 17, 0, 17, 17, 17, 17, 17, 17, 17, 17, 17, 17, 17, 16, 16 -c07220,Child tax credit (adjusted), 158, 155, 147, 143, 139, 134, 129, 124, 359, 116, 107, 101, 97, 94, 91, 88, 85, 82, 79, 77, 74, 72 +c07220,Child tax credit (adjusted), 158, 155, 147, 143, 139, 134, 129, 124, 359, 116, 107, 101, 97, 94, 91, 88, 85, 82, 80, 77, 74, 72 c09600,Federal AMT liability, 212, 227, 240, 251, 268, 280, 288, 317, 351, 339, 347, 357, 371, 387, 400, 415, 430, 446, 458, 487, 496, 513 c11070,Extra child tax credit (refunded), 150, 144, 138, 133, 126, 122, 119, 120, 0, 108, 109, 109, 107, 105, 103, 101, 100, 98, 96, 95, 94, 92 c21040,Itemized deduction that is phased out, 203, 242, 231, 219, 255, 271, 271, 286, 379, 349, 364, 360, 367, 372, 379, 388, 397, 406, 414, 421, 451, 461 @@ -67,7 +67,7 @@ e87530,Adjusted qualified lifetime learning expenses for all students, 93, eitc,Federal EITC, 376, 369, 364, 352, 342, 340, 341, 347, 324, 335, 363, 385, 391, 395, 399, 403, 407, 411, 417, 425, 429, 436 elderly_dependents,number of dependents age 65+ in filing unit excluding taxpayer and spouse, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0 g20500,Itemizable gross (before 10% AGI disregard) casualty or theft loss, 29, 30, 31, 32, 33, 35, 36, 38, 40, 41, 42, 44, 47, 48, 50, 52, 55, 57, 60, 63, 62, 66 -iitax,Federal income tax liability, 6550, 7474, 7521, 7477, 8281, 8755, 8951, 6544, 9148, 11187, 11705, 11832, 12199, 12529, 12871, 13262, 13686, 14117, 14554, 15116, 15514, 15967 +iitax,Federal income tax liability, 6550, 7474, 7521, 7477, 8281, 8755, 8952, 6544, 9149, 11189, 11708, 11835, 12204, 12533, 12876, 13267, 13691, 14122, 14560, 15122, 15521, 15974 k1bx14p,Partner self-employment earnings/loss for taxpayer (included in e26270 total), -213, -239, -187, -162, -144, -139, -133, -129, -156, -168, -183, -181, -178, -175, -168, -158, -146, -124, -103, -67, -149, -123 k1bx14s,Partner self-employment earnings/loss for spouse (included in e26270 total), -7, -9, 0, 2, 8, 10, 11, 11, 13, 14, 14, 14, 15, 16, 18, 21, 25, 27, 31, 34, 28, 33 nu06,Number of dependents under 6 years old, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0 diff --git a/taxcalc/tests/pufcsv_agg_expect.csv b/taxcalc/tests/pufcsv_agg_expect.csv index 774a0ca33..d3b8c3a4a 100644 --- a/taxcalc/tests/pufcsv_agg_expect.csv +++ b/taxcalc/tests/pufcsv_agg_expect.csv @@ -13,12 +13,12 @@ AMT Liability ($b),51.3,22.1,23.0,25.1,27.8,27.4,28.8,30.3,31.8,85.1 AMT Filers (#m),5.7,0.2,0.2,0.3,0.4,0.3,0.3,0.3,0.3,7.4 Tax before Credits ($b),1708.1,1734.4,1801.1,1863.4,2309.4,2310.1,2450.5,2518.3,2631.0,2877.6 Refundable Credits ($b),102.9,117.5,118.5,642.0,802.6,119.2,127.0,133.0,135.2,121.9 -Nonrefundable Credits ($b),67.0,127.3,129.2,128.5,47.6,140.9,143.3,144.0,145.9,78.0 +Nonrefundable Credits ($b),67.0,127.3,129.2,128.5,47.6,141.0,143.3,143.9,145.7,77.7 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0 Other Taxes ($b),40.0,44.8,43.6,52.9,84.9,61.5,66.5,65.2,66.0,64.2 -Ind Income Tax ($b),1578.2,1534.3,1597.0,1145.8,1544.0,2111.6,2246.7,2306.5,2415.9,2742.0 +Ind Income Tax ($b),1578.2,1534.3,1597.0,1145.8,1544.0,2111.5,2246.7,2306.7,2416.1,2742.2 Payroll Taxes ($b),1083.8,1133.3,1185.4,1209.0,1306.0,1403.4,1489.3,1563.9,1637.9,1711.0 -Combined Liability ($b),2662.0,2667.7,2782.4,2354.8,2850.0,3515.0,3736.0,3870.5,4053.8,4452.9 +Combined Liability ($b),2662.0,2667.7,2782.4,2354.8,2850.0,3514.9,3736.0,3870.6,4054.0,4453.2 With Income Tax <= 0 (#m),92.8,98.6,99.7,131.7,125.0,100.3,101.9,103.4,104.4,101.0 With Combined Tax <= 0 (#m),63.4,65.6,66.8,102.1,94.5,68.9,70.2,71.6,72.6,72.4 UBI Benefits ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0