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Merge pull request #1899 from martinholmer/fix-expanded-income2
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Add three ALD amounts to expanded_income
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@martinholmer
martinholmer authored Mar 7, 2018
2 parents e1a23bd + c4c75fb commit ec5575c
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Showing 5 changed files with 156 additions and 168 deletions.
48 changes: 20 additions & 28 deletions taxcalc/functions.py
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Original file line number Diff line number Diff line change
Expand Up @@ -170,7 +170,7 @@ 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, c02900_in_ei):
c02900):
"""
Adj calculates Form 1040 AGI adjustments (i.e., Above-the-Line Deductions)
Expand Down Expand Up @@ -231,31 +231,23 @@ def Adj(e03150, e03210, c03260,
Returns
-------
c02900 : total Form 1040 adjustments, which are not included in AGI
c02900_in_ei : total adjustments included in expanded income
"""
# Form 2555 foreign earned income deduction is assumed to be zero
# Form 1040 adjustments that are included in expanded income:
c02900_in_ei = ((1. - ALD_StudentLoan_hc) * e03210 +
c03260 +
(1. - ALD_EarlyWithdraw_hc) * e03400 +
(1. - ALD_AlimonyPaid_hc) * e03500 +
(1. - ALD_AlimonyReceived_hc) * e00800 +
(1. - ALD_EducatorExpenses_hc) * e03220 +
(1. - ALD_Tuition_hc) * e03230 +
(1. - ALD_DomesticProduction_hc) * e03240 +
(1. - ALD_HSADeduction_hc) * e03290 +
care_deduction)
# add in Form 1040 adjustments that are not included in expanded income:
c02900 = c02900_in_ei + ((1. - ALD_SelfEmp_HealthIns_hc) * e03270 +
# deductible IRA contributions
(1. - ALD_IRAContributions_hc) * e03150 +
(1. - ALD_KEOGH_SEP_hc) * e03300)
# FUTURE: move e03270 term into c02900_in_ei after
# health-insurance-premium imputations are available
# FUTURE: move e03150 and e03300 term into c02900_in_ei after
# pension-contribution imputations are available
return (c02900, c02900_in_ei)
c02900 = ((1. - ALD_StudentLoan_hc) * e03210 +
c03260 +
(1. - ALD_EarlyWithdraw_hc) * e03400 +
(1. - ALD_AlimonyPaid_hc) * e03500 +
(1. - ALD_AlimonyReceived_hc) * e00800 +
(1. - ALD_EducatorExpenses_hc) * e03220 +
(1. - ALD_Tuition_hc) * e03230 +
(1. - ALD_DomesticProduction_hc) * e03240 +
(1. - ALD_HSADeduction_hc) * e03290 +
(1. - ALD_SelfEmp_HealthIns_hc) * e03270 +
(1. - ALD_IRAContributions_hc) * e03150 +
(1. - ALD_KEOGH_SEP_hc) * e03300 +
care_deduction)
return c02900


@iterate_jit(nopython=True)
Expand All @@ -277,7 +269,7 @@ def CapGains(p23250, p22250, sep, ALD_StudentLoan_hc,
ALD_InvInc_ec_rt, invinc_ec_base, ALD_InvInc_ec_base_RyanBrady,
e00200, e00300, e00600, e00650, e00700, e00800,
CG_nodiff, CG_ec, CG_reinvest_ec_rt,
ALD_BusinessLosses_c, MARS, c02900_in_ei,
ALD_BusinessLosses_c, MARS,
e00900, e01100, e01200, e01400, e01700, e02000, e02100,
e02300, e00400, e02400, c02900, e03210, e03230, e03240,
c01000, c23650, ymod, ymod1, invinc_agi_ec):
Expand Down Expand Up @@ -310,7 +302,7 @@ def CapGains(p23250, p22250, sep, ALD_StudentLoan_hc,
max(e00900 + e02000, -ALD_BusinessLosses_c[MARS - 1]))
# compute business loss excluded from ymod1 but included in expanded_income
excluded_loss = min(e00900 + e02000 + ALD_BusinessLosses_c[MARS - 1], 0.)
c02900_in_ei += excluded_loss
c02900 += excluded_loss
if CG_nodiff:
# apply QDIV+CG exclusion if QDIV+LTCG receive no special tax treatment
qdcg_pos = max(0., e00650 + c01000)
Expand All @@ -322,7 +314,7 @@ def CapGains(p23250, p22250, sep, ALD_StudentLoan_hc,
ymod2 = e00400 + (0.50 * e02400) - c02900
ymod3 = (1. - ALD_StudentLoan_hc) * e03210 + e03230 + e03240
ymod = ymod1 + ymod2 + ymod3
return (c01000, c23650, ymod, ymod1, invinc_agi_ec, c02900_in_ei)
return (c01000, c23650, ymod, ymod1, invinc_agi_ec, c02900)


@iterate_jit(nopython=True)
Expand Down Expand Up @@ -1816,7 +1808,7 @@ def LumpSumTax(DSI, num, XTOT,

@iterate_jit(nopython=True)
def ExpandIncome(c00100, ptax_was, e02300, e02400, c02500, benefit_value_total,
c02900_in_ei, e00400, invinc_agi_ec, cmbtp, nontaxable_ubi,
c02900, e00400, invinc_agi_ec, cmbtp, nontaxable_ubi,
e01500, e01700, expanded_income):
"""
ExpandIncome function calculates and returns expanded_income.
Expand All @@ -1831,7 +1823,7 @@ def ExpandIncome(c00100, ptax_was, e02300, e02400, c02500, benefit_value_total,
benefits_value = benefit_value_total - e02300 - e02400
# compute expanded income as AGI plus several additional amounts
expanded_income = (c00100 + # adjusted gross income, AGI
c02900_in_ei + # ajustments to AGI
c02900 + # ajustments to AGI
e00400 + # non-taxable interest income
invinc_agi_ec + # AGI-excluded taxable invest income
cmbtp + # AMT taxable income items from Form 6251
Expand Down
7 changes: 1 addition & 6 deletions taxcalc/records_variables.json
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Original file line number Diff line number Diff line change
Expand Up @@ -714,14 +714,9 @@
},
"c02900": {
"type": "float",
"desc": "Total of all income adjustments to get AGI",
"desc": "Total of all 'above the line' income adjustments to get AGI",
"form": {"2013-2016": "1040 line 36"}
},
"c02900_in_ei": {
"type": "float",
"desc": "search taxcalc/functions.py for how calculated and used",
"form": {"2013-20??": "calculated variable"}
},
"c03260": {
"type": "float",
"desc": "search taxcalc/functions.py for how calculated and used",
Expand Down
2 changes: 1 addition & 1 deletion taxcalc/tests/reforms.json
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Original file line number Diff line number Diff line change
Expand Up @@ -639,7 +639,7 @@
"name": "Repeal TCJA chained CPI indexing",
"output_type": "iitax",
"compare_with": {},
"expected": "Tax-Calculator,0.0,-30.2,-32.5,-36.8"
"expected": "Tax-Calculator,0.0,-46.3,-48.7,-53.4"
},

"59": {
Expand Down
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