update inflation policy parameter values for the year 2020, 2021, 2022 #2633

bodiyang · 2021-11-21T19:08:34Z

add the inflation policy form Revenue Procedure 2021-45

bodiyang · 2021-11-22T17:50:54Z

This PR aims to update the policy parameter values for inflation adjustments of the year 2020, 2021, 2022

The process to update policy parameter values will follow Issue #2183

The inflation adjustments of year 2022 follows the newly published tax law inflation adjustments for 2022 by IRS, as Revenue Procedure 2021-45

The inflation adjustments of year 2020 and 2021 follows the published IRS tax forms and instructions:

Form 1040 and instructions, Form 1040 (Schedule 1), Form 1040 (Schedule 2), Form 1040 (Schedule 4), Form 1040 (Schedule A) and instructions
Form W-2 and instructions
Form 6251 and instructions
Form 8863 and instructions
Form 8812 and instructions

cc @MattHJensen

martinholmer · 2021-11-30T22:39:26Z

In PR #2633, @bodiyang said:

This PR aims to update the policy parameter values for 2022 ..., following the newly published tax law inflation adjustments for 2022 by IRS ...
The process to update policy parameter values will follow Issue #2183

I'm confused about the objective of this PR. Do you mean this PR will add, to the policy_current_law.json file, inflation adjusted parameter values for three years: 2020, 2021, and 2022?

Right now, the last "know year" in the policy_current_law.json file is 2019, as can be seen in the following fragment from that file:

"STD_Dep": {
        "title": "Standard deduction for dependents",
        "description": "This is the maximum standard deduction for dependents.",
        "notes": "",
        "section_1": "",
        "section_2": "",
        "indexable": true,
        "indexed": true,
        "type": "float",
        "value": [
            {
                "year": 2013,
                "value": 1000.0
            },
            {
                "year": 2014,
                "value": 1000.0
            },
            {
                "year": 2015,
                "value": 1050.0
            },
            {
                "year": 2016,
                "value": 1050.0
            },
            {
                "year": 2017,
                "value": 1050.0
            },
            {
                "year": 2018,
                "value": 1050.0
            },
            {
                "year": 2019,
                "value": 1100.0
            }
        ],
        "validators": {
            "range": {
                "min": 0,
                "max": 9e+99
            }
        },
        "compatible_data": {
            "puf": true,
            "cps": true
        }
    },

bodiyang · 2021-12-01T14:24:35Z

In PR #2633, @bodiyang said:

This PR aims to update the policy parameter values for 2022 ..., following the newly published tax law inflation adjustments for 2022 by IRS ...
The process to update policy parameter values will follow Issue #2183

I'm confused about the objective of this PR. Do you mean this PR will add, to the policy_current_law.json file, inflation adjusted parameter values for three years: 2020, 2021, and 2022?

Right now, the last "know year" in the policy_current_law.json file is 2019, as can be seen in the following fragment from that file:
"STD_Dep": {
        "title": "Standard deduction for dependents",
        "description": "This is the maximum standard deduction for dependents.",
        "notes": "",
        "section_1": "",
        "section_2": "",
        "indexable": true,
        "indexed": true,
        "type": "float",
        "value": [
            {
                "year": 2013,
                "value": 1000.0
            },
            {
                "year": 2014,
                "value": 1000.0
            },
            {
                "year": 2015,
                "value": 1050.0
            },
            {
                "year": 2016,
                "value": 1050.0
            },
            {
                "year": 2017,
                "value": 1050.0
            },
            {
                "year": 2018,
                "value": 1050.0
            },
            {
                "year": 2019,
                "value": 1100.0
            }
        ],
        "validators": {
            "range": {
                "min": 0,
                "max": 9e+99
            }
        },
        "compatible_data": {
            "puf": true,
            "cps": true
        }
    },

Thanks for checking with this point. This PR will update the inflation adjusted parameter value for the 2022 only, to the policy_current_law.json file. This update will be based upon the newly published tax law inflation adjustments for 2022 by IRS, as Revenue Procedure 2021-45

martinholmer · 2021-12-01T14:28:47Z

@bodiyang said:

This PR will update the inflation adjusted parameter value for 2022 only, to the policy_current_law.json file.

OK. But what about the known values for 2020 and 2021? Aren't those considered important any more?

bodiyang · 2021-12-01T18:32:46Z

@bodiyang said:

OK. But what about the known values for 2020 and 2021? Aren't those considered important any more?

Yes, year 2020 and 2021 are also considered to be added into policy_current_law.json file. I will add them either in two separate commits or create two PRs.

… Rate, Child Tax Credit, Earned Income Crdit, Exemption Amounts for Alternative Minimum Tax, Standard Deduction, Qualified Business Income

bodiyang · 2021-12-16T21:40:42Z

This Commit complete the update of major parameters for the year 2022 (only part of the adjusted parameters, 62 items total) in policy_current_law.json file, following tax law inflation adjustments for 2022.

updated items including:
Section 2:
.01 (ii) Lifetime Learning Credit

Section 3:
.01 Tax Rate Tables
.03 Maximum Capital Gains Rate
.05 Child Tax Credit
.06 Earned Income Credit
.11 Exemption Amounts for Alternative Minimum Tax
.12 Alternative Minimum Tax Exemption for a Child Subject to the "Kiddie Tax"
.15 Standard Deduction
.27 Qualified Business Income.

did not include the rest of adjusted items --- didn't find corresponding parameters in policy_current_law.json file

bodiyang · 2021-12-20T20:21:46Z

@bodiyang said:

This PR will update the inflation adjusted parameter value for 2022 only, to the policy_current_law.json file.

OK. But what about the known values for 2020 and 2021? Aren't those considered important any more?

follow up note: the work of updating inflation adjusted parameter value for the year 2020 and 2021 is now included in this PR

jdebacker · 2022-02-07T14:54:48Z

@bodiyang Can you push your latest changes showing how you've modified files for the test_reforms.test_round_trip_reforms test?

bodiyang · 2022-02-07T15:00:09Z

@bodiyang Can you push your latest changes showing how you've modified files for the test_reforms.test_round_trip_reforms test?

This commit is the current work in progress to change the TCJA.json file to pass the test_reforms.test_round_trip_reforms test.

bodiyang · 2022-02-14T20:29:06Z

Issue to pass the test:

testing failure brief: multiple updated parameters failed the test test_round_trip_reforms(fyear, tests_path), checking if the projected value matches the expected value

As an example: unmatched value between clp value -- the expected value and rtr value -- the projected value.
EITC_c in 2023 : rtr=[[ 556.21 3707.32 6127.7 6894.19]] clp=[[ 570.25 3801.31 6174.97 7061.91]]

For most of these parameters, the test failure can be solved by writing these parameter's expected value (clp) in the TCJA.json file. However, there are several exceptions and the EITC_c in 2023 is an example case.

Have written EITC_c :{2023: [ 570.25 3801.31 6174.97 7061.91]} in the TCJA.json file, I still receive the test failure of this parameter from the feedback of local testing, as EITC_c in 2023 : rtr=[[ 556.21 3707.32 6127.7 6894.19]] clp=[[ 570.25 3801.31 6174.97 7061.91]]

Please refer to my last commit for the updated TCJA.json file and this attached pdf file for the testing errors
Terminal Saved Output.pdf. PS: I've marked the errors in yellow for the convenience to read

taxcalc/policy_current_law.json

jdebacker · 2022-02-15T16:31:57Z

@bodiyang I've checked out your branch from this PR and have the round-trip-reform test passing (with modifications to reform files reflected in PSL/examples PR #11. I will open a PR to your branch when I get some feedback on exactly how to handle adding new reform files. I posed the relevant question in Issue #2589.

codecov · 2022-03-02T20:12:45Z

Codecov Report

Merging #2633 (d058cb2) into master (36f75f2) will not change coverage.
The diff coverage is 100.00%.

@@           Coverage Diff           @@
##           master    #2633   +/-   ##
=======================================
  Coverage   98.54%   98.54%           
=======================================
  Files          14       14           
  Lines        2609     2609           
=======================================
  Hits         2571     2571           
  Misses         38       38

Flag	Coverage Δ
unittests	`98.54% <100.00%> (ø)`

Flags with carried forward coverage won't be shown. Click here to find out more.

Impacted Files	Coverage Δ
taxcalc/policy.py	`100.00% <100.00%> (ø)`

taxcalc/policy_current_law.json

martinholmer · 2022-03-04T21:24:39Z

@bodiyang said:

no there is not a known 2022 value of SS_Earnings_c

This statement is definitely not true.

bodiyang · 2022-03-07T18:36:31Z

@bodiyang said:

no there is not a known 2022 value of SS_Earnings_c

This statement is definitely not true.

My only reference file for this work of inflation parameter update is the instruction for 2022 tax return file RP-2021-45, in which 2022 Maximum taxable earnings for Social Security, SS_Earnings_c, was not mentioned.

I've just checked other online sources which indicating SS_Earnings_c is $147,000. link. Shall I include this number from this source?

taxcalc/policy_current_law.json

jdebacker · 2022-03-04T14:42:31Z

taxcalc/policy_current_law.json

            {
                "year": 2021,
                "value": 0.0
+            },


Again, 2020 before 2021. And it looks like really no change here.

jdebacker · 2022-03-07T16:21:54Z

taxcalc/policy_current_law.json

            {
                "year": 2021,
                "value": 0.0
+            },
+            {
+                "year": 2020,


2020 should be before 2021

jdebacker · 2022-03-07T16:22:37Z

taxcalc/policy_current_law.json

            {
                "year": 2021,
                "value": 0.0
+            },
+            {
+                "year": 2020,


2020 should be before 2021

taxcalc/policy_current_law.json

jdebacker · 2022-03-07T18:55:47Z

@bodiyang wrote:

I've just checked other online sources which indicating SS_Earnings_c is $147,000. link. Shall I include this number from this source?

Yes!

bodiyang · 2022-03-09T16:17:52Z

@jdebacker I've corrected the format & missing value in 2022 issues in your comments in the new commit 8c1b609

PS:changes still required to pass the test ~ working on it

bodiyang · 2022-03-11T17:05:04Z

@jdebacker I've corrected the format & missing value in 2022 issues in your comments in the new commit 8c1b609

PS:changes still required to pass the test ~ working on it

Have passed all the tests on local machine

jdebacker · 2022-03-11T18:47:53Z

@bodiyang I opened a PR to your branch with updated PUF results.

But in reviewing my comments, there are still a few that aren't addressed. One of them has to do with the SS_earnings_c parameter, which will affect the expected results that are in my PR. So please go ahead and resolve all comments in my review and then I will make another commit to the PR to your branch that I've opened.

Update PUF results for latest changes

jdebacker · 2022-03-15T19:41:35Z

@bodiyang Thank you for this PR!

add 2022 inflation policy form

84080d5

bodiyang changed the title ~~add 2022 inflation policy form~~ update 2022 inflation policy parameter values Nov 22, 2021

fix several format problems in original files

d69ce6a

Bodi Yang added 2 commits December 8, 2021 16:38

initial commit: update parameters (partly) of Tax Rate, Capital Gains…

1d2b748

… Rate, Child Tax Credit, Earned Income Crdit, Exemption Amounts for Alternative Minimum Tax, Standard Deduction, Qualified Business Income

delete the tax files which was misuploaded

f63099a

W-2 paramupdates for year 2020 & 2021

e310e87

bodiyang changed the title ~~update 2022 inflation policy parameter values~~ update inflation policy parameter values for the year 2020, 2021, 2022 Dec 20, 2021

Bodi Yang added 6 commits January 6, 2022 15:09

Form 6251 param update for year 2020 & 2021

e9e5dc9

Form 8863 param update for year 2020 & 2021

a591e6b

Form 8812 param update of year 2020 & 2021

43e45a1

Form 1040 param update for year 2020 & 2021

cd2f0da

run ppp.py to add the new 2026 parameter values

d15ce2d

policy.py update for last_known_year

1b28a85

modified TCJA.json to pass the test -- uncompleted

c5d6569

jdebacker mentioned this pull request Feb 7, 2022

Indexing parameter values, rounding rules PSLmodels/ParamTools#130

Open

changes in TCJA.json file to pass the test -- issues unsolved

8772b03

jdebacker reviewed Feb 15, 2022

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taxcalc/policy_current_law.json Show resolved Hide resolved

jdebacker mentioned this pull request Feb 15, 2022

Add reform files for the CARES Act and the Consolidated Appropriations Act of 2021 PSLmodels/examples#11

Open

correct EITC max age

a2a64ce

jdebacker reviewed Mar 4, 2022

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taxcalc/policy_current_law.json Show resolved Hide resolved

jdebacker reviewed Mar 7, 2022

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update changes

8c1b609

changes to pass the test after updating CG_brk

a6ed6ce

update puf expected results

25cf323

bodiyang and others added 7 commits March 14, 2022 14:29

Merge branch 'master' into 2022-inflation-update

be5345d

change to pass the test after merge

daa8a05

updates from master

33fdfbc

update package info

56e0c9a

add updates from bodi

cc986a4

update puf results

f7254cc

Merge pull request #3 from jdebacker/pr-2633

d058cb2

Update PUF results for latest changes

jdebacker merged commit 1dbc9b6 into PSLmodels:master Mar 15, 2022

This was referenced Mar 16, 2022

Missing 2020-2022 policy parameter values #2647

Closed

Incorrect 2020 CG_brk2 policy parameter value #2649

Closed

Incorrect 2021 RRC_pe policy parameter value #2650

Closed

Incorrect 2020-21 EITC_ps and EITC_ps_MarriedJ policy parameter values #2651

Closed

bodiyang mentioned this pull request Jun 15, 2022

inflation automation #2661

Closed

This was referenced Jul 26, 2024

Four incorrect PT_rt? policy parameter values for 2020 #2782

Closed

Fix four 2020 PT_rt? parameter values #2783

Merged

martinholmer added a commit to martinholmer/Tax-Calculator that referenced this pull request Aug 3, 2024

Correct PR PSLmodels#2633 errors wrt ETC_pe_* policy parameters

0c2960a

martinholmer mentioned this pull request Aug 3, 2024

Fix education tax credit phase-out parameters #2790

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update inflation policy parameter values for the year 2020, 2021, 2022 #2633

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