Add Ohio Joint Filing Credit (#3086)

* Ohio Joint Filing Credit Fixes #3057 * Fix 3057 * Fix 3057 * Ohio Joint Filing Credit Fixes #3057 * Ohio Joint Filing Credit Fixes #3057 * Ohio Joint Filing Credit Fixes #3057 * Ohio Joint Filing Credit Fixes #3057 * Ohio Joint Filing Credit Fixes #3057 * Fix Ohio Joint Filing Credit * Ohio Joint Filing Credit Fixes #3057 * Ohio Joint Filing Credit Fixes #3057 * formatting * typo * minor fix * fix variables and tests * delete extra Ohio file * suggested format * typo --------- Co-authored-by: PavelMakarchuk <[email protected]>
PolicyEngine · Dec 24, 2023 · 448b179 · 448b179
1 parent 840e7c3
commit 448b179
Show file tree

Hide file tree

Showing 20 changed files with 349 additions and 8 deletions.
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - Ohio joint filing credit.
diff --git a/...yengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/agi_subtractions.yaml b/...yengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/agi_subtractions.yaml
@@ -0,0 +1,20 @@
+description: Ohio subtracts these items from the Ohio adjusted gross income, under the joint filing credit.
+
+metadata:
+  unit: list
+  reference:
+  - title: 2021 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/pit-it1040-booklet.pdf#page=20
+  - title: 2022 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/it1040-sd100-instruction-booklet.pdf#page=20
+  - title: Ohio Revised Code - Section 5747.05 Tax credits. (E) (1)
+    href: https://law.justia.com/codes/ohio/2022/title-57/chapter-5747/section-5747-05/
+  period: year
+  label: Ohio joint filing credit adjusted gross income subtractions
+
+  values:
+    2021-01-01:
+      - interest_income
+      - dividend_income
+      - capital_gains
+      - rental_income
diff --git a/policyengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/cap.yaml b/policyengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/cap.yaml
@@ -0,0 +1,15 @@
+description: Ohio caps the joint filing credit at this amount.
+values:
+  2021-01-01: 650
+
+metadata:
+  period: year
+  unit: currency-USD
+  label: Ohio joint filing credit cap
+  reference:
+  - title: 2021 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/pit-it1040-booklet.pdf#page=20
+  - title: 2022 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/it1040-sd100-instruction-booklet.pdf#page=20
+  - title: Ohio Revised Code - Section 5747.05 Tax credits. (E) (1)
+    href: https://codes.ohio.gov/ohio-revised-code/section-5747.05
diff --git a/...yengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/income_threshold.yaml b/...yengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/income_threshold.yaml
@@ -0,0 +1,15 @@
+description: Ohio limits the joint filing credit to filers with head and spouse each having at least this adjusted gross income. 
+values:
+  2021-01-01: 500
+
+metadata:
+  period: year
+  unit: currency-USD
+  label: Ohio joint filing credit income threshold
+  reference:
+  - title: 2021 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/pit-it1040-booklet.pdf#page=20
+  - title: 2022 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/it1040-sd100-instruction-booklet.pdf#page=20
+  - title: Ohio Revised Code - Section 5747.05 Tax credits. (E) (1)
+    href: https://codes.ohio.gov/ohio-revised-code/section-5747.05
diff --git a/...arameters/gov/states/oh/tax/income/credits/joint_filing/other_non_refundable_credits.yaml b/...arameters/gov/states/oh/tax/income/credits/joint_filing/other_non_refundable_credits.yaml
@@ -0,0 +1,21 @@
+description: Ohio provides a joint filing credit equal to a fraction of tax liability less these non-refundable tax credits.
+values:
+  2021-01-01:
+    - oh_cdcc # Line 6
+    - oh_senior_citizen_credit # Line 3
+    - oh_retirement_credit # Line 2
+    - oh_exemption_credits # Line 9
+  2023-01-01:
+    - oh_cdcc # Line 6
+    - oh_senior_citizen_credit # Line 3
+    - oh_retirement_credit # Line 2
+    - oh_exemption_credits # Line 9
+metadata:
+  unit: list
+  period: year
+  label: Ohio non-refundable tax credits prior to the joint filing credit
+  reference:
+    - title: 2021 Ohio Schedule of Credits
+      href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/sch-cre.pdf
+    - title: 2022 Ohio Schedule of Credits
+      href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/itschedule-credits.pdf
diff --git a/policyengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/rate.yaml b/policyengine_us/parameters/gov/states/oh/tax/income/credits/joint_filing/rate.yaml
@@ -0,0 +1,32 @@
+description: Ohio provides a joint filing credit equal to this fraction of tax liability less certain non-refundable tax credits, based on the state adjusted gross income less exemptions.
+metadata:
+  threshold_unit: currency-USD
+  amount_unit: /1
+  type: single_amount
+  period: year
+  label: Ohio joint filing credit income rate 
+  reference:
+  - title: 2021 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/pit-it1040-booklet.pdf#page=20
+  - title: 2022 Ohio IT 1040 Individual Income Tax Return Form Instructions Line 12
+    href: https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/it1040-sd100-instruction-booklet.pdf#page=20
+  - title: Ohio Revised Code - Section 5747.05 Tax credits. (E) 
+    href: https://codes.ohio.gov/ohio-revised-code/section-5747.05
+
+brackets:
+ - threshold: 
+     2021-01-01: 0
+   amount:
+     2021-01-01: 0.2
+ - threshold: 
+     2021-01-01: 25_000
+   amount:
+     2021-01-01: 0.15
+ - threshold: 
+     2021-01-01: 50_000
+   amount:
+     2021-01-01: 0.1
+ - threshold: 
+     2021-01-01: 75_000
+   amount:
+     2021-01-01: 0.05
diff --git a/policyengine_us/parameters/gov/states/oh/tax/income/credits/non_refundable.yaml b/policyengine_us/parameters/gov/states/oh/tax/income/credits/non_refundable.yaml
@@ -8,13 +8,15 @@ values:
     - oh_retirement_credit
     - oh_non_public_school_credits
     - oh_exemption_credits
+    - oh_joint_filing_credit
   2023-01-01:
     - oh_eitc
     - oh_cdcc
     - oh_senior_citizen_credit
     - oh_retirement_credit
     - oh_non_public_school_credits
     - oh_exemption_credits
+    - oh_joint_filing_credit
 metadata:
   unit: list
   label: Ohio non-refundable tax credits

diff --git a/...baseline/gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit.yaml b/...baseline/gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit.yaml
@@ -0,0 +1,33 @@
+- name: Eligible for joint filing credit
+  absolute_error_margin: 0.01
+  period: 2021
+  input:
+    oh_joint_filing_credit_eligible: true
+    oh_agi: 67_000
+    oh_personal_exemptions: 10_000
+    oh_tax_before_joint_filing_credit: 4_000
+  output:
+    oh_joint_filing_credit: 400
+
+- name: Eligible for maximum joint filing credit
+  absolute_error_margin: 0.01
+  period: 2022
+  input:
+    state_code: OH
+    oh_joint_filing_credit_eligible: true
+    oh_agi: 47_000
+    oh_personal_exemptions: 10_000
+    oh_tax_before_joint_filing_credit: 6_000
+  output:
+    oh_joint_filing_credit: 650
+
+- name: Not eligible for joint filing credit
+  absolute_error_margin: 0.01
+  period: 2021
+  input:
+    oh_joint_filing_credit_eligible: false
+    oh_agi: 47_000
+    oh_personal_exemptions: 10_000
+    oh_tax_before_joint_filing_credit: 4_000
+  output:
+    oh_joint_filing_credit: 0
diff --git a/...gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit_eligible.yaml b/...gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit_eligible.yaml
@@ -0,0 +1,62 @@
+- name: Income not eligible for joint filing credit
+  absolute_error_margin: 0.01
+  period: 2021
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        oh_alternative_agi: 400
+      person2:
+        is_tax_unit_spouse: true
+        oh_alternative_agi: 700
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+    households:
+      household:
+        state_code: OH
+  output:
+    oh_joint_filing_credit_eligible: false
+
+- name: Status not eligible for joint filing credit
+  absolute_error_margin: 0.01
+  period: 2021
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        oh_alternative_agi: 600
+      person2:
+        is_tax_unit_spouse: true
+        oh_alternative_agi: 700
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: HEAD_OF_HOUSEHOLD
+    households:
+      household:
+        state_code: OH
+  output:
+    oh_joint_filing_credit_eligible: false
+
+- name: Eligible for joint filing credit
+  absolute_error_margin: 0.01
+  period: 2021
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        oh_alternative_agi: 600
+      person2:
+        is_tax_unit_spouse: true
+        oh_alternative_agi: 700
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+    households:
+      household:
+        state_code: OH
+  output:
+    oh_joint_filing_credit_eligible: true
diff --git a/...v/states/oh/tax/income/credits/joint_filing_credit/oh_tax_before_joint_filing_credit.yaml b/...v/states/oh/tax/income/credits/joint_filing_credit/oh_tax_before_joint_filing_credit.yaml
@@ -0,0 +1,17 @@
+- name: Capped at 0
+  period: 2022
+  input:
+    oh_income_tax_before_non_refundable_credits: 20
+    oh_partial_non_refundable_credits: 30
+    state_code: OH
+  output:
+    oh_tax_before_joint_filing_credit: 0
+
+- name: Reduction
+  period: 2022
+  input:
+    oh_income_tax_before_non_refundable_credits: 100
+    oh_partial_non_refundable_credits: 20
+    state_code: OH
+  output:
+    oh_tax_before_joint_filing_credit: 80
diff --git a/.../income/oh_income_tax_before_credits.yaml → ...me_tax_before_non_refundable_credits.yaml b/.../income/oh_income_tax_before_credits.yaml → ...me_tax_before_non_refundable_credits.yaml
@@ -7,7 +7,7 @@
   output:
     # base amount = $346.16
     # + 2.765% of (31_000 - 25_000) = 165.90
-    oh_income_tax_before_credits: 512.06
+    oh_income_tax_before_non_refundable_credits: 512.06
 
 - name: Single filing, income in 3rd tax bracket
   period: 2021
@@ -19,4 +19,4 @@
     # base amount = 346.16
     # + 2.765 of (44_250 - 25_000) = 532.26
     # + 3.226% of (64_500 - 44_250) = 653.27
-    oh_income_tax_before_credits: 1_531.69
+    oh_income_tax_before_non_refundable_credits: 1_531.69
diff --git a/...sts/policy/baseline/gov/states/oh/tax/income/oh_income_tax_before_refundable_credits.yaml b/...sts/policy/baseline/gov/states/oh/tax/income/oh_income_tax_before_refundable_credits.yaml
@@ -2,7 +2,7 @@
   period: 2021
   input:
     state_code: OH
-    oh_income_tax_before_credits: 800
+    oh_income_tax_before_non_refundable_credits: 800
     oh_non_refundable_credits: 900
   output:
     oh_income_tax_before_refundable_credits: 0
@@ -11,7 +11,7 @@
   period: 2021
   input:
     state_code: OH
-    oh_income_tax_before_credits: 800
+    oh_income_tax_before_non_refundable_credits: 800
     oh_non_refundable_credits: 600
   output:
     oh_income_tax_before_refundable_credits: 200
diff --git a/...e_us/variables/gov/states/oh/tax/income/credits/joint_filing_credit/oh_alternative_agi.py b/...e_us/variables/gov/states/oh/tax/income/credits/joint_filing_credit/oh_alternative_agi.py
@@ -0,0 +1,22 @@
+from policyengine_us.model_api import *
+
+
+class oh_alternative_agi(Variable):
+    value_type = float
+    entity = Person
+    label = (
+        "Ohio alternative adjusted gross income for the joint filing credit"
+    )
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://codes.ohio.gov/ohio-revised-code/section-5747.055",
+        "https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/pit-it1040-booklet.pdf#page=20",
+    )
+    defined_for = StateCode.OH
+
+    adds = ["oh_agi"]
+
+    subtracts = (
+        "gov.states.oh.tax.income.credits.joint_filing.agi_subtractions"
+    )
diff --git a/.../variables/gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit.py b/.../variables/gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit.py
@@ -0,0 +1,25 @@
+from policyengine_us.model_api import *
+
+
+class oh_joint_filing_credit(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Ohio joint filing credit"
+    unit = USD
+    definition_period = YEAR
+    reference = "https://codes.ohio.gov/ohio-revised-code/section-5747.05"
+    defined_for = "oh_joint_filing_credit_eligible"
+
+    def formula(tax_unit, period, parameters):
+        tax_before_joint_filing_credit = tax_unit(
+            "oh_tax_before_joint_filing_credit", period
+        )
+        p = parameters(period).gov.states.oh.tax.income.credits.joint_filing
+        # Ohio uses MAGI for the credit computation, which is Ohio AGI with
+        # the addition of the business income deduction, which is currently not included in the model,
+        # hence, we use the Ohio AGI for the credit computation
+        oh_agi = tax_unit("oh_agi", period)
+        exemptions = tax_unit("oh_personal_exemptions", period)
+        agi_less_exepmtions = max_(oh_agi - exemptions, 0)
+        percentage = p.rate.calc(agi_less_exepmtions)
+        return min_(tax_before_joint_filing_credit * percentage, p.cap)
diff --git a/...s/gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit_eligible.py b/...s/gov/states/oh/tax/income/credits/joint_filing_credit/oh_joint_filing_credit_eligible.py
@@ -0,0 +1,28 @@
+from policyengine_us.model_api import *
+
+
+class oh_joint_filing_credit_eligible(Variable):
+    value_type = bool
+    entity = TaxUnit
+    label = "Eligible for the Ohio joint filing credit"
+    definition_period = YEAR
+    reference = "https://codes.ohio.gov/ohio-revised-code/section-5747.05"
+    defined_for = StateCode.OH
+
+    def formula(tax_unit, period, parameters):
+        filing_status = tax_unit("filing_status", period)
+        person = tax_unit.members
+        is_head = person("is_tax_unit_head", period)
+        is_spouse = person("is_tax_unit_spouse", period)
+        p = parameters(period).gov.states.oh.tax.income.credits.joint_filing
+        income = person("oh_alternative_agi", period)
+        # The head and the spouse have to meet the income requirement individually
+        income_eligible = income >= p.income_threshold
+        head_eligible = tax_unit.any(is_head & income_eligible)
+
+        spouse_eligible = tax_unit.any(is_spouse & income_eligible)
+        # The head and the spouse have to meet the income requirement individually
+        head_and_spouse_eligible = head_eligible & spouse_eligible
+
+        status_eligible = filing_status == filing_status.possible_values.JOINT
+        return head_and_spouse_eligible & status_eligible
diff --git a/...gov/states/oh/tax/income/credits/joint_filing_credit/oh_partial_non_refundable_credits.py b/...gov/states/oh/tax/income/credits/joint_filing_credit/oh_partial_non_refundable_credits.py
@@ -0,0 +1,20 @@
+from policyengine_us.model_api import *
+
+
+class oh_partial_non_refundable_credits(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Ohio non-refundable credits prior to the joint filing credit"
+    reference = (
+        # 2021 Ohio Schedule of Credits
+        "https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/sch-cre.pdf",
+        # 2022 Ohio Schedule of Credits
+        "https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/itschedule-credits.pdf",
+    )
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.OH
+
+    adds = (
+        "gov.states.oh.tax.income.credits.joint_filing.non_refundable_credits"
+    )
diff --git a/...gov/states/oh/tax/income/credits/joint_filing_credit/oh_tax_before_joint_filing_credit.py b/...gov/states/oh/tax/income/credits/joint_filing_credit/oh_tax_before_joint_filing_credit.py
@@ -0,0 +1,23 @@
+from policyengine_us.model_api import *
+
+
+class oh_tax_before_joint_filing_credit(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Ohio tax liability before the joint filing credit"
+    reference = (
+        # 2021 Ohio Schedule of Credits
+        "https://tax.ohio.gov/static/forms/ohio_individual/individual/2021/sch-cre.pdf",
+        # 2022 Ohio Schedule of Credits
+        "https://tax.ohio.gov/static/forms/ohio_individual/individual/2022/itschedule-credits.pdf",
+    )
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.OH
+
+    def formula(tax_unit, period, parameters):
+        tax_before_credits = tax_unit(
+            "oh_income_tax_before_non_refundable_credits", period
+        )
+        total_credits = tax_unit("oh_partial_non_refundable_credits", period)
+        return max_(0, tax_before_credits - total_credits)