Finish elimination of taxcalc-related variables (#3226)

* Remove unused tax_unit_net_capital_gains alias for c01000 * Rename c23650 variable to net_capital_gains * Relocate net_capital_gains variable * Rename c01000 variable to loss_limited_net_capital_gains * Move tax_unit_is_joint variable to own module * Relocate loss_limited_net_capital_gains.py module * Add capital_gains/loss_limit.yaml parameter and use it in formula * Relocate/rename hasqdivltcg variable as has_qdiv_or_ltcg * Remove taxcalc variable sep * Rename k1bx14 to s_corp_self_employment_income * Add adjusted_earnings variable (formerly earned) * Add filer_adjusted_earnings variable (formerly filer_earned) * Use new (filer_)adjusted_earnings variables in formulas and tests * Add changelog entry * Eliminate use of dsi alias variables * Move IL unit tests to more consistent directory location * Update changelog_entry.yaml --------- Co-authored-by: Max Ghenis <[email protected]>
PolicyEngine · Nov 3, 2023 · 582af67 · 582af67
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diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,10 @@
+- bump: minor
+  changes:
+    added:
+    - The `net_capital_gains` variable (formerly `c23650`).
+    - The `gov/irs/capital_gains/loss_limit.yaml` parameter file.
+    - The `loss_limited_net_capital_gains` variable (formerly `c01000`) that uses the `loss_limit` parameter.
+  removed:
+    - Formula code that avoids `sep` variable that had no formula, and therefore, was likely to cause bugs.
+  changed:
+    - Rename taxcalc variables to be consistent with this project's coding style and to be in more sensible directory locations.
diff --git a/policyengine_us/parameters/gov/irs/capital_gains/loss_limit.yaml b/policyengine_us/parameters/gov/irs/capital_gains/loss_limit.yaml
@@ -0,0 +1,16 @@
+description: Capital gains loss limit
+metadata:
+  unit: currency-USD
+  reference:
+    - title: IRS Topic No. 409, Capital Gains and Losses
+      href: https://www.irs.gov/taxtopics/tc409
+HEAD_OF_HOUSEHOLD:
+  2013-01-01: 3_000
+JOINT:
+  2013-01-01: 3_000
+SEPARATE:
+  2013-01-01: 1_500
+SINGLE:
+  2013-01-01: 3_000
+WIDOW:
+  2013-01-01: 3_000
diff --git a/policyengine_us/parameters/gov/irs/income/exemption/phase_out/step_size.yaml b/policyengine_us/parameters/gov/irs/income/exemption/phase_out/step_size.yaml
@@ -1,6 +1,6 @@
 description: Personal exemption phase-out step size
 metadata:
-  unit: /1
+  unit: currency-USD
   reference:
     - title: 26 U.S. Code § 151 - Allowance of deductions for personal exemptions (d)(3)(B)
       href: https://www.law.cornell.edu/uscode/text/26/151#d_3_B

diff --git a/policyengine_us/parameters/gov/irs/investment/income/sources.yaml b/policyengine_us/parameters/gov/irs/investment/income/sources.yaml
@@ -4,7 +4,7 @@ values:
     - taxable_interest_income
     - dividend_income
     - rental_income
-    - c01000  # Loss-limited capital gains.
+    - loss_limited_net_capital_gains
 metadata:
   unit: currency-USD
   label: net investment income sources

diff --git a/policyengine_us/reforms/winship.py b/policyengine_us/reforms/winship.py
@@ -8,8 +8,8 @@ def create_eitc_winship_reform(parameters, period, bypass=False):
     ):
         return None
 
-    # Compute EITC under filer_earned = tax_unit_head_earned
-    # Then compute EITC under filer_earned = tax_unit_spouse_earned
+    # Compute EITC under filer_adj_earnings = filer head adj earnings
+    # Then compute EITC under filer_adj_earnings = filer spouse adj earnings
     # Then set EITC = sum of the two
 
     class original_eitc(Variable):
@@ -40,26 +40,26 @@ def formula(tax_unit, period, parameters):
             person = tax_unit.members
             simulation = tax_unit.simulation
             agi = tax_unit("adjusted_gross_income", period)
-            earned_income = person("earned", period)
+            adj_earnings = person("adjusted_earnings", period)
             is_head = person("is_tax_unit_head", period)
             is_spouse = person("is_tax_unit_spouse", period)
 
-            filer_earned_head_only = tax_unit.sum(earned_income * is_head)
-            filer_earned_spouse_only = tax_unit.sum(earned_income * is_spouse)
+            filer_earned_head_only = tax_unit.sum(adj_earnings * is_head)
+            filer_earned_spouse_only = tax_unit.sum(adj_earnings * is_spouse)
 
             head_only_branch = simulation.get_branch("head_only")
             head_only_branch.set_input(
-                "filer_earned", period, filer_earned_head_only
+                "filer_adjusted_earnings", period, filer_earned_head_only
             )
-            # Phase out with respect to individual earned income, instead of AGI.
+            # Phase out with respect to individual earnings instead of AGI
             head_only_branch.set_input(
                 "adjusted_gross_income", period, filer_earned_head_only
             )
             head_eitc = head_only_branch.calculate("original_eitc", period)
 
             spouse_only_branch = simulation.get_branch("spouse_only")
             spouse_only_branch.set_input(
-                "filer_earned", period, filer_earned_spouse_only
+                "filer_adjusted_earnings", period, filer_earned_spouse_only
             )
             spouse_only_branch.set_input(
                 "adjusted_gross_income", period, filer_earned_spouse_only

diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/head_earned.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/head_earned.yaml
@@ -2,6 +2,6 @@
   period: 2018
   input:
     is_tax_unit_head: true
-    earned: 1
+    adjusted_earnings: 1
   output:
     head_earned: 1
diff --git a/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/spouse_earned.yaml b/policyengine_us/tests/policy/baseline/gov/irs/credits/cdcc/spouse_earned.yaml
@@ -4,10 +4,10 @@
     people:
       head:
         is_tax_unit_head: true
-        earned: 1
+        adjusted_earnings: 1
       spouse:
         is_tax_unit_spouse: true
-        earned: 2
+        adjusted_earnings: 2
     tax_units:
       tax_unit:
         members: [head, spouse]

diff --git a/...gine_us/tests/policy/baseline/gov/irs/self_employment/taxable_self_employment_income.yaml b/...gine_us/tests/policy/baseline/gov/irs/self_employment/taxable_self_employment_income.yaml
@@ -6,20 +6,20 @@
 - name: Negatives also produce zero.
   period: 2022
   input:
-    sey: -1
+    self_employment_income: -1
   output:
     taxable_self_employment_income: 0
 
 - name: Otherwise, half of self-employment taxes are deducted.
   period: 2022
   input:
-    sey: 100_000
+    self_employment_income: 100_000
   output:
     taxable_self_employment_income: 92_350
 
 - name: Zero if less than $400.
   period: 2022
   input:
-    sey: 399
+    self_employment_income: 399
   output:
     taxable_self_employment_income: 0
diff --git a/...engine_us/tests/policy/baseline/gov/irs/tax/federal_income/net_investment_income_tax.yaml b/...engine_us/tests/policy/baseline/gov/irs/tax/federal_income/net_investment_income_tax.yaml
@@ -3,7 +3,7 @@
   input:
     taxable_interest_income: 0
     dividend_income: 0
-    c01000: 0
+    loss_limited_net_capital_gains: 0
     rental_income: 0
     filing_status: SINGLE
   output:
@@ -14,7 +14,7 @@
   input:
     taxable_interest_income: 0
     dividend_income: 0
-    c01000: 0
+    loss_limited_net_capital_gains: 0
     rental_income: 199_000
     filing_status: SINGLE
   output:
@@ -25,7 +25,7 @@
   input:
     taxable_interest_income: 0
     dividend_income: 0
-    c01000: 0
+    loss_limited_net_capital_gains: 0
     adjusted_gross_income: 205_000
     rental_income: 205_000
     filing_status: SINGLE
@@ -37,7 +37,7 @@
   input:
     taxable_interest_income: 0
     dividend_income: 0
-    c01000: 0
+    loss_limited_net_capital_gains: 0
     adjusted_gross_income: 900_000
     rental_income: 900_000
     filing_status: SINGLE

diff --git a/...engine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/young_child/ca_yctc.yaml b/...engine_us/tests/policy/baseline/gov/states/ca/tax/income/credits/young_child/ca_yctc.yaml
@@ -9,7 +9,7 @@
     tax_units:
       tax_unit:
         members: [parent, child]
-        filer_earned: 25_000
+        filer_adjusted_earnings: 25_000
         ca_eitc: 1
     households:
       household:
@@ -29,7 +29,7 @@
     tax_units:
       tax_unit:
         members: [parent, child]
-        filer_earned: 25_100
+        filer_adjusted_earnings: 25_100
         ca_eitc: 1
     households:
       household:
@@ -49,7 +49,7 @@
     tax_units:
       tax_unit:
         members: [parent, child]
-        filer_earned: 25_100
+        filer_adjusted_earnings: 25_100
         ca_eitc: 1
     households:
       household:
@@ -90,7 +90,7 @@
     tax_units:
       tax_unit:
         members: [parent, child]
-        filer_earned: 30_000
+        filer_adjusted_earnings: 30_000
         ca_eitc: 1
     households:
       household:
@@ -113,7 +113,7 @@
     tax_units:
       tax_unit:
         members: [parent, child1, child2]
-        filer_earned: 25_100
+        filer_adjusted_earnings: 25_100
         ca_eitc: 1
     households:
       household:

diff --git a/...s/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml b/...s/policy/baseline/gov/states/hi/tax/income/credits/food_excise/hi_food_excise_credit.yaml
@@ -20,7 +20,7 @@
         adjusted_gross_income: 4_000
         filing_status: SINGLE
         exemptions_count: 3
-        dsi: false
+        head_is_dependent_elsewhere: false
     households:
       household: 
         members: [person1, person2, person3]
@@ -50,7 +50,7 @@
         adjusted_gross_income: 4_000
         filing_status: SINGLE
         exemptions_count: 3
-        dsi: false
+        head_is_dependent_elsewhere: false
     households:
       household: 
         members: [person1, person2, person3]
@@ -81,7 +81,7 @@
         adjusted_gross_income: 4_000
         filing_status: SINGLE
         exemptions_count: 2
-        dsi: true
+        head_is_dependent_elsewhere: true
     households:
       household: 
         members: [person1, person2]
@@ -111,7 +111,7 @@
         adjusted_gross_income: 35_000
         filing_status: SINGLE
         exemptions_count: 3
-        dsi: false
+        head_is_dependent_elsewhere: false
     households:
       household: 
         members: [person1, person2, person3]
@@ -141,7 +141,7 @@
         adjusted_gross_income: 35_000
         filing_status: JOINT
         exemptions_count: 3
-        dsi: false
+        head_is_dependent_elsewhere: false
     households:
       household: 
         members: [person1, person2, person3]
@@ -171,7 +171,7 @@
         adjusted_gross_income: 55_000
         filing_status: JOINT
         exemptions_count: 3
-        dsi: false
+        head_is_dependent_elsewhere: false
     households:
       household: 
         members: [person1, person2, person3]
@@ -197,7 +197,7 @@
         members: [person1, person2]
         adjusted_gross_income: 6_000
         filing_status: SINGLE
-        dsi: false
+        head_is_dependent_elsewhere: false
     households:
       household: 
         members: [person1, person2]
@@ -223,7 +223,7 @@
         members: [person1, person2]
         adjusted_gross_income: 6_000
         filing_status: SINGLE
-        dsi: false
+        head_is_dependent_elsewhere: false
     households:
       household: 
         members: [person1, person2]

diff --git a/.../gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_lihrtc_eligible.yaml b/.../gov/states/hi/tax/income/credits/hi_low_income_household_renters/hi_lihrtc_eligible.yaml
@@ -2,7 +2,7 @@
   period: 2021
   input:
     state_code: HI
-    dsi: false
+    head_is_dependent_elsewhere: false
     adjusted_gross_income: 29_000
     rent: 1_100
   output:
@@ -12,7 +12,7 @@
   period: 2021
   input:
     state_code: HI
-    dsi: false
+    head_is_dependent_elsewhere: false
     adjusted_gross_income: 31_000
     rent: 1_100
   output:
@@ -22,7 +22,7 @@
   period: 2021
   input:
     state_code: HI
-    dsi: false
+    head_is_dependent_elsewhere: false
     adjusted_gross_income: 29_000
     rent: 900
   output:
@@ -32,7 +32,7 @@
   period: 2021
   input:
     state_code: HI
-    dsi: false
+    head_is_dependent_elsewhere: false
     adjusted_gross_income: 32_000
     rent: 900
   output:

diff --git a/...states/il/income_tax/credits/il_eitc.yaml → ...states/il/tax/income/credits/il_eitc.yaml b/...states/il/income_tax/credits/il_eitc.yaml → ...states/il/tax/income/credits/il_eitc.yaml
diff --git a/...dits/il_k12_education_expense_credit.yaml → ...dits/il_k12_education_expense_credit.yaml b/...dits/il_k12_education_expense_credit.yaml → ...dits/il_k12_education_expense_credit.yaml
diff --git a/...e_tax/credits/il_property_tax_credit.yaml → ...ncome/credits/il_property_tax_credit.yaml b/...e_tax/credits/il_property_tax_credit.yaml → ...ncome/credits/il_property_tax_credit.yaml
diff --git a/...x/exemptions/il_aged_blind_exemption.yaml → ...e/exemptions/il_aged_blind_exemption.yaml b/...x/exemptions/il_aged_blind_exemption.yaml → ...e/exemptions/il_aged_blind_exemption.yaml
diff --git a/...ax/exemptions/il_dependent_exemption.yaml → ...me/exemptions/il_dependent_exemption.yaml b/...ax/exemptions/il_dependent_exemption.yaml → ...me/exemptions/il_dependent_exemption.yaml
diff --git a/.../exemptions/il_is_exemption_eligible.yaml → .../exemptions/il_is_exemption_eligible.yaml b/.../exemptions/il_is_exemption_eligible.yaml → .../exemptions/il_is_exemption_eligible.yaml