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Merge branch 'master' of https://github.com/PolicyEngine/policyengine-us into hua7450/issue5109
PolicyEngine · Dec 5, 2024 · 58aed6a · 58aed6a
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diff --git a/CHANGELOG.md b/CHANGELOG.md
@@ -5,6 +5,31 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [1.156.0] - 2024-12-04 21:38:01
+
+### Added
+
+- Apply the TCJA mortgage value limits under the mortgage interest deduction.
+
+## [1.155.1] - 2024-12-04 19:11:45
+
+### Fixed
+
+- Remove the SNAP child support deduction from the net income computation if applied to gross income.
+
+## [1.155.0] - 2024-12-03 20:23:24
+
+### Added
+
+- Add the Arizona charitable contributions credit to the net income tree.
+
+## [1.154.2] - 2024-12-03 20:14:27
+
+### Changed
+
+- Upgraded minimum policyengine-core version
+- Allowed more flexibility in policyengine-us-data version
+
 ## [1.154.1] - 2024-12-01 16:39:30
 
 ### Fixed
@@ -10328,6 +10353,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 
 
+[1.156.0]: https://github.com/PolicyEngine/policyengine-us/compare/1.155.1...1.156.0
+[1.155.1]: https://github.com/PolicyEngine/policyengine-us/compare/1.155.0...1.155.1
+[1.155.0]: https://github.com/PolicyEngine/policyengine-us/compare/1.154.2...1.155.0
+[1.154.2]: https://github.com/PolicyEngine/policyengine-us/compare/1.154.1...1.154.2
 [1.154.1]: https://github.com/PolicyEngine/policyengine-us/compare/1.154.0...1.154.1
 [1.154.0]: https://github.com/PolicyEngine/policyengine-us/compare/1.153.0...1.154.0
 [1.153.0]: https://github.com/PolicyEngine/policyengine-us/compare/1.152.0...1.153.0

diff --git a/changelog.yaml b/changelog.yaml
@@ -8756,3 +8756,25 @@
     fixed:
     - Arkansas 2023 low income tax table parameters.
   date: 2024-12-01 16:39:30
+- bump: patch
+  changes:
+    changed:
+    - Upgraded minimum policyengine-core version
+    - Allowed more flexibility in policyengine-us-data version
+  date: 2024-12-03 20:14:27
+- bump: minor
+  changes:
+    added:
+    - Add the Arizona charitable contributions credit to the net income tree.
+  date: 2024-12-03 20:23:24
+- bump: patch
+  changes:
+    fixed:
+    - Remove the SNAP child support deduction from the net income computation if applied
+      to gross income.
+  date: 2024-12-04 19:11:45
+- bump: minor
+  changes:
+    added:
+    - Apply the TCJA mortgage value limits under the mortgage interest deduction.
+  date: 2024-12-04 21:38:01
diff --git a/policyengine_us/parameters/gov/irs/deductions/itemized/interest/mortgage/cap.yaml b/policyengine_us/parameters/gov/irs/deductions/itemized/interest/mortgage/cap.yaml
@@ -1,21 +1,33 @@
-description: IRS limits the total home mortgage interest deduction to this amount, based on filing status.
+description: The IRS allows an itemized deduction for interest paid on mortgages up to this amount, based on filing status.
 SINGLE:
-  2018-01-01: 1_000_000
+  2017-01-01: 1_000_000
+  2018-01-01: 750_000
+  2026-01-01: 1_000_000
 JOINT:
-  2018-01-01: 1_000_000
+  2017-01-01: 1_000_000
+  2018-01-01: 750_000
+  2026-01-01: 1_000_000
 SEPARATE:
-  2018-01-01: 500_000
+  2017-01-01: 500_000
+  2018-01-01: 375_000
+  2026-01-01: 500_000
 HEAD_OF_HOUSEHOLD:
-  2018-01-01: 1_000_000
+  2017-01-01: 1_000_000
+  2018-01-01: 750_000
+  2026-01-01: 1_000_000
 SURVIVING_SPOUSE:
-  2018-01-01: 1_000_000
+  2017-01-01: 1_000_000
+  2018-01-01: 750_000
+  2026-01-01: 1_000_000
 metadata:
   breakdown: filing_status
   unit: currency-USD
-  label: IRS home mortgage interest deduction amount cap
+  period: year
+  label: IRS home mortgage value cap
   reference:
     # Hawaii applies this AGI threshold in the state itemized deductions computation
     - title: Hawaii Income Tax Law, Chapter 235, Section 235-2.4, (j)(3)
       href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=10
-    - title: 26 U.S. Code § 163 - Interest, (h)(3)(F)
+    # TCJA adjustemnts described in (h)(3)(F)(i)(II)
+    - title: 26 U.S. Code § 163 - Interest, (h)(3)(b)(ii)
       href: https://www.law.cornell.edu/uscode/text/26/163
diff --git a/policyengine_us/parameters/gov/states/az/tax/income/credits/non_refundable.yaml b/policyengine_us/parameters/gov/states/az/tax/income/credits/non_refundable.yaml
@@ -3,6 +3,10 @@ values:
   2019-01-01:
     - az_dependent_tax_credit
     - az_family_tax_credit
+  2021-01-01:
+    - az_charitable_contributions_credit
+    - az_dependent_tax_credit
+    - az_family_tax_credit
 metadata:
   unit: list
   period: year

diff --git a/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/de/tax/income/integration.yaml
@@ -241,7 +241,7 @@
         taxable_private_pension_income: 4000
         social_security_retirement: 12000
         real_estate_taxes: 2000
-        mortgage_interest: 1000
+        deductible_mortgage_interest: 1000
         self_employment_income: 121010
         business_is_qualified: true
         business_is_sstb: false

diff --git a/policyengine_us/tests/policy/baseline/gov/states/id/tax/income/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/id/tax/income/integration.yaml
@@ -106,7 +106,7 @@
         rental_income: 1005
         taxable_private_pension_income: 2500
         real_estate_taxes: 4000
-        mortgage_interest: 36000
+        deductible_mortgage_interest: 36000
         self_employment_income: 127010
         business_is_qualified: true
         business_is_sstb: false

diff --git a/policyengine_us/tests/policy/baseline/gov/states/ky/tax/income/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/ky/tax/income/integration.yaml
@@ -275,11 +275,11 @@
       person1:
         age: 50
         employment_income: 80_000
-        mortgage_interest:  3_000
+        deductible_mortgage_interest:  3_000
       person2:
         age: 50
         employment_income: 20_000
-        mortgage_interest:  3_000
+        deductible_mortgage_interest:  3_000
     tax_units:
       tax_unit:
         members: [person1, person2]

diff --git a/...ne_us/tests/policy/baseline/gov/states/ms/tax/income/deductions/itemized/integration.yaml b/...ne_us/tests/policy/baseline/gov/states/ms/tax/income/deductions/itemized/integration.yaml
@@ -3,7 +3,7 @@
   period: 2021
   input:
     real_estate_taxes: 12_000
-    mortgage_interest: 36_000
+    deductible_mortgage_interest: 36_000
     state_fips: 28  # MS
   output:  # expected results from filling out 2021 MS form 80-108
     ms_itemized_deductions_unit: 46_000
diff --git a/...s/policy/baseline/gov/states/va/tax/income/deductions/va_reduced_itemized_deductions.yaml b/...s/policy/baseline/gov/states/va/tax/income/deductions/va_reduced_itemized_deductions.yaml
@@ -36,7 +36,7 @@
     filing_status: JOINT
     adjusted_gross_income: 364_695
     state_and_local_sales_or_income_tax: 19_956
-    mortgage_interest: 36_000
+    deductible_mortgage_interest: 36_000
     state_code: VA
   output:
     va_reduced_itemized_deductions: 35_282
diff --git a/policyengine_us/tests/policy/baseline/gov/states/va/tax/income/integration.yaml b/policyengine_us/tests/policy/baseline/gov/states/va/tax/income/integration.yaml
@@ -91,7 +91,7 @@
         long_term_capital_gains: 1005.0
         rental_income: 2505.0
         real_estate_taxes: 24000
-        mortgage_interest: 14000
+        deductible_mortgage_interest: 14000
         self_employment_income: 141010
         business_is_qualified: true
         business_is_sstb: false

diff --git a/...s/tests/policy/baseline/gov/usda/snap/income/deductions/snap_child_support_deduction.yaml b/...s/tests/policy/baseline/gov/usda/snap/income/deductions/snap_child_support_deduction.yaml
@@ -0,0 +1,15 @@
+- name: 0 out if gross income deduction is present
+  period: 2022
+  input:
+    child_support_expense: 500
+    snap_child_support_gross_income_deduction: 500
+  output:
+    snap_child_support_deduction: 0
+
+- name: Otherwise, full deduction
+  period: 2022
+  input:
+    child_support_expense: 500
+    snap_child_support_gross_income_deduction: 0
+  output:
+    snap_child_support_deduction: 500
diff --git a/policyengine_us/tests/policy/baseline/gov/usda/snap/snap_net_income.yaml b/policyengine_us/tests/policy/baseline/gov/usda/snap/snap_net_income.yaml
@@ -54,3 +54,33 @@
         state_group: CONTIGUOUS_US
   output:
     snap_net_income: 428.5 * 12
+
+- name: SNAP child support deduction integration test
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person_1:
+        age: 30
+        child_support_expense: 500
+      person_2:
+        age: 10
+    spm_units:
+      spm_unit:
+        snap_earned_income: 2_000
+        snap_unearned_income: 0
+        members: [person_1, person_2]
+        snap_standard_deduction: 0
+        snap_earned_income_deduction: 0
+        snap_excess_medical_expense_deduction: 0
+        snap_excess_shelter_expense_deduction: 0
+        snap_dependent_care_deduction: 0
+    households:
+      household:
+        state_code: DC
+  output:
+    snap_child_support_gross_income_deduction: 500
+    snap_gross_income: 1_500
+    snap_child_support_deduction: 0
+    snap_deductions: 0
+    snap_net_income: 1_500
diff --git a/policyengine_us/variables/gov/usda/snap/income/deductions/snap_child_support_deduction.py b/policyengine_us/variables/gov/usda/snap/income/deductions/snap_child_support_deduction.py
@@ -12,4 +12,11 @@ class snap_child_support_deduction(Variable):
     definition_period = MONTH
     reference = "https://www.law.cornell.edu/uscode/text/7/2014#e_4"
 
-    adds = ["child_support_expense"]
+    # Excluding deduction for child support, which is applies to the gross income
+    # calculation
+    def formula(spm_unit, period, parameters):
+        child_support = add(spm_unit, period, ["child_support_expense"])
+        gross_income_deduction = spm_unit(
+            "snap_child_support_gross_income_deduction", period
+        )
+        return max_(child_support - gross_income_deduction, 0)
diff --git a/policyengine_us/variables/household/expense/person/deductible_mortgage_interest.py b/policyengine_us/variables/household/expense/person/deductible_mortgage_interest.py
@@ -0,0 +1,12 @@
+from policyengine_us.model_api import *
+
+
+class deductible_mortgage_interest(Variable):
+    value_type = float
+    entity = Person
+    label = "Deductible mortgage interest"
+    documentation = "Under the interest deduction, the US caps the mortgage value to which interest is applied which based on the year of purchase not tax year."
+    unit = USD
+    definition_period = YEAR
+
+    # This is a placeholder variable until we can implement the full mortgage interest deduction logic
diff --git a/policyengine_us/variables/household/expense/person/interest_expense.py b/policyengine_us/variables/household/expense/person/interest_expense.py
@@ -7,4 +7,5 @@ class interest_expense(Variable):
     label = "Interest paid on all loans"
     unit = USD
     definition_period = YEAR
-    adds = ["mortgage_interest", "non_mortgage_interest"]
+
+    adds = ["deductible_mortgage_interest", "non_mortgage_interest"]
diff --git a/setup.py b/setup.py
@@ -7,7 +7,7 @@
 
 setup(
     name="policyengine-us",
-    version="1.154.1",
+    version="1.156.0",
     author="PolicyEngine",
     author_email="[email protected]",
     long_description=readme,
@@ -34,8 +34,9 @@
         ),
     ],
     install_requires=[
-        "policyengine-core>=3.10.0",
-        "policyengine-us-data==1.13.0",
+        "policyengine-core>=3.14.1",
+        # Removing the > portion of the below will cause circular dep issues in -us-data
+        "policyengine-us-data>=1.13.0",
         "microdf-python>=0.4.3",
         "tqdm",
     ],