South Carolina retirement deduction

changelog_entry.yaml

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+- bump: minor
+  changes:
+    added:
+    - South Carolina retirement deduction.
+    - South Carolina military retirement deduction.

policyengine_us/parameters/gov/states/sc/tax/income/subtractions/retirement/cap.yaml

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+description: South Carolina caps the retirement deduction at this amount, based on age. 
+
+metadata:
+  threshold_unit: year
+  amount_unit: currency_USD
+  type: single_amount
+  reference:
+    - title: South Carolina State SECTION 12-6-1170(B)
+      href: https://www.scstatehouse.gov/code/t12c006.php
+    - title: South Carolina State SECTION 12-6-1170(A)(1)
+      href: https://www.scstatehouse.gov/code/t12c006.php
+    - title: South Carolina State SECTION 12-6-1170(A)(1) 
+      href: https://www.scstatehouse.gov/code/t12c006.php
+    - title: Instructions for Form SC-1040 (line 3p)
+      href: https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=16
+    - title: SC-1040 2021
+      href: https://dor.sc.gov/forms-site/Forms/SC1040_2021.pdf#page=2
+    - title: SC-1040 2022
+      href: https://dor.sc.gov/forms-site/Forms/SC1040_2022.pdf#page=2
+  period: year
+  label: South Carolina retirement deduction cap
+
+brackets:
+  - threshold:
+      2021-01-01: 0
+    amount:
+      2021-01-01: 3_000
+  - threshold:
+      2021-01-01: 65
+    amount: 
+      2021-01-01: 10_000

policyengine_us/parameters/gov/states/sc/tax/income/subtractions/retirement/subtract_military.yaml

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+description: South Carolina subtracts the survivors retirement deduction from the military retirement deduction if this is true.
+metadata:
+  unit: bool
+  label: South Carolina choice to subtract survivors retirement deduction from military retirement deduction 
+  reference: 
+  - title: Instructions for Form SC-1040 (line 3p)
+    href: https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=17
+  - title: Instructions for Form SC-1040 (line 3p)
+    href: https://dor.sc.gov/forms-site/Forms/IITPacket_2022.pdf#page=19
+  - title: SC-1040 2021
+    href: https://dor.sc.gov/forms-site/Forms/SC1040_2021.pdf#page=2
+  - title: SC-1040 2022
+    href: https://dor.sc.gov/forms-site/Forms/SC1040_2022.pdf#page=2
+  # The law indicates the 2022 case. We model calculation of the survivors retirement deduction in 2021 based on the tax form, 
+  # where the retirement deduction is subtracts from military retirement deduction. 
+  - title: South Carolina State SECTION 12-6-1170(C)(1)
+    href: https://www.scstatehouse.gov/code/t12c006.php
+
+values:
+  2021-01-01: true
+  2022-01-01: false

policyengine_us/tests/policy/baseline/gov/states/sc/tax/income/subtractions/military_retirement/sc_military_deduction_indv.yaml

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+- name: Case 1, indiviaul is head or spouse with military retirement pay of $4,000.
+  period: 2022
+  input:
+    military_retirement_pay: 4_000
+    is_tax_unit_head_or_spouse: true
+    state_code: SC
+  output:
+    sc_military_deduction_indv: 4_000
+
+- name: Case 2, indiviaul is neither head nor spouse with military retirement pay of $5,000.
+  period: 2022
+  input:
+    military_retirement_pay: 5_000
+    is_tax_unit_head_or_spouse: false
+    state_code: SC
+  output:
+    sc_military_deduction_indv: 0

policyengine_us/tests/policy/baseline/gov/states/sc/tax/income/subtractions/military_retirement/sc_military_deduction_survivors.yaml

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+- name: Case 1, one deceased spouse
+  period: 2022
+  input:
+    military_retirement_pay_survivors: 11_000
+    state_code: SC
+  output:
+    sc_military_deduction_survivors: 11_000

policyengine_us/tests/policy/baseline/gov/states/sc/tax/income/subtractions/retirement/sc_retirement_cap.yaml

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+- name: Case 1, above age threshold.
+  period: 2022
+  input:
+    age: 70
+    state_code: SC
+  output:
+    sc_retirement_cap: 10_000
+
+- name: Case 2, below age threshold.
+  period: 2022
+  input:
+    age: 64
+    state_code: SC
+  output:
+    sc_retirement_cap: 3_000
+
+- name: Case 3, at age threshold.
+  period: 2022
+  input:
+    age: 65
+    state_code: SC
+  output:
+    sc_retirement_cap: 10_000

policyengine_us/tests/policy/baseline/gov/states/sc/tax/income/subtractions/retirement/sc_retirement_deduction_indv.yaml

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+- name: Case 1, above age threshold, military retirement deduction higher than cap.
+  period: 2022
+  input:
+    taxable_pension_income: 1_000
+    military_retirement_pay: 11_000
+    age: 70
+    is_tax_unit_head_or_spouse: true
+    state_code: SC
+  output:
+    sc_retirement_deduction_indv: 0
+
+- name: Case 2, below age threshold, military retirement deduction higher than cap.
+  period: 2022
+  input:
+    taxable_pension_income: 1_000
+    military_retirement_pay: 4_000
+    age: 64
+    is_tax_unit_head_or_spouse: true
+    state_code: SC
+  output:
+    sc_retirement_deduction_indv: 0
+
+- name: Case 3, above age threshold, military retirement deduction lower than cap.
+  period: 2022
+  input:
+    taxable_pension_income: 7_000
+    military_retirement_pay: 6_000
+    age: 70
+    is_tax_unit_head_or_spouse: true
+    state_code: SC
+  output:
+    sc_retirement_deduction_indv: 4_000
+
+- name: Case 4, below age threshold, military retirement deduction lower than cap.
+  period: 2022
+  input:
+    taxable_pension_income: 500
+    military_retirement_pay: 2_000
+    age: 64
+    is_tax_unit_head_or_spouse: true
+    state_code: SC
+  output:
+    sc_retirement_deduction_indv: 500

policyengine_us/tests/policy/baseline/gov/states/sc/tax/income/subtractions/retirement/sc_retirement_deduction_survivors.yaml

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+- name: Case 1, in 2022, above age threshold
+  period: 2022
+  input:
+    pension_survivors: 1_000
+    military_retirement_pay_survivors: 4_000
+    age: 70
+    state_code: SC
+  output:
+    sc_retirement_deduction_survivors: 1_000
+
+- name: Case 2, in 2022, below age threshold
+  period: 2022
+  input:
+    pension_survivors: 4_000
+    military_retirement_pay_survivors: 6_000
+    age: 64
+    state_code: SC
+  output:
+    sc_retirement_deduction_survivors: 3_000
+
+- name: Case 3, in 2021, above age threshold
+  period: 2021
+  input:
+    pension_survivors: 2_000
+    military_retirement_pay_survivors: 4_000
+    age: 70
+    state_code: SC
+  output:
+    sc_retirement_deduction_survivors: 2_000
+
+- name: Case 4, in 2021, below age threshold
+  period: 2021
+  input:
+    pension_survivors: 4_000
+    military_retirement_pay_survivors: 6_000
+    age: 64
+    state_code: SC
+  output:
+    sc_retirement_deduction_survivors: 0

policyengine_us/variables/gov/states/sc/tax/income/subtractions/military_retirement/sc_military_deduction.py

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+from policyengine_us.model_api import *
+
+
+class sc_military_deduction(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "South Carolina military retirement deduction"
+    defined_for = StateCode.SC
+    unit = USD
+    reference = (
+        "https://www.scstatehouse.gov/code/t12c006.php",  # SECTION 12-6-1171(A)
+        "https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=17",
+    )
+    definition_period = YEAR
+
+    adds = [
+        "sc_military_deduction_indv",  # p4, p5
+        "sc_military_deduction_survivors",  # p6
+    ]

policyengine_us/variables/gov/states/sc/tax/income/subtractions/military_retirement/sc_military_deduction_indv.py

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+from policyengine_us.model_api import *
+
+
+class sc_military_deduction_indv(Variable):
+    value_type = float
+    entity = Person
+    label = "South Carolina military deduction for eligible individuals"
+    unit = USD
+    reference = (
+        "https://www.scstatehouse.gov/code/t12c006.php",  # SECTION 12-6-1171(A)
+        "https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=17",
+    )
+    definition_period = YEAR
+
+    def formula(person, period, parameters):
+        head_or_spouse = person("is_tax_unit_head_or_spouse", period)
+        return person("military_retirement_pay", period) * head_or_spouse

policyengine_us/variables/gov/states/sc/tax/income/subtractions/military_retirement/sc_military_deduction_survivors.py

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+from policyengine_us.model_api import *
+
+
+class sc_military_deduction_survivors(Variable):
+    value_type = float
+    entity = Person
+    label = "South Carolina military retirement deduction for survivors"
+    defined_for = StateCode.SC
+    unit = USD
+    reference = (
+        "https://www.scstatehouse.gov/code/t12c006.php",  # SECTION 12-6-1171(C)
+        "https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=17",
+    )
+    definition_period = YEAR
+
+    def formula(person, period, parameters):
+        return person("military_retirement_pay_survivors", period)

policyengine_us/variables/gov/states/sc/tax/income/subtractions/retirement/sc_retirement_cap.py

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+from policyengine_us.model_api import *
+
+
+class sc_retirement_cap(Variable):
+    value_type = float
+    entity = Person
+    unit = USD
+    definition_period = YEAR
+
+    def formula(person, period, parameters):
+        p = parameters(period).gov.states.sc.tax.income.subtractions.retirement
+        age = person("age", period)
+        return p.cap.calc(age)

policyengine_us/variables/gov/states/sc/tax/income/subtractions/retirement/sc_retirement_deduction.py

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+from policyengine_us.model_api import *
+
+
+class sc_retirement_deduction(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "South Carolina retirement deduction"
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.SC
+
+    adds = [
+        "sc_retirement_deduction_indv",  # p1,p2
+        "sc_retirement_deduction_survivors",  # p3
+    ]

policyengine_us/variables/gov/states/sc/tax/income/subtractions/retirement/sc_retirement_deduction_indv.py

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+from policyengine_us.model_api import *
+
+
+class sc_retirement_deduction_indv(Variable):
+    value_type = float
+    entity = Person
+    label = "South Carolina retirement deduction for eligible individuals"
+    unit = USD
+    reference = (
+        "https://www.scstatehouse.gov/code/t12c006.php",  # SECTION 12-6-1170(A)(1)
+        "https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=17",
+    )
+    definition_period = YEAR
+
+    def formula(person, period, parameters):
+        p = parameters(period).gov.states.sc.tax.income.subtractions.retirement
+        age = person("age", period)
+        head_or_spouse = person("is_tax_unit_head_or_spouse", period)
+        # line 1
+        max_deduction_allowed = p.cap.calc(age)
+        # line 2
+        military_retirement_pay = person("military_retirement_pay", period)
+        # line 3
+        retirement_deduction_available = max_(
+            max_deduction_allowed - military_retirement_pay, 0
+        )
+        # line 4
+        retirement_income = (
+            person("taxable_pension_income", period) * head_or_spouse
+        )
+        # line 5
+        return min_(retirement_deduction_available, retirement_income)

policyengine_us/variables/gov/states/sc/tax/income/subtractions/retirement/sc_retirement_deduction_survivors.py

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+from policyengine_us.model_api import *
+
+
+class sc_retirement_deduction_survivors(Variable):
+    value_type = float
+    entity = Person
+    label = "South Carolina retirement deduction for survivors"
+    defined_for = StateCode.SC
+    unit = USD
+    reference = (
+        "https://www.scstatehouse.gov/code/t12c006.php",  # SECTION 12-6-1170(A)(1)
+        "https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=17",
+    )
+    definition_period = YEAR
+
+    def formula(person, period, parameters):
+        p = parameters(period).gov.states.sc.tax.income.subtractions.retirement
+        age = person("age", period)
+        # line 1
+        max_deduction_allowed = p.cap.calc(age)
+        # line 2
+        military_retirement_pay_survivors = person(
+            "military_retirement_pay_survivors", period
+        )
+        # line 3
+        retirement_deduction_available = max_(
+            max_deduction_allowed - military_retirement_pay_survivors, 0
+        )
+        # line 4
+        retirement_income_survivors = person("pension_survivors", period)
+        # In 2021, South Carolina subtracts the survivors retirement deduction from the military retirement deduction
+        # In 2022, it does not
+        cap = (
+            retirement_deduction_available
+            if p.subtract_military
+            else max_deduction_allowed
+        )
+        return min_(retirement_income_survivors, cap)

policyengine_us/variables/household/income/person/pensions/military_retirement_pay_survivors.py

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+from policyengine_us.model_api import *
+
+
+class military_retirement_pay_survivors(Variable):
+    value_type = float
+    entity = Person
+    label = "Military retirement income paid to surviving spouses"
+    unit = USD
+    definition_period = YEAR