Merge pull request #2779 from martinholmer/fix-cdcc

Fix CDCC phase-out calculations

taxcalc.egg-info/PKG-INFO

@@ -19,13 +19,6 @@ Classifier: Programming Language :: Python :: 3.12
 Classifier: Topic :: Software Development :: Libraries :: Python Modules
 Description-Content-Type: text/markdown
 License-File: LICENSE
-Requires-Dist: setuptools
-Requires-Dist: numpy
-Requires-Dist: pandas
-Requires-Dist: bokeh
-Requires-Dist: numba
-Requires-Dist: requests
-Requires-Dist: paramtools
 
 | | |
 | --- | --- |

taxcalc/calcfunctions.py

@@ -2136,7 +2136,8 @@ def NetInvIncTax(e00300, e00600, e02000, e26270, c01000,
 @iterate_jit(nopython=True)
 def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
           exact, c00100, CDCC_ps, CDCC_ps2, CDCC_crt, CDCC_frt,
-          CDCC_prt, CDCC_refundable, c05800, e07300, c07180, CDCC_refund):
+          CDCC_po_step_size, CDCC_po_rate_per_step, CDCC_refundable,
+          c05800, e07300, c07180, CDCC_refund):
     """
     Calculates Form 2441 child and dependent care expense credit, c07180.
 
@@ -2166,16 +2167,18 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
         Child/dependent care credit phaseout rate ceiling
     CDCC_frt: float
         Child/dependent care credit phaseout rate floor
-    CDCC_prt: float
-        Child/dependent care credit phaseout rate
+    CDCC_po_step_size: float
+        Child/dependent care credit phaseout AGI step size
+    CDCC_po_rate_per_step: float
+        Child/dependent care credit phaseout rate per step size
+    CDCC_refund: bool
+        Indicator for whether CDCC is refundable
     c05800: float
         Total (regular + AMT) income tax liability before credits
     e07300: float
         Foreign tax credit from Form 1116
     c07180: float
         Credit for child and dependent care expenses from Form 2441
-    CDCC_refund: bool
-        Indicator for whether CDCC is refundable
 
     Returns
     -------
@@ -2192,22 +2195,22 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800,
     else:
         c32890 = earned_p
     c33000 = max(0., min(c32800, min(c32880, c32890)))
-    # credit is limited by AGI-related fraction
+    # credit rate is limited at high AGI
+    # ... first phase-down from CDCC_crt to CDCC_frt
+    steps_fractional = max(0., c00100 - CDCC_ps) / CDCC_po_step_size
     if exact == 1:  # exact calculation as on tax forms
-        # first phase-down from 35 to 20 percent
-        tratio1 = math.ceil(max(((c00100 - CDCC_ps) * CDCC_prt), 0.))
-        crate = max(CDCC_frt, CDCC_crt - min(CDCC_crt - CDCC_frt, tratio1))
-        # second phase-down from 20 percent to zero
-        if c00100 > CDCC_ps2:
-            tratio2 = math.ceil(max(((c00100 - CDCC_ps2) * CDCC_prt), 0.))
-            crate = max(0., CDCC_frt - min(CDCC_frt, tratio2))
+        steps = math.ceil(steps_fractional)
     else:
-        crate = max(CDCC_frt, CDCC_crt -
-                    max(((c00100 - CDCC_ps) * CDCC_prt), 0.))
-        if c00100 > CDCC_ps2:
-            crate = max(0., CDCC_frt -
-                        max(((c00100 - CDCC_ps2) * CDCC_prt), 0.))
-
+        steps = steps_fractional
+    crate = max(CDCC_frt, CDCC_crt - steps * CDCC_po_rate_per_step)
+    # ... second phase-down from CDCC_frt to zero
+    if c00100 > CDCC_ps2:
+        steps_fractional = (c00100 - CDCC_ps2) / CDCC_po_step_size
+        if exact == 1:  # exact calculation as on tax forms
+            steps = math.ceil(steps_fractional)
+        else:
+            steps = steps_fractional
+        crate = max(0., CDCC_frt - steps * CDCC_po_rate_per_step)
     c33200 = c33000 * crate
     # credit is limited by tax liability if not refundable
     if CDCC_refundable:

taxcalc/policy_current_law.json

@@ -16461,10 +16461,36 @@
             "cps": true
         }
     },
-    "CDCC_prt": {
-        "title": "Child & dependent care credit phaseout rate",
-        "description": "The CDCC credit rate is reduced by this many percentage points for each dollar of AGI over the phase-out thresholds.",
-        "notes": "In the law, the credit rate is reduced by 1 percentage point for every $2,000 of AGI over the limit. 0.01 / 2000 = 0.000005",
+    "CDCC_po_step_size": {
+        "title": "Child & dependent care credit phaseout step size",
+        "description": "The CDCC credit rate is reduced by CDCC_po_rate_per_step for each step (including fractional steps) above the phase-out start thresholds.",
+        "notes": "In the law, the credit rate is reduced by 1 percentage point for every $2,000 of AGI over the phase-out start thresholds",
+        "section_1": "Nonrefundable Credits",
+        "section_2": "Child And Dependent Care",
+        "indexable": true,
+        "indexed": false,
+        "type": "float",
+        "value": [
+            {
+                "year": 2013,
+                "value": 2000
+            }
+        ],
+        "validators": {
+            "range": {
+                "min": 0,
+                "max": 9e99
+            }
+        },
+        "compatible_data": {
+            "puf": true,
+            "cps": true
+        }
+    },
+    "CDCC_po_rate_per_step": {
+        "title": "Child & dependent care credit phaseout rate per step",
+        "description": "The CDCC credit rate is reduced by this rate for for each step (including fractional steps) above the phase-out start thresholds.",
+        "notes": "In the law, the credit rate is reduced by 1 percentage point for every $2,000 of AGI over the phase-out start thresholds",
         "section_1": "Nonrefundable Credits",
         "section_2": "Child And Dependent Care",
         "indexable": false,
@@ -16473,7 +16499,7 @@
         "value": [
             {
                 "year": 2013,
-                "value": 5e-06
+                "value": 0.01
             }
         ],
         "validators": {

taxcalc/taxcalcio.py

@@ -518,6 +518,10 @@ def write_output_file(self, output_dump, dump_varset,
                 self.calc, dump_varset, mtr_inctax, mtr_paytax
             )
             column_order = sorted(outdf.columns)
+            # place RECID at start of column_order list
+            assert 'RECID' in column_order, 'RECID not in dump output list'
+            column_order.remove('RECID')
+            column_order.insert(0, 'RECID')
         else:
             outdf = self.minimal_output()
             column_order = outdf.columns

taxcalc/tests/test_taxcalcio.py

@@ -436,7 +436,7 @@ def test_output_options(reformfile1, assumpfile1):
     # --dump output with partial dump
     try:
         tcio.analyze(writing_output_file=True,
-                     dump_varset=set(['combined']),
+                     dump_varset=set(['RECID', 'combined']),
                      output_dump=True)
     except Exception:  # pylint: disable=broad-except
         if os.path.isfile(outfilepath):