diff --git a/docs/guide/policy_params.md b/docs/guide/policy_params.md index 9bb20f218..622ccb599 100644 --- a/docs/guide/policy_params.md +++ b/docs/guide/policy_params.md @@ -756,41 +756,41 @@ _Out-of-Range Action:_ error #### `CDCC_crt` -_Description:_ The maximum percentage rate for the CDCC; this percentage rate decreases as AGI rises above the CDCC_ps level. +_Description:_ The maximum rate for the CDCC; this rate decreases as AGI rises above the CDCC_ps level. _Has An Effect When Using:_ _PUF data:_ True _CPS data:_ True _Can Be Inflation Indexed:_ False _Is Inflation Indexed:_ False _Value Type:_ float _Known Values:_ -2013: 35.0 -2014: 35.0 -2015: 35.0 -2016: 35.0 -2017: 35.0 -2018: 35.0 -2019: 35.0 -_Valid Range:_ min = 0 and max = 100 +2013: 0.35 +2014: 0.35 +2015: 0.35 +2016: 0.35 +2017: 0.35 +2018: 0.35 +2019: 0.35 +_Valid Range:_ min = 0 and max = 1 _Out-of-Range Action:_ error #### `CDCC_frt` -_Description:_ The minimum percentage rate for the first AGI phaseout of the CDCC. +_Description:_ The minimum rate for the first AGI phaseout of the CDCC. _Has An Effect When Using:_ _PUF data:_ True _CPS data:_ True _Can Be Inflation Indexed:_ False _Is Inflation Indexed:_ False _Value Type:_ float _Known Values:_ -2013: 20.0 -2014: 20.0 -2015: 20.0 -2016: 20.0 -2017: 20.0 -2018: 20.0 -2019: 20.0 -_Valid Range:_ min = 0 and max = 100 +2013: 0.20 +2014: 0.20 +2015: 0.20 +2016: 0.20 +2017: 0.20 +2018: 0.20 +2019: 0.20 +_Valid Range:_ min = 0 and max = 1 _Out-of-Range Action:_ error #### `CDCC_prt` -_Description:_ The CDCC credit rate is reduced by this many percentage points for each dollary of AGI over the phase-out thresholds. +_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. _Has An Effect When Using:_ _PUF data:_ True _CPS data:_ True _Can Be Inflation Indexed:_ False _Is Inflation Indexed:_ False diff --git a/taxcalc/calcfunctions.py b/taxcalc/calcfunctions.py index b4dd79d23..c57de0b72 100644 --- a/taxcalc/calcfunctions.py +++ b/taxcalc/calcfunctions.py @@ -2119,15 +2119,23 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800, c00100: float Adjusted Gross Income (AGI) CDCC_ps: float - Child/dependent care credit phaseout start + Child/dependent care credit first phaseout start + CDCC_ps2: float + Child/dependent care credit second phaseout start CDCC_crt: float - Child/dependent care credit phaseout percentage rate ceiling + 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 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 ------- @@ -2159,7 +2167,8 @@ def F2441(MARS, earned_p, earned_s, f2441, CDCC_c, e32800, if c00100 > CDCC_ps2: crate = max(0., CDCC_frt - max(((c00100 - CDCC_ps2) * CDCC_prt), 0.)) - c33200 = c33000 * 0.01 * crate + + c33200 = c33000 * crate # credit is limited by tax liability if not refundable if CDCC_refundable: c07180 = 0. diff --git a/taxcalc/policy_current_law.json b/taxcalc/policy_current_law.json index 896813e93..cc6d463b7 100644 --- a/taxcalc/policy_current_law.json +++ b/taxcalc/policy_current_law.json @@ -14063,8 +14063,8 @@ } }, "CDCC_crt": { - "title": "Child & dependent care credit phaseout percentage rate ceiling", - "description": "The maximum percentage rate for the CDCC; this percentage rate decreases as AGI rises above the CDCC_ps level.", + "title": "Child & dependent care credit phaseout rate ceiling", + "description": "The maximum rate for the CDCC; this rate decreases as AGI rises above the CDCC_ps level.", "notes": "", "section_1": "Nonrefundable Credits", "section_2": "Child And Dependent Care", @@ -14074,21 +14074,21 @@ "value": [ { "year": 2013, - "value": 35.0 + "value": 0.350 }, { "year": 2021, - "value": 50.0 + "value": 0.500 }, { "year": 2022, - "value": 35.0 + "value": 0.350 } ], "validators": { "range": { "min": 0, - "max": 100 + "max": 1 } }, "compatible_data": { @@ -14097,8 +14097,8 @@ } }, "CDCC_frt": { - "title": "Child & dependent care credit phaseout percentage rate floor", - "description": "The minimum percentage rate for the first AGI phaseout of the CDCC.", + "title": "Child & dependent care credit phaseout rate floor", + "description": "The minimum rate for the first AGI phaseout of the CDCC.", "notes": "", "section_1": "Nonrefundable Credits", "section_2": "Child And Dependent Care", @@ -14108,13 +14108,13 @@ "value": [ { "year": 2013, - "value": 20.0 + "value": 0.200 } ], "validators": { "range": { "min": 0, - "max": 100 + "max": 1 } }, "compatible_data": { @@ -14123,9 +14123,9 @@ } }, "CDCC_prt": { - "title": "Child & dependent care credit phaseout percentage rate", - "description": "The CDCC credit rate is reduced by this many percentage points for each dollary 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.", + "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", "section_1": "Nonrefundable Credits", "section_2": "Child And Dependent Care", "indexable": false, @@ -14134,7 +14134,7 @@ "value": [ { "year": 2013, - "value": 0.0005 + "value": 5e-06 } ], "validators": { @@ -18104,4 +18104,4 @@ "cps": true } } -} \ No newline at end of file +} diff --git a/taxcalc/tests/test_reforms.py b/taxcalc/tests/test_reforms.py index 0db6aafbc..d1151044d 100644 --- a/taxcalc/tests/test_reforms.py +++ b/taxcalc/tests/test_reforms.py @@ -146,7 +146,7 @@ def test_round_trip_reforms(fyear, tests_path): 'CDCC_c': {2021: 8000, 2022: 3000}, 'CDCC_ps': {2021: 125000, 2022: 15000}, 'CDCC_ps2': {2021: 400000, 2022: 9e+99}, - 'CDCC_crt': {2021: 50.0, 2022: 35.0}, + 'CDCC_crt': {2021: 0.500, 2022: 0.350}, 'CDCC_refundable': {2021: True, 2022: False}, 'ALD_BusinessLosses_c': { 2026: [283535.22, 567070.42, 283535.22, 283535.22, 567070.42],