Merge pull request #2677 from MattHJensen/ctc_odc_fix

Fixes 2021 child and other dependent credits

taxcalc/calcfunctions.py

@@ -2508,7 +2508,7 @@ def ChildDepTaxCredit(age_head, age_spouse, nu18, n24, MARS, c00100, XTOT, num,
         line15 = max(0., line13 - line14)
         if CTC_refundable:
             c07220 = line10 * line1 / line3
-            odc = min(max(0., line10 - c07220), line15)
+            odc = max(0., line10 - c07220)
             codtc_limited = max(0., line10 - c07220 - odc)
         else:
             line16 = min(line10, line15)  # credit is capped by tax liability
@@ -2987,9 +2987,9 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
     if not CTC_refundable:
         c07220 = min(c07220, avail)
         avail = avail - c07220
-    # Other dependent credit
-    odc = min(odc, avail)
-    avail = avail - odc
+        # Other dependent credit
+        odc = min(odc, avail)
+        avail = avail - odc
     # Residential energy credit - Form 5695
     c07260 = min(e07260 * (1. - CR_ResidentialEnergy_hc), avail)
     avail = avail - c07260
@@ -3018,7 +3018,7 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
 @iterate_jit(nopython=True)
 def AdditionalCTC(codtc_limited, ACTC_c, n24, earned, ACTC_Income_thd,
                   ACTC_rt, nu06, ACTC_rt_bonus_under6family, ACTC_ChildNum,
-                  CTC_refundable, CTC_include17, XTOT, n21, n1820, num,
+                  CTC_refundable, CTC_include17, age_head, age_spouse, MARS, nu18,
                   ptax_was, c03260, e09800, c59660, e11200,
                   c11070):
     """
@@ -3070,7 +3070,9 @@ def AdditionalCTC(codtc_limited, ACTC_c, n24, earned, ACTC_Income_thd,
         line4 = 0.
     else:
         if CTC_include17:
-            childnum = n24 + max(0, XTOT - n21 - n1820 - n24 - num)
+            tu18 = int(age_head < 18)   # taxpayer is under age 18
+            su18 = int(MARS == 2 and age_spouse < 18)  # spouse is under age 18
+            childnum = n24 + max(0, nu18 - tu18 - su18 - n24)
         else:
             childnum = n24
         line4 = ACTC_c * childnum
@@ -3182,7 +3184,7 @@ def CTC_new(CTC_new_c, CTC_new_rt, CTC_new_c_under6_bonus,
             CTC_new_ps, CTC_new_prt, CTC_new_for_all, CTC_include17,
             CTC_new_refund_limited, CTC_new_refund_limit_payroll_rt,
             CTC_new_refund_limited_all_payroll, payrolltax,
-            n24, nu06, XTOT, n21, n1820, num, c00100, MARS, ptax_oasdi,
+            n24, nu06, age_head, age_spouse, nu18, c00100, MARS, ptax_oasdi,
             c09200, ctc_new):
     """
     Computes new refundable child tax credit using specified parameters.
@@ -3231,7 +3233,9 @@ def CTC_new(CTC_new_c, CTC_new_rt, CTC_new_c_under6_bonus,
         New refundable child tax credit
     """
     if CTC_include17:
-        childnum = n24 + max(0, XTOT - n21 - n1820 - n24 - num)
+            tu18 = int(age_head < 18)   # taxpayer is under age 18
+            su18 = int(MARS == 2 and age_spouse < 18)  # spouse is under age 18
+            childnum = n24 + max(0, nu18 - tu18 - su18 - n24)
     else:
         childnum = n24
     if childnum > 0:

taxcalc/tests/cpscsv_agg_expect.csv

@@ -12,15 +12,15 @@ AMT Income ($b),8319.8,10262.1,10680.1,10960.7,12145.1,12934.9,13548.0,13998.9,1
 AMT Liability ($b),8.1,0.8,0.7,0.6,1.1,1.1,1.1,1.0,1.0,16.5
 AMT Filers (#m),2.6,0.2,0.2,0.1,0.2,0.2,0.2,0.2,0.2,4.0
 Tax before Credits ($b),1116.0,1380.6,1449.4,1491.9,1701.9,1844.3,1912.5,1976.5,2050.4,2248.8
-Refundable Credits ($b),70.8,102.4,102.7,655.6,821.5,97.5,103.6,106.0,107.9,94.0
-Nonrefundable Credits ($b),32.7,97.2,99.1,99.3,2.2,108.2,108.8,109.9,111.3,31.0
+Refundable Credits ($b),70.8,102.4,102.7,655.6,825.7,97.5,103.6,106.0,107.9,94.0
+Nonrefundable Credits ($b),32.7,97.2,99.1,99.3,3.3,108.2,108.8,109.9,111.3,31.0
 Reform Surtaxes ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0
 Other Taxes ($b),5.5,10.7,11.3,11.4,11.7,12.6,14.0,15.2,16.3,17.3
-Ind Income Tax ($b),1018.1,1191.7,1258.9,748.3,890.0,1651.2,1714.1,1775.8,1847.5,2141.1
+Ind Income Tax ($b),1018.1,1191.7,1258.9,748.3,885.8,1651.2,1714.1,1775.8,1847.5,2141.1
 Payroll Taxes ($b),1040.8,1141.6,1194.9,1217.1,1325.3,1430.9,1502.4,1556.3,1609.9,1669.5
-Combined Liability ($b),2059.0,2333.2,2453.8,1965.4,2215.3,3082.2,3216.5,3332.1,3457.4,3810.6
-With Income Tax <= 0 (#m),88.1,96.2,97.0,135.3,127.8,96.0,97.8,98.8,99.8,97.9
-With Combined Tax <= 0 (#m),62.8,65.4,66.4,98.3,97.8,67.9,69.3,70.3,71.4,70.9
+Combined Liability ($b),2059.0,2333.2,2453.8,1965.4,2211.1,3082.2,3216.5,3332.1,3457.4,3810.6
+With Income Tax <= 0 (#m),88.1,96.2,97.0,135.3,127.9,96.0,97.8,98.8,99.8,97.9
+With Combined Tax <= 0 (#m),62.8,65.4,66.4,98.3,98.0,67.9,69.3,70.3,71.4,70.9
 UBI Benefits ($b),0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0,0.0
 "Total Benefits, Consumption Value ($b)",2790.7,3225.5,3428.6,3617.9,4011.6,4069.6,4332.7,4602.1,4879.9,5163.2
 Total Benefits Cost ($b),2790.7,3225.5,3428.6,3617.9,4011.6,4069.6,4332.7,4602.1,4879.9,5163.2

taxcalc/tests/test_calcfunctions.py

@@ -617,37 +617,206 @@ def test_TaxInc(test_tuple, expected_value, skip_jit):
     assert np.allclose(test_value, expected_value)
 
 
+# parameterization represents 2021 law
+age_head = 45
+age_spouse = 0
+nu18 = 0
+n24 = 0
+MARS = 4
+c00100 = 1000
+XTOT = 3
+num = 1
+c05800 = 0
+e07260 = 0
+CR_ResidentialEnergy_hc = 0.0
+e07300 = 0
+CR_ForeignTax_hc = 0.0
+c07180 = 0
+c07230 = 0
+e07240 = 0
+CR_RetirementSavings_hc = 0.0
+c07200 = 0
+CTC_c = 2000
+CTC_ps = [200000.0, 400000.0, 200000.0, 200000.0, 400000.0]
+CTC_prt = 0.05
+exact = False
+ODC_c = 500
+CTC_c_under6_bonus = 0.0
+nu06 = 0
+CTC_refundable = True
+CTC_include17 = True
+c07220 = 0  # actual value will be returned from function
+odc = 0  # actual value will be returned from function
+codtc_limited = 0 # actual value will be returned from function
+tuple0 = (
+    age_head, age_spouse, nu18, n24, MARS, c00100, XTOT, num,
+    c05800, e07260, CR_ResidentialEnergy_hc,
+    e07300, CR_ForeignTax_hc,
+    c07180,
+    c07230,
+    e07240, CR_RetirementSavings_hc,
+    c07200,
+    CTC_c, CTC_ps, CTC_prt, exact, ODC_c,
+    CTC_c_under6_bonus, nu06,
+    CTC_refundable, CTC_include17,
+    c07220, odc, codtc_limited)
+# output tuple is : (c07220, odc, codtc_limited)
+expected0 = (0, 1000, 0)
+
+
+@pytest.mark.parametrize(
+    'test_tuple,expected_value', [
+        (tuple0, expected0)])
+def test_ChildDepTaxCredit_2021(test_tuple, expected_value, skip_jit):
+    """
+    Tests the ChildDepTaxCredit function
+    """
+    test_value = calcfunctions.ChildDepTaxCredit(*test_tuple)
+    assert np.allclose(test_value, expected_value)
 
+# parameterization represents 2022 law
+age_head = 45
+age_spouse = 0
+nu18 = 0
+n24 = 0
 MARS = 4
-DSI = 0
-EIC = 3
-c00100 = 19330
-e00300 = 0
-e00400 = 0
-e00600 = 0
-c01000 = 0
-e02000 = 0
-e26270 = 0
-age_head = 0
+c00100 = 1000
+XTOT = 3
+num = 1
+c05800 = 0
+e07260 = 0
+CR_ResidentialEnergy_hc = 0.0
+e07300 = 0
+CR_ForeignTax_hc = 0.0
+c07180 = 0
+c07230 = 0
+e07240 = 0
+CR_RetirementSavings_hc = 0.0
+c07200 = 0
+CTC_c = 2000
+CTC_ps = [200000.0, 400000.0, 200000.0, 200000.0, 400000.0]
+CTC_prt = 0.05
+exact = False
+ODC_c = 500
+CTC_c_under6_bonus = 0.0
+nu06 = 0
+CTC_refundable = False
+CTC_include17 = False
+c07220 = 0  # actual value will be returned from function
+odc = 0  # actual value will be returned from function
+codtc_limited = 0 # actual value will be returned from function
+tuple0 = (
+    age_head, age_spouse, nu18, n24, MARS, c00100, XTOT, num,
+    c05800, e07260, CR_ResidentialEnergy_hc,
+    e07300, CR_ForeignTax_hc,
+    c07180,
+    c07230,
+    e07240, CR_RetirementSavings_hc,
+    c07200,
+    CTC_c, CTC_ps, CTC_prt, exact, ODC_c,
+    CTC_c_under6_bonus, nu06,
+    CTC_refundable, CTC_include17,
+    c07220, odc, codtc_limited)
+# output tuple is : (c07220, odc, codtc_limited)
+expected0 = (0, 0, 1000)
+
+
+@pytest.mark.parametrize(
+    'test_tuple,expected_value', [
+        (tuple0, expected0)])
+def test_ChildDepTaxCredit_2022(test_tuple, expected_value, skip_jit):
+    """
+    Tests the ChildDepTaxCredit function
+    """
+    test_value = calcfunctions.ChildDepTaxCredit(*test_tuple)
+    assert np.allclose(test_value, expected_value)
+
+# parameterization represents 2021 law
+CTC_new_c = 1000
+CTC_new_rt = 0
+CTC_new_c_under6_bonus = 600
+CTC_new_ps = [75000, 150000, 75000, 125000, 150000]
+CTC_new_prt = 0.05
+CTC_new_for_all = True
+CTC_include17 = True
+CTC_new_refund_limited = False
+CTC_new_refund_limit_payroll_rt = 0.0
+CTC_new_refund_limited_all_payroll = False
+payrolltax = 0
+n24 = 0
+nu06 = 0
+age_head = 45
 age_spouse = 0
-earned = 19330
-earned_p = 19330
-earned_s = 0
-EITC_ps = [8790, 19330, 19330, 19330]
-EITC_MinEligAge = 25
-EITC_MaxEligAge = 64
-EITC_ps_MarriedJ = [5980, 5980, 5980, 6250]
-EITC_rt = [0.0765, 0.34, 0.4, 0.45]
-EITC_c = [538, 3584, 5920, 6660]
-EITC_prt = [0.0765, 0.1598, 0.2106, 0.2106]
-EITC_basic_frac = 0.0
-EITC_InvestIncome_c = 3650
-EITC_excess_InvestIncome_rt = 9e+99
-EITC_indiv = False
-EITC_sep_filers_elig = False
-e02300 = 10200
-UI_thd = [150000, 150000, 150000, 150000, 150000]
-UI_em = 10200
+nu18 = 0
+num = 1
+c00100 = 1000
+MARS = 4
+ptax_oasdi = 0
+c09200 = 0
+ctc_new = 0 # actual value will be returned from function
+tuple0 = (
+    CTC_new_c, CTC_new_rt, CTC_new_c_under6_bonus,
+    CTC_new_ps, CTC_new_prt, CTC_new_for_all, CTC_include17,
+    CTC_new_refund_limited, CTC_new_refund_limit_payroll_rt,
+    CTC_new_refund_limited_all_payroll, payrolltax,
+    n24, nu06, age_head, age_spouse, nu18, c00100, MARS, ptax_oasdi,
+    c09200, ctc_new)
+# output tuple is : (ctc_new)
+expected0 = (0)
+
+@pytest.mark.parametrize(
+    'test_tuple,expected_value', [
+        (tuple0, expected0)])
+def test_CTCnew_2021(test_tuple, expected_value, skip_jit):
+    """
+    Tests the CTCnew function
+    """
+    test_value = calcfunctions.CTC_new(*test_tuple)
+    assert np.allclose(test_value, expected_value)
+
+# parameterization represents 2022 law
+CTC_new_c = 0
+CTC_new_rt = 0
+CTC_new_c_under6_bonus = 0
+CTC_new_ps = [0, 0, 0, 0, 0]
+CTC_new_prt = 0
+CTC_new_for_all = False
+CTC_include17 = False
+CTC_new_refund_limited = False
+CTC_new_refund_limit_payroll_rt = 0.0
+CTC_new_refund_limited_all_payroll = False
+payrolltax = 0
+n24 = 0
+nu06 = 0
+age_head = 45
+age_spouse = 0
+nu18 = 0
+num = 1
+c00100 = 1000
+MARS = 4
+ptax_oasdi = 0
+c09200 = 0
+ctc_new = 0 # actual value will be returned from function
+tuple0 = (
+    CTC_new_c, CTC_new_rt, CTC_new_c_under6_bonus,
+    CTC_new_ps, CTC_new_prt, CTC_new_for_all, CTC_include17,
+    CTC_new_refund_limited, CTC_new_refund_limit_payroll_rt,
+    CTC_new_refund_limited_all_payroll, payrolltax,
+    n24, nu06, age_head, age_spouse, nu18, c00100, MARS, ptax_oasdi,
+    c09200, ctc_new)
+# output tuple is : (ctc_new)
+expected0 = (0)
+
+@pytest.mark.parametrize(
+    'test_tuple,expected_value', [
+        (tuple0, expected0)])
+def test_CTCnew_2022(test_tuple, expected_value, skip_jit):
+    """
+    Tests the CTCnew function
+    """
+    test_value = calcfunctions.CTC_new(*test_tuple)
+    assert np.allclose(test_value, expected_value)
+
 
 
 ymod1 = 19330 + 10200
@@ -688,4 +857,5 @@ def test_AGI(test_tuple, expected_value, skip_jit):
     """
     test_value = calcfunctions.AGI(*test_tuple)
     print('Returned from agi function: ', test_value)
-    assert np.allclose(test_value, expected_value)
+    assert np.allclose(test_value, expected_value)
+

taxcalc/tests/test_cpscsv.py

@@ -78,7 +78,7 @@ def test_agg(tests_path, cps_fullsample):
         if cyr == calc_start_year:
             reltol = 0.0232
         else:
-            reltol = 0.0442
+            reltol = 0.0444
         if not np.allclose(taxes_subsample[cyr], taxes_fullsample[cyr],
                            atol=0.0, rtol=reltol):
             reldiff = (taxes_subsample[cyr] / taxes_fullsample[cyr]) - 1.