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Personal exemption payroll tax #1381

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Personal exemption payroll tax #1381

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1fadefc
Add payroll tax exemption provisions
May 25, 2017
193e28a
Add payroll tax exemptions
May 25, 2017
1759f25
Add payroll tax exemption variables
May 25, 2017
2413023
Fix Pep8 Errors
May 25, 2017
3bc0c04
Fix parameter names
May 25, 2017
1eccc5b
Change variable names
May 25, 2017
69a308d
Update records_variables.json
May 25, 2017
748693e
Update current_law_policy.json
May 25, 2017
02aeab8
Update records_variables.json
May 25, 2017
c466356
Update current_law_policy.json
May 25, 2017
211e06d
Update functions.py
May 25, 2017
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96 changes: 96 additions & 0 deletions taxcalc/current_law_policy.json
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Original file line number Diff line number Diff line change
Expand Up @@ -3190,5 +3190,101 @@
"col_var": "",
"col_label": "",
"value": [0.0]
},

"_FICA_ss_k": {
"long_name": "Social Security payroll tax exemption by number of kids.",
"description": "This is the Social Security payroll tax exemption amount for number of kids. ",
"section_1": "Personal Exemptions",
"section_2": "",
"irs_ref": "",
"notes": "",
"row_var": "FLPDYR",
"row_label": ["2013",
"2014",
"2015",
"2016",
"2017"],
"start_year": 2013,
"cpi_inflated": true,
"col_var": "EIC",
"col_label": ["0kids", "1kid", "2kids", "3+kids"],
"value": [[0, 0, 0, 0],
[0, 0, 0, 0],
[0, 0, 0, 0],
[0, 0, 0, 0],
[0, 0, 0, 0]]
},

"_FICA_mc_k": {
"long_name": "Medicaid payroll tax exemption by number of kids.",
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Medicare not Medicaid.

"description": "This is the Medicaid payroll tax exemption amount for number of kids. ",
"section_1": "Personal Exemptions",
"section_2": "",
"irs_ref": "",
"notes": "",
"row_var": "FLPDYR",
"row_label": ["2013",
"2014",
"2015",
"2016",
"2017"],
"start_year": 2013,
"cpi_inflated": true,
"col_var": "EIC",
"col_label": ["0kids", "1kid", "2kids", "3+kids"],
"value": [[0, 0, 0, 0],
[0, 0, 0, 0],
[0, 0, 0, 0],
[0, 0, 0, 0],
[0, 0, 0, 0]]
},

"_FICA_ss_f": {
"long_name": "Social Security payroll tax exemption by filing status.",
"description": "This is the Social Security payroll tax exemption amount for a given filing status.",
"section_1": "Personal Exemptions",
"section_2": "",
"irs_ref": "",
"notes": "",
"row_var": "FLPDYR",
"row_label": ["2013",
"2014",
"2015",
"2016",
"2017"],
"start_year": 2013,
"cpi_inflated": true,
"col_var": "MARS",
"col_label": ["single", "joint", "separate", "head of household", "widow"],
"value": [[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0]]
},

"_FICA_mc_f": {
"long_name": "Medicaid payroll tax exemption by filing status.",
"description": "This is the Medicaid payroll tax exemption amount for a given filing status.",
"section_1": "Personal Exemptions",
"section_2": "",
"irs_ref": "",
"notes": "",
"row_var": "FLPDYR",
"row_label": ["2013",
"2014",
"2015",
"2016",
"2017"],
"start_year": 2013,
"cpi_inflated": true,
"col_var": "MARS",
"col_label": ["single", "joint", "separate", "head of household", "widow"],
"value": [[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0],
[0, 0, 0, 0, 0]]
}
}
62 changes: 33 additions & 29 deletions taxcalc/functions.py
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Original file line number Diff line number Diff line change
Expand Up @@ -21,7 +21,10 @@ def EI_PayrollTax(SS_Earnings_c, e00200, e00200p, e00200s,
FICA_ss_trt, FICA_mc_trt, ALD_SelfEmploymentTax_hc,
e00900p, e00900s, e02100p, e02100s,
payrolltax, ptax_was, setax, c03260, ptax_oasdi,
sey, earned, earned_p, earned_s):
sey, earned, earned_p, earned_s,
FICA_ss_f, FICA_ss_k, FICA_mc_f, FICA_mc_k,
pte, ss_exemption, mc_exemption,
EIC, MARS):
"""
Compute part of total OASDI+HI payroll taxes and earned income variables.
"""
Expand All @@ -37,22 +40,41 @@ def EI_PayrollTax(SS_Earnings_c, e00200, e00200p, e00200s,
txearn_sey_p = min(max(0., sey_p * sey_frac), SS_Earnings_c - txearn_was_p)
txearn_sey_s = min(max(0., sey_s * sey_frac), SS_Earnings_c - txearn_was_s)

# compute exemption amount for OASDI and HI payroll taxes
ss_exemption = FICA_ss_f[MARS - 1] + FICA_ss_k[EIC]
mc_exemption = FICA_mc_f[MARS - 1] + FICA_mc_k[EIC]

# compute OASDI and HI payroll taxes on wage-and-salary income
ptax_ss_was_p = FICA_ss_trt * txearn_was_p
ptax_ss_was_s = FICA_ss_trt * txearn_was_s
ptax_mc_was_p = FICA_mc_trt * e00200p
ptax_mc_was_s = FICA_mc_trt * e00200s
ptax_ss_was_p = FICA_ss_trt * max(0., txearn_was_p - ss_exemption)
ptax_ss_was_s = FICA_ss_trt * max(0., txearn_was_s - ss_exemption)
ptax_mc_was_p = FICA_mc_trt * max(0., e00200p - mc_exemption)
ptax_mc_was_s = FICA_mc_trt * max(0., e00200s - mc_exemption)
ptax_was = ptax_ss_was_p + ptax_ss_was_s + ptax_mc_was_p + ptax_mc_was_s

# compute self-employment tax on taxable self-employment income
setax_ss_p = FICA_ss_trt * txearn_sey_p
setax_ss_s = FICA_ss_trt * txearn_sey_s
setax_mc_p = FICA_mc_trt * max(0., sey_p * sey_frac)
setax_mc_s = FICA_mc_trt * max(0., sey_s * sey_frac)
setax_ss_p = FICA_ss_trt * max(0., txearn_sey_p - ss_exemption)
setax_ss_s = FICA_ss_trt * max(0., txearn_sey_s - ss_exemption)
setax_mc_p = FICA_mc_trt * max(0., max(0., sey_p * sey_frac) -
mc_exemption)
setax_mc_s = FICA_mc_trt * max(0., max(0., sey_s * sey_frac) -
mc_exemption)
setax_p = setax_ss_p + setax_mc_p
setax_s = setax_ss_s + setax_mc_s
setax = setax_p + setax_s

# compute total earnings exempt from payroll
pte = ((txearn_was_p - max(0., txearn_was_p - ss_exemption)) +
(txearn_was_s - max(0., txearn_was_s - ss_exemption)) +
(e00200p - max(0., e00200p - mc_exemption)) +
(e00200s - max(0., e00200s - mc_exemption)) +
(txearn_sey_p - max(0., txearn_sey_p - ss_exemption)) +
(txearn_sey_s - max(0., txearn_sey_s - ss_exemption)) +
(max(0., sey_p * sey_frac) -
max(0., max(0., sey_p * sey_frac) - mc_exemption)) +
(max(0., sey_s * sey_frac) -
max(0., max(0., sey_s * sey_frac) - mc_exemption)))


# compute part of total regular payroll taxes for filing unit
payrolltax = ptax_was + setax

Expand All @@ -73,8 +95,8 @@ def EI_PayrollTax(SS_Earnings_c, e00200, e00200p, e00200s,
earned_s = max(0., (e00200s + sey_s -
(1. - ALD_SelfEmploymentTax_hc) * 0.5 * setax_s))
return (sey, payrolltax, ptax_was, setax, c03260, ptax_oasdi,
earned, earned_p, earned_s)

earned, earned_p, earned_s,
pte, ss_exemption, mc_exemption)

@iterate_jit(nopython=True)
def DependentCare(nu13, elderly_dependent, earned,
Expand Down Expand Up @@ -1554,21 +1576,3 @@ def ExpandIncome(c00100, ptax_was, e02400, c02500,
employer_fica_share +
nontaxable_ubi) # universal basic income
return expanded_income


@iterate_jit(nopython=True)
def AfterTaxIncome(combined, expanded_income, aftertax_income):
"""
Calculate after tax income

Parameters
----------
combined: combined tax liability
expanded_income: expanded income

Returns
-------
aftertax_income: expanded_income - combined
"""
aftertax_income = expanded_income - combined
return aftertax_income
17 changes: 13 additions & 4 deletions taxcalc/records_variables.json
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Original file line number Diff line number Diff line change
Expand Up @@ -881,11 +881,20 @@
"type": "float",
"desc": "Marginal income tax rate (in percentage terms) on extra taxpayer earnings (e00200p)",
"form": {}
},
"aftertax_income": {
},
"ss_exemption": {
"type": "float",
"desc": "After tax income. Equal to expanded_income - combined",
"desc": "Social Security payroll tax exemption. Equal to _SS_em_f + _SS_em_k",
"form": {}
}
},
"mc_exemption": {
"type": "float",
"desc": "Medicaid payroll tax exemption. Equal to _FICA_em_f + _FICA_em_k",
"form": {}
},
"pte": {
"type": "float",
"desc": "Total income not subject to payroll taxes"
}
}
}