Source code for taxcalc.calcfunctions

"""
Tax-Calculator functions that calculate payroll and individual income taxes.

These functions are imported into the Calculator class.

Note: the parameter_indexing_CPI_offset policy parameter is the only
policy parameter that does not appear here; it is used in the policy.py
file to possibly adjust the price inflation rate used to index policy
parameters (as would be done in a reform that introduces chained-CPI
indexing).
"""
# CODING-STYLE CHECKS:
# pycodestyle calcfunctions.py
# pylint --disable=locally-disabled calcfunctions.py
#
# pylint: disable=too-many-lines
# pylint: disable=invalid-name
# pylint: disable=too-many-arguments
# pylint: disable=too-many-locals

import math
import copy
import numpy as np
from taxcalc.decorators import iterate_jit, JIT


[docs]def BenefitPrograms(calc): """ Calculate total government cost and consumption value of benefits delivered by non-repealed benefit programs. Parameters ---------- calc: Calculator object calc represents the reform while self represents the baseline Returns ------- None: The function modifies calc """ # zero out benefits delivered by repealed programs zero = np.zeros(calc.array_len) if calc.policy_param('BEN_housing_repeal'): calc.array('housing_ben', zero) if calc.policy_param('BEN_ssi_repeal'): calc.array('ssi_ben', zero) if calc.policy_param('BEN_snap_repeal'): calc.array('snap_ben', zero) if calc.policy_param('BEN_tanf_repeal'): calc.array('tanf_ben', zero) if calc.policy_param('BEN_vet_repeal'): calc.array('vet_ben', zero) if calc.policy_param('BEN_wic_repeal'): calc.array('wic_ben', zero) if calc.policy_param('BEN_mcare_repeal'): calc.array('mcare_ben', zero) if calc.policy_param('BEN_mcaid_repeal'): calc.array('mcaid_ben', zero) if calc.policy_param('BEN_oasdi_repeal'): calc.array('e02400', zero) if calc.policy_param('BEN_ui_repeal'): calc.array('e02300', zero) if calc.policy_param('BEN_other_repeal'): calc.array('other_ben', zero) # calculate government cost of all benefits cost = np.array( calc.array('housing_ben') + calc.array('ssi_ben') + calc.array('snap_ben') + calc.array('tanf_ben') + calc.array('vet_ben') + calc.array('wic_ben') + calc.array('mcare_ben') + calc.array('mcaid_ben') + calc.array('e02400') + calc.array('e02300') + calc.array('ubi') + calc.array('other_ben') ) calc.array('benefit_cost_total', cost) # calculate consumption value of all benefits # (assuming that cash benefits have full value) value = np.array( calc.array('housing_ben') * calc.consump_param('BEN_housing_value') + calc.array('ssi_ben') + calc.array('snap_ben') * calc.consump_param('BEN_snap_value') + calc.array('tanf_ben') * calc.consump_param('BEN_tanf_value') + calc.array('vet_ben') * calc.consump_param('BEN_vet_value') + calc.array('wic_ben') * calc.consump_param('BEN_wic_value') + calc.array('mcare_ben') * calc.consump_param('BEN_mcare_value') + calc.array('mcaid_ben') * calc.consump_param('BEN_mcaid_value') + calc.array('e02400') + calc.array('e02300') + calc.array('ubi') + calc.array('other_ben') * calc.consump_param('BEN_other_value') ) calc.array('benefit_value_total', value)
@iterate_jit(nopython=True) def EI_PayrollTax(SS_Earnings_c, e00200p, e00200s, pencon_p, pencon_s, FICA_ss_trt, FICA_mc_trt, ALD_SelfEmploymentTax_hc, SS_Earnings_thd, e00900p, e00900s, e02100p, e02100s, k1bx14p, k1bx14s, payrolltax, ptax_was, setax, c03260, ptax_oasdi, sey, earned, earned_p, earned_s, was_plus_sey_p, was_plus_sey_s): """ Compute part of total OASDI+HI payroll taxes and earned income variables. Parameters ---------- SS_Earnings_c: float Maximum taxable earnings for Social Security. Individual earnings below this amount are subjected to OASDI payroll tax. This parameter is indexed by rate of growth in average wages not by the price inflation rate. e00200p: float Wages, salaries, and tips for taxpayer net of pension contributions e00200s: float Wages, salaries, and tips for spouse net of pension contributions pencon_p: float Contributions to defined-contribution pension plans for taxpayer pencon_s: float Contributions to defined-contribution pension plans for spouse FICA_ss_trt: float Social security payroll tax rate, including both employer and employee FICA_mc_trt: float Medicare payroll tax rate, including both employer and employee ALD_SelfEmploymentTax_hc: float Adjustment for self-employment tax haircut If greater than zero, reduces the employer equivalent portion of self-employment adjustment Final adjustment amount = (1-Haircut)*SelfEmploymentTaxAdjustment SS_Earnings_thd: float Additional taxable earnings threshold for Social Security Individual earnings above this threshold are subjected to OASDI payroll tax, in addtion to earnings below the maximum taxable earnings threshold. e00900p: float Schedule C business net profit/loss for taxpayer e00900s: float Schedule C business net profit/loss for spouse e02100p: float Farm net income/loss for taxpayer e02100s: float Farm net income/loss for spouse k1bx14p: float Partner self-employment earnings/loss for taxpayer (included in e26270 total) k1bx14s: float Partner self-employment earnings/loss for spouse (included in e26270 total) payrolltax: float Total (employee and employer) payroll tax liability payrolltax = ptax_was + setax + ptax_amc ptax_was: float Employee and employer OASDI plus HI FICA tax setax: float Self-employment tax c03260: float Deductible part of self-employment tax c03260 = (1 - ALD_SelfEmploymentTax_hc) * 0.5 * setax ptax_oasdi: float Employee and employer OASDI FICA tax plus self employment tax Excludes HI FICA so positive ptax_oasdi is less than ptax_was + setax sey: float Total self-employment income for filing unit earned: float Earned income for filing unit earned_p: float Earned income for taxpayer earned_s: float Earned income for spouse was_plus_sey_p: float Wage and salary income plus taxable self employment income for taxpayer was_plus_sey_s: float Wage and salary income plus taxable self employment income for spouse Returns ------- sey: float Total self-employment income for filing unit payrolltax: float Total (employee and employer) payroll tax liability payrolltax = ptax_was + setax + ptax_amc ptax_was: float Employee and employer OASDI plus HI FICA tax setax: float Self-employment tax c03260: float Deductible part of self-employment tax c03260 = (1 - ALD_SelfEmploymentTax_hc) * 0.5 * setax ptax_oasdi: float Employee and employer OASDI FICA tax plus self employment tax Excludes HI FICA so positive ptax_oasdi is less than ptax_was + setax earned: float Earned income for filing unit earned_p: float Earned income for taxpayer earned_s: float Earned income for spouse was_plus_sey_p: float Wage and salary income plus taxable self employment income for taxpayer was_plus_sey_s: float Wage and salary income plus taxable self employment income for spouse """ # compute sey and its individual components sey_p = e00900p + e02100p + k1bx14p sey_s = e00900s + e02100s + k1bx14s sey = sey_p + sey_s # total self-employment income for filing unit # compute gross wage and salary income ('was' denotes 'wage and salary') gross_was_p = e00200p + pencon_p gross_was_s = e00200s + pencon_s # compute taxable gross earnings for OASDI FICA txearn_was_p = min(SS_Earnings_c, gross_was_p) txearn_was_s = min(SS_Earnings_c, gross_was_s) # compute OASDI and HI payroll taxes on wage-and-salary income, FICA 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 * gross_was_p ptax_mc_was_s = FICA_mc_trt * gross_was_s ptax_was = ptax_ss_was_p + ptax_ss_was_s + ptax_mc_was_p + ptax_mc_was_s # compute taxable self-employment income for OASDI SECA sey_frac = 1.0 - 0.5 * (FICA_ss_trt + FICA_mc_trt) 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 self-employment tax on taxable self-employment income, SECA 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_p = setax_ss_p + setax_mc_p setax_s = setax_ss_s + setax_mc_s setax = setax_p + setax_s # compute extra OASDI payroll taxes on the portion of the sum # of wage-and-salary income and taxable self employment income # that exceeds SS_Earnings_thd sey_frac = 1.0 - 0.5 * FICA_ss_trt was_plus_sey_p = gross_was_p + max(0., sey_p * sey_frac) was_plus_sey_s = gross_was_s + max(0., sey_s * sey_frac) extra_ss_income_p = max(0., was_plus_sey_p - SS_Earnings_thd) extra_ss_income_s = max(0., was_plus_sey_s - SS_Earnings_thd) extra_payrolltax = (extra_ss_income_p * FICA_ss_trt + extra_ss_income_s * FICA_ss_trt) # compute part of total payroll taxes for filing unit # (the ptax_amc part of total payroll taxes for the filing unit is # computed in the AdditionalMedicareTax function below) payrolltax = ptax_was + setax + extra_payrolltax # compute OASDI part of payroll taxes ptax_oasdi = (ptax_ss_was_p + ptax_ss_was_s + setax_ss_p + setax_ss_s + extra_payrolltax) # compute earned* variables and AGI deduction for # "employer share" of self-employment tax, c03260 # Note: c03260 is the amount on 2015 Form 1040, line 27 c03260 = (1. - ALD_SelfEmploymentTax_hc) * 0.5 * setax earned = max(0., e00200p + e00200s + sey - c03260) earned_p = max(0., (e00200p + sey_p - (1. - ALD_SelfEmploymentTax_hc) * 0.5 * setax_p)) 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, was_plus_sey_p, was_plus_sey_s) @iterate_jit(nopython=True) def DependentCare(nu13, elderly_dependents, earned, MARS, ALD_Dependents_thd, ALD_Dependents_hc, ALD_Dependents_Child_c, ALD_Dependents_Elder_c, care_deduction): """ Computes dependent-care above-the-line deduction. Parameters ---------- nu13: int Number of dependents under 13 years old elderly_dependents: int Number of elderly dependents age 65+ in filing unit excluding taxpayer and spouse earned: float Earned income for filing unit MARS: int Filing marital status (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) ALD_Dependents_thd: list Maximum income to qualify for dependent care deduction ALD_Dependents_hc: float Deduction for childcare costs haircut ALD_Dependents_Child_c: float National weighted average cost of childcare, ceiling for available childcare deduction ALD_Dependents_Elder_c: float Eldercare deduction ceiling Returns ------- care_deduction: float Total above the line deductions for dependent care. """ if earned <= ALD_Dependents_thd[MARS - 1]: care_deduction = (((1. - ALD_Dependents_hc) * nu13 * ALD_Dependents_Child_c) + ((1. - ALD_Dependents_hc) * elderly_dependents * ALD_Dependents_Elder_c)) else: care_deduction = 0. return care_deduction @iterate_jit(nopython=True) def Adj(e03150, e03210, c03260, e03270, e03300, e03400, e03500, e00800, e03220, e03230, e03240, e03290, care_deduction, ALD_StudentLoan_hc, ALD_SelfEmp_HealthIns_hc, ALD_KEOGH_SEP_hc, ALD_EarlyWithdraw_hc, ALD_AlimonyPaid_hc, ALD_AlimonyReceived_hc, ALD_EducatorExpenses_hc, ALD_HSADeduction_hc, ALD_IRAContributions_hc, ALD_DomesticProduction_hc, ALD_Tuition_hc, c02900): """ Adj calculates Form 1040 AGI adjustments (i.e., Above-the-Line Deductions). Parameters ----- e03210: float Student loan interest paid e03220: float Educator expenses e03150: float Total deductible IRA plan contributions e03230: float Tuition and fees (Form 8917) e03240: float Domestic production activity deduction (Form 8903) c03260: float Self-employment tax deduction (after haircut) e03270: float Self-employed health insurance premiums e03290: float HSA deduction (Form 8889) e03300: float Total deductible KEOGH/SEP/SIMPLE/etc. plan contributions e03400: float Penalty on early withdrawal of savings deduction e03500: float Alimony paid e00800: float Alimony received care_deduction: float Dependent care expense deduction ALD_StudentLoan_hc: float Student loan interest deduction haircut ALD_SelfEmp_HealthIns_hc: float Self-employed h.i. deduction haircut ALD_KEOGH_SEP_hc: float KEOGH/etc. plan contribution deduction haircut ALD_EarlyWithdraw_hc: float Penalty on early withdrawal deduction haricut ALD_AlimonyPaid_hc: float Alimony paid deduction haircut ALD_AlimonyReceived_hc: float Alimony received deduction haircut ALD_EducatorExpenses_hc: float Eductor expenses haircut ALD_HSADeduction_hc: float HSA Deduction haircut ALD_IRAContributions_hc: float IRA Contribution haircut ALD_DomesticProduction_hc: float Domestic production haircut ALD_Tuition_hc: float Tuition and fees haircut Returns ------- c02900: float Total of all "above the line" income adjustments to get AGI """ # Form 2555 foreign earned income exclusion is assumed to be zero # Form 1040 adjustments that are included in expanded income: c02900 = ((1. - ALD_StudentLoan_hc) * e03210 + c03260 + (1. - ALD_EarlyWithdraw_hc) * e03400 + (1. - ALD_AlimonyPaid_hc) * e03500 + (1. - ALD_AlimonyReceived_hc) * e00800 + (1. - ALD_EducatorExpenses_hc) * e03220 + (1. - ALD_Tuition_hc) * e03230 + (1. - ALD_DomesticProduction_hc) * e03240 + (1. - ALD_HSADeduction_hc) * e03290 + (1. - ALD_SelfEmp_HealthIns_hc) * e03270 + (1. - ALD_IRAContributions_hc) * e03150 + (1. - ALD_KEOGH_SEP_hc) * e03300 + care_deduction) return c02900 @iterate_jit(nopython=True) def ALD_InvInc_ec_base(p22250, p23250, sep, e00300, e00600, e01100, e01200, invinc_ec_base): """ Computes invinc_ec_base. Parameters ---------- p22250: float Net short-term capital gails/losses (Schedule D) p23250: float Net long-term capital gains/losses (Schedule D) sep: int 2 when MARS is 3 (married filing separately); otherwise 1 e00300: float Taxable interest income e00600: float Ordinary dividends included in AGI e01100: float Capital gains distributions not reported on Schedule D e01200: float Other net gain/loss from Form 4797 invinc_ec_base: float Exclusion of investment income from AGI Returns ------- invinc_ec_base: float Exclusion of investment income from AGI """ # limitation on net short-term and long-term capital losses cgain = max((-3000. / sep), p22250 + p23250) # compute exclusion of investment income from AGI invinc_ec_base = e00300 + e00600 + cgain + e01100 + e01200 return invinc_ec_base @iterate_jit(nopython=True) def CapGains(p23250, p22250, sep, ALD_StudentLoan_hc, ALD_InvInc_ec_rt, invinc_ec_base, e00200, e00300, e00600, e00650, e00700, e00800, CG_nodiff, CG_ec, CG_reinvest_ec_rt, ALD_BusinessLosses_c, MARS, e00900, e01100, e01200, e01400, e01700, e02000, e02100, e02300, e00400, e02400, c02900, e03210, e03230, e03240, c01000, c23650, ymod, ymod1, invinc_agi_ec): """ CapGains function: ... Parameters ---------- p23250: float Net long-term capital gains/losses (Schedule D) p22250: float Net short-term capital gails/losses (Schedule D) sep: int 2 when MARS is 3 (married filing separately); otherwise 1 ALD_StudentLoan_hc: float Student loan interest deduction haircut ALD_InvInc_ec_rt: float Investment income exclusion rate haircut invinc_ec_base: float Exclusion of investment income from AGI e00200: float Wages, salaries, tips for filing unit net of pension contributions e00300: float Taxable interest income e00600: float Ordinary dividends included in AGI e00650: float Qualified dividends included in ordinary dividends e00700: float Taxable refunds of state and local income taxes e00800: float Alimony received CG_nodiff: bool Long term capital gains and qualified dividends taxed no differently than regular taxable income CG_ec: float Dollar amount of all capital gains and qualified dividends that are excluded from AGI CG_reinvest_ec_rt: float Fraction of all capital gains and qualified dividends in excess of the dollar exclusion that are excluded from AGI ALD_BusinessLosses_c: list Maximm amount of business losses deductible MARS: int Filing marital status (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) e00900: float Schedule C business net profit/loss for filing unit e01100: float Capital gain distributions not reported on Schedule D e01200: float Other net gain/loss from Form 4797 e01400: float Taxable IRA distributions e01700: float Taxable pensions and annunities e02000: float Schedule E total rental, royalty, partnership, S-corporation, etc, income/loss (includes e26270 and e27200) e02100: float Farm net income/loss for filing unit from Schedule F e02300: float Unemployment insurance benefits e00400: float Tax-exempt interest income e02400: float Total social security (OASDI) benefits c02900: float Total of all "above the line" income adjustments to get AGI e03210: float Student loan interest e03230: float Tuition and fees from Form 8917 e03240: float Domestic production activities from Form 8903 c01000: float Limitation on capital losses c23650: float Net capital gains (long and short term) before exclusion ymod: float Variable that is used in OASDI benefit taxation logic ymod1: float Variable that is included in AGI invinc_agi_ec: float Exclusion of investment income from AGI Returns ------- c01000: float Limitation on capital losses c23650: float Net capital gains (long and short term) before exclusion ymod: float Variable that is used in OASDI benefit taxation logic ymod1: float Variable that is included in AGI invinc_agi_ec: float Exclusion of investment income from AGI """ # net capital gain (long term + short term) before exclusion c23650 = p23250 + p22250 # limitation on capital losses c01000 = max((-3000. / sep), c23650) # compute total investment income invinc = e00300 + e00600 + c01000 + e01100 + e01200 # compute exclusion of investment income from AGI invinc_agi_ec = ALD_InvInc_ec_rt * max(0., invinc_ec_base) # compute ymod1 variable that is included in AGI ymod1 = (e00200 + e00700 + e00800 + e01400 + e01700 + invinc - invinc_agi_ec + e02100 + e02300 + max(e00900 + e02000, -ALD_BusinessLosses_c[MARS - 1])) if CG_nodiff: # apply QDIV+CG exclusion if QDIV+LTCG receive no special tax treatment qdcg_pos = max(0., e00650 + c01000) qdcg_exclusion = (min(CG_ec, qdcg_pos) + CG_reinvest_ec_rt * max(0., qdcg_pos - CG_ec)) ymod1 = max(0., ymod1 - qdcg_exclusion) invinc_agi_ec += qdcg_exclusion # compute ymod variable that is used in OASDI benefit taxation logic ymod2 = e00400 + (0.50 * e02400) - c02900 ymod3 = (1. - ALD_StudentLoan_hc) * e03210 + e03230 + e03240 ymod = ymod1 + ymod2 + ymod3 return (c01000, c23650, ymod, ymod1, invinc_agi_ec) @iterate_jit(nopython=True) def SSBenefits(MARS, ymod, e02400, SS_thd50, SS_thd85, SS_percentage1, SS_percentage2, c02500): """ Calculates OASDI benefits included in AGI, c02500. Parameters ---------- MARS: int Filing marital status (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) ymod: float Variable that is used in OASDI benefit taxation logic e02400: float Total social security (OASDI) benefits SS_thd50: list Threshold for social security benefit taxability (1) SS_thd85: list Threshold for social security benefit taxability (2) SS_percentage1: float Social security taxable income decimal fraction (1) SS_percentage2: float Social security taxable income decimal fraction (2) c02500: float Social security (OASDI) benefits included in AGI Returns ------- c02500: float Social security (OASDI) benefits included in AGI """ if ymod < SS_thd50[MARS - 1]: c02500 = 0. elif ymod < SS_thd85[MARS - 1]: c02500 = SS_percentage1 * min(ymod - SS_thd50[MARS - 1], e02400) else: c02500 = min(SS_percentage2 * (ymod - SS_thd85[MARS - 1]) + SS_percentage1 * min(e02400, SS_thd85[MARS - 1] - SS_thd50[MARS - 1]), SS_percentage2 * e02400) return c02500 @iterate_jit(nopython=True) def UBI(nu18, n1820, n21, UBI_u18, UBI_1820, UBI_21, UBI_ecrt, ubi, taxable_ubi, nontaxable_ubi): """ Calculates total and taxable Universal Basic Income (UBI) amount. Parameters ---------- nu18: int Number of people in the tax unit under 18 n1820: int Number of people in the tax unit age 18-20 n21: int Number of people in the tax unit age 21+ UBI_u18: float UBI benefit for those under 18 UBI_1820: float UBI benefit for those between 18 to 20 UBI_21: float UBI benefit for those 21 or more UBI_ecrt: float Fraction of UBI benefits that are not included in AGI ubi: float Total UBI received by the tax unit (is included in expanded_income) taxable_ubi: float Amount of UBI that is taxable (is added to AGI) nontaxable_ubi: float Amount of UBI that is nontaxable Returns ------- ubi: float Total UBI received by the tax unit (is included in expanded_income) taxable_ubi: float Amount of UBI that is taxable (is added to AGI) nontaxable_ubi: float Amount of UBI that is nontaxable """ ubi = nu18 * UBI_u18 + n1820 * UBI_1820 + n21 * UBI_21 taxable_ubi = ubi * (1. - UBI_ecrt) nontaxable_ubi = ubi - taxable_ubi return ubi, taxable_ubi, nontaxable_ubi @iterate_jit(nopython=True) def AGI(ymod1, c02500, c02900, XTOT, MARS, sep, DSI, exact, nu18, taxable_ubi, II_em, II_em_ps, II_prt, II_no_em_nu18, c00100, pre_c04600, c04600): """ Computes Adjusted Gross Income (AGI), c00100, and compute personal exemption amount, c04600. Parameters ---------- ymod1: float Variable that is included in AGI c02500: float Social security (OASDI) benefits included in AGI c02900: float Total of all "above the line" income adjustments to get AGI XTOT: int Total number of exemptions for filing unit MARS: int Filing marital status (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) sep: int 2 when MARS is 3 (married filing separately); otherwise 1 DSI: int 1 if claimed as dependent on another return; otherwise 0 exact: int Whether or not to do rounding of phaseout fraction nu18: int Number of people in the tax unit under 18 taxable_ubi: float Amount of UBI that is taxable (is added to AGI) II_em: float Personal and dependent exemption amount II_em_ps: list Personal exemption phaseout starting income II_prt: float Personal exemption phaseout rate II_no_em_nu18: float Repeal personal exemptions for dependents under age 18 c00100: float Adjusted Gross Income (AGI) pre_c04600: float Personal exemption before phase-out c04600: float Personal exemptions after phase-out Returns ------- c00100: float Adjusted Gross Income (AGI) pre_c04600: float Personal exemption before phase-out c04600: float Personal exemptions after phase-out """ # calculate AGI assuming no foreign earned income exclusion c00100 = ymod1 + c02500 - c02900 + taxable_ubi # calculate personal exemption amount if II_no_em_nu18: # repeal of personal exemptions for deps. under 18 pre_c04600 = max(0, XTOT - nu18) * II_em else: pre_c04600 = XTOT * II_em if DSI: pre_c04600 = 0. # phase-out personal exemption amount if exact == 1: # exact calculation as on tax forms line5 = max(0., c00100 - II_em_ps[MARS - 1]) line6 = math.ceil(line5 / (2500. / sep)) line7 = II_prt * line6 c04600 = max(0., pre_c04600 * (1. - line7)) else: # smoothed calculation needed for sensible mtr calculation dispc_numer = II_prt * (c00100 - II_em_ps[MARS - 1]) dispc_denom = 2500. / sep dispc = min(1., max(0., dispc_numer / dispc_denom)) c04600 = pre_c04600 * (1. - dispc) return (c00100, pre_c04600, c04600) @iterate_jit(nopython=True) def ItemDedCap(e17500, e18400, e18500, e19200, e19800, e20100, e20400, g20500, c00100, ID_AmountCap_rt, ID_AmountCap_Switch, e17500_capped, e18400_capped, e18500_capped, e19200_capped, e19800_capped, e20100_capped, e20400_capped, g20500_capped): """ Applies a cap to gross itemized deductions. Parameters ---------- e17500: float Itemizable medical and dental expenses e18400: float Itemizable state and local income/sales taxes e18500: float Itemizable real-estate taxes paid e19200: float Itemizable interest paid e19800: float Itemizable charitable giving: cash/check contributions e20100: float Itemizable charitalb giving: other than cash/check contributions e20400: float Itemizable gross (before 10% AGI disregard) casualty or theft loss g20500: float Itemizable gross (before 10% AGI disregard) casualty or theft loss c00100: float Adjusted gross income (AGI) ID_AmountCap_rt: float Ceiling on the gross amount of itemized deductions allowed; decimal fraction of AGI ID_AmountCap_Switch: list Deductions subject to the cap on itemized deduction benefits e17500_capped: float Schedule A: medical expenses, capped by ItemDedCap as a decimal fraction of AGI e18400_capped: float Schedule A: state and local income taxes deductlbe, capped by ItemDedCap as a decimal fraction of AGI e18500_capped: float Schedule A: state and local real estate taxes deductible, capped by ItemDedCap as a decimal fraction of AGI e19200_capped: float Schedule A: interest deduction deductible, capped by ItemDedCap as decimal fraction of AGI e19800_capped: float Schedule A: charity cash contributions deductible, capped by ItemDedCap as a decimal fraction of AGI e20100_capped: float Schedule A: charity noncash contributions deductible, capped aby ItemDedCap s a decimal fraction of AGI e20400_capped: float Schedule A: gross miscellaneous deductions deductible, capped by ItemDedCap as a decimal fraction of AGI g20500_capped: float Schedule A: gross casualty or theft loss deductible, capped aby ItemDedCap s a decimal fraction of AGI Returns ------- e17500_capped: float Schedule A: medical expenses, capped by ItemDedCap as a decimal fraction of AGI e18400_capped: float Schedule A: state and local income taxes deductlbe, capped by ItemDedCap as a decimal fraction of AGI e18500_capped: float Schedule A: state and local real estate taxes deductible, capped by ItemDedCap as a decimal fraction of AGI e19200_capped: float Schedule A: interest deduction deductible, capped by ItemDedCap as decimal fraction of AGI e19800_capped: float Schedule A: charity cash contributions deductible, capped by ItemDedCap as a decimal fraction of AGI e20100_capped: float Schedule A: charity noncash contributions deductible, capped by ItemDedCap as a decimal fraction of AGI e20400_capped: float Schedule A: gross miscellaneous deductions deductible, capped by ItemDedCap as a decimal fraction of AGI g20500_capped: float Schedule A: gross casualty or theft loss deductible, capped by ItemDedCap as a decimal fraction of AGI """ # pylint: disable=too-many-branches cap = max(0., ID_AmountCap_rt * c00100) gross_ded_amt = 0 if ID_AmountCap_Switch[0]: # medical gross_ded_amt += e17500 if ID_AmountCap_Switch[1]: # statelocal gross_ded_amt += e18400 if ID_AmountCap_Switch[2]: # realestate gross_ded_amt += e18500 if ID_AmountCap_Switch[3]: # casualty gross_ded_amt += g20500 if ID_AmountCap_Switch[4]: # misc gross_ded_amt += e20400 if ID_AmountCap_Switch[5]: # interest gross_ded_amt += e19200 if ID_AmountCap_Switch[6]: # charity gross_ded_amt += e19800 + e20100 overage = max(0., gross_ded_amt - cap) e17500_capped = e17500 e18400_capped = e18400 e18500_capped = e18500 g20500_capped = g20500 e20400_capped = e20400 e19200_capped = e19200 e19800_capped = e19800 e20100_capped = e20100 if overage > 0. and c00100 > 0.: if ID_AmountCap_Switch[0]: # medical e17500_capped -= (e17500 / gross_ded_amt) * overage if ID_AmountCap_Switch[1]: # statelocal e18400_capped -= (e18400 / (gross_ded_amt) * overage) if ID_AmountCap_Switch[2]: # realestate e18500_capped -= (e18500 / gross_ded_amt) * overage if ID_AmountCap_Switch[3]: # casualty g20500_capped -= (g20500 / gross_ded_amt) * overage if ID_AmountCap_Switch[4]: # misc e20400_capped -= (e20400 / gross_ded_amt) * overage if ID_AmountCap_Switch[5]: # interest e19200_capped -= (e19200 / gross_ded_amt) * overage if ID_AmountCap_Switch[6]: # charity e19800_capped -= (e19800 / gross_ded_amt) * overage e20100_capped -= (e20100 / gross_ded_amt) * overage return (e17500_capped, e18400_capped, e18500_capped, g20500_capped, e20400_capped, e19200_capped, e19800_capped, e20100_capped) @iterate_jit(nopython=True) def ItemDed(e17500_capped, e18400_capped, e18500_capped, e19200_capped, e19800_capped, e20100_capped, e20400_capped, g20500_capped, MARS, age_head, age_spouse, c00100, c04470, c21040, c21060, c17000, c18300, c19200, c19700, c20500, c20800, ID_ps, ID_Medical_frt, ID_Medical_frt_add4aged, ID_Medical_hc, ID_Casualty_frt, ID_Casualty_hc, ID_Miscellaneous_frt, ID_Miscellaneous_hc, ID_Charity_crt_all, ID_Charity_crt_noncash, ID_prt, ID_crt, ID_c, ID_StateLocalTax_hc, ID_Charity_frt, ID_Charity_hc, ID_InterestPaid_hc, ID_RealEstate_hc, ID_Medical_c, ID_StateLocalTax_c, ID_RealEstate_c, ID_InterestPaid_c, ID_Charity_c, ID_Casualty_c, ID_Miscellaneous_c, ID_AllTaxes_c, ID_AllTaxes_hc, ID_StateLocalTax_crt, ID_RealEstate_crt, ID_Charity_f): """ Calculates itemized deductions, Form 1040, Schedule A. Parameters ---------- e17500_capped: float Schedule A: medical expenses, capped by ItemDedCap as a decimal fraction of AGI e18400_capped: float Schedule A: state and local income taxes deductlbe, capped by ItemDedCap as a decimal fraction of AGI e18500_capped: float Schedule A: state and local real estate taxes deductible, capped by ItemDedCap as a decimal fraction of AGI e19200_capped: float Schedule A: interest deduction deductible, capped by ItemDedCap as decimal fraction of AGI e19800_capped: float Schedule A: charity cash contributions deductible, capped by ItemDedCap as a decimal fraction of AGI e20100_capped: float Schedule A: charity noncash contributions deductible, capped by ItemDedCap as a decimal fraction of AGI e20400_capped: float Schedule A: gross miscellaneous deductions deductible, capped by ItemDedCap as a decimal fraction of AGI g20500_capped: float Schedule A: gross casualty or theft loss deductible, capped by ItemDedCap as a decimal fraction of AGI MARS: int Filing marital status (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) age_head: int Age in years of taxpayer age_spouse: int Age in years of spouse c00100: float Adjusted gross income (AGI) c04470: float Itemized deductions after phase out (0 for non itemizers) c21040: float Itemized deductions that are phased out c21060: float Itemized deductions before phase out (0 for non itemizers) c17000: float Schedule A: medical expenses deducted c18300: float Schedule A: state and local taxes plus real estate taxes deducted c19200: float Schedule A: interest deducted c19700: float Schedule A: charity contributions deducted c20500: float Schedule A: net casualty or theft loss deducted c20800: float Schedule A: net limited miscellaneous deductions deducted ID_ps: list Itemized deduction phaseout AGI start (Pease) ID_Medical_frt: float Floor (as decimal fraction of AGI) for deductible medical expenses ID_Medical_frt_add4aged: float Add on floor (as decimal fraction of AGI) for deductible medical expenses for elderly filing units ID_Medical_hc: float Medical expense deduction haircut ID_Casualty_frt: float Floor (as decimal fraction of AGI) for deductible casualty loss ID_Casualty_hc: float Casualty expense deduction haircut ID_Miscellaneous_frt: float Floor (as decimal fraction of AGI) for deductible miscellaneous expenses ID_Miscellaneous_hc: float Miscellaneous expense deduction haircut ID_Charity_crt_all: float Ceiling (as decimal fraction of AGI) for all charitable contribution deductions ID_Charity_crt_noncash: float Ceiling (as decimal fraction of AGI) for noncash charitable contribution deductions ID_prt: float Itemized deduction phaseout rate (Pease) ID_crt: float Itemized deduction maximum phaseout as a decimal fraction of total itemized deductions (Pease) ID_c: list Ceiling on the amount of itemized deductions allowed (dollars) ID_StateLocalTax_hc: float State and local income and sales taxes deduction haircut ID_Charity_frt: float Floor (as decimal fraction of AGI) for deductible charitable contributions ID_Charity_hc: float Charity expense deduction haircut ID_InterestPaid_hc: float Interest paid deduction haircut ID_RealEstate_hc: float State, local, and foreign real estate taxes deductions haircut ID_Medical_c: list Ceiling on the amount of medical expense deduction allowed (dollars) ID_StateLocalTax_c: list Ceiling on the amount of state and local income and sales taxes deduction allowed (dollars) ID_RealEstate_c: list Ceiling on the amount of state, local, and foreign real estate taxes deduction allowed (dollars) ID_InterestPaid_c: list Ceiling on the amount of interest paid deduction allowed (dollars) ID_Charity_c: list Ceiling on the amount of charity expense deduction allowed (dollars) ID_Casualty_c: list Ceiling on the amount of casualty expense deduction allowed (dollars) ID_Miscellaneous_c: list Ceiling on the amount of miscellaneous expense deduction allowed (dollars) ID_AllTaxes_c: list Ceiling on the amount of state and local income, stales, and real estate deductions allowed (dollars) ID_AllTaxes_hc: float State and local income, sales, and real estate tax deduciton haircut ID_StateLocalTax_crt: float Ceiling (as decimal fraction of AGI) for the combination of all state and local income and sales tax deductions ID_RealEstate_crt: float Ceiling (as decimal fraction of AGI) for the combination of all state, local, and foreign real estate tax deductions ID_Charity_f: list Floor on the amount of charity expense deduction allowed (dollars) Returns ------- c17000: float Schedule A: medical expenses deducted c18300: float Schedule A: state and local taxes plus real estate taxes deducted c19200: float Schedule A: interest deducted c19700: float Schedule A: charity contributions deducted c20500: float Schedule A: net casualty or theft loss deducted c20800: float Schedule A: net limited miscellaneous deductions deducted c21040: float Itemized deductions that are phased out c21060: float Itemized deductions before phase out (0 for non itemizers) c04470: float Itemized deductions after phase out (0 for non itemizers) """ posagi = max(c00100, 0.) # Medical medical_frt = ID_Medical_frt if age_head >= 65 or (MARS == 2 and age_spouse >= 65): medical_frt += ID_Medical_frt_add4aged c17750 = medical_frt * posagi c17000 = max(0., e17500_capped - c17750) * (1. - ID_Medical_hc) c17000 = min(c17000, ID_Medical_c[MARS - 1]) # State and local taxes c18400 = min((1. - ID_StateLocalTax_hc) * max(e18400_capped, 0.), ID_StateLocalTax_c[MARS - 1]) c18500 = min((1. - ID_RealEstate_hc) * e18500_capped, ID_RealEstate_c[MARS - 1]) # following two statements implement a cap on c18400 and c18500 in a way # that those with negative AGI, c00100, are not capped under current law, # hence the 0.0001 rather than zero c18400 = min(c18400, ID_StateLocalTax_crt * max(c00100, 0.0001)) c18500 = min(c18500, ID_RealEstate_crt * max(c00100, 0.0001)) c18300 = (c18400 + c18500) * (1. - ID_AllTaxes_hc) c18300 = min(c18300, ID_AllTaxes_c[MARS - 1]) # Interest paid c19200 = e19200_capped * (1. - ID_InterestPaid_hc) c19200 = min(c19200, ID_InterestPaid_c[MARS - 1]) # Charity lim30 = min(ID_Charity_crt_noncash * posagi, e20100_capped) c19700 = min(ID_Charity_crt_all * posagi, lim30 + e19800_capped) # charity floor is zero in present law charity_floor = max(ID_Charity_frt * posagi, ID_Charity_f[MARS - 1]) c19700 = max(0., c19700 - charity_floor) * (1. - ID_Charity_hc) c19700 = min(c19700, ID_Charity_c[MARS - 1]) # Casualty c20500 = (max(0., g20500_capped - ID_Casualty_frt * posagi) * (1. - ID_Casualty_hc)) c20500 = min(c20500, ID_Casualty_c[MARS - 1]) # Miscellaneous c20400 = e20400_capped c20750 = ID_Miscellaneous_frt * posagi c20800 = max(0., c20400 - c20750) * (1. - ID_Miscellaneous_hc) c20800 = min(c20800, ID_Miscellaneous_c[MARS - 1]) # Gross total itemized deductions c21060 = c17000 + c18300 + c19200 + c19700 + c20500 + c20800 # Limitations on total itemized deductions # (no attempt to adjust c04470 components for limitations) nonlimited = c17000 + c20500 limitstart = ID_ps[MARS - 1] if c21060 > nonlimited and c00100 > limitstart: dedmin = ID_crt * (c21060 - nonlimited) dedpho = ID_prt * max(0., posagi - limitstart) c21040 = min(dedmin, dedpho) c04470 = c21060 - c21040 else: c21040 = 0. c04470 = c21060 c04470 = min(c04470, ID_c[MARS - 1]) # Return total itemized deduction amounts and components return (c17000, c18300, c19200, c19700, c20500, c20800, c21040, c21060, c04470) @iterate_jit(nopython=True) def AdditionalMedicareTax(e00200, MARS, AMEDT_ec, sey, AMEDT_rt, FICA_mc_trt, FICA_ss_trt, ptax_amc, payrolltax): """ Computes Additional Medicare Tax (Form 8959) included in payroll taxes. Parameters ----- MARS: int Filing marital status (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) AMEDT_ec: list Additional Medicare Tax earnings exclusion AMEDT_rt: float Additional Medicare Tax rate FICA_ss_trt: float FICA Social Security tax rate FICA_mc_trt: float FICA Medicare tax rate e00200: float Wages and salaries sey: float Self-employment income ptax_amc: float Additional Medicare Tax payrolltax: float payroll tax augmented by Additional Medicare Tax Returns ------- ptax_amc: float Additional Medicare Tax payrolltax: float payroll tax augmented by Additional Medicare Tax """ line8 = max(0., sey) * (1. - 0.5 * (FICA_mc_trt + FICA_ss_trt)) line11 = max(0., AMEDT_ec[MARS - 1] - e00200) ptax_amc = AMEDT_rt * (max(0., e00200 - AMEDT_ec[MARS - 1]) + max(0., line8 - line11)) payrolltax += ptax_amc return (ptax_amc, payrolltax) @iterate_jit(nopython=True) def StdDed(DSI, earned, STD, age_head, age_spouse, STD_Aged, STD_Dep, MARS, MIDR, blind_head, blind_spouse, standard, c19700, STD_allow_charity_ded_nonitemizers, STD_charity_ded_nonitemizers_max): """ Calculates standard deduction, including standard deduction for dependents, aged and bind. Parameters ----- DSI: int 1 if claimed as dependent on another return; otherwise 0 earned: float Earned income for filing unit STD: list Standard deduction amount age_head: int Age in years of taxpayer age_spouse: int Age in years of spouse STD_Aged: list Additional standard deduction for blind and aged STD_Dep: float Standard deduction for dependents MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) MIDR: int 1 if separately filing spouse itemizes, 0 otherwise blind_head: int 1 if taxpayer is blind, 0 otherwise blind_spouse: int 1 if spouse is blind, 0 otherwise standard: float Standard deduction (zero for itemizers) c19700: float Schedule A: charity contributions deducted STD_allow_charity_ded_nonitemizers: bool Allow standard deduction filers to take the charitable contributions deduction STD_charity_ded_nonitemizers_max: float Ceiling amount (in dollars) for charitable deductions for non-itemizers Returns ------- standard: float Standard deduction (zero for itemizers) """ # calculate deduction for dependents if DSI == 1: c15100 = max(350. + earned, STD_Dep) basic_stded = min(STD[MARS - 1], c15100) else: c15100 = 0. if MIDR == 1: basic_stded = 0. else: basic_stded = STD[MARS - 1] # calculate extra standard deduction for aged and blind num_extra_stded = blind_head + blind_spouse if age_head >= 65: num_extra_stded += 1 if MARS == 2 and age_spouse >= 65: num_extra_stded += 1 extra_stded = num_extra_stded * STD_Aged[MARS - 1] # calculate the total standard deduction standard = basic_stded + extra_stded if MARS == 3 and MIDR == 1: standard = 0. if STD_allow_charity_ded_nonitemizers: standard += min(c19700, STD_charity_ded_nonitemizers_max) return standard @iterate_jit(nopython=True) def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, e26270, e02100, e27200, e00650, c01000, e02300, PT_SSTB_income, PT_binc_w2_wages, PT_ubia_property, PT_qbid_rt, PT_qbid_taxinc_thd, PT_qbid_taxinc_gap, PT_qbid_w2_wages_rt, PT_qbid_alt_w2_wages_rt, PT_qbid_alt_property_rt, c04800, PT_qbid_ps, PT_qbid_prt, qbided, PT_qbid_limit_switch, UI_em, UI_thd): """ Calculates taxable income, c04800, and qualified business income deduction, qbided. Parameters ---------- c00100: float Adjusted Gross Income (AGI) standard: float Standard deduction (zero for itemizers) c04470: float Itemized deductions after phase-out (zero for non-itemizers) c04600: float Personal exemptions after phase-out MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) e00900: float Schedule C business net profit/loss for filing unit e26270: float Schedule E: combined partnership and S-corporation net income/loss e02100: float Farm net income/loss for filing unit from Schedule F e27200: float Schedule E: farm rent net income or loss e00650: float Qualified dividends included in ordinary dividends c01000: float Limitation on capital losses PT_SSTB_income: int Value of one implies business income is from a specified service trade or business (SSTB) Value of zero implies business income is from a qualified trade or business PT_binc_w2_wages: float Filing unit's share of total W-2 wages paid by the pass-through business PT_ubia_property: float Filing unit's share of total business property owned by the pass-through business PT_qbid_rt: float Pass-through qualified business income deduction rate PT_qbid_taxinc_thd: list Lower threshold of pre-QBID taxable income PT_qbid_taxinc_gap: list Dollar gap between upper and lower threshold of pre-QBID taxable income PT_qbid_w2_wages_rt: float QBID cap rate on pass-through business W-2 wages paid PT_qbid_alt_w2_wages_rt: float Alternative QBID cap rate on pass-through business W-2 wages paid PT_qbid_alt_property_rt: float Alternative QBID cap rate on pass-through business property owned c04800: float Regular taxable income PT_qbid_ps: list QBID phaseout taxable income start PT_qbid_prt: float QBID phaseout rate qbided: float Qualified Business Income (QBI) deduction PT_qbid_limit_switch: bool QBID wage and capital limitations switch Returns ------- c04800: float Regular taxable income qbided: float Qualified Business Income (QBI) deduction """ # calculate UI excluded from taxable income if (c00100 - e02300) <= UI_thd[MARS - 1]: ui_excluded = min(e02300, UI_em) else: ui_excluded = 0. # calculate taxable income before qualified business income deduction pre_qbid_taxinc = max(0., c00100 - max(c04470, standard) - c04600 - ui_excluded) # calculate qualified business income deduction qbided = 0. qbinc = max(0., e00900 + e26270 + e02100 + e27200) if qbinc > 0. and PT_qbid_rt > 0.: qbid_before_limits = qbinc * PT_qbid_rt lower_thd = PT_qbid_taxinc_thd[MARS - 1] if pre_qbid_taxinc <= lower_thd: qbided = qbid_before_limits else: pre_qbid_taxinc_gap = PT_qbid_taxinc_gap[MARS - 1] upper_thd = lower_thd + pre_qbid_taxinc_gap if PT_SSTB_income == 1 and pre_qbid_taxinc >= upper_thd: qbided = 0. # if PT_qbid_limit_switch is True, apply wage/capital # limitations. elif PT_qbid_limit_switch: wage_cap = PT_binc_w2_wages * PT_qbid_w2_wages_rt alt_cap = (PT_binc_w2_wages * PT_qbid_alt_w2_wages_rt + PT_ubia_property * PT_qbid_alt_property_rt) full_cap = max(wage_cap, alt_cap) if PT_SSTB_income == 0 and pre_qbid_taxinc >= upper_thd: # apply full cap qbided = min(full_cap, qbid_before_limits) elif PT_SSTB_income == 0 and pre_qbid_taxinc < upper_thd: # apply adjusted cap as in Part III of Worksheet 12-A # in 2018 IRS Publication 535 (Chapter 12) prt = (pre_qbid_taxinc - lower_thd) / pre_qbid_taxinc_gap adj = prt * (qbid_before_limits - full_cap) qbided = qbid_before_limits - adj else: # PT_SSTB_income == 1 and pre_qbid_taxinc < upper_thd prti = (upper_thd - pre_qbid_taxinc) / pre_qbid_taxinc_gap qbid_adjusted = prti * qbid_before_limits cap_adjusted = prti * full_cap prt = (pre_qbid_taxinc - lower_thd) / pre_qbid_taxinc_gap adj = prt * (qbid_adjusted - cap_adjusted) qbided = qbid_adjusted - adj # if PT_qbid_limit_switch is False, assume all taxpayers # have sufficient wage expenses and capital income to avoid # QBID limitations. else: qbided = qbid_before_limits # apply taxinc cap (assuning cap rate is equal to PT_qbid_rt) net_cg = e00650 + c01000 # per line 34 in 2018 Pub 535 Worksheet 12-A taxinc_cap = PT_qbid_rt * max(0., pre_qbid_taxinc - net_cg) qbided = min(qbided, taxinc_cap) # apply qbid phaseout if qbided > 0. and pre_qbid_taxinc > PT_qbid_ps[MARS - 1]: excess = pre_qbid_taxinc - PT_qbid_ps[MARS - 1] qbided = max(0., qbided - PT_qbid_prt * excess) # calculate taxable income after qualified business income deduction c04800 = max(0., pre_qbid_taxinc - qbided) return (c04800, qbided)
[docs]@JIT(nopython=True) def SchXYZ(taxable_income, MARS, e00900, e26270, e02000, e00200, PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5, PT_rt6, PT_rt7, PT_rt8, PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7, II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8, II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7, PT_EligibleRate_active, PT_EligibleRate_passive, PT_wages_active_income, PT_top_stacking): """ Returns Schedule X, Y, Z tax amount for specified taxable_income. Parameters ---------- taxable_income: float Taxable income MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) e00900: float Schedule C business net profit/loss for filing unit e26270: float Schedule E: combined partnership and S-corporation net income/loss e02000: float Schedule E total rental, royalty, parternship, S-corporation, etc, income/loss e00200: float Wages, salaries, and tips for filing unit net of pension contributions PT_rt1: float Pass through income tax rate 1 PT_rt2: float Pass through income tax rate 2 PT_rt3: float Pass through income tax rate 3 PT_rt4: float Pass through income tax rate 4 PT_rt5: float Pass through income tax rate 5 PT_rt6: float Pass through income tax rate 6 PT_rt7: float Pass through income tax rate 7 PT_rt8: float Pass through income tax rate 8 PT_brk1: list Pass through income tax bracket (upper threshold) 1 PT_brk2: list Pass through income tax bracket (upper threshold) 2 PT_brk3: list Pass through income tax bracket (upper threshold) 3 PT_brk4: list Pass through income tax bracket (upper threshold) 4 PT_brk5: list Pass through income tax bracket (upper threshold) 5 PT_brk6: list Pass through income tax bracket (upper threshold) 6 PT_brk7: list Pass through income tax bracket (upper threshold) 7 II_rt1: float Personal income (regular/non-AMT/non-pass-through) tax rate 1 II_rt2: float Personal income (regular/non-AMT/non-pass-through) tax rate 2 II_rt3: float Personal income (regular/non-AMT/non-pass-through) tax rate 3 II_rt4: float Personal income (regular/non-AMT/non-pass-through) tax rate 4 II_rt5: float Personal income (regular/non-AMT/non-pass-through) tax rate 5 II_rt6: float Personal income (regular/non-AMT/non-pass-through) tax rate 6 II_rt7: float Personal income (regular/non-AMT/non-pass-through) tax rate 7 II_rt8: float Personal income (regular/non-AMT/non-pass-through) tax rate 8 II_brk1: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 1 II_brk2: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 2 II_brk3: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 3 II_brk4: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 4 II_brk5: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 5 II_brk6: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 6 II_brk7: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 7 PT_EligibleRate_active: float Share of active business income eligible for PT rate schedule PT_EligibleRate_passive: float Share of passive business income eligible for PT rate schedule PT_wages_active_income: bool Wages included in (positive) active business eligible for PT rates PT_top_stacking: bool PT taxable income stacked on top of regular taxable income Returns ------- reg_tax: float Individual income tax liability on non-pass-through income pt_tax: float Individual income tax liability from pass-through income """ # separate non-negative taxable income into two non-negative components, # doing this in a way so that the components add up to taxable income # define pass-through income eligible for PT schedule pt_passive = PT_EligibleRate_passive * (e02000 - e26270) pt_active_gross = e00900 + e26270 if (pt_active_gross > 0) and PT_wages_active_income: pt_active_gross = pt_active_gross + e00200 pt_active = PT_EligibleRate_active * pt_active_gross pt_active = min(pt_active, e00900 + e26270) pt_taxinc = max(0., pt_passive + pt_active) if pt_taxinc >= taxable_income: pt_taxinc = taxable_income reg_taxinc = 0. else: # pt_taxinc is unchanged reg_taxinc = taxable_income - pt_taxinc # determine stacking order if PT_top_stacking: reg_tbase = 0. pt_tbase = reg_taxinc else: reg_tbase = pt_taxinc pt_tbase = 0. # compute Schedule X,Y,Z tax using the two components of taxable income if reg_taxinc > 0.: reg_tax = Taxes(reg_taxinc, MARS, reg_tbase, II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8, II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7) else: reg_tax = 0. if pt_taxinc > 0.: pt_tax = Taxes(pt_taxinc, MARS, pt_tbase, PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5, PT_rt6, PT_rt7, PT_rt8, PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7) else: pt_tax = 0. return reg_tax + pt_tax
@iterate_jit(nopython=True) def SchXYZTax(c04800, MARS, e00900, e26270, e02000, e00200, PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5, PT_rt6, PT_rt7, PT_rt8, PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7, II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8, II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7, PT_EligibleRate_active, PT_EligibleRate_passive, PT_wages_active_income, PT_top_stacking, c05200): """ SchXYZTax calls SchXYZ function and sets c05200 to returned amount. Parameters ---------- c04800: float Regular taxable income MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) e00900: float Schedule C business net profit/loss for filing unit e26270: float Schedule E: combined partnership and S-corporation net income/loss e02000: float Farm net income/loss for filing unit from Schedule F e00200: float Farm net income/loss for filing unit from Schedule F PT_rt1: float Pass through income tax rate 1 PT_rt2: float Pass through income tax rate 2 PT_rt3: float Pass through income tax rate 3 PT_rt4: float Pass through income tax rate 4 PT_rt5: float Pass through income tax rate 5 PT_rt6: float Pass through income tax rate 6 PT_rt7: float Pass through income tax rate 7 PT_rt8: float Pass through income tax rate 8 PT_brk1: list Pass through income tax bracket (upper threshold) 1 PT_brk2: list Pass through income tax bracket (upper threshold) 2 PT_brk3: list Pass through income tax bracket (upper threshold) 3 PT_brk4: list Pass through income tax bracket (upper threshold) 4 PT_brk5: list Pass through income tax bracket (upper threshold) 5 PT_brk6: list Pass through income tax bracket (upper threshold) 6 PT_brk7: list Pass through income tax bracket (upper threshold) 7 II_rt1: float Personal income (regular/non-AMT/non-pass-through) tax rate 1 II_rt2: float Personal income (regular/non-AMT/non-pass-through) tax rate 2 II_rt3: float Personal income (regular/non-AMT/non-pass-through) tax rate 3 II_rt4: float Personal income (regular/non-AMT/non-pass-through) tax rate 4 II_rt5: float Personal income (regular/non-AMT/non-pass-through) tax rate 5 II_rt6: float Personal income (regular/non-AMT/non-pass-through) tax rate 6 II_rt7: float Personal income (regular/non-AMT/non-pass-through) tax rate 7 II_rt8: float Personal income (regular/non-AMT/non-pass-through) tax rate 8 II_brk1: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 1 II_brk2: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 2 II_brk3: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 3 II_brk4: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 4 II_brk5: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 5 II_brk6: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 6 II_brk7: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 7 PT_EligibleRate_active: float Share of active business income eligible for PT rate schedule PT_EligibleRate_passive: float Share of passive business income eligible for PT rate schedule PT_wages_active_income: bool Wages included in (positive) active business eligible for PT rates PT_top_stacking: bool PT taxable income stacked on top of regular taxable income c05200: float Tax amount from Schedule X,Y,Z tables Returns ------- c05200: float Tax aount from Schedule X, Y, Z tables """ c05200 = SchXYZ(c04800, MARS, e00900, e26270, e02000, e00200, PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5, PT_rt6, PT_rt7, PT_rt8, PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7, II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8, II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7, PT_EligibleRate_active, PT_EligibleRate_passive, PT_wages_active_income, PT_top_stacking) return c05200 @iterate_jit(nopython=True) def GainsTax(e00650, c01000, c23650, p23250, e01100, e58990, e00200, e24515, e24518, MARS, c04800, c05200, e00900, e26270, e02000, II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8, II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7, PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5, PT_rt6, PT_rt7, PT_rt8, PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7, CG_nodiff, PT_EligibleRate_active, PT_EligibleRate_passive, PT_wages_active_income, PT_top_stacking, CG_rt1, CG_rt2, CG_rt3, CG_rt4, CG_brk1, CG_brk2, CG_brk3, dwks10, dwks13, dwks14, dwks19, c05700, taxbc): """ GainsTax function implements (2015) Schedule D Tax Worksheet logic for the special taxation of long-term capital gains and qualified dividends if CG_nodiff is false. Parameters ---------- e00650: float Qualified dividends included in ordinary dividends c01000: float Limitation on capital losses c23650: float Net capital gain (long term + short term) before exclusion p23250: float Schedule D: net long-term capital gains/losses e01100: float Capital gains distributions not reported on Schedule D e58990: float Investment income elected amount from Form 4952 e00200: float Wages, salaries, and tips for filing unit net of pension contributions e24515: float Schedule D: un-recaptured section 1250 Gain e24518: float Schedule D: 28% rate gain or loss MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) c04800: float Regular taxable income c05200: float Tax amount from Schedule X,Y,Z tables e00900: float Schedule C business net profit/loss for filing unit e26270: float Schedule E: combined partnership and S-corporation net income/loss e02000: float Schedule E total rental, royalty, partnership, S-corporation, etc, income/loss II_rt1: float Personal income (regular/non-AMT/non-pass-through) tax rate 1 II_rt2: float Personal income (regular/non-AMT/non-pass-through) tax rate 2 II_rt3: float Personal income (regular/non-AMT/non-pass-through) tax rate 3 II_rt4: float Personal income (regular/non-AMT/non-pass-through) tax rate 4 II_rt5: float Personal income (regular/non-AMT/non-pass-through) tax rate 5 II_rt6: float Personal income (regular/non-AMT/non-pass-through) tax rate 6 II_rt7: float Personal income (regular/non-AMT/non-pass-through) tax rate 7 II_rt8: float Personal income (regular/non-AMT/non-pass-through) tax rate 8 II_brk1: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 1 II_brk2: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 2 II_brk3: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 3 II_brk4: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 4 II_brk5: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 5 II_brk6: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 6 II_brk7: list Personal income (regular/non-AMT/non-pass/through) tax bracket (upper threshold) 7 PT_rt1: float Pass through income tax rate 1 PT_rt2: float Pass through income tax rate 2 PT_rt3: float Pass through income tax rate 3 PT_rt4: float Pass through income tax rate 4 PT_rt5: float Pass through income tax rate 5 PT_rt6: float Pass through income tax rate 6 PT_rt7: float Pass through income tax rate 7 PT_rt8: float Pass through income tax rate 8 PT_brk1: list Pass through income tax bracket (upper threshold) 1 PT_brk2: list Pass through income tax bracket (upper threshold) 2 PT_brk3: list Pass through income tax bracket (upper threshold) 3 PT_brk4: list Pass through income tax bracket (upper threshold) 4 PT_brk5: list Pass through income tax bracket (upper threshold) 5 PT_brk6: list Pass through income tax bracket (upper threshold) 6 PT_brk7: list Pass through income tax bracket (upper threshold) 7 CG_nodiff: bool Long term capital gains and qualified dividends taxed no differently than regular taxable income PT_EligibleRate_active: float Share of active business income eligible for PT rate schedule PT_EligibleRate_passive: float Share of passive business income eligible for PT rate schedule PT_wages_active_income: bool Wages included in (positive) active business eligible for PT rates PT_top_stacking: bool PT taxable income stacked on top of regular taxable income CG_rt1: float Long term capital gain and qualified dividends (regular/non-AMT) rate 1 CG_rt2: float Long term capital gain and qualified dividends (regular/non-AMT) rate 2 CG_rt3: float Long term capital gain and qualified dividends (regular/non-AMT) rate 3 CG_rt4: float Long term capital gain and qualified dividends (regular/non-AMT) rate 4 CG_brk1: list Top of long-term capital gains and qualified dividends (regular/non-AMT) tax bracket 1 CG_brk2: list Top of long-term capital gains and qualified dividends (regular/non-AMT) tax bracket 2 CG_brk3: list Top of long-term capital gains and qualified dividends (regular/non-AMT) tax bracket 3 dwks10: float Sum of dwks6 + dwks9 dwks13: float Difference of dwks10 - dwks12 dwks14: float Maximum of 0 and dwks1 - dwks13 dwks19: float Maximum of dwks17 and dwks16 c05700: float Lump sum distributions taxbc: float Regular tax on regular taxable income before credits Returns ------- dwks10: float Sum of dwks6 + dwks9 dwks13: float Difference of dwks10 - dwks12 dwks14: float Maximum of 0 and dwks1 - dwks13 dwks19: float Maximum of dwks17 and dwks16 c05700: float Lump sum distributions taxbc: float Regular tax on regular taxable income before credits """ # pylint: disable=too-many-statements if c01000 > 0. or c23650 > 0. or p23250 > 0. or e01100 > 0. or e00650 > 0.: hasqdivltcg = 1 # has qualified dividends or long-term capital gains else: hasqdivltcg = 0 # no qualified dividends or long-term capital gains if CG_nodiff: hasqdivltcg = 0 # no special taxation of qual divids and l-t cap gains if hasqdivltcg == 1: dwks1 = c04800 dwks2 = e00650 dwks3 = e58990 dwks4 = 0. # always assumed to be zero dwks5 = max(0., dwks3 - dwks4) dwks6 = max(0., dwks2 - dwks5) dwks7 = min(p23250, c23650) # SchD lines 15 and 16, respectively # dwks8 = min(dwks3, dwks4) # dwks9 = max(0., dwks7 - dwks8) # BELOW TWO STATEMENTS ARE UNCLEAR IN LIGHT OF dwks9=... COMMENT if e01100 > 0.: c24510 = e01100 else: c24510 = max(0., dwks7) + e01100 dwks9 = max(0., c24510 - min(0., e58990)) # ABOVE TWO STATEMENTS ARE UNCLEAR IN LIGHT OF dwks9=... COMMENT dwks10 = dwks6 + dwks9 dwks11 = e24515 + e24518 # SchD lines 18 and 19, respectively dwks12 = min(dwks9, dwks11) dwks13 = dwks10 - dwks12 dwks14 = max(0., dwks1 - dwks13) dwks16 = min(CG_brk1[MARS - 1], dwks1) dwks17 = min(dwks14, dwks16) dwks18 = max(0., dwks1 - dwks10) dwks19 = max(dwks17, dwks18) dwks20 = dwks16 - dwks17 lowest_rate_tax = CG_rt1 * dwks20 # break in worksheet lines dwks21 = min(dwks1, dwks13) dwks22 = dwks20 dwks23 = max(0., dwks21 - dwks22) dwks25 = min(CG_brk2[MARS - 1], dwks1) dwks26 = dwks19 + dwks20 dwks27 = max(0., dwks25 - dwks26) dwks28 = min(dwks23, dwks27) dwks29 = CG_rt2 * dwks28 dwks30 = dwks22 + dwks28 dwks31 = dwks21 - dwks30 dwks32 = CG_rt3 * dwks31 # compute total taxable CG for additional top bracket cg_all = dwks20 + dwks28 + dwks31 hi_base = max(0., cg_all - CG_brk3[MARS - 1]) hi_incremental_rate = CG_rt4 - CG_rt3 highest_rate_incremental_tax = hi_incremental_rate * hi_base # break in worksheet lines dwks33 = min(dwks9, e24515) dwks34 = dwks10 + dwks19 dwks36 = max(0., dwks34 - dwks1) dwks37 = max(0., dwks33 - dwks36) dwks38 = 0.25 * dwks37 # break in worksheet lines dwks39 = dwks19 + dwks20 + dwks28 + dwks31 + dwks37 dwks40 = dwks1 - dwks39 dwks41 = 0.28 * dwks40 dwks42 = SchXYZ(dwks19, MARS, e00900, e26270, e02000, e00200, PT_rt1, PT_rt2, PT_rt3, PT_rt4, PT_rt5, PT_rt6, PT_rt7, PT_rt8, PT_brk1, PT_brk2, PT_brk3, PT_brk4, PT_brk5, PT_brk6, PT_brk7, II_rt1, II_rt2, II_rt3, II_rt4, II_rt5, II_rt6, II_rt7, II_rt8, II_brk1, II_brk2, II_brk3, II_brk4, II_brk5, II_brk6, II_brk7, PT_EligibleRate_active, PT_EligibleRate_passive, PT_wages_active_income, PT_top_stacking) dwks43 = (dwks29 + dwks32 + dwks38 + dwks41 + dwks42 + lowest_rate_tax + highest_rate_incremental_tax) dwks44 = c05200 dwks45 = min(dwks43, dwks44) c24580 = dwks45 else: # if hasqdivltcg is zero c24580 = c05200 dwks10 = max(0., min(p23250, c23650)) + e01100 dwks13 = 0. dwks14 = 0. dwks19 = 0. # final calculations done no matter what the value of hasqdivltcg c05100 = c24580 # because foreign earned income exclusion is assumed zero c05700 = 0. # no Form 4972, Lump Sum Distributions taxbc = c05700 + c05100 return (dwks10, dwks13, dwks14, dwks19, c05700, taxbc) @iterate_jit(nopython=True) def AGIsurtax(c00100, MARS, AGI_surtax_trt, AGI_surtax_thd, taxbc, surtax): """ Computes surtax on AGI above some threshold. Parameters ---------- c00100: float Adjusted Gross Income (AGI) MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) AGI_surtax_trt: float New AGI surtax rate AGI_surtax_thd: list Threshold for the new AGI surtax taxbc: float Regular tax on regular taxable income before credits surtax: float Surtax on AGI above some threshold Returns ------- taxbc: float Regular tax on regular taxable income before credits surtax: float Surtax on AGI above some threshold """ if AGI_surtax_trt > 0.: hiAGItax = AGI_surtax_trt * max(c00100 - AGI_surtax_thd[MARS - 1], 0.) taxbc += hiAGItax surtax += hiAGItax return (taxbc, surtax) @iterate_jit(nopython=True) def AMT(e07300, dwks13, standard, f6251, c00100, c18300, taxbc, c04470, c17000, c20800, c21040, e24515, MARS, sep, dwks19, dwks14, c05700, e62900, e00700, dwks10, age_head, age_spouse, earned, cmbtp, AMT_child_em_c_age, AMT_brk1, AMT_em, AMT_prt, AMT_rt1, AMT_rt2, AMT_child_em, AMT_em_ps, AMT_em_pe, AMT_CG_brk1, AMT_CG_brk2, AMT_CG_brk3, AMT_CG_rt1, AMT_CG_rt2, AMT_CG_rt3, AMT_CG_rt4, c05800, c09600, c62100): """ Computes Alternative Minimum Tax (AMT) taxable income and liability, where c62100 is AMT taxable income, c09600 is AMT tax liability, and c05800 is total (regular + AMT) income tax liability before credits. Note that line-number variable names refer to 2015 Form 6251. Parameters ----------- e07300: float Foreign tax credit from Form 1116 dwks13: float Difference of dwks10 - dwks12 standard: float Standard deduction (zero for itemizers) f6251: int 1 if Form 6251 (AMT) attached to return, otherwise 0 c00100: float Adjusted Gross Income (AGI) c18300: float Schedule A: state and local taxes plus real estate taxes deducted taxbc: float Regular tax on regular taxable income before credits c04470: float Itemized deductions after phase-out (zero for non itemizers) c17000: float Schedule A: Medical expenses deducted c20800: float Schedule A: net limited miscellaneous deductions deducted c21040: float Itemized deductiosn that are phased out e24515: float Schedule D: Un-Recaptured Section 1250 Gain MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) sep: int 2 when MARS is 3 (married filing separately), otherwise 1 dwks19: float Maximum of 0 and dwks1 - dwks13 dwks14: float Maximum of 0 and dwks1 - dwks13 c05700: float Lump sum distributions e62900: float Alternative Minimum Tax foreign tax credit from Form 6251 e00700: float Schedule C business net profit/loss for filing unit dwks10: float Sum of dwks6 + dwks9 age_head: int Age in years of taxpayer (i.e. primary adult) age_spouse: int Age in years of spouse (i.e. secondary adult if present) earned: float Earned income for filing unit cmbtp: float Estimate of income on (AMT) Form 6251 but not in AGI AMT_child_em_c_age: float Age ceiling for special AMT exemption AMT_brk1: float AMT bracket 1 (upper threshold) AMT_em: list AMT exemption amount AMT_prt: float AMT exemption phaseout rate AMT_rt1: float AMT rate 1 AMT_rt2: float Additional AMT rate for AMT taxable income about AMT bracket 1 AMT_child_em: float Child AMT exemption additional income base AMT_em_ps: list AMT exemption phaseout start AMT_em_pe: float AMT exemption phaseout ending AMT taxable income for Married Filing Separately AMT_CG_brk1: list Top of long-term capital gains and qualified dividends (AMT) tax bracket 1 AMT_CG_brk2: list Top of long-term capital gains and qualified dividends (AMT) tax bracket 2 AMT_CG_brk3: list Top of long-term capital gains and qualified dividends (AMT) tax bracket 3 AMT_CG_rt1: float Long term capital gain and qualified dividends (AMT) rate 1 AMT_CG_rt2: float Long term capital gain and qualified dividends (AMT) rate 2 AMT_CG_rt3: float Long term capital gain and qualified dividends (AMT) rate 3 AMT_CG_rt4: float Long term capital gain and qualified dividends (AMT) rate 4 c05800: float Total (regular + AMT) income tax liability before credits c09600: float Alternative Minimum Tax (AMT) liability c62100: float Alternative Minimum Tax (AMT) Returns ------- c62100: float Alternative Minimum Tax (AMT) c09600: float Alternative Minimum Tax (AMT) liability c05800: float Total (regular + AMT) income tax liability before credits """ # pylint: disable=too-many-statements,too-many-branches # Form 6251, Part I if standard == 0.0: c62100 = (c00100 - e00700 - c04470 + max(0., min(c17000, 0.025 * c00100)) + c18300 + c20800 - c21040) if standard > 0.0: c62100 = c00100 - e00700 c62100 += cmbtp # add income not in AGI but considered income for AMT if MARS == 3: amtsepadd = max(0., min(AMT_em[MARS - 1], AMT_prt * (c62100 - AMT_em_pe))) else: amtsepadd = 0. c62100 = c62100 + amtsepadd # AMT taxable income, which is line28 # Form 6251, Part II top line29 = max(0., AMT_em[MARS - 1] - AMT_prt * max(0., c62100 - AMT_em_ps[MARS - 1])) young_head = age_head != 0 and age_head < AMT_child_em_c_age no_or_young_spouse = age_spouse < AMT_child_em_c_age if young_head and no_or_young_spouse: line29 = min(line29, earned + AMT_child_em) line30 = max(0., c62100 - line29) line3163 = (AMT_rt1 * line30 + AMT_rt2 * max(0., (line30 - (AMT_brk1 / sep)))) if dwks10 > 0. or dwks13 > 0. or dwks14 > 0. or dwks19 > 0. or e24515 > 0.: # complete Form 6251, Part III (line36 is equal to line30) line37 = dwks13 line38 = e24515 line39 = min(line37 + line38, dwks10) line40 = min(line30, line39) line41 = max(0., line30 - line40) line42 = (AMT_rt1 * line41 + AMT_rt2 * max(0., (line41 - (AMT_brk1 / sep)))) line44 = dwks14 line45 = max(0., AMT_CG_brk1[MARS - 1] - line44) line46 = min(line30, line37) line47 = min(line45, line46) # line47 is amount taxed at AMT_CG_rt1 cgtax1 = line47 * AMT_CG_rt1 line48 = line46 - line47 line51 = dwks19 line52 = line45 + line51 line53 = max(0., AMT_CG_brk2[MARS - 1] - line52) line54 = min(line48, line53) # line54 is amount taxed at AMT_CG_rt2 cgtax2 = line54 * AMT_CG_rt2 line56 = line47 + line54 # total amount in lower two brackets if line41 == line56: line57 = 0. # line57 is amount taxed at AMT_CG_rt3 linex2 = 0. # linex2 is amount taxed at AMT_CG_rt4 else: line57 = line46 - line56 linex1 = min(line48, max(0., AMT_CG_brk3[MARS - 1] - line44 - line45)) linex2 = max(0., line54 - linex1) cgtax3 = line57 * AMT_CG_rt3 cgtax4 = linex2 * AMT_CG_rt4 if line38 == 0.: line61 = 0. else: line61 = 0.25 * max(0., line30 - line41 - line56 - line57 - linex2) line62 = line42 + cgtax1 + cgtax2 + cgtax3 + cgtax4 + line61 line64 = min(line3163, line62) line31 = line64 else: # if not completing Form 6251, Part III line31 = line3163 # Form 6251, Part II bottom if f6251 == 1: line32 = e62900 else: line32 = e07300 line33 = line31 - line32 c09600 = max(0., line33 - max(0., taxbc - e07300 - c05700)) c05800 = taxbc + c09600 return (c62100, c09600, c05800) @iterate_jit(nopython=True) def NetInvIncTax(e00300, e00600, e02000, e26270, c01000, c00100, NIIT_thd, MARS, NIIT_PT_taxed, NIIT_rt, niit): """ Computes Net Investment Income Tax (NIIT) amount assuming that all annuity income is excluded from net investment income. Parameters ---------- e00300: float Tax-exempt interest income e00600: float Ordinary dividends included in AGI e02000: float Schedule E total rental, royalty, parternship, S-corporation, etc, income/loss e26270: float Schedule E: combined partnership and S-corporation net income/loss c01000: float Limitation on capital losses c00100: float Adjusted Gross Income (AGI) NIIT_thd: list Net Investment Income Tax modified AGI threshold MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) NIIT_PT_taxed: bool Whether or not partnership and S-corp income is NIIT based NIIT_rt: float Net Investment Income Tax rate niit: float Net investment income tax from Form 8960 Returns ------- niit: float Net investment income tax from Form 8960 """ modAGI = c00100 # no foreign earned income exclusion to add if not NIIT_PT_taxed: NII = max(0., e00300 + e00600 + c01000 + e02000 - e26270) else: # do not subtract e26270 from e02000 NII = max(0., e00300 + e00600 + c01000 + e02000) niit = NIIT_rt * min(NII, max(0., modAGI - NIIT_thd[MARS - 1])) return niit @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): """ Calculates Form 2441 child and dependent care expense credit, c07180. Parameters ---------- MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) earned_p: float Earned income for taxpayer earned_s: float Earned income for spouse f2441: int Number of child/dependent care qualifying persons CDCC_c: float Maximum child/dependent care credit per dependent e32800: float Child/dependent care expenses for qualifying persons from Form 2441 exact: int Whether or not to do rounding of phaseout fraction c00100: float Adjusted Gross Income (AGI) CDCC_ps: float Child/dependent care credit phaseout start CDCC_crt: float Child/dependent care credit phaseout percentage rate ceiling 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 Returns ------- c07180: float Credit for child and dependent care expenses from Form 2441 """ # credit for at most two cared-for individuals and for actual expenses max_credit = min(f2441, 2) * CDCC_c c32800 = max(0., min(e32800, max_credit)) # credit is limited to minimum of individuals' earned income c32880 = earned_p # earned income of taxpayer if MARS == 2: c32890 = earned_s # earned income of spouse when present else: c32890 = earned_p c33000 = max(0., min(c32800, min(c32880, c32890))) # credit is limited by AGI-related fraction 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)) 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.)) c33200 = c33000 * 0.01 * crate # credit is limited by tax liability if not refundable if CDCC_refundable: c07180 = 0. CDCC_refund = c33200 else: c07180 = min(max(0., c05800 - e07300), c33200) CDCC_refund = 0. return (c07180, CDCC_refund)
[docs]@JIT(nopython=True) def EITCamount(basic_frac, phasein_rate, earnings, max_amount, phaseout_start, agi, phaseout_rate): """ Returns EITC amount given specified parameters. English parameter names are used in this function because the EITC formula is not available on IRS forms or in IRS instructions; the extensive IRS EITC look-up table does not reveal the formula. Parameters ---------- basic_frac: list Fraction of maximum earned income credit paid at zero earnings phasein_rate: list Earned income credit phasein rate earnings: float Earned income for filing unit max_amount: list Maximum earned income credit phaseout_start: list Earned income credit phaseout start AGI agi: float Adjusted Gross Income (AGI) phaseout_rate: list Earned income credit phaseout rate Returns ------- eitc: float Earned Income Credit """ eitc = min((basic_frac * max_amount + (1.0 - basic_frac) * phasein_rate * earnings), max_amount) if earnings > phaseout_start or agi > phaseout_start: eitcx = max(0., (max_amount - phaseout_rate * max(0., max(earnings, agi) - phaseout_start))) eitc = min(eitc, eitcx) return eitc
@iterate_jit(nopython=True) def EITC(MARS, DSI, EIC, c00100, e00300, e00400, e00600, c01000, e02000, e26270, age_head, age_spouse, earned, earned_p, earned_s, EITC_ps, EITC_MinEligAge, EITC_MaxEligAge, EITC_ps_MarriedJ, EITC_rt, EITC_c, EITC_prt, EITC_basic_frac, EITC_InvestIncome_c, EITC_excess_InvestIncome_rt, EITC_indiv, EITC_sep_filers_elig, c59660): """ Computes EITC amount, c59660. Parameters ---------- MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) DSI: int 1 if claimed as dependent on another return, otherwise 0 EIC: int Number of EIC qualifying children c00100: float Adjusted Gross Income (AGI) e00300: float Taxable interest income e00400: float Tax exempt interest income e00600: float Ordinary dividends included in AGI c01000: float Limitation on capital losses e02000: float Schedule E total rental, royalty, partnership, S-corporation, etc, income/loss e26270: float Schedule E combined partnership and S-corporation net income/loss age_head: int Age in years of taxpayer (primary adult) age_spouse: int Age in years of spouse (secondary adult, if present) earned: float Earned income for filing unit earned_p: float Earned income for taxpayer earned_s: float Earned income for spouse EITC_ps: list Earned income credit phaseout start AGI EITC_MinEligAge: int Minimum age for childless EITC eligibility EITC_MaxEligAge: int Maximum age for childless EITC eligibility EITC_ps_MarriedJ: list Extra earned income credit phaseout start AGI for married filling jointly EITC_rt: list Earned income credit phasein rate EITC_c: list Maximum earned income credit EITC_prt: list Earned income credit phaseout rate EITC_basic_frac: float Fraction of maximum earned income credit paid at zero earnings EITC_InvestIncome_c: float Maximum investment income before EITC reduction EITC_excess_InvestIncome_rt: float Rate of EITC reduction when investemtn income exceeds ceiling EITC_indiv: bool EITC is computed for each spouse based in individual earnings EITC_sep_filers_elig: bool Separate filers are eligible for the EITC c59660: float EITC amount Returns ------- c59660: float EITC amount """ # pylint: disable=too-many-branches if MARS != 2: eitc = EITCamount(EITC_basic_frac, EITC_rt[EIC], earned, EITC_c[EIC], EITC_ps[EIC], c00100, EITC_prt[EIC]) if EIC == 0: # enforce age eligibility rule for those with no EITC-eligible # kids assuming that an unknown age_* value implies EITC age # eligibility h_age_elig = EITC_MinEligAge <= age_head <= EITC_MaxEligAge if (age_head == 0 or h_age_elig): c59660 = eitc else: c59660 = 0. else: # if EIC != 0 c59660 = eitc if MARS == 2: po_start = EITC_ps[EIC] + EITC_ps_MarriedJ[EIC] if not EITC_indiv: # filing unit EITC rather than individual EITC eitc = EITCamount(EITC_basic_frac, EITC_rt[EIC], earned, EITC_c[EIC], po_start, c00100, EITC_prt[EIC]) if EITC_indiv: # individual EITC rather than a filing-unit EITC eitc_p = EITCamount(EITC_basic_frac, EITC_rt[EIC], earned_p, EITC_c[EIC], po_start, earned_p, EITC_prt[EIC]) eitc_s = EITCamount(EITC_basic_frac, EITC_rt[EIC], earned_s, EITC_c[EIC], po_start, earned_s, EITC_prt[EIC]) eitc = eitc_p + eitc_s if EIC == 0: h_age_elig = EITC_MinEligAge <= age_head <= EITC_MaxEligAge s_age_elig = EITC_MinEligAge <= age_spouse <= EITC_MaxEligAge if (age_head == 0 or age_spouse == 0 or h_age_elig or s_age_elig): c59660 = eitc else: c59660 = 0. else: c59660 = eitc if (MARS == 3 and not EITC_sep_filers_elig) or DSI == 1: c59660 = 0. # reduce positive EITC if investment income exceeds ceiling if c59660 > 0.: invinc = (e00400 + e00300 + e00600 + max(0., c01000) + max(0., (e02000 - e26270))) if invinc > EITC_InvestIncome_c: eitc = (c59660 - EITC_excess_InvestIncome_rt * (invinc - EITC_InvestIncome_c)) c59660 = max(0., eitc) return c59660 @iterate_jit(nopython=True) def RefundablePayrollTaxCredit(was_plus_sey_p, was_plus_sey_s, RPTC_c, RPTC_rt, rptc_p, rptc_s, rptc): """ Computes refundable payroll tax credit amounts. Parameters ---------- was_plus_sey_p: float Wage and salary income plus taxable self employment income for taxpayer was_plus_sey_s: float Wage and salary income plus taxable self employment income for spouse RPTC_c: float Maximum refundable payroll tax credit RPTC_rt: float Refundable payroll tax credit phasein rate rptc_p: float Refundable Payroll Tax Credit for taxpayer rptc_s: float Refundable Payroll Tax Credit for spouse rptc: float Refundable Payroll Tax Credit for filing unit Returns ------- rptc_p: float Refundable Payroll Tax Credit for taxpayer rptc_s: float Refundable Payroll Tax Credit for spouse rptc: float Refundable Payroll Tax Credit for filing unit """ rptc_p = min(was_plus_sey_p * RPTC_rt, RPTC_c) rptc_s = min(was_plus_sey_s * RPTC_rt, RPTC_c) rptc = rptc_p + rptc_s return (rptc_p, rptc_s, rptc) @iterate_jit(nopython=True) def ChildDepTaxCredit(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, n21, n1820, c07220, odc, codtc_limited): """ Computes amounts on "Child Tax Credit and Credit for Other Dependents Worksheet" in 2018 Publication 972, which pertain to these two nonrefundable tax credits. Parameters ---------- n24: int Number of children who are Child-Tax-Credit eligible, one condition for which is being under age 17 MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) c00100: float Adjusted Gross Income (AGI) XTOT: int Total number of exemptions for filing unit num: int 2 when MARS is 2 (married filing jointly), otherwise 1 c05800: float Total (regular + AMT) income tax liability before credits e07260: float Residential energy credit from Form 5695 CR_ResidentialEnergy_hc: float Credit for residential energy haircut e07300: float Foreign tax credit from Form 1116 CR_ForeignTax_hc: float Credit for foreign tax credit c07180: float Credit for child and dependent care expenses from Form 2441 c07230: float Education tax credits non-refundable amount from Form 8863 e07240: float Retirement savings contributions credit from Form 8880 CR_RetirementSavings_hc: float Credit for retirement savings haircut c07200: float Schedule R credit for the elderly and the disabled CTC_c: float Maximum nonrefundable child tax credit per child CTC_ps: list Child tax credit phaseout MAGI start CTC_prt: float Child and dependent tax credit phaseout rate exact: int Whether or not to do rounding of phaseout fraction ODC_c: float Maximum nonrefundable other-dependent credit CTC_c_under6_bonus: float Bonus child tax credit maximum for qualifying children under six nu06: int Number of dependents under 6 years old c07220: float Child tax credit (adjusted) from Form 8812 odc: float Other Dependent Credit codtc_limited: float Maximum of 0 and line 10 minus line 16 Returns ------- c07220: float Child tax credit (adjusted) from Form 8812 odc: float Other Dependent Credit codtc_limited: float Maximum of 0 and line 10 minus line 16 """ # Worksheet Part 1 if CTC_include17: childnum = n24 + max(0, XTOT - n21 - n1820 - n24 - num) else: childnum = n24 line1 = CTC_c * childnum + CTC_c_under6_bonus * nu06 line2 = ODC_c * max(0, XTOT - childnum - num) line3 = line1 + line2 modAGI = c00100 # no foreign earned income exclusion to add to AGI (line6) if line3 > 0. and modAGI > CTC_ps[MARS - 1]: excess = modAGI - CTC_ps[MARS - 1] if exact == 1: # exact calculation as on tax forms excess = 1000. * math.ceil(excess / 1000.) line10 = max(0., line3 - CTC_prt * excess) else: line10 = line3 if line10 > 0.: # Worksheet Part 2 line11 = c05800 line12 = (e07260 * (1. - CR_ResidentialEnergy_hc) + e07300 * (1. - CR_ForeignTax_hc) + c07180 + # child & dependent care expense credit c07230 + # education credit e07240 * (1. - CR_RetirementSavings_hc) + c07200) # Schedule R credit line13 = line11 - line12 line14 = 0. line15 = max(0., line13 - line14) if CTC_refundable: c07220 = line10 * line1 / line3 odc = min(max(0., line10 - c07220), line15) codtc_limited = max(0., line10 - c07220 - odc) else: line16 = min(line10, line15) # credit is capped by tax liability # separate the CTC and ODTC amounts c07220 = line16 * line1 / line3 odc = max(0., line16 - c07220) # compute codtc_limited for use in AdditionalCTC function codtc_limited = max(0., line10 - line16) else: line16 = 0. c07220 = 0. odc = 0. codtc_limited = 0. return (c07220, odc, codtc_limited) @iterate_jit(nopython=True) def PersonalTaxCredit(MARS, c00100, XTOT, nu18, II_credit, II_credit_ps, II_credit_prt, II_credit_nr, II_credit_nr_ps, II_credit_nr_prt, RRC_c, RRC_ps, RRC_pe, RRC_prt, RRC_c_kids, RRC_c_unit, personal_refundable_credit, personal_nonrefundable_credit, recovery_rebate_credit): """ Computes personal_refundable_credit and personal_nonrefundable_credit, neither of which are part of current-law policy. Parameters ---------- MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) c00100: float Adjusted Gross Income (AGI) XTOT: int Total number of exemptions for filing unit nu18: int Number of people under 18 years old in the filing unit II_credit: list Personal refundable credit maximum amount II_credit_ps: list Personal refundable credit phaseout start II_credit_prt: float Personal refundable credit phaseout rate II_credit_nr: list Personal nonrefundable credit maximum amount II_credit_nr_ps: list Personal nonrefundable credit phaseout start II_credit_nr_prt: float Personal nonrefundable credit phaseout rate RRC_c: float Maximum amount of Recovery Rebate Credit RRC_ps: list Recovery Rebate Credit phase out start RRC_pe: list Recovery Rebate Credit phase out end RRC_prt: float Recovery Rebate Credit phase out rate RRC_c_kids: float Credit amount per child as part of the Recovery Rebate Credit RRC_c_unit: list Maximum credit for filing unit as part of the Recovery Rebate Credit personal_refundable_credit: float Personal refundable credit personal_nonrefundable_credit: float Personal nonrefundable credit Returns ------- personal_refundable_credit: float Personal refundable credit personal_nonrefundable_credit: float Personal nonrefundable credit personal_rebate_credit: float Personal rebate credit """ # calculate personal refundable credit amount with phase-out personal_refundable_credit = II_credit[MARS - 1] if II_credit_prt > 0. and c00100 > II_credit_ps[MARS - 1]: pout = II_credit_prt * (c00100 - II_credit_ps[MARS - 1]) fully_phasedout = personal_refundable_credit - pout personal_refundable_credit = max(0., fully_phasedout) # calculate personal nonrefundable credit amount with phase-out personal_nonrefundable_credit = II_credit_nr[MARS - 1] if II_credit_nr_prt > 0. and c00100 > II_credit_nr_ps[MARS - 1]: pout = II_credit_nr_prt * (c00100 - II_credit_nr_ps[MARS - 1]) fully_phasedout = personal_nonrefundable_credit - pout personal_nonrefundable_credit = max(0., fully_phasedout) # calculate Recovery Rebate Credit from CARES Act 2020 and/or ARPA 2021 if c00100 < RRC_ps[MARS - 1]: recovery_rebate_credit = RRC_c * XTOT recovery_rebate_credit += RRC_c_unit[MARS-1] + RRC_c_kids * nu18 elif c00100 < RRC_pe[MARS - 1] and c00100 > 0: prt = ((c00100 - RRC_ps[MARS - 1])/ (RRC_pe[MARS - 1] - RRC_ps[MARS - 1])) recovery_rebate_credit = RRC_c * XTOT * (1 - prt) else: recovery_rebate_credit = max(0, RRC_c_unit[MARS-1] + RRC_c_kids * nu18 - RRC_prt * (c00100 - RRC_ps[MARS -1])) return (personal_refundable_credit, personal_nonrefundable_credit, recovery_rebate_credit) @iterate_jit(nopython=True) def AmOppCreditParts(exact, e87521, num, c00100, CR_AmOppRefundable_hc, CR_AmOppNonRefundable_hc, c10960, c87668): """ Applies a phaseout to the Form 8863, line 1, American Opportunity Credit amount, e87521, and then applies the 0.4 refundable rate. Logic corresponds to Form 8863, Part I. Parameters ---------- exact: int Whether or not to do rounding of phaseout fraction e87521: float Total tentative AmOppCredit amount for all students. From Form 8863, line 1. num: int 2 when MARS is 2 (married filing jointly), otherwise 1 c00100: float Adjusted Gross Income (AGI) CR_AmOppRefundable_hc: float Refundable portion of the American Opportunity Credit haircut CR_AmOppNonRefundable_hc: float Nonrefundable portion of the American Opportunity Credit haircut c10960: float American Opportunity Credit refundable amount from Form 8863 c87668: float American Opportunity Credit non-refundable amount from Form 8863 Returns ------- c10960: float American Opportunity Credit refundable amount from Form 8863 c87668: float American Opportunity Credit non-refundable amount from Form 8863 Notes ----- Tax Law Paramters that are not parameterized: 90000: American Opportunity phaseout income base 10000: American Opportunity Credit phaseout income range length 1/1000: American Opportunity Credit phaseout rate 0.3: American Opportunity Credit refundable rate """ if e87521 > 0.: c87658 = max(0., 90000. * num - c00100) c87660 = 10000. * num if exact == 1: # exact calculation as on tax forms c87662 = 1000. * min(1., round(c87658 / c87660, 3)) else: c87662 = 1000. * min(1., c87658 / c87660) c87664 = c87662 * e87521 / 1000. c10960 = 0.4 * c87664 * (1. - CR_AmOppRefundable_hc) c87668 = c87664 - c10960 * (1. - CR_AmOppNonRefundable_hc) else: c10960 = 0. c87668 = 0. return (c10960, c87668) @iterate_jit(nopython=True) def SchR(age_head, age_spouse, MARS, c00100, c05800, e07300, c07180, e02400, c02500, e01500, e01700, CR_SchR_hc, c07200): """ Calculates Schedule R credit for the elderly and the disabled, c07200. Note that no Schedule R policy parameters are inflation indexed. Note that all Schedule R policy parameters are hard-coded, and therefore, are not able to be changed using Policy class parameters. Note that the CR_SchR_hc policy parameter allows the user to eliminate or reduce total Schedule R credits. Parameters ---------- age_head: int Age in years of taxpayer (primary adult) age_spouse: int Age in years of spouse (secondary adult, if present) MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) c00100: float Adjusted Gross Income (AGI) c05800: float Total (regular + AMT) income tax liability before credit e07300: float Foreign tax credit from Form 1116 c07180: float Credit for child and dependent care expenses from Form 2441 e02400: float Total social security (OASDI) benefits c02500: float Social security (OASDI) benefits included in AGI e01500: float Total pensions and annuities e01700: float Taxable pensions and annuities CR_SchR_hc: float Schedule R credit haircut c07200: float Schedule R credit for the elderly and the disabled Returns ------- c07200: float Schedule R credit for the elderly and the disabled """ if age_head >= 65 or (MARS == 2 and age_spouse >= 65): # calculate credit assuming nobody is disabled (so line12 = line10) if MARS == 2: if age_head >= 65 and age_spouse >= 65: schr12 = 7500. else: schr12 = 5000. schr15 = 10000. elif MARS == 3: schr12 = 3750. schr15 = 5000. elif MARS in (1, 4): schr12 = 5000. schr15 = 7500. else: schr12 = 0. schr15 = 0. # nontaxable portion of OASDI benefits, line 13a schr13a = max(0., e02400 - c02500) # nontaxable portion of pension benefits, line 13b # NOTE: the following approximation (required because of inadequate IRS # data) will be accurate if all pensions are partially taxable # or if all pensions are fully taxable. But if a filing unit # receives at least one partially taxable pension and at least # one fully taxable pension, then the approximation in the # following line is not exactly correct. schr13b = max(0., e01500 - e01700) schr13c = schr13a + schr13b schr16 = max(0., c00100 - schr15) schr17 = 0.5 * schr16 schr18 = schr13c + schr17 schr19 = max(0., schr12 - schr18) schr20 = 0.15 * schr19 schr21 = max(0., (c05800 - e07300 - c07180)) c07200 = min(schr20, schr21) * (1. - CR_SchR_hc) else: # if not calculating Schedule R credit c07200 = 0. return c07200 @iterate_jit(nopython=True) def EducationTaxCredit(exact, e87530, MARS, c00100, num, c05800, e07300, c07180, c07200, c87668, LLC_Expense_c, ETC_pe_Single, ETC_pe_Married, CR_Education_hc, c07230): """ Computes Education Tax Credits (Form 8863) nonrefundable amount, c07230. Logic corresponds to Form 8863, Part II. Parameters ---------- exact: int Whether or not to do rounding of phaseout fraction e87530: float Adjusted qualified lifetime learning expenses for all students MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) c00100: float Adjusted Gross Income (AGI) num: int 2 when MARS is 2 (married filing jointly), otherwise 1 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 c07200: float Schedule R credit for the elderly and the disabled c87668: float American Opportunity Credit non-refundalbe amount from Form 8863 LLC_Expense_c: float Lifetime learning credit expense limit ETC_pe_Single: float Education tax credit phaseout ends (single) ETC_pe_Married: float Education tax credit phaseout ends (married) CR_Education_hc: float Education Credits haircut c07230: float Education tax credits non-refundable amount from Form 8863 Returns ------- c07230: float Education tax credits non-refundable amount from Form 8863 Notes ----- Tax Law Parameters that are not parameterized: 0.2: Lifetime Learning Credit ratio against expense """ c87560 = 0.2 * min(e87530, LLC_Expense_c) if MARS == 2: c87570 = ETC_pe_Married * 1000. else: c87570 = ETC_pe_Single * 1000. c87590 = max(0., c87570 - c00100) c87600 = 10000. * num if exact == 1: # exact calculation as on tax forms c87610 = min(1., round(c87590 / c87600, 3)) else: c87610 = min(1., c87590 / c87600) c87620 = c87560 * c87610 xline4 = max(0., c05800 - (e07300 + c07180 + c07200)) xline5 = min(c87620, xline4) xline9 = max(0., c05800 - (e07300 + c07180 + c07200 + xline5)) xline10 = min(c87668, xline9) c87680 = xline5 + xline10 c07230 = c87680 * (1. - CR_Education_hc) return c07230 @iterate_jit(nopython=True) def CharityCredit(e19800, e20100, c00100, CR_Charity_rt, CR_Charity_f, CR_Charity_frt, MARS, charity_credit): """ Computes nonrefundable charity credit, charity_credit. This credit is not part of current-law policy. Parameters ---------- e19800: float Itemizable charitable giving for cash and check contributions e20100: float Itemizable charitable giving other than cash and check contributions c00100: float Adjusted Gross Income (AGI) CR_Charity_rt: float Charity credit rate CR_Charity_f: list Charity credit floor CR_Charity_frt: float Charity credit floor rate MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) charity_credit: float Credit for charitable giving Returns ------- charity_credit: float Credit for charitable giving """ total_charity = e19800 + e20100 floor = max(CR_Charity_frt * c00100, CR_Charity_f[MARS - 1]) charity_cr_floored = max(total_charity - floor, 0) charity_credit = CR_Charity_rt * (charity_cr_floored) return charity_credit @iterate_jit(nopython=True) def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400, e07600, p08000, odc, personal_nonrefundable_credit, CTC_refundable, CR_RetirementSavings_hc, CR_ForeignTax_hc, CR_ResidentialEnergy_hc, CR_GeneralBusiness_hc, CR_MinimumTax_hc, CR_OtherCredits_hc, charity_credit, c07180, c07200, c07220, c07230, c07240, c07260, c07300, c07400, c07600, c08000): """ NonRefundableCredits function sequentially limits credits to tax liability. Parameters ---------- c05800: float Total (regular + AMT) income tax liability before credits e07240: float Retirement savings contributions credit from Form 8880 e07260: float Residential energy credit from Form 5695 e07300: float Foreign tax credit from Form 1116 e07400: float General business credit from Form 3800 e07600: float Prior year minimum tax credit from Form 8801 p08000: float Other tax credits odc: float Other Dependent Credit personal_nonrefundable_credit: float Personal nonrefundable credit CTC_refundable: bool Whether the child tax credit is fully refundable CR_RetirementSavings_hc: float Credit for retirement savings haircut CR_ForeignTax_hc: float Credit for foreign tax credit CR_ResidentialEnergy_hc: float Credit for residential energy haircut CR_GeneralBusiness_hc: float Credit for general business haircut CR_MinimumTax_hc: float Credit for previous year minimum tax credit haircut CR_OtherCredits_hc: float Other Credit haircut charity_credit: float Credit for charitable giving c07180: float Credit for child and dependent care expenses from Form 2441 c07200: float Schedule R credit for the elderly and the disabled c07220: float Child tax credit (adjusted) from From 8812 c07230: float Education tax credits non-refundable amount from Form 8863 c07240: float Retirement savings credit - Form 8880 c07260: float Residential energy credit - Form 5695 c07300: float Foreign tax credit - Form 1116 c07400: float General business credit - Form 3800 c07600: float Prior year minimum tax credit - Form 8801 c08000: float Other credits Returns ------- c07180: float Credit for child and dependent care expenses from Form 2441 c07200: float Schedule R credit for the elderly and the disabled c07220: float Child tax credit (adjusted) from From 8812 c07230: float Education tax credits non-refundable amount from Form 8863 c07240: float Retirement savings credit - Form 8880 odc: float Other Dependent Credit c07260: float Residential energy credit - Form 5695 c07300: float Foreign tax credit - Form 1116 c07400: float General business credit - Form 3800 c07600: float Prior year minimum tax credit - Form 8801 c08000: float Other credits charity_credit: float Credit for charitable giving personal_nonrefundable_credit: float Personal nonrefundable credit """ # limit tax credits to tax liability in order they are on 2015 1040 form avail = c05800 # Foreign tax credit - Form 1116 c07300 = min(e07300 * (1. - CR_ForeignTax_hc), avail) avail = avail - c07300 # Child & dependent care expense credit c07180 = min(c07180, avail) avail = avail - c07180 # Education tax credit c07230 = min(c07230, avail) avail = avail - c07230 # Retirement savings credit - Form 8880 c07240 = min(e07240 * (1. - CR_RetirementSavings_hc), avail) avail = avail - c07240 # Child tax credit if not CTC_refundable: c07220 = min(c07220, avail) avail = avail - c07220 # 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 # General business credit - Form 3800 c07400 = min(e07400 * (1. - CR_GeneralBusiness_hc), avail) avail = avail - c07400 # Prior year minimum tax credit - Form 8801 c07600 = min(e07600 * (1. - CR_MinimumTax_hc), avail) avail = avail - c07600 # Schedule R credit c07200 = min(c07200, avail) avail = avail - c07200 # Other credits c08000 = min(p08000 * (1. - CR_OtherCredits_hc), avail) avail = avail - c08000 charity_credit = min(charity_credit, avail) avail = avail - charity_credit # Personal nonrefundable credit personal_nonrefundable_credit = min(personal_nonrefundable_credit, avail) avail = avail - personal_nonrefundable_credit return (c07180, c07200, c07220, c07230, c07240, odc, c07260, c07300, c07400, c07600, c08000, charity_credit, personal_nonrefundable_credit) @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, ptax_was, c03260, e09800, c59660, e11200, c11070): """ Calculates refundable Additional Child Tax Credit (ACTC), c11070, following 2018 Form 8812 logic. Parameters ---------- codtc_limited: float Maximum of 0 and line 10 minus line 16 ACTC_c: float Maximum refundable additional child tax credit n24: int Number of children who are Child-Tax-Credit eligible, one condition for which is being under age 17 earned: float Earned income for filing unit ACTC_Income_thd: float Additional Child Tax Credit income threshold ACTC_rt: float Additional Child Tax Credit rate nu06: int Number of dependents under 6 years old ACTC_rt_bonus_under6family: float Bonus additional child tax credit rate for families with qualifying children under 6 ACTC_ChildNum: float Additional Child Tax Credit minimum number of qualified children for different formula ptax_was: float Employee and employer OASDI plus HI FICA tax c03260: float Self-employment tax deduction (after haircut) e09800: float Unreported payroll taxes from Form 4137 or 8919 c59660: float EITC amount e11200: float Excess payroll (FICA/RRTA) tax withheld c11070: float Child tax credit (refunded) from Form 8812 Returns ------- c11070: float Child tax credit (refunded) from Form 8812 """ # Part I line3 = codtc_limited if CTC_refundable: line4 = 0. else: if CTC_include17: childnum = n24 + max(0, XTOT - n21 - n1820 - n24 - num) else: childnum = n24 line4 = ACTC_c * childnum c11070 = 0. # line15 if line3 > 0. and line4 > 0.: line5 = min(line3, line4) line7 = max(0., earned - ACTC_Income_thd) # accommodate ACTC rate bonus for families with children under 5 if nu06 == 0: ACTC_rate = ACTC_rt else: ACTC_rate = ACTC_rt + ACTC_rt_bonus_under6family line8 = ACTC_rate * line7 if childnum < ACTC_ChildNum: if line8 > 0.: c11070 = min(line5, line8) else: # if childnum >= ACTC_ChildNum if line8 >= line5: c11070 = line5 else: # complete Part II line9 = 0.5 * ptax_was line10 = c03260 + e09800 line11 = line9 + line10 line12 = c59660 + e11200 line13 = max(0., line11 - line12) line14 = max(line8, line13) c11070 = min(line5, line14) return c11070 @iterate_jit(nopython=True) def C1040(c05800, c07180, c07200, c07220, c07230, c07240, c07260, c07300, c07400, c07600, c08000, e09700, e09800, e09900, niit, othertaxes, c07100, c09200, odc, charity_credit, personal_nonrefundable_credit, CTC_refundable): """ Computes total used nonrefundable credits, c07100, othertaxes, and income tax before refundable credits, c09200. Parameters ---------- c05800: float Total (regular + AMT) income tax liability before credits c07180: float Credit for child and dependent care expenses from Form 2441 c07200: float Schedule R credit for the elderly and the disabled c07220: float Child tax credit (adjusted) from Form 8812 c07230: float Education tax credit non-refundable amount from Form 8863 c07240: float Retirement savings credit - Form 8880 c07260: float Residential energy credit - Form 5695 c07300: float Foreign tax credit - Form 1116 c07400: float General business credit - Form 3800 c07600: float Prior year minimum tax credit - Form 8801 c08000: float Other credits e09700: float Recapture of Investment Credit e09800: float Unreported payroll taxes from Form 4137 or 8919 e09900: float Penalty tax on qualified retirement plans niit: float Net Investment Income Tax from Form 8960 othertaxes: float Sum of niit, e09700, e09800, and e09900 c07100: float Total non-refundable credits used to reduce positive tax liability c09200: float Income tax liabilities (including othertaxes) after non-refundable credits are used, but before refundable credits are applied odc: float Other Dependent Credit charity_credit: float Credit for charitable giving personal_nonrefundable_credit: float Personal nonrefundable credit Returns ------- c07100: float Total non-refundable credits used to reduce positive tax liability othertaxes: float Sum of niit, e09700, e09800, and e09900 c09200: float Income tax liabilities (including othertaxes) after non-refundable credits are used, but before refundable credits are applied """ # total used nonrefundable credits (as computed in NonrefundableCredits) c07100 = (c07180 + c07200 + c07600 + c07300 + c07400 + c07220 * (1. - CTC_refundable) + c08000 + c07230 + c07240 + c07260 + odc + charity_credit + personal_nonrefundable_credit) # tax after credits (2016 Form 1040, line 56) tax_net_nonrefundable_credits = max(0., c05800 - c07100) # tax (including othertaxes) before refundable credits othertaxes = e09700 + e09800 + e09900 + niit c09200 = othertaxes + tax_net_nonrefundable_credits return (c07100, othertaxes, c09200) @iterate_jit(nopython=True) 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, c09200, ctc_new): """ Computes new refundable child tax credit using specified parameters. Parameters ---------- CTC_new_c: float New refundable child tax credit maximum amount per child CTC_new_rt: float New refundalbe child tax credit amount phasein rate CTC_new_c_under6_bonus: float Bonus new refundable child tax credit maximum for qualifying children under six CTC_new_ps: list New refundable child tax credit phaseout starting AGI CTC_new_prt: float New refundable child tax credit amount phaseout rate CTC_new_for_all: bool Whether or not maximum amount of the new refundable child tax credit is available to all CTC_new_refund_limited: bool New child tax credit refund limited to a decimal fraction of payroll taxes CTC_new_refund_limit_payroll_rt: float New child tax credit refund limit rate (decimal fraction of payroll taxes) CTC_new_refund_limited_all_payroll: bool New child tax credit refund limit applies to all FICA taxes, not just OASDI payrolltax: float Total (employee + employer) payroll tax liability n24: int Number of children who are Child-Tax-Credit eligible, one condition for which is being under age 17 nu06: int Number of dependents under 6 years old c00100: float Adjusted Gross Income (AGI) MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) ptax_oasdi: float Employee and employer OASDI FICA tax plus self employment tax Excludes HI FICA so positive ptax_oasdi is less than ptax_was + setax c09200: float Income tax liabilities (including othertaxes) after non-refundable credits are used, but before refundable credits are applied ctc_new: float New refundable child tax credit Returns ------- ctc_new: float New refundable child tax credit """ if CTC_include17: childnum = n24 + max(0, XTOT - n21 - n1820 - n24 - num) else: childnum = n24 if childnum > 0: posagi = max(c00100, 0.) ctc_new = CTC_new_c * childnum + CTC_new_c_under6_bonus * nu06 if not CTC_new_for_all: ctc_new = min(CTC_new_rt * posagi, ctc_new) ymax = CTC_new_ps[MARS - 1] if posagi > ymax: ctc_new_reduced = max(0., ctc_new - CTC_new_prt * (posagi - ymax)) ctc_new = min(ctc_new, ctc_new_reduced) if ctc_new > 0. and CTC_new_refund_limited: refund_new = max(0., ctc_new - c09200) if not CTC_new_refund_limited_all_payroll: limit_new = CTC_new_refund_limit_payroll_rt * ptax_oasdi if CTC_new_refund_limited_all_payroll: limit_new = CTC_new_refund_limit_payroll_rt * payrolltax limited_new = max(0., refund_new - limit_new) ctc_new = max(0., ctc_new - limited_new) else: ctc_new = 0. return ctc_new @iterate_jit(nopython=True) def IITAX(c59660, c11070, c10960, personal_refundable_credit, ctc_new, rptc, c09200, payrolltax, CDCC_refund, recovery_rebate_credit, eitc, c07220, CTC_refundable, refund, iitax, combined): """ Computes final taxes. Parameters ---------- c59660: float EITC amount c11070: float Child tax credit (refunded) from Form 8812 c10960: float American Opportunity Credit refundable amount from Form 8863 personal_refundable_credit: float Personal refundable credit ctc_new: float New refundable child tax credit rptc: float Refundable Payroll Tax Credit for filing unit c09200: float Income tax liabilities (including othertaxes) after non-refundable credits are used, but before refundable credits are applied payrolltax: float Total (employee + employer) payroll tax liability eitc: float Earned Income Credit refund: float Total refundable income tax credits iitax: float Total federal individual income tax liability combined: float Sum of iitax and payrolltax and lumpsum_tax Returns ------- eitc: float Earned Income Credit refund: float Total refundable income tax credits iitax: float Total federal individual income tax liability combined: float Sum of iitax and payrolltax and lumpsum_tax """ eitc = c59660 if CTC_refundable: ctc_refund = c07220 else: ctc_refund = 0. refund = (eitc + c11070 + c10960 + CDCC_refund + recovery_rebate_credit + personal_refundable_credit + ctc_new + rptc + ctc_refund) iitax = c09200 - refund combined = iitax + payrolltax return (eitc, refund, iitax, combined)
[docs]@JIT(nopython=True) def Taxes(income, MARS, tbrk_base, rate1, rate2, rate3, rate4, rate5, rate6, rate7, rate8, tbrk1, tbrk2, tbrk3, tbrk4, tbrk5, tbrk6, tbrk7): """ Taxes function returns tax amount given the progressive tax rate schedule specified by the rate* and (upper) tbrk* parameters and given income, filing status (MARS), and tax bracket base (tbrk_base). Parameters ---------- income: float Taxable income MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) tbrk_base: float Amount of income used to determine the braket the filer is in rate1: list Income tax rate 1 rate2: list Income tax rate 2 rate3: list Income tax rate 3 rate4: list Income tax rate 4 rate5: list Income tax rate 5 rate6: list Income tax rate 6 rate7: list Income tax rate 7 rate8: list Income tax rate 8 tbrk1: list Income tax bracket (upper threshold) 1 tbrk2: list Income tax bracket (upper threshold) 2 tbrk3: list Income tax bracket (upper threshold) 3 tbrk4: list Income tax bracket (upper threshold) 4 tbrk5: list Income tax bracket (upper threshold) 5 tbrk6: list Income tax bracket (upper threshold) 6 tbrk7: list Income tax bracket (upper threshold) 7 Returns ------- None """ if tbrk_base > 0.: brk1 = max(tbrk1[MARS - 1] - tbrk_base, 0.) brk2 = max(tbrk2[MARS - 1] - tbrk_base, 0.) brk3 = max(tbrk3[MARS - 1] - tbrk_base, 0.) brk4 = max(tbrk4[MARS - 1] - tbrk_base, 0.) brk5 = max(tbrk5[MARS - 1] - tbrk_base, 0.) brk6 = max(tbrk6[MARS - 1] - tbrk_base, 0.) brk7 = max(tbrk7[MARS - 1] - tbrk_base, 0.) else: brk1 = tbrk1[MARS - 1] brk2 = tbrk2[MARS - 1] brk3 = tbrk3[MARS - 1] brk4 = tbrk4[MARS - 1] brk5 = tbrk5[MARS - 1] brk6 = tbrk6[MARS - 1] brk7 = tbrk7[MARS - 1] return (rate1 * min(income, brk1) + rate2 * min(brk2 - brk1, max(0., income - brk1)) + rate3 * min(brk3 - brk2, max(0., income - brk2)) + rate4 * min(brk4 - brk3, max(0., income - brk3)) + rate5 * min(brk5 - brk4, max(0., income - brk4)) + rate6 * min(brk6 - brk5, max(0., income - brk5)) + rate7 * min(brk7 - brk6, max(0., income - brk6)) + rate8 * max(0., income - brk7))
[docs]def ComputeBenefit(calc, ID_switch): """ Calculates the value of the benefits accrued from itemizing. Parameters ---------- calc: Calculator object calc represents the reform while self represents the baseline ID_switch: list Deductions subject to the surtax on itemized deduction benefits Returns ------- benefit: float Imputed benefits from itemizing deductions """ # compute income tax liability with no itemized deductions allowed for # the types of itemized deductions covered under the BenefitSurtax no_ID_calc = copy.deepcopy(calc) if ID_switch[0]: no_ID_calc.policy_param('ID_Medical_hc', [1.]) if ID_switch[1]: no_ID_calc.policy_param('ID_StateLocalTax_hc', [1.]) if ID_switch[2]: no_ID_calc.policy_param('ID_RealEstate_hc', [1.]) if ID_switch[3]: no_ID_calc.policy_param('ID_Casualty_hc', [1.]) if ID_switch[4]: no_ID_calc.policy_param('ID_Miscellaneous_hc', [1.]) if ID_switch[5]: no_ID_calc.policy_param('ID_InterestPaid_hc', [1.]) if ID_switch[6]: no_ID_calc.policy_param('ID_Charity_hc', [1.]) no_ID_calc._calc_one_year() # pylint: disable=protected-access diff_iitax = no_ID_calc.array('iitax') - calc.array('iitax') benefit = np.where(diff_iitax > 0., diff_iitax, 0.) return benefit
[docs]def BenefitSurtax(calc): """ Computes itemized-deduction-benefit surtax and adds the surtax amount to income tax, combined tax, and surtax liabilities. Parameters ---------- calc: Calculator object calc represents the reform while self represents the baseline Returns ------- None: The function modifies calc """ if calc.policy_param('ID_BenefitSurtax_crt') != 1.: ben = ComputeBenefit(calc, calc.policy_param('ID_BenefitSurtax_Switch')) agi = calc.array('c00100') ben_deduct = calc.policy_param('ID_BenefitSurtax_crt') * agi ben_exempt_array = calc.policy_param('ID_BenefitSurtax_em') ben_exempt = ben_exempt_array[calc.array('MARS') - 1] ben_dedem = ben_deduct + ben_exempt ben_surtax = (calc.policy_param('ID_BenefitSurtax_trt') * np.where(ben > ben_dedem, ben - ben_dedem, 0.)) # add ben_surtax to income & combined taxes and to surtax subtotal calc.incarray('iitax', ben_surtax) calc.incarray('combined', ben_surtax) calc.incarray('surtax', ben_surtax)
[docs]def BenefitLimitation(calc): """ Limits the benefits of select itemized deductions to a fraction of deductible expenses. Parameters ---------- calc: Calculator object calc represents the reform while self represents the baseline Returns ------- None: The function modifies calc """ if calc.policy_param('ID_BenefitCap_rt') != 1.: benefit = ComputeBenefit(calc, calc.policy_param('ID_BenefitCap_Switch')) # Calculate total deductible expenses under the cap deduct_exps = 0. if calc.policy_param('ID_BenefitCap_Switch')[0]: # medical deduct_exps += calc.array('c17000') if calc.policy_param('ID_BenefitCap_Switch')[1]: # statelocal one_minus_hc = 1. - calc.policy_param('ID_StateLocalTax_hc') deduct_exps += (one_minus_hc * np.maximum(calc.array('e18400_capped'), 0.)) if calc.policy_param('ID_BenefitCap_Switch')[2]: # realestate one_minus_hc = 1. - calc.policy_param('ID_RealEstate_hc') deduct_exps += one_minus_hc * calc.array('e18500_capped') if calc.policy_param('ID_BenefitCap_Switch')[3]: # casualty deduct_exps += calc.array('c20500') if calc.policy_param('ID_BenefitCap_Switch')[4]: # misc deduct_exps += calc.array('c20800') if calc.policy_param('ID_BenefitCap_Switch')[5]: # interest deduct_exps += calc.array('c19200') if calc.policy_param('ID_BenefitCap_Switch')[6]: # charity deduct_exps += calc.array('c19700') # Calculate cap value for itemized deductions benefit_limit = deduct_exps * calc.policy_param('ID_BenefitCap_rt') # Add the difference between the actual benefit and capped benefit # to income tax and combined tax liabilities. excess_benefit = np.maximum(benefit - benefit_limit, 0) calc.incarray('iitax', excess_benefit) calc.incarray('surtax', excess_benefit) calc.incarray('combined', excess_benefit)
@iterate_jit(nopython=True) def FairShareTax(c00100, MARS, ptax_was, setax, ptax_amc, FST_AGI_trt, FST_AGI_thd_lo, FST_AGI_thd_hi, fstax, iitax, combined, surtax): """ Computes Fair Share Tax, or "Buffet Rule", types of reforms. Parameters ---------- c00100: float Adjusted Gross Income (AGI) MARS: int Filing (marital) status. (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er)) ptax_was: float Employee and employer OASDI plus HI FICA tax setax: float Self-employment tax ptax_amc: float Additional Medicare Tax FST_AGI_trt: float New minimum tax; rate as a decimal fraction of AGI FST_AGI_thd_lo: list Minimum AGI needed to be subject to the new minimum tax FST_AGI_thd_hi: list AGI level at which the New Minimum Tax is fully phased in fstax: float Fair Share Tax amount iitax: float Total federal individual income tax liability combined: float Sum of iitax and payrolltax and lumpsum_tax surtax: float Individual income tax subtotal augmented by fstax Returns ------- fstax: float Fair Share Tax amount iitax: float Total federal individual income tax liability combined: float Sum of iitax and payrolltax and lumpsum_tax surtax: float Individual income tax subtotal augmented by fstax """ if FST_AGI_trt > 0. and c00100 >= FST_AGI_thd_lo[MARS - 1]: employee_share = 0.5 * ptax_was + 0.5 * setax + ptax_amc fstax = max(c00100 * FST_AGI_trt - iitax - employee_share, 0.) thd_gap = max(FST_AGI_thd_hi[MARS - 1] - FST_AGI_thd_lo[MARS - 1], 0.) if thd_gap > 0. and c00100 < FST_AGI_thd_hi[MARS - 1]: fstax *= (c00100 - FST_AGI_thd_lo[MARS - 1]) / thd_gap iitax += fstax combined += fstax surtax += fstax else: fstax = 0. return (fstax, iitax, combined, surtax) @iterate_jit(nopython=True) def LumpSumTax(DSI, num, XTOT, LST, lumpsum_tax, combined): """ Computes lump-sum tax and add it to combined taxes. Parameters ---------- DSI: int 1 if claimed as dependent on another return, otherwise 0 num: int 2 when MARS is 2 (married filing jointly); otherwise 1 XTOT: int Total number of exemptions for filing unit LST: float Dollar amount of lump-sum tax lumpsum_tax: float Lumpsum (or head) tax combined: float Sum of iitax and payrolltax and lumpsum_tax Returns ------- lumpsum_tax: float Lumpsum (or head) tax combined: float Sum of iitax and payrolltax and lumpsum_tax """ if LST == 0.0 or DSI == 1: lumpsum_tax = 0. else: lumpsum_tax = LST * max(num, XTOT) combined += lumpsum_tax return (lumpsum_tax, combined) @iterate_jit(nopython=True) def ExpandIncome(e00200, pencon_p, pencon_s, e00300, e00400, e00600, e00700, e00800, e00900, e01100, e01200, e01400, e01500, e02000, e02100, p22250, p23250, cmbtp, ptax_was, benefit_value_total, expanded_income): """ Calculates expanded_income from component income types. Parameters ---------- e00200: float Wages, salaries, and tips for filing unit net of pension contributions pencon_p: float Contributions to defined-contribution pension plans for taxpayer pencon_s: float Contributions to defined-contribution pension plans for spouse e00300: float Taxable interest income e00400: float Tax-exempt interest income e00600: float Ordinary dividends included in AGI e00700: float Taxable refunds of state and local income taxes e00800: float Alimony received e00900: float Schedule C business net profit/loss for filing unit e01100: float Capital gain distributions not reported on Schedule D e01200: float Other net gain/loss from Form 4797 e01400: float Taxable IRA distributions e01500: float Total pensions and annuities e02000: float Schedule E total rental, royalty, partnership, S-corporation, etc, income/loss e02100: float Farm net income/loss for filing unit from Schedule F p22250: float Schedule D net short term capital gains/losses p23250:float Schedule D net long term capital gains/losses cmbtp: float Estimate of inome on (AMT) Form 6251 but not in AGI ptax_was: float Employee and employer OASDI and HI FICA tax benefit_value_total: float Consumption value of all benefits received by tax unit, which is included in expanded income expanded_income: float Broad income measure that includes benefit_value_total Returns ------- expanded_income: float Broad income measure that includes benefit_value_total """ expanded_income = ( e00200 + # wage and salary income net of DC pension contributions pencon_p + # tax-advantaged DC pension contributions for taxpayer pencon_s + # tax-advantaged DC pension contributions for spouse e00300 + # taxable interest income e00400 + # non-taxable interest income e00600 + # dividends e00700 + # state and local income tax refunds e00800 + # alimony received e00900 + # Sch C business net income/loss e01100 + # capital gain distributions not reported on Sch D e01200 + # Form 4797 other net gain/loss e01400 + # taxable IRA distributions e01500 + # total pension & annuity income (including DB-plan benefits) e02000 + # Sch E total rental, ..., partnership, S-corp income/loss e02100 + # Sch F farm net income/loss p22250 + # Sch D: net short-term capital gain/loss p23250 + # Sch D: net long-term capital gain/loss cmbtp + # other AMT taxable income items from Form 6251 0.5 * ptax_was + # employer share of FICA taxes on wages/salaries benefit_value_total # consumption value of all benefits received; # see the BenefitPrograms function in this file for details on # exactly how the benefit_value_total variable is computed ) return expanded_income @iterate_jit(nopython=True) def AfterTaxIncome(combined, expanded_income, aftertax_income): """ Calculates after-tax expanded income. Parameters ---------- combined: float Sum of iitax and payrolltax and lumpsum_tax expanded_income: float Broad income measure that includes benefit_value_total aftertax_income: float After tax income is equal to expanded_income minus combined Returns ------- aftertax_income: float After tax income is equal to expanded_income minus combined """ aftertax_income = expanded_income - combined return aftertax_income