"""
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delivered by non-repealed benefit programs.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# zero out benefits delivered by repealed programs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_employer, FICA_ss_trt_employee,
FICA_mc_trt_employer, FICA_mc_trt_employee,
ALD_SelfEmploymentTax_hc, SS_Earnings_thd, SECA_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_employer: float
Employer side social security payroll tax rate
FICA_ss_trt_employee: float
Employee side social security payroll tax rate
FICA_mc_trt_employer: float
Employer side medicare payroll tax rate
FICA_mc_trt_employee: float
Employee side medicare payroll tax rate
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.
SECA_Earnings_thd: float
Threshold value for self-employment income below which there is
no SECA tax liability
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_employer + FICA_ss_trt_employee) * txearn_was_p
ptax_ss_was_s = (FICA_ss_trt_employer + FICA_ss_trt_employee) * txearn_was_s
ptax_mc_was_p = (FICA_mc_trt_employer + FICA_mc_trt_employee) * gross_was_p
ptax_mc_was_s = (FICA_mc_trt_employer + FICA_mc_trt_employee) * 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_employer + FICA_ss_trt_employee + FICA_mc_trt_employer + FICA_mc_trt_employee)
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_employer + FICA_ss_trt_employee) * txearn_sey_p
setax_ss_s = (FICA_ss_trt_employer + FICA_ss_trt_employee) * txearn_sey_s
setax_mc_p = (FICA_mc_trt_employer + FICA_mc_trt_employee) * max(0., sey_p * sey_frac)
setax_mc_s = (FICA_mc_trt_employer + FICA_mc_trt_employee) * 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
# # no tax if low amount of self-employment income
if sey * sey_frac > SECA_Earnings_thd:
setax = setax_p + setax_s
else:
setax = 0.0
# 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_employer + FICA_ss_trt_employee)
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_employer + FICA_ss_trt_employee) +
extra_ss_income_s * (FICA_ss_trt_employer + FICA_ss_trt_employee))
# 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, MARS,
invinc_ec_base, Capital_loss_limitation):
"""
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
MARS: int
Filing marital status (1=single, 2=joint, 3=separate, 4=household-head, 5=widow(er))
invinc_ec_base: float
Exclusion of investment income from AGI
Capital_loss_limitation: float
Limitation on capital losses that are deductible
Returns
-------
invinc_ec_base: float
Exclusion of investment income from AGI
"""
# limitation on net short-term and long-term capital losses
cgain = max((-1 * Capital_loss_limitation[MARS - 1] / 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, Capital_loss_limitation,
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
Capital_loss_limitation: float
Limitation on capital losses that are deductible
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((-1 * Capital_loss_limitation[MARS - 1] / 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_all_in_agi, 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_all_in_agi: bool
Whether all social security benefits are included in AGI
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)
if SS_all_in_agi:
c02500 = 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,
e02300, UI_thd, UI_em, 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
e02300: float
Unemployment compensation
UI_thd: list
AGI threshold for unemployment compensation exclusion
UI_em: float
Amount of unemployment compensation excluded from AGI
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 UI exclusion (e.g., from 2020 AGI due to ARPA)
if (c00100 - e02300) <= UI_thd[MARS - 1]:
ui_excluded = min(e02300, UI_em)
else:
ui_excluded = 0.
c00100 -= ui_excluded
# 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 charitable 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_cash, 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_cash: float
Ceiling (as decimal fraction of AGI) for cash 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
charity_ded_cash = min(ID_Charity_crt_cash * posagi, e19800_capped)
charity_ded_noncash = min(ID_Charity_crt_noncash * posagi, e20100_capped)
c19700 = charity_ded_cash + charity_ded_noncash
# 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_employer, FICA_mc_trt_employee,
FICA_ss_trt_employer, FICA_ss_trt_employee,
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_employer: float
Employer side FICA Social Security tax rate
FICA_ss_trt_employee: float
Employee side FICA Social Security tax rate
FICA_mc_trt_employer: float
Employer side FICA Medicare tax rate
FICA_mc_trt_employee: float
Employee side 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_employer + FICA_mc_trt_employee + FICA_ss_trt_employer + FICA_ss_trt_employee))
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,
STD_allow_charity_ded_nonitemizers, e19800, ID_Charity_crt_cash,
c00100, 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)
STD_allow_charity_ded_nonitemizers: bool
Allow standard deduction filers to take the charitable contributions deduction
e19800: float
Schedule A: cash charitable contributions
ID_Charity_crt_cash: float
Fraction of AGI cap on cash charitable deductions
c00100: float
Federal AGI
STD_charity_ded_nonitemizers_max: float
Ceiling amount (in dollars) for charitable deductions for nonitemizers
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.
# calculate CARES cash charity deduction for nonitemizers
if STD_allow_charity_ded_nonitemizers:
capped_ded = min(e19800, ID_Charity_crt_cash * c00100)
standard += min(capped_ded, STD_charity_ded_nonitemizers_max[MARS - 1])
return standard
@iterate_jit(nopython=True)
def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, c03260, e26270,
e02100, e27200, e00650, c01000, 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):
"""
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
c03260: float
Self-employment (SECA) tax above-the-line deduction
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
Returns
-------
c04800: float
Regular taxable income
qbided: float
Qualified Business Income (QBI) deduction
"""
# calculate taxable income before qualified business income deduction
pre_qbid_taxinc = max(0., c00100 - max(c04470, standard) - c04600)
# calculate qualified business income deduction
qbided = 0.
qbinc = max(0., e00900 - c03260 + 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.
else:
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
# apply taxinc cap (assuming 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, dwks43, 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
dwks43: float
separate tax on long-term capital gains and qualified dividends
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
dwks43: float
separate tax on long-term capital gains and qualified dividends
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.
dwks43 = 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, dwks43, 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, qbided,
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 deductions 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
qbided: float
Qualified business income deduction
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 - qbided - c04470 +
max(0., min(c17000, 0.025 * c00100)) +
c18300 + c20800 - c21040)
if standard > 0.0:
c62100 = c00100 - e00700 - qbided
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_po_step_size, CDCC_po_rate_per_step, CDCC_refundable,
c05800, e07300, c07180, CDCC_refund):
"""
Calculates Form 2441 child and dependent care expense credit, c07180.
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 first phaseout start
CDCC_ps2: float
Child/dependent care credit second phaseout start
CDCC_crt: float
Child/dependent care credit phaseout rate ceiling
CDCC_frt: float
Child/dependent care credit phaseout rate floor
CDCC_po_step_size: float
Child/dependent care credit phaseout AGI step size
CDCC_po_rate_per_step: float
Child/dependent care credit phaseout rate per step size
CDCC_refund: bool
Indicator for whether CDCC is refundable
c05800: float
Total (regular + AMT) income tax liability before credits
e07300: float
Foreign tax credit from Form 1116
c07180: float
Credit for child and dependent care expenses from Form 2441
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 rate is limited at high AGI
# ... first phase-down from CDCC_crt to CDCC_frt
steps_fractional = max(0., c00100 - CDCC_ps) / CDCC_po_step_size
if exact == 1: # exact calculation as on tax forms
steps = math.ceil(steps_fractional)
else:
steps = steps_fractional
crate = max(CDCC_frt, CDCC_crt - steps * CDCC_po_rate_per_step)
# ... second phase-down from CDCC_frt to zero
if c00100 > CDCC_ps2:
steps_fractional = (c00100 - CDCC_ps2) / CDCC_po_step_size
if exact == 1: # exact calculation as on tax forms
steps = math.ceil(steps_fractional)
else:
steps = steps_fractional
crate = max(0., CDCC_frt - steps * CDCC_po_rate_per_step)
c33200 = c33000 * crate
# credit is limited by tax liability if not refundable
if CDCC_refundable:
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: float
Fraction of maximum earned income credit paid at zero earnings
phasein_rate: float
Earned income credit phasein rate
earnings: float
Earned income for filing unit
max_amount: float
Maximum earned income credit
phaseout_start: float
Earned income credit phaseout start AGI
agi: float
Adjusted Gross Income (AGI)
phaseout_rate: float
Earned income credit phaseout rate
Returns
-------
eitc: float
Earned Income Credit
"""
# calculate qualified business income de
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(age_head, age_spouse, nu18, n24, MARS, c00100, XTOT, num,
c05800, e07260, CR_ResidentialEnergy_hc,
e07300, CR_ForeignTax_hc,
c07180,
c07230,
e07240, CR_RetirementSavings_hc,
c07200,
CTC_c, CTC_ps, CTC_prt, exact, ODC_c,
CTC_c_under6_bonus, nu06,
CTC_is_refundable, CTC_include17,
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:
tu18 = int(age_head < 18) # taxpayer is under age 18
su18 = int(MARS == 2 and age_spouse < 18) # spouse is under age 18
childnum = n24 + max(0, nu18 - tu18 - su18 - n24)
else:
childnum = n24
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_is_refundable:
c07220 = line10 * line1 / line3
odc = max(0., line10 - c07220)
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, 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)
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
10000.0: AGI range bewteen ETC_pe_Single and single phase-out start;
twice this amount for ETC_pe_Married
"""
c87560 = 0.2 * min(e87530, LLC_Expense_c)
# on the following credit phase-out law see:
# https://www.law.cornell.edu/uscode/text/26/25A#d_1
if MARS == 2:
c87570 = ETC_pe_Married * 1000.
c87600 = 20000.
else:
c87570 = ETC_pe_Single * 1000.
c87600 = 10000.
c87590 = max(0., c87570 - c00100)
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_is_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_is_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_is_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_is_refundable, CTC_include17,
age_head, age_spouse, MARS, nu18,
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_is_refundable:
line4 = 0.
else:
if CTC_include17:
tu18 = int(age_head < 18) # taxpayer is under age 18
su18 = int(MARS == 2 and age_spouse < 18) # spouse is under age 18
childnum = n24 + max(0, nu18 - tu18 - su18 - n24)
else:
childnum = n24
line4 = ACTC_c * childnum
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_is_refundable, ODC_is_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_is_refundable) + c08000 +
c07230 + c07240 + c07260 +
odc * (1. - ODC_is_refundable) + 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, exact,
n24, nu06, age_head, age_spouse, nu18, 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
exact: int
Whether or not exact phase-out calculation is being done
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:
tu18 = int(age_head < 18) # taxpayer is under age 18
su18 = int(MARS == 2 and age_spouse < 18) # spouse is under age 18
childnum = n24 + max(0, nu18 - tu18 - su18 - n24)
else:
childnum = n24
if childnum > 0:
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:
over = posagi - ymax
if exact == 1: # exact calculation as on tax form
excess = math.ceil(over / 1000.) * 1000.
else: # smoothed calculation
excess = over
ctc_new_reduced = max(0., ctc_new - CTC_new_prt * excess)
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, odc, CTC_is_refundable, ODC_is_refundable, refund,
ctc_total, ctc_refundable, ctc_nonrefundable, 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
ctc_total: float
Total CTC amount (c07220 + c11070 + odc + ctc_new)
ctc_refundable: float
Portion of total CTC amount that is refundable
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
ctc_total: float
Total CTC amount (c07220 + c11070 + odc + ctc_new)
ctc_refundable: float
Portion of total CTC amount that is refundable
ctc_nonrefundable: float
Portion of total CTC amount that is nonrefundable
iitax: float
Total federal individual income tax liability
combined: float
Sum of iitax and payrolltax and lumpsum_tax
"""
eitc = c59660
if CTC_is_refundable:
ctc_refund = c07220
else:
ctc_refund = 0.
if ODC_is_refundable:
odc_refund = odc
else:
odc_refund = 0.
refund = (eitc + c11070 + c10960 + CDCC_refund + recovery_rebate_credit +
personal_refundable_credit + ctc_new + rptc + ctc_refund +
odc_refund)
ctc_total = c07220 + c11070 + odc + ctc_new
ctc_refundable = ctc_refund + c11070 + odc_refund + ctc_new
ctc_nonrefundable = max(0., ctc_total - ctc_refundable)
iitax = c09200 - refund
combined = iitax + payrolltax
return (eitc, refund, ctc_total, ctc_refundable, ctc_nonrefundable,
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
