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Fix dep_credit phaseout logic #2205

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merged 1 commit into from
Jan 23, 2019
Merged

Fix dep_credit phaseout logic #2205

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12 changes: 5 additions & 7 deletions taxcalc/calcfunctions.py
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Original file line number Diff line number Diff line change
Expand Up @@ -1247,13 +1247,11 @@ def ChildDepTaxCredit(n24, MARS, c00100, exact,
dep_credit = (DependentCredit_Child_c * n24 +
DependentCredit_Nonchild_c * max(0, XTOT - n24 - num) +
FilerCredit_c[MARS - 1])
if dep_credit > 0. and CTC_prt > 0.:
thresh = CTC_ps[MARS - 1] + base_ctc / CTC_prt
if modAGI > thresh:
excess = modAGI - thresh
if exact == 1: # exact calculation as on tax forms
excess = 1000. * math.ceil(excess / 1000.)
dep_credit = max(0., dep_credit - CTC_prt * excess)
if dep_credit > 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.)
dep_credit = max(0., dep_credit - CTC_prt * excess)
return (prectc, dep_credit)


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4 changes: 2 additions & 2 deletions taxcalc/policy_current_law.json
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Expand Up @@ -5148,7 +5148,7 @@

"_DependentCredit_Child_c": {
"long_name": "Nonrefundable credit for child dependents on top of the child tax credit",
"description": "This nonrefundable credit is applied to child dependents and begins phasing out after the CTC phaseout ends.",
"description": "This nonrefundable credit is applied to child dependents and phases out exactly like the CTC amount.",
"section_1": "Nonrefundable Credits",
"section_2": "Child Tax Credit",
"irs_ref": "",
Expand Down Expand Up @@ -5198,7 +5198,7 @@

"_DependentCredit_Nonchild_c": {
"long_name": "Nonrefundable credit for non-child dependents on top of the child tax credit",
"description": "This nonrefundable credit is applied to non-child dependents and begins phasing out after the CTC phaseout ends.",
"description": "This nonrefundable credit is applied to non-child dependents and phases out exactly like the CTC amount.",
"section_1": "Nonrefundable Credits",
"section_2": "Child Tax Credit",
"irs_ref": "",
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4 changes: 2 additions & 2 deletions taxcalc/tests/reforms.json
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Expand Up @@ -555,7 +555,7 @@
"baseline": "2017_law.json",
"start_year": 2017,
"value": {"_DependentCredit_Child_c": [500]},
"name": "Set Dependend Credit for Children at $500",
"name": "Set Dependent Credit for Children at $500",
"output_type": "iitax",
"compare_with": {}
},
Expand All @@ -565,7 +565,7 @@
"start_year": 2017,
"value": {"_DependentCredit_before_CTC": [true],
"_DependentCredit_Child_c": [500]},
"name": "Set Dependend Credit for Children at $500 AND stack dependent credit before CTC",
"name": "Set Dependent Credit for Children at $500 AND stack dependent credit before CTC",
"output_type": "iitax",
"compare_with": {}
},
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4 changes: 2 additions & 2 deletions taxcalc/tests/reforms_expect.csv
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Expand Up @@ -54,8 +54,8 @@ rid,res1,res2,res3,res4
53,-107.5,-109.0,-112.3,-115.9
54,28.7,31.2,33.0,32.3
55,85.4,89.8,95.8,101.9
56,-11.7,-11.7,-11.6,-11.5
57,-16.8,-16.8,-16.7,-16.6
56,-8.8,-8.5,-8.2,-8.0
57,-13.9,-13.6,-13.3,-13.1
58,0.0,-30.3,-33.2,-38.2
59,-14.5,-16.0,-16.6,-16.1
60,-16.0,-17.6,-18.3,-17.8
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