Make Arizona families rebate subtraction reported

[MaxGhenis]

Fixes #7481

Related: PolicyEngine/policyengine-taxsim#619

Summary

• stop recomputing the Arizona Families Tax Rebate subtraction from current-year dependents
• treat the subtraction as the amount actually received and included in federal AGI, defaulting to zero when not reported
• update Arizona baseline tests to reflect the reported-input semantics

Testing

• uv run python -m policyengine_core.scripts.policyengine_command test policyengine_us/tests/policy/baseline/gov/states/az/tax/income/subtractions/az_families_tax_rebate_subtraction.yaml policyengine_us/tests/policy/baseline/gov/states/az/tax/income/integration_2025.yaml -c policyengine_us

[codecov]

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (1463963) to head (2e9bddf).
⚠️ Report is 119 commits behind head on main.

Additional details and impacted files

@@            Coverage Diff             @@
##              main     #7835    +/-   ##
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  Coverage   100.00%   100.00%            
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  Files           19         2    -17     
  Lines          297        24   -273     
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- Hits           297        24   -273     

Flag	Coverage Δ
unittests	100.00% <100.00%> (ø)

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[DTrim99]

Program Review: PR #7835

PR Summary

• Title: Make Arizona families rebate subtraction reported
• Author: MaxGhenis
• State: Arizona (AZ)
• Program: Families Tax Rebate Subtraction
• Change Type: Semantic change (computed → reported input)
• Fixes: az_families_tax_rebate_subtraction incorrectly applied for TY 2024 #7481

Critical (Must Fix)

None identified

The implementation correctly aligns with Arizona tax law (SB1734, Laws 2023 Chapter 147, Section 3(I)):

• The Arizona Families Tax Rebate was a one-time payment issued in 2023 based on 2021 tax returns
• The subtraction should equal the amount actually received and reported in federal AGI, NOT computed from current-year dependents
• The previous implementation incorrectly computed the subtraction from current-year dependents
• Making this a reported input with default_value = 0 is the correct approach

Should Address

1. Reference Format - Use Full URL (Low severity)

   • File: policyengine_us/variables/gov/states/az/tax/income/subtractions/az_families_tax_rebate_subtraction.py
   • Current: reference = "A.R.S. 43-1022 - Subtractions from Arizona Gross Income"
   • Recommended: Use full clickable URL: "https://www.azleg.gov/ars/43/01022.htm"
   • Note: This matches existing patterns in other AZ files, so it is consistent with current codebase

2. Documentation Field Usage (Low severity)

   • File: policyengine_us/variables/gov/states/az/tax/income/subtractions/az_families_tax_rebate_subtraction.py
   • The documentation field is used, but pattern guidelines prefer using reference or docstrings
   • Note: This is an existing pattern in the codebase and provides helpful context

Suggestions

1. Test Person Naming Convention (Minor)

   • Current tests use descriptive names (filer, child) instead of sequential names (person1, person2)
   • This is a minor style inconsistency that does not affect functionality

2. Optional: Add SB1734 Reference (Enhancement)

   • Consider adding the source statute URL as an additional reference

Validation Summary

Check	Result
Regulatory Accuracy	✅ Correctly implements SB1734 Section 3(I)
Code Patterns	✅ Follows input variable patterns with minor style notes
Test Coverage	✅ 3 unit tests + 1 integration test adequately cover input semantics
CI Status	✅ All checks passing

Review Severity: APPROVE

Recommendation: Merge as-is

The PR correctly fixes bug #7481 where 2024+ filers were incorrectly receiving a subtraction based on current-year dependents rather than the amount they actually received from the one-time 2023 rebate. The implementation:

1. Aligns with Arizona law - SB1734 Section 3(I) states the subtraction equals "any rebate received by a taxpayer...and required to be included in Arizona gross income"
2. Follows PolicyEngine patterns - Uses the same reported input pattern as ssi_reported, snap_reported, tanf_reported
3. Has adequate test coverage - Tests verify default behavior (zero) and user-provided input pass-through
4. Maintains production readiness - No breaking changes, CI passing

The minor style suggestions (URL references, person naming) are pre-existing patterns in the codebase and do not affect correctness. They can be addressed in a future cleanup PR if desired.

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Review generated by PolicyEngine program-reviewer

[PavelMakarchuk]

@MaxGhenis why removing the formula entirely?