Add Idaho senior deduction conformity

changelog.d/id-hb559-senior-deduction.added.md

@@ -0,0 +1 @@
+Added Idaho conformity to the federal enhanced senior deduction through Idaho's qualified business income and federal Schedule 1-A deduction path starting in 2025.

policyengine_us/parameters/gov/irs/deductions/senior_deduction/amount.yaml

@@ -1,6 +1,7 @@
 description: The IRS provides a deduction for seniors of this amount.
 
 values:
+  2018-01-01: 0
   2025-01-01: 6_000
 
 metadata:

policyengine_us/parameters/gov/irs/deductions/senior_deduction/phase_out_rate/joint.yaml

@@ -11,10 +11,12 @@ metadata:
 
 brackets:
   - threshold:
-      2025-01-01: 0
+      2018-01-01: 0
     rate:
-      2025-01-01: 0
+      2018-01-01: 0
   - threshold:
+      2018-01-01: 150_000
       2025-01-01: 150_000
     rate:
+      2018-01-01: 0
       2025-01-01: 0.06

policyengine_us/parameters/gov/irs/deductions/senior_deduction/phase_out_rate/other.yaml

@@ -11,10 +11,12 @@ metadata:
 
 brackets:
   - threshold:
-      2025-01-01: 0
+      2018-01-01: 0
     rate:
-      2025-01-01: 0
+      2018-01-01: 0
   - threshold:
+      2018-01-01: 75_000
       2025-01-01: 75_000
     rate:
+      2018-01-01: 0
       2025-01-01: 0.06

policyengine_us/tests/policy/baseline/gov/states/id/tax/income/deductions/id_additional_senior_deduction.yaml

@@ -0,0 +1,329 @@
+- name: Idaho conforms to the federal additional senior deduction in 2025.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+      person2:
+        age: 70
+        is_tax_unit_spouse: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 200_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ID
+  output:
+    # Joint, both age 70, AGI $200k: per-senior allowed is
+    # max($6,000 - 6% * ($200,000 - $150,000), 0) = $3,000,
+    # times 2 eligible seniors = $6,000 (Schedule 1-A per-senior phase-out).
+    additional_senior_deduction: 6_000
+    id_additional_senior_deduction: 6_000
+
+- name: Idaho senior deduction is zero before 2025.
+  period: 2024
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 50_000
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    id_additional_senior_deduction: 0
+
+- name: Single filer senior deduction with non-joint phase-out
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 100_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    # $6,000 base - 6% * ($100,000 - $75,000) = $6,000 - $1,500 = $4,500
+    id_additional_senior_deduction: 4_500
+
+- name: Age 64 does not qualify for senior deduction
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 64
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 50_000
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    id_additional_senior_deduction: 0
+
+- name: Age 65 qualifies for senior deduction
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 65
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 50_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    # Below $75k threshold, no phase-out
+    id_additional_senior_deduction: 6_000
+
+- name: Phase-out fully eliminates senior deduction
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 200_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    # 6% * ($200,000 - $75,000) = $7,500 > $6,000, so capped at 0
+    id_additional_senior_deduction: 0
+
+- name: Single filer just below $75,000 phase-out threshold.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 74_999
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    id_additional_senior_deduction: 6_000
+
+- name: Single filer at $75,000 phase-out threshold.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 75_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    id_additional_senior_deduction: 6_000
+
+- name: Single filer one dollar above $75,000 phase-out threshold.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 75_001
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1]
+        state_code: ID
+  output:
+    # max($6,000 - 6% * $1, 0) = $5,999.94
+    id_additional_senior_deduction: 5_999.94
+
+- name: Joint filer just below $150,000 phase-out threshold.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+      person2:
+        age: 70
+        is_tax_unit_spouse: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 149_999
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ID
+  output:
+    id_additional_senior_deduction: 12_000
+
+- name: Joint filer at $150,000 phase-out threshold.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+      person2:
+        age: 70
+        is_tax_unit_spouse: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 150_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ID
+  output:
+    id_additional_senior_deduction: 12_000
+
+- name: Joint filer one dollar above $150,000 phase-out threshold.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+      person2:
+        age: 70
+        is_tax_unit_spouse: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 150_001
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ID
+  output:
+    # Per senior: max($6,000 - 6% * $1, 0) = $5,999.94, times two seniors = $11,999.88.
+    id_additional_senior_deduction: 11_999.88
+
+- name: Joint filer fully phased out at $350,000 AGI.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+      person2:
+        age: 70
+        is_tax_unit_spouse: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 350_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ID
+  output:
+    # 6% * ($350,000 - $150,000) = $12,000 >= $6,000 per senior, so deduction is fully phased out.
+    id_additional_senior_deduction: 0

policyengine_us/tests/policy/baseline/gov/states/id/tax/income/deductions/id_qualified_business_income_and_federal_schedule_1a_deductions.yaml

@@ -0,0 +1,8 @@
+- name: Idaho qualified business income and federal Schedule 1-A deductions include the senior deduction
+  period: 2025
+  input:
+    qualified_business_income_deduction: 2_000
+    id_additional_senior_deduction: 9_000
+    state_code: ID
+  output:
+    id_qualified_business_income_and_federal_schedule_1a_deductions: 11_000