diff --git a/changelog.d/ar-inflation-relief-2023-values.fixed.md b/changelog.d/ar-inflation-relief-2023-values.fixed.md new file mode 100644 index 00000000000..5e3694fdddd --- /dev/null +++ b/changelog.d/ar-inflation-relief-2023-values.fixed.md @@ -0,0 +1 @@ +Corrected the Arkansas inflation relief credit's 2023 maximums ($150/$300, not $50/$100) and restored the missing 2023 joint phase-out start, sunset the parameters to $0 from 2024, and refreshed the dead DFA worksheet reference URLs. diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/max_amount.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/max_amount.yaml index bad915cdd80..da999e5194c 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/max_amount.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/max_amount.yaml @@ -2,31 +2,36 @@ description: Arkansas allows for this maximum inflationary relief tax credit amo metadata: period: year unit: currency-USD - label: Arkansas income-tax credit maximum amount + label: Arkansas inflation relief credit maximum amount reference: - # The inflation relief credit is not mentioned in the Arkansas statutes - - title: Arkansas 2022 Individual Income Tax Forms and Instructions - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=26 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 - - title: Department of finance and administration, Bill HB1002 - href: https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FAssembly%2F2021%2F2022S3%2FFiscal+Impacts%2FHB1002-DFA1.pdf#page=2 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + # The inflation relief credit is not mentioned in the Arkansas statutes + - title: Arkansas 2022 Individual Income Tax Forms and Instructions + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=25 + - title: Inflationary relief income-tax credit worksheet 2022 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + - title: Department of finance and administration, Bill HB1002 + href: https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FAssembly%2F2021%2F2022S3%2FFiscal+Impacts%2FHB1002-DFA1.pdf#page=2 + - title: Inflationary relief income-tax credit worksheet 2023 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 breakdown: - filing_status JOINT: 2022-01-01: 300 - 2023-01-01: 100 + 2023-01-01: 300 + 2024-01-01: 0 SURVIVING_SPOUSE: 2022-01-01: 150 - 2023-01-01: 50 + 2023-01-01: 150 + 2024-01-01: 0 HEAD_OF_HOUSEHOLD: 2022-01-01: 150 - 2023-01-01: 50 + 2023-01-01: 150 + 2024-01-01: 0 SINGLE: 2022-01-01: 150 - 2023-01-01: 50 + 2023-01-01: 150 + 2024-01-01: 0 SEPARATE: 2022-01-01: 150 - 2023-01-01: 50 + 2023-01-01: 150 + 2024-01-01: 0 diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/amount.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/amount.yaml index da5a59beb74..317cb5ebabb 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/amount.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/amount.yaml @@ -4,14 +4,14 @@ metadata: unit: currency-USD label: Arkansas inflation relief credit reduction amount reference: - # The inflation relief credit is not mentioned in the Arkansas statutes + # The inflation relief credit is not mentioned in the Arkansas statutes # House bill did not specify reduction amount - - title: Arkansas 2022 Individual Income Tax Forms and Instructions - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=26 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + - title: Arkansas 2022 Individual Income Tax Forms and Instructions + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=25 + - title: Inflationary relief income-tax credit worksheet 2022 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + - title: Inflationary relief income-tax credit worksheet 2023 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 breakdown: - filing_status JOINT: diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/increment.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/increment.yaml index 9accf74206d..d3ec014d149 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/increment.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/increment.yaml @@ -2,16 +2,16 @@ description: Arkansas reduces the inflationary relief tax credit for each of the metadata: period: year unit: currency-USD - label: Arkansas income reduction increment + label: Arkansas inflation relief credit reduction increment reference: - # The inflation relief credit is not mentioned in the Arkansas statutes + # The inflation relief credit is not mentioned in the Arkansas statutes # House bill did not specify reduction increment - - title: Arkansas 2022 Individual Income Tax Forms and Instructions - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=26 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + - title: Arkansas 2022 Individual Income Tax Forms and Instructions + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=25 + - title: Inflationary relief income-tax credit worksheet 2022 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + - title: Inflationary relief income-tax credit worksheet 2023 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 breakdown: - filing_status diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/start.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/start.yaml index 81a603f3c2c..c3b00fdd4f7 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/start.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/credits/inflationary_relief/reduction/start.yaml @@ -1,23 +1,23 @@ description: Arkansas provides inflationary relief tax credit to filers with taxable income above this amount, based on filing status. metadata: reference: - # The inflation relief credit is not mentioned in the Arkansas statutes - - title: Arkansas 2022 Individual Income Tax Forms and Instructions - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=26 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 - - title: Department of finance and administration, Bill HB1002 + # The inflation relief credit is not mentioned in the Arkansas statutes + - title: Arkansas 2022 Individual Income Tax Forms and Instructions + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_AR1000F_and_AR1000NR_Instructions.pdf#page=25 + - title: Inflationary relief income-tax credit worksheet 2022 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2022_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + - title: Department of finance and administration, Bill HB1002 href: https://www.arkleg.state.ar.us/Home/FTPDocument?path=%2FAssembly%2F2021%2F2022S3%2FFiscal+Impacts%2FHB1002-DFA1.pdf#page=2 - - title: Inflationary relief income-tax credit worksheet - href: https://www.dfa.arkansas.gov/images/uploads/incomeTaxOffice/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 - label: Arkansas inflation reduction credit reduction start + - title: Inflationary relief income-tax credit worksheet 2023 + href: https://www.dfa.arkansas.gov/wp-content/uploads/2023_Final_InflationaryReliefIncomeTaxCredit_FI.pdf#page=1 + label: Arkansas inflation relief credit reduction start unit: currency-USD period: year - breakdown: - filing_status JOINT: 2022-01-01: 174_000 + 2023-01-01: 179_200 SURVIVING_SPOUSE: 2022-01-01: 87_000 2023-01-01: 89_600 diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_inflation_relief_credit_person.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_inflation_relief_credit_person.yaml index 732b7575285..acbc2035f46 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_inflation_relief_credit_person.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/credits/ar_inflation_relief_credit_person.yaml @@ -38,7 +38,7 @@ output: ar_inflation_relief_credit_person: 20 -- name: Single household with $100,000 taxable income +- name: Separate couple with $10,000 and $90,000 individual taxable income period: 2022 input: people: @@ -58,26 +58,24 @@ output: ar_inflation_relief_credit_person: [150, 120] -- name: HoH household with $98,200 taxable income +- name: Single-adult HoH household with $98,200 taxable income period: 2022 input: people: person1: ar_taxable_income_indiv: 0 ar_net_taxable_income_joint: 98_200 - person2: - ar_taxable_income_indiv: 0 - ar_net_taxable_income_joint: 0 tax_units: tax_unit: - members: [person1, person2] + members: [person1] ar_files_separately: false filing_status: HEAD_OF_HOUSEHOLD households: household: - members: [person1, person2] + members: [person1] state_code: AR output: + # $150 - ceil((98,200 - 87,000) / 1,000) * $10 = $150 - 12 * $10 = $30 ar_inflation_relief_credit_person: 30 - name: Joint household with $175,000 taxable income @@ -102,26 +100,24 @@ output: ar_inflation_relief_credit_person: [140, 140] -- name: Surviving spouse household with $80,000 taxable income +- name: Single-adult surviving spouse household with $80,000 taxable income period: 2022 input: people: person1: ar_taxable_income_indiv: 0 ar_net_taxable_income_joint: 80_000 - person2: - ar_taxable_income_indiv: 0 - ar_net_taxable_income_joint: 0 tax_units: tax_unit: - members: [person1, person2] + members: [person1] ar_files_separately: false filing_status: SURVIVING_SPOUSE households: household: - members: [person1, person2] + members: [person1] state_code: AR output: + # $80,000 < $87,000 start -> full $150 max ar_inflation_relief_credit_person: 150 - name: Joint household with a dependent child does not credit the dependent @@ -199,3 +195,258 @@ state_code: AR output: ar_inflation_relief_credit_person: [0, 0] + +# 2023 coverage: locks the corrected 2023 max ($150 single-type / $300 joint) +# and phase-out starts ($89,600 single-type / $179,200 joint). +- name: Case 1, 2023 single filer at the phase-out start receives the full max. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 89_600 + tax_units: + tax_unit: + members: [person1] + ar_files_separately: false + filing_status: SINGLE + households: + household: + members: [person1] + state_code: AR + output: + # $89,600 = start -> excess $0 -> full $150 max. + ar_inflation_relief_credit_person: 150 + absolute_error_margin: 0.01 + +- name: Case 2, 2023 single filer mid phase-out is partially reduced. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 96_600 + tax_units: + tax_unit: + members: [person1] + ar_files_separately: false + filing_status: SINGLE + households: + household: + members: [person1] + state_code: AR + output: + # $150 - ceil((96,600 - 89,600) / 1,000) * $10 = $150 - 7 * $10 = $80. + ar_inflation_relief_credit_person: 80 + absolute_error_margin: 0.01 + +- name: Case 3, 2023 single filer above the phase-out end receives nothing. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 103_601 + tax_units: + tax_unit: + members: [person1] + ar_files_separately: false + filing_status: SINGLE + households: + household: + members: [person1] + state_code: AR + output: + # $150 - ceil((103,601 - 89,600) / 1,000) * $10 = $150 - 15 * $10 = $0. + ar_inflation_relief_credit_person: 0 + absolute_error_margin: 0.01 + +- name: Case 4, 2023 joint filers at the phase-out start receive the full max. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 179_200 + person2: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 0 + tax_units: + tax_unit: + members: [person1, person2] + ar_files_separately: false + filing_status: JOINT + households: + household: + members: [person1, person2] + state_code: AR + output: + # $179,200 = joint start -> full $300 max split in half -> $150 per spouse. + # Fails if the JOINT 2023 start row is missing (would inherit $174,000). + ar_inflation_relief_credit_person: [150, 150] + absolute_error_margin: 0.01 + +- name: Case 5, 2023 joint filers above the phase-out end receive nothing. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 207_201 + person2: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 0 + tax_units: + tax_unit: + members: [person1, person2] + ar_files_separately: false + filing_status: JOINT + households: + household: + members: [person1, person2] + state_code: AR + output: + # $300 - ceil((207,201 - 179,200) / 2,000) * $20 = $300 - 15 * $20 = $0. + ar_inflation_relief_credit_person: [0, 0] + absolute_error_margin: 0.01 + +# 2024 coverage: locks the credit sunset (max_amount = 0 from 2024). +- name: Case 6, 2024 single filer receives no credit after the sunset. + period: 2024 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 50_000 + tax_units: + tax_unit: + members: [person1] + ar_files_separately: false + filing_status: SINGLE + households: + household: + members: [person1] + state_code: AR + output: + # Credit sunset after TY2023 -> $0 max -> no credit in 2024. + ar_inflation_relief_credit_person: 0 + absolute_error_margin: 0.01 + +- name: Case 7, 2023 single filer at the last dollar with a positive credit. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 103_600 + tax_units: + tax_unit: + members: [person1] + ar_files_separately: false + filing_status: SINGLE + households: + household: + members: [person1] + state_code: AR + output: + # $150 - ceil((103,600 - 89,600) / 1,000) * $10 = $150 - 14 * $10 = $10. + # Pins the ceil zero-crossing: $103,600 -> $10, $103,601 -> $0 (Case 3). + ar_inflation_relief_credit_person: 10 + absolute_error_margin: 0.01 + +- name: Case 8, 2023 joint filers mid phase-out are partially reduced. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 185_200 + person2: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 0 + tax_units: + tax_unit: + members: [person1, person2] + ar_files_separately: false + filing_status: JOINT + households: + household: + members: [person1, person2] + state_code: AR + output: + # $300 - ceil((185,200 - 179,200) / 2,000) * $20 = $300 - 3 * $20 = $240, + # split in half -> $120 per spouse. Exercises the joint phase-out slope. + ar_inflation_relief_credit_person: [120, 120] + absolute_error_margin: 0.01 + +- name: Case 9, 2023 joint filers at the last dollar with a positive credit. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 207_200 + person2: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 0 + tax_units: + tax_unit: + members: [person1, person2] + ar_files_separately: false + filing_status: JOINT + households: + household: + members: [person1, person2] + state_code: AR + output: + # $300 - ceil((207,200 - 179,200) / 2,000) * $20 = $300 - 14 * $20 = $20, + # split in half -> $10 per spouse ($207,201 -> $0 in Case 5). + ar_inflation_relief_credit_person: [10, 10] + absolute_error_margin: 0.01 + +- name: Case 10, 2023 separate filers each use the single-type table on own income. + period: 2023 + input: + people: + person1: + ar_taxable_income_indiv: 89_600 + person2: + ar_taxable_income_indiv: 95_600 + tax_units: + tax_unit: + members: [person1, person2] + ar_files_separately: true + filing_status: SEPARATE + households: + household: + members: [person1, person2] + state_code: AR + output: + # SEPARATE uses the single-type 2023 table per person on individual income: + # person1 $89,600 = start -> $150; person2 $150 - ceil(6,000 / 1,000) * $10 = $90. + ar_inflation_relief_credit_person: [150, 90] + absolute_error_margin: 0.01 + +- name: Case 11, 2024 joint filers receive no credit after the sunset. + period: 2024 + input: + people: + person1: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 150_000 + person2: + ar_taxable_income_indiv: 0 + ar_net_taxable_income_joint: 0 + tax_units: + tax_unit: + members: [person1, person2] + ar_files_separately: false + filing_status: JOINT + households: + household: + members: [person1, person2] + state_code: AR + output: + # Credit sunset after TY2023 -> $0 max for every status -> $0 per spouse. + ar_inflation_relief_credit_person: [0, 0] + absolute_error_margin: 0.01