Updated ND 2023 tax rules

PolicyEngine · Apr 2, 2024 · 48da7ec · 48da7ec
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Showing 11 changed files with 237 additions and 12 deletions.
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -1,4 +1,4 @@
 - bump: minor
   changes:
     added:
-      - North Dakota 2023 tax rules.
+      - North Dakota 2023 tax rules.
diff --git a/policyengine_us/parameters/gov/states/nd/tax/income/credits/nonrefundable.yaml b/policyengine_us/parameters/gov/states/nd/tax/income/credits/nonrefundable.yaml
@@ -14,3 +14,5 @@ metadata:
     href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/2021-individual-income-tax-booklet.pdf#page=16
   - title: 2022 ND income tax form and instruction booklet, lines 20 and 22
     href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2022-iit/2022-individual-income-tax-booklet.pdf#page=16
+  - title: 2023 ND income tax form and instruction booklet, Marriage Penalty Credit Worksheet line 22
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page=16
diff --git a/...gine_us/parameters/gov/states/nd/tax/income/credits/resident_tax_relief/joint_amount.yaml b/...gine_us/parameters/gov/states/nd/tax/income/credits/resident_tax_relief/joint_amount.yaml
@@ -11,6 +11,6 @@ metadata:
   period: year
   reference:
   - title: 2021 ND income tax form and instruction booklet, line 20
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page14
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page=14
   - title: 2022 ND income tax form and instruction booklet, line 20
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2022-iit/2022-individual-income-tax-booklet.pdf#page14
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2022-iit/2022-individual-income-tax-booklet.pdf#page=14
diff --git a/...gine_us/parameters/gov/states/nd/tax/income/credits/resident_tax_relief/other_amount.yaml b/...gine_us/parameters/gov/states/nd/tax/income/credits/resident_tax_relief/other_amount.yaml
@@ -11,6 +11,6 @@ metadata:
   period: year
   reference:
   - title: 2021 ND income tax form and instruction booklet, line 20
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page14
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page=14
   - title: 2022 ND income tax form and instruction booklet, line 20
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2022-iit/2022-individual-income-tax-booklet.pdf#page14
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2022-iit/2022-individual-income-tax-booklet.pdf#page=14
diff --git a/...ine_us/parameters/gov/states/nd/tax/income/taxable_income/subtractions/ltcg_fraction.yaml b/...ine_us/parameters/gov/states/nd/tax/income/taxable_income/subtractions/ltcg_fraction.yaml
@@ -2,15 +2,16 @@ description: North Dakota subtracts this fraction of long-term capital gains fro
 values:
   2021-01-01: 0.40
   2022-01-01: 0.40
+  2023-01-01: 0.40
 
 metadata:
   label: fraction of long-term capital gains that can be subtracted from taxable income
   unit: /1
   period: year
   reference:
   - title: 2021 ND income tax form and instruction booklet, line 7
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page12
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page=12
   - title: 2022 ND income tax form and instruction booklet, line 7
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/2022-individual-income-tax-booklet.pdf#page12
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/2022-individual-income-tax-booklet.pdf#page=12
   - title: 2023 ND income tax form and instruction booklet, line 6
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page14
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page=14
diff --git a/...ine_us/parameters/gov/states/nd/tax/income/taxable_income/subtractions/qdiv_fraction.yaml b/...ine_us/parameters/gov/states/nd/tax/income/taxable_income/subtractions/qdiv_fraction.yaml
@@ -9,8 +9,8 @@ metadata:
   period: year
   reference:
   - title: 2021 ND income tax form and instruction booklet, line 13
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page13
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2021-iit/individual-income-tax-booklet-2021.pdf#page=13
   - title: 2022 ND income tax form and instruction booklet, line 13
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/2022-individual-income-tax-booklet.pdf#page13
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/2022-individual-income-tax-booklet.pdf#page=13
   - title: 2023 ND income tax form and instruction booklet, line 13
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page15
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page=15
diff --git a/policyengine_us/parameters/gov/states/nd/tax/income/taxable_income/subtractions/sources.yaml b/policyengine_us/parameters/gov/states/nd/tax/income/taxable_income/subtractions/sources.yaml
@@ -6,6 +6,12 @@ values:
     - nd_qdiv_subtraction  # qualified dividends
     - taxable_social_security
 
+  2023-01-01:
+    - us_govt_interest
+    - nd_ltcg_subtraction  # long-term capital gains
+    - nd_qdiv_subtraction  # qualified dividends
+    - nd_military_pay_exclusion
+
 metadata:
   unit: variable
   label: ND subtractions from US taxable income
@@ -19,4 +25,4 @@ metadata:
   - title: 2022 ND income tax instructions, lines 6, 7, 13, 15
     href: https://www.tax.nd.gov/sites/www/files/documents/forms/2022-individual-income-tax-booklet.pdf#page=14
   - title: 2023 ND income tax form and instruction booklet, line 5,6,13, 15
-    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page15
+    href: https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page=15
diff --git a/...ngine_us/tests/policy/baseline/gov/states/nd/tax/income/nd_income_tax_before_credits.yaml b/...ngine_us/tests/policy/baseline/gov/states/nd/tax/income/nd_income_tax_before_credits.yaml
@@ -15,3 +15,142 @@
     state_code: ND
   output:  # hand calculated to avoid whole-dollar rounding problems
     nd_income_tax_before_credits: 11_316.07
+
+- name: ND income tax before credits unit test 3 (JOINT)
+  period: 2023
+  input:
+    filing_status: JOINT
+    nd_taxable_income: 74_750
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 0
+
+- name: ND income tax before credits unit test 4 (JOINT)
+  period: 2023
+  input:
+    filing_status: JOINT
+    nd_taxable_income: 84_750
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    #(84750-74750)*0.0195 = 195
+    nd_income_tax_before_credits: 195
+
+- name: ND income tax before credits unit test 5 (JOINT)
+  period: 2023
+  input:
+    filing_status: JOINT
+    nd_taxable_income: 275_200
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    #(275200-275100)*0.0250 + 3906.83 = 3909.33
+    nd_income_tax_before_credits: 3_909.33
+
+- name: ND income tax before credits unit test 6 (SINGLE)
+  period: 2023
+  input:
+    filing_status: SINGLE
+    nd_taxable_income: 44_724
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 0
+
+- name: ND income tax before credits unit test 7 (SINGLE)
+  period: 2023
+  input:
+    filing_status: SINGLE
+    nd_taxable_income: 45_725
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 19.5
+
+- name: ND income tax before credits unit test 8 (SINGLE)
+  period: 2023
+  input:
+    filing_status: SINGLE
+    nd_taxable_income: 226_975
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 3_559.38
+
+- name: ND income tax before credits unit test 9 (SEPARATE)
+  period: 2023
+  input:
+    filing_status: SEPARATE
+    nd_taxable_income: 37_374
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 0
+
+- name: ND income tax before credits unit test 10 (SEPARATE)
+  period: 2023
+  input:
+    filing_status: SEPARATE
+    nd_taxable_income: 47_375
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 1_950
+
+- name: ND income tax before credits unit test 11 (SEPARATE)
+  period: 2023
+  input:
+    filing_status: SEPARATE
+    nd_taxable_income: 147_550
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 4_453.41
+
+- name: ND income tax before credits unit test 12 (HEAD)
+  period: 2023
+  input:
+    filing_status: HEAD_OF_HOUSEHOLD
+    nd_taxable_income: 59_949
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 0
+
+- name: ND income tax before credits unit test 13 (HEAD)
+  period: 2023
+  input:
+    filing_status: HEAD_OF_HOUSEHOLD
+    nd_taxable_income: 69_950
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 1_950
+
+- name: ND income tax before credits unit test 14 (HEAD)
+  period: 2023
+  input:
+    filing_status: HEAD_OF_HOUSEHOLD
+    nd_taxable_income: 260_550
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 6_216.7
+
+- name: ND income tax before credits unit test 15 (WIDOW)
+  period: 2023
+  input:
+    filing_status: WIDOW
+    nd_taxable_income: 74_750
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    nd_income_tax_before_credits: 0
+
+- name: ND income tax before credits unit test 16 (WIDOW)
+  period: 2023
+  input:
+    filing_status: WIDOW
+    nd_taxable_income: 84_750
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    #(84750-74750)*0.0195 = 195
+    nd_income_tax_before_credits: 195
+
+- name: ND income tax before credits unit test 17 (WIDOW)
+  period: 2023
+  input:
+    filing_status: WIDOW
+    nd_taxable_income: 275_200
+    state_code: ND
+  output:  # hand calculated to avoid whole-dollar rounding problems
+    #(275200-275100)*0.0250 + 3906.83 = 3909.33
+    nd_income_tax_before_credits: 3_909.33
diff --git a/...sts/policy/baseline/gov/states/nd/tax/income/nd_income_tax_before_refundable_credits.yaml b/...sts/policy/baseline/gov/states/nd/tax/income/nd_income_tax_before_refundable_credits.yaml
@@ -15,3 +15,12 @@
     state_code: ND
   output:
     nd_income_tax_before_refundable_credits: 0
+
+- name: ND income tax before refundable credits unit test 3
+  period: 2023
+  input:
+    nd_income_tax_before_credits: 900
+    nd_nonrefundable_credits: 950
+    state_code: ND
+  output:
+    nd_income_tax_before_refundable_credits: 0
diff --git a/policyengine_us/tests/policy/baseline/gov/states/nd/tax/income/nd_mpc.yaml b/policyengine_us/tests/policy/baseline/gov/states/nd/tax/income/nd_mpc.yaml
@@ -51,3 +51,56 @@
     nd_taxable_income: 354_100
     nd_income_tax_before_credits: 7_356.02
     nd_mpc: 208  # capped at maximum credit amount
+
+
+- name: ND marriage-penalty credit unit test 3
+  absolute_error_margin: 0.01
+  period: 2023
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        age: 41
+        irs_employment_income: 200_000
+      person2:
+        is_tax_unit_spouse: true
+        age: 41
+        irs_employment_income: 180_000
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ND
+  output:
+    nd_mpc: 0 
+
+- name: ND marriage-penalty credit unit test 4
+  absolute_error_margin: 0.01
+  period: 2023
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+        age: 41
+        irs_employment_income: 90_000
+      person2:
+        is_tax_unit_spouse: true
+        age: 41
+        irs_employment_income: 80_000
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ND
+  output:
+    nd_mpc: 287 # capped at maximum credit amount
diff --git a/policyengine_us/variables/gov/states/nd/tax/income/nd_military_pay_exclusion.py b/policyengine_us/variables/gov/states/nd/tax/income/nd_military_pay_exclusion.py
@@ -0,0 +1,15 @@
+from policyengine_us.model_api import *
+
+
+class nd_military_pay_exclusion(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "North Dakota military pay exclusion"
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.ND
+    reference = "https://www.tax.nd.gov/sites/www/files/documents/forms/individual/2023-iit/2023-individual-income-tax-booklet.pdf#page=15"
+
+    def formula(tax_unit, period, parameters):
+        military_pay = add(tax_unit, period, ["military_service_income"])
+        return military_pay