Saver's Credit

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - Retirement Savings Contributions Credit (Saver’s Credit).

policyengine_us/data/datasets/cps/enhanced_cps/process_puf.py

@@ -58,7 +58,7 @@
     "E07200": "elderly_disabled_credit",
     "E07220": "child_tax_credit",
     "E07230": "education_credits",
-    "E07240": "retirement_savings_credit",
+    "E07240": "savers_credit",
     "E07260": "residential_energy_credit",
     "E07300": "foreign_tax_credit",
     "E07400": "general_business_credit",
@@ -302,7 +302,7 @@
     "taxable_social_security",
     "taxable_ira_distributions",
     "casualty_loss",
-    "retirement_savings_credit",
+    "savers_credit",
     "misc_deduction",
     "interest_expense",
     "unrecaptured_section_1250_gain",

policyengine_us/parameters/gov/irs/credits/non_refundable.yaml

@@ -8,7 +8,7 @@ values:
     # Home mortgage credit
     - non_refundable_american_opportunity_credit
     - lifetime_learning_credit
-    - retirement_savings_credit
+    - savers_credit
     - residential_clean_energy_credit
     - energy_efficient_home_improvement_credit
   # CDCC became refundable for 2021 only.
@@ -21,7 +21,7 @@ values:
     # Home mortgage credit
     - non_refundable_american_opportunity_credit
     - lifetime_learning_credit
-    - retirement_savings_credit
+    - savers_credit
     - residential_clean_energy_credit
     - energy_efficient_home_improvement_credit
     - new_clean_vehicle_credit
@@ -34,7 +34,7 @@ values:
     # Home mortgage credit
     - non_refundable_american_opportunity_credit
     - lifetime_learning_credit
-    - retirement_savings_credit
+    - savers_credit
     - residential_clean_energy_credit
     - energy_efficient_home_improvement_credit
     - new_clean_vehicle_credit

policyengine_us/parameters/gov/irs/credits/retirement_saving/age_threshold.yaml

@@ -0,0 +1,16 @@
+description: The IRS limits the saver's credit to taxpayers at or over to following age.  
+values:
+  2019-01-01: 18
+metadata:
+  unit: year
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) age threshold
+  reference:
+    - title: 26 U.S. Code § 25B(c)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B#c
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: 2022 Publication 590-A
+      href: https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=45
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1

policyengine_us/parameters/gov/irs/credits/retirement_saving/contributions_cap.yaml

@@ -0,0 +1,16 @@
+description: The IRS caps the qualifying contributions at the following amount under the saver's credit.
+values:
+  2019-01-01: 2_000
+metadata:
+  unit: currency-USD
+  period: year
+  label: Saver’s Credit contributions cap
+  reference:
+    - title: 26 U.S. Code § 25B(a)
+      href: https://www.law.cornell.edu/uscode/text/26/25B
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: 2022 Publication 590-A
+      href: https://www.irs.gov/pub/irs-pdf/p590a.pdf#page=45
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1

policyengine_us/parameters/gov/irs/credits/retirement_saving/qualified_contributions.yaml

@@ -0,0 +1,18 @@
+description: South Carolina subtracts the following elements from gross earned income when computing the two wage earner credit.
+values:
+  2021-01-01:
+    - self_employment_tax_ald_person
+    - self_employed_health_insurance_ald_person
+    - self_employed_pension_contribution_ald_person
+
+metadata:
+  unit: list
+  period: year 
+  label: South Carolina two wage earner credit earned income subtractions
+  reference:
+    - title: SC 1040 tax form instructions (2021)
+      href: https://dor.sc.gov/forms-site/Forms/IITPacket_2021.pdf#page=22
+    - title: SC 1040 tax form instructions (2023)
+      href: https://dor.sc.gov/forms-site/Forms/IITPacket_2023.pdf#page=23
+    - title: SC Legal Code |  Section 12-6-3330 (C)(b)
+      href: https://www.scstatehouse.gov/code/t12c006.php

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint.yaml

@@ -0,0 +1,62 @@
+description: IRS multiplies the qualified contributions by the following rate for joint filers under the Saver's Credit, based on adjusted gross income.
+metadata:
+  type: single_amount
+  threshold_unit: currency-USD
+  ramount_unit: /1
+  period: year
+  label: Saver’s Credit joint rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(1)
+      href: https://www.law.cornell.edu/uscode/text/26/25B#b
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+
+brackets:
+  - threshold:
+      2019-01-01: 0
+    amount:
+      2019-01-01: 0.5
+  - threshold:
+      values:
+        2019-01-01: 38_500
+        2020-01-01: 39_000
+        2021-01-01: 39_500
+        2022-01-01: 41_000
+        2023-01-01: 43_500
+      uprating:
+        parameter: gov.irs.uprating
+        rounding:
+          type: nearest
+          interval: 500
+    amount:
+      2019-01-01: 0.2
+  - threshold:
+      values:
+        2019-01-01: 41_500
+        2020-01-01: 42_500
+        2021-01-01: 43_000
+        2022-01-01: 44_000
+        2023-01-01: 47_500
+      uprating:
+        parameter: gov.irs.uprating
+        rounding:
+          type: nearest
+          interval: 500
+    amount:
+      2019-01-01: 0.1
+  - threshold:
+      values:
+        2019-01-01: 64_000
+        2020-01-01: 65_000
+        2021-01-01: 66_000
+        2022-01-01: 68_000
+        2023-01-01: 73_000
+      uprating:
+        parameter: gov.irs.uprating
+        rounding:
+          type: nearest
+          interval: 500
+    amount:
+      2019-01-01: 0

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/threshold_adjustment/head_of_household.yaml

@@ -0,0 +1,14 @@
+description: IRS adjusts the threshold of the Savor's credit for head of household filers by multiplying the joint threshold by this rate.
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) head of household threshold adjustment rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(a)
+      href: https://www.law.cornell.edu/uscode/text/26/25B#b
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.75

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/threshold_adjustment/separate.yaml

@@ -0,0 +1,14 @@
+description: IRS adjusts the threshold of the Savor's credit for separate filers by multiplying the joint threshold by this rate.
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) separate threshold adjustment rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(b)
+      href: https://www.law.cornell.edu/uscode/text/26/25B#b
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.5

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/threshold_adjustment/single.yaml

@@ -0,0 +1,14 @@
+description: IRS adjusts the threshold of the Savor's credit for single filers by multiplying the joint threshold by this rate.
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) single threshold adjustment rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(b)
+      href: https://www.law.cornell.edu/uscode/text/26/25B#b
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.5

policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/threshold_adjustment/widow.yaml

@@ -0,0 +1,14 @@
+description: IRS adjusts the threshold of the Savor's credit for widow(er) filers by multiplying the joint threshold by this rate.
+metadata:
+  unit: /1
+  period: year
+  label: Retirement Savings Contributions Credit (Saver’s Credit) widow threshold adjustment rate
+  reference: 
+    - title: 26 U.S. Code § 25B(b)(2)(b)
+      href: https://www.law.cornell.edu/uscode/text/26/25B#b
+    - title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
+      href: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
+    - title: Form 8880 - 2023 Credit for Qualified Retirement Savings Contributions
+      href: https://www.irs.gov/pub/irs-pdf/f8880.pdf#page=1
+values:
+  2019-01-01: 0.5

policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/retirement_saving_eligible_person.yaml

@@ -0,0 +1,19 @@
+- name: eligible person
+  period: 2021
+  input:
+    age: 20
+    is_tax_unit_head: true
+    claimed_as_dependent_on_another_return: false
+    is_full_time_student: false
+  output:
+    savers_credit_eligible_person: true
+
+- name: Not an eligible person, under age threshold  
+  period: 2021
+  input:
+    age: 17
+    is_tax_unit_spouse: true
+    spouse_is_dependent_elsewhere: false
+    is_full_time_student: false
+  output:
+    savers_credit_eligible_person: false

policyengine_us/tests/policy/baseline/gov/irs/credits/retirement_saving/savers_credit_person.yaml

@@ -0,0 +1,133 @@
+- name: joint with one eligible person
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: false
+        traditional_ira_contributions: 0
+        roth_ira_contributions: 0
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 39_000
+  output:
+    savers_credit_person: [1_000, 0]
+
+- name: joint with AGI over a threshold 
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        adjusted_gross_income_person: 39_000
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: true
+        adjusted_gross_income_person: 50_000
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 73_000
+  output:
+    savers_credit_person: [0, 0]
+
+- name: Head of household with AGI over the eligible threshold
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: true
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: HEAD_OF_HOUSEHOLD
+        adjusted_gross_income: 54_750
+  output:
+    savers_credit_person: [0, 0]
+
+- name: Head of household with AGI under the eligible threshold, capped contributions 
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: true
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: HEAD_OF_HOUSEHOLD
+        adjusted_gross_income: 33_000
+  output:
+    savers_credit_person: [400, 400]
+
+- name: Single uncapped contributions
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        roth_ira_contributions: 500
+        roth_401k_contributions: 1_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 20_000
+  output:
+    savers_credit_person: [750]
+
+- name: Single uncapped contributions, middle threshold
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: true
+        roth_ira_contributions: 500
+        roth_401k_contributions: 1_000
+    tax_units:
+      tax_unit:
+        members: [person1]
+        filing_status: SINGLE
+        adjusted_gross_income: 33_000
+  output:
+    savers_credit_person: [150]
+
+- name: Joint household, no eligible people
+  period: 2023
+  input:
+    people:
+      person1:
+        savers_credit_eligible_person: false
+        traditional_ira_contributions: 3_000
+        roth_ira_contributions: 2_000
+      person2:
+        savers_credit_eligible_person: false
+        traditional_ira_contributions: 0
+        roth_ira_contributions: 0
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 39_000
+  output:
+    savers_credit_person: [0, 0]