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Saver's Credit #4015

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Saver's Credit #4015

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Saver's Credit
DianaShi5083 Feb 28, 2024
4776b74
Merge branch 'master' of https://github.com/PolicyEngine/policyengine…
DianaShi5083 Mar 6, 2024
0281b95
Adjustment
DianaShi5083 Mar 6, 2024
c47b170
Adjustment
DianaShi5083 Mar 11, 2024
f61e260
Merge branch 'master' of https://github.com/PolicyEngine/policyengine…
DianaShi5083 Mar 12, 2024
5964005
Adjustments
DianaShi5083 Mar 12, 2024
a6aa757
Adjustments
DianaShi5083 Mar 18, 2024
07ddb32
Solved merge conflicts
DianaShi5083 Mar 18, 2024
583aef2
Merge branch 'master' of https://github.com/PolicyEngine/policyengine…
DianaShi5083 Mar 25, 2024
e9c8fe4
Adjusted savers credit logic
DianaShi5083 Mar 25, 2024
e27fc51
Adjustments
DianaShi5083 Apr 1, 2024
7335186
Merge branch 'master' of https://github.com/PolicyEngine/policyengine…
DianaShi5083 Apr 1, 2024
1042c60
Merge branch 'master' of https://github.com/PolicyEngine/policyengine…
DianaShi5083 Apr 8, 2024
a421a25
Adjustments
DianaShi5083 Apr 8, 2024
5fdd1d4
format
PavelMakarchuk Apr 8, 2024
359f2cd
Name Changing, Widow
DianaShi5083 Apr 9, 2024
622919c
Merge branch 'master' of https://github.com/PolicyEngine/policyengine…
PavelMakarchuk Apr 28, 2024
e6c8acf
parameter format
PavelMakarchuk Apr 28, 2024
201abad
variable and test adjustment
PavelMakarchuk Apr 29, 2024
417dd50
format
PavelMakarchuk Apr 29, 2024
1555aa3
minor par
PavelMakarchuk Apr 30, 2024
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4 changes: 4 additions & 0 deletions changelog_entry.yaml
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- bump: minor
changes:
added:
- Retirement Savings Contributions Credit (Saver’s Credit)
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14 changes: 14 additions & 0 deletions policyengine_us/parameters/gov/irs/credits/retirement_saving/age.yaml
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description: Taxpayers over following age are eligible for the saver's credit.
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values:
2019-01-01: 18
metadata:
unit: year
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name: saver's credit age
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label: Retirement Savings Contributions Credit (Saver’s Credit) age
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reference:
- title: IRS | Retirement Savings Contributions Credit (Saver’s Credit)
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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
14 changes: 14 additions & 0 deletions policyengine_us/parameters/gov/irs/credits/retirement_saving/cap.yaml
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description: the maximum contribution amount that may qualify for the credit is this amount
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values:
2019-01-01: 2_000
metadata:
unit: currency-USD
period: year
label: qualified contribution cap amount
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reference:
- 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
43 changes: 43 additions & 0 deletions policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/head_of_household.yaml
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need to make some adjustments:
Create 2 match files
head of household (75%)
other (50%)

break the joint.yaml into 3 threshold and 3 rate files
upper
middle
lower

in the calculation when checking which rate is applied we will need to decrease the threshold based on filing status, if not joint

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description: head of household saver's credit threshold and rate
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metadata:
threshold_unit: currency_USD
amount_unit: /1
threshold_period: year
type: single_amount
label: head of household saver's credit rate
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reference:
- 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
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href: https://www.irs.gov/pub/irs-pdf/f8880.pdf
brackets:
- threshold:
2019-01-01: 0
amount:
2019-01-01: 0.5
- threshold:
2019-01-01: 28_876
2020-01-01: 29_251
2021-01-01: 29_626
2022-01-01: 20_501
2023-01-01: 32_626
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amount:
2019-01-01: 0.2
- threshold:
2019-01-01: 31_126
2020-01-01: 31_876
2021-01-01: 32_251
2022-01-01: 22_001
2023-01-01: 35_626
amount:
2019-01-01: 0.1
- threshold:
2019-01-01: 48_001
2020-01-01: 48_751
2021-01-01: 49_501
2022-01-01: 34_001
2023-01-01: 54_751
amount:
2019-01-01: 0
43 changes: 43 additions & 0 deletions policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/joint.yaml
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description: joint saver's threshold and rate
metadata:
threshold_unit: currency_USD
amount_unit: /1
threshold_period: year
type: single_amount
label: joint saver's credit rate
reference:
- 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
brackets:
- threshold:
2019-01-01: 0
amount:
2019-01-01: 0.5
- threshold:
2019-01-01: 38_501
2020-01-01: 39_001
2021-01-01: 39_501
2022-01-01: 41_001
2023-01-01: 43_501
amount:
2019-01-01: 0.2
- threshold:
2019-01-01: 41_501
2020-01-01: 42_501
2021-01-01: 43_001
2022-01-01: 44_001
2023-01-01: 47_501
amount:
2019-01-01: 0.1
- threshold:
2019-01-01: 64_001
2020-01-01: 65_001
2021-01-01: 66_001
2022-01-01: 68_001
2023-01-01: 73_001
amount:
2019-01-01: 0
43 changes: 43 additions & 0 deletions policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/separate.yaml
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description: separate saver's threshold and rate
metadata:
threshold_unit: currency_USD
amount_unit: /1
threshold_period: year
type: single_amount
label: separate saver's credit rate
reference:
- 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
brackets:
- threshold:
2019-01-01: 0
amount:
2019-01-01: 0.5
- threshold:
2019-01-01: 19_251
2020-01-01: 19_501
2021-01-01: 19_751
2022-01-01: 20_501
2023-01-01: 21_751
amount:
2019-01-01: 0.2
- threshold:
2019-01-01: 20_751
2020-01-01: 21_251
2021-01-01: 21_501
2022-01-01: 22_001
2023-01-01: 23_751
amount:
2019-01-01: 0.1
- threshold:
2019-01-01: 32_001
2020-01-01: 32_501
2021-01-01: 33_001
2022-01-01: 34_001
2023-01-01: 35_501
amount:
2019-01-01: 0
43 changes: 43 additions & 0 deletions policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/single.yaml
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description: single saver's credit threshold and rate
metadata:
threshold_unit: currency_USD
amount_unit: /1
threshold_period: year
type: single_amount
label: single saver's credit rate
reference:
- 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
brackets:
- threshold:
2019-01-01: 0
amount:
2019-01-01: 0.5
- threshold:
2019-01-01: 19_251
2020-01-01: 19_501
2021-01-01: 19_751
2022-01-01: 20_501
2023-01-01: 21_751
amount:
2019-01-01: 0.2
- threshold:
2019-01-01: 20_751
2020-01-01: 21_251
2021-01-01: 21_501
2022-01-01: 22_001
2023-01-01: 23_751
amount:
2019-01-01: 0.1
- threshold:
2019-01-01: 32_001
2020-01-01: 32_501
2021-01-01: 33_001
2022-01-01: 34_001
2023-01-01: 35_501
amount:
2019-01-01: 0
43 changes: 43 additions & 0 deletions policyengine_us/parameters/gov/irs/credits/retirement_saving/rate/widow.yaml
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description: widow saver's credit threshold and rate
metadata:
threshold_unit: currency_USD
amount_unit: /1
threshold_period: year
type: single_amount
label: window saver's credit rate
reference:
- 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
brackets:
- threshold:
2019-01-01: 0
amount:
2019-01-01: 0.5
- threshold:
2019-01-01: 19_251
2020-01-01: 19_501
2021-01-01: 19_751
2022-01-01: 20_501
2023-01-01: 21_751
amount:
2019-01-01: 0.2
- threshold:
2019-01-01: 20_751
2020-01-01: 21_251
2021-01-01: 21_501
2022-01-01: 22_001
2023-01-01: 23_751
amount:
2019-01-01: 0.1
- threshold:
2019-01-01: 32_001
2020-01-01: 32_501
2021-01-01: 33_001
2022-01-01: 34_001
2023-01-01: 35_501
amount:
2019-01-01: 0
62 changes: 62 additions & 0 deletions ..._us/tests/policy/baseline/gov/irs/credits/retirement_saving/retirement_saving_credit.yaml
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- name: joint with one eligible person
period: 2021
input:
people:
person1:
retirement_saving_eligible_person: ture
adjusted_gross_income_person: 39_000
traditional_ira_contributions: 3_000
roth_ira_contributions: 2_000
person2:
retirement_saving_eligible_person: false
adjusted_gross_income_person: 0
traditional_ira_contributions: 0
roth_ira_contributions: 0
tax_units:
tax_unit:
members: [person1, person2]
filing_status: JOINT
output:
retirement_saving_credit: 1_000

- name: joint with over agi
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period: 2021
input:
people:
person1:
retirement_saving_eligible_person: ture
adjusted_gross_income_person: 39_000
traditional_ira_contributions: 3_000
roth_ira_contributions: 2_000
person2:
retirement_saving_eligible_person: ture
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
output:
retirement_saving_credit: 0

- name: head of household with over agi but capped ira
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period: 2023
input:
people:
person1:
retirement_saving_eligible_person: ture
adjusted_gross_income_person: 39_000
traditional_ira_contributions: 3_000
roth_ira_contributions: 2_000
person2:
retirement_saving_eligible_person: ture
adjusted_gross_income_person: 0
traditional_ira_contributions: 3_000
roth_ira_contributions: 2_000
tax_units:
tax_unit:
members: [person1, person2]
filing_status: HEAD_OF_HOUSEHOLD
output:
retirement_saving_credit: 400
20 changes: 20 additions & 0 deletions .../policy/baseline/gov/irs/credits/retirement_saving/retirement_saving_eligible_person.yaml
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- 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:
retirement_saving_eligible_person: true

- name: not eligible person
period: 2021
input:
age: 17
is_tax_unit_spouse: true
spouse_is_dependent_elsewhere: false
is_full_time_student: false

output:
retirement_saving_eligible_person: false
45 changes: 45 additions & 0 deletions policyengine_us/variables/gov/irs/credits/retirement_savings/retirement_saving.py
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from policyengine_us.model_api import *


class retirement_saving_credit(Variable):
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value_type = float
entity = TaxUnit
definition_period = YEAR
label = "Retirement Savings Credit"
unit = USD
reference = "https://www.irs.gov/pub/irs-pdf/f8880.pdf"

def formula(tax_unit, period, parameters):
p = parameters(period).gov.irs.credits.retirement_saving
person = tax_unit.members
person_eligible = person("retirement_saving_eligible_person", period)
agi_person = (
person("adjusted_gross_income_person", period) * person_eligible
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)
total_agi = tax_unit.sum(agi_person)
ira_contributions = add(
person,
period,
["traditional_ira_contributions", "roth_ira_contributions"],
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)
capped_ira_contributions = min_(ira_contributions, p.cap)
qualified_ira = tax_unit.sum(capped_ira_contributions)
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filing_status = tax_unit("filing_status", period)
statuses = filing_status.possible_values

return select(
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[
filing_status == statuses.SINGLE,
filing_status == statuses.SEPARATE,
filing_status == statuses.JOINT,
filing_status == statuses.WIDOW,
filing_status == statuses.HEAD_OF_HOUSEHOLD,
],
[
p.rate.single.calc(total_agi) * qualified_ira,
p.rate.separate.calc(total_agi) * qualified_ira,
p.rate.joint.calc(total_agi) * qualified_ira,
p.rate.widow.calc(total_agi) * qualified_ira,
p.rate.head_of_household.calc(total_agi) * qualified_ira,
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],
)
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