Fix Mississippi taxable income

changelog_entry.yaml

@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    fixes:
+    - Mississippi taxable income.

policyengine_us/parameters/gov/states/ms/tax/income/income_sources.yaml

@@ -3,7 +3,7 @@ values:
   2021-01-01:
     - irs_employment_income # Wages, salaries, tips, etc.
     - self_employment_income
-    - qualified_business_income
+    - partnership_s_corp_income
     - capital_gains
     - rental_income
     - farm_income

policyengine_us/tests/policy/baseline/gov/states/ms/tax/income/integration.yaml

@@ -25,9 +25,9 @@
     ms_total_exemptions_joint: [15_000, 0, 0]
     ms_total_exemptions: 15_000
     ms_taxable_income_indiv: [13_200, 8_200, 0]
-    ms_taxable_income_joint: [21_400, 0, 0]
+    ms_taxable_income_joint: [3_400, 18_000, 0]
     ms_income_tax_before_credits_indiv: [390, 158, 0]
-    ms_income_tax_before_credits_joint: [800, 0, 0]
+    ms_income_tax_before_credits_joint: [0, 630, 0]
     ms_files_separately: true
     ms_agi: [23_000, 18_000, 0]
     ms_income_tax: 548
@@ -61,3 +61,92 @@
         state_fips: 28  # MS
   output:  # expected results from patched TAXSIM35 2024-02-19 version
     ms_income_tax: 2_286
+
+- name: Tax unit with taxsimid 86116 in j21.its.csv and j21.ots.csv
+  absolute_error_margin: 0.01
+  period: 2021
+  input:
+    people:
+      person1:
+        age: 54
+        employment_income: 140010
+        qualified_dividend_income: 505.0
+        taxable_interest_income: 5505.0
+        short_term_capital_gains: 505.0
+        long_term_capital_gains: 505.0
+        rent: 23000
+        self_employment_income: 157010
+        business_is_qualified: true
+        business_is_sstb: false
+        w2_wages_from_qualified_business: 100e6
+        ssi: 0  # not in TAXSIM35
+        state_supplement: 0  # not in TAXSIM35
+        wic: 0  # not in TAXSIM35
+        ma_covid_19_essential_employee_premium_pay_program: 0  # not in TAXSIM35
+      person2:
+        age: 54
+        employment_income: 1010
+        qualified_dividend_income: 505.0
+        taxable_interest_income: 5505.0
+        short_term_capital_gains: 505.0
+        long_term_capital_gains: 505.0
+        ssi: 0  # not in TAXSIM35
+        state_supplement: 0  # not in TAXSIM35
+        wic: 0  # not in TAXSIM35
+        ma_covid_19_essential_employee_premium_pay_program: 0  # not in TAXSIM35
+      person3:
+        age: 16
+        ssi: 0  # not in TAXSIM35
+        state_supplement: 0  # not in TAXSIM35
+        wic: 0  # not in TAXSIM35
+        ma_covid_19_essential_employee_premium_pay_program: 0  # not in TAXSIM35
+      person4:
+        age: 16
+        ssi: 0  # not in TAXSIM35
+        state_supplement: 0  # not in TAXSIM35
+        wic: 0  # not in TAXSIM35
+        ma_covid_19_essential_employee_premium_pay_program: 0  # not in TAXSIM35
+      person5:
+        age: 16
+        ssi: 0  # not in TAXSIM35
+        state_supplement: 0  # not in TAXSIM35
+        wic: 0  # not in TAXSIM35
+        ma_covid_19_essential_employee_premium_pay_program: 0  # not in TAXSIM35
+      person6:
+        age: 16
+        ssi: 0  # not in TAXSIM35
+        state_supplement: 0  # not in TAXSIM35
+        wic: 0  # not in TAXSIM35
+        ma_covid_19_essential_employee_premium_pay_program: 0  # not in TAXSIM35
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3, person4, person5, person6]
+        premium_tax_credit: 0  # not in TAXSIM35
+        local_income_tax: 0  # not in TAXSIM35
+        state_sales_tax: 0  # not in TAXSIM35
+        ca_use_tax: 0  # not in TAXSIM35
+        il_use_tax: 0  # not in TAXSIM35
+        nm_2021_income_rebate: 0  # not in TAXSIM35
+        nm_additional_2021_income_rebate: 0  # not in TAXSIM35
+        nm_supplemental_2021_income_rebate: 0  # not in TAXSIM35
+        ny_supplemental_eitc: 0  # not in TAXSIM35
+        ok_use_tax: 0  # not in TAXSIM35
+        pa_use_tax: 0  # not in TAXSIM35
+        vt_renter_credit: 0  # not in TAXSIM35
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3, person4, person5, person6]
+        snap: 0  # not in TAXSIM35
+        tanf: 0  # not in TAXSIM35
+    households:
+      household:
+        members: [person1, person2, person3, person4, person5, person6]
+        state_fips: 28  # MS
+  output:  # expected results from patched TAXSIM35 2024-03-09 version
+    ms_agi: [301_764.53, 8_030, 0, 0, 0, 0] # TAXSIM 301764.54 + 8030 = 309794.54
+    ms_taxable_income_joint: [279_164.53, 8_030, 0, 0, 0, 0] #TAXSIM 279164 + 8030 = 287194.54
+    ms_deductions_joint: [4_600, 0, 0, 0, 0, 0]
+    ms_total_exemptions_joint: [18000,0,0,0,0,0]
+    # ms_income_tax_before_credits_joint: [14089.727, 0, 0, 0, 0, 0]
+    # ms_income_tax_before_credits_indiv: [14253.227, 0, 0, 0, 0, 0]
+    ms_income_tax: 13_839.427 # TAXSIM 13819.73

policyengine_us/tests/policy/baseline/gov/states/ms/tax/income/ms_taxable_income_joint.yaml

@@ -1,40 +1,45 @@
-- name: Calculation 
+- name: Both head and spouse have positive taxable income
   period: 2023
   input:
-    state_code: MS
-    ms_agi: 2_000
-    ms_deductions_joint: 200
-    ms_total_exemptions: 300
+    people:
+      head:
+        ms_unadjusted_taxable_income_joint: 500
+        is_tax_unit_head: true
+      spouse:
+        ms_unadjusted_taxable_income_joint: 300
+        is_tax_unit_head: false
+    tax_units:
+      tax_unit:
+        members: [head,spouse]
+    spm_units:
+      spm_unit:
+        members: [head,spouse]
+    households:
+      household:
+        members: [head,spouse]
+        state_code: MS
   output:
-    ms_taxable_income_joint: 1_500
+    ms_taxable_income_joint: [500,300]
 
-- name: Capped at 0 
+- name: Only one of head or spouse has positive taxable income
   period: 2023
-  input:
-    state_code: MS
-    ms_agi: 100
-    ms_deductions_joint: 200
-    ms_total_exemptions: 300
-  output:
-    ms_taxable_income_joint: 0
-
-- name: MS prorate fraction unit test 1
-  period: 2021
   input:
     people:
-      person1:
+      head:
+        ms_unadjusted_taxable_income_joint: -100
         is_tax_unit_head: true
-        ms_agi: 5_000
-        ms_deductions_joint: 1_000
-        ms_total_exemptions_joint: 1_500
-      person2:
+      spouse:
+        ms_unadjusted_taxable_income_joint: 300
         is_tax_unit_head: false
-        ms_agi: 3_000
-        ms_deductions_joint: 0
-        ms_total_exemptions_joint: 0
+    tax_units:
+      tax_unit:
+        members: [head,spouse]
+    spm_units:
+      spm_unit:
+        members: [head,spouse]
     households:
       household:
-        members: [person1, person2]
+        members: [head,spouse]
         state_code: MS
   output:
-    ms_taxable_income_joint: [5_500, 0]
+    ms_taxable_income_joint: [200,0]

policyengine_us/tests/policy/baseline/gov/states/ms/tax/income/ms_unadjusted_taxable_income_joint.yaml

@@ -0,0 +1,19 @@
+- name: Positive taxable income for head or spouse
+  period: 2023
+  input:
+    state_code: MS
+    ms_agi: 2_000
+    ms_deductions_joint: 200
+    ms_total_exemptions_joint: 300
+  output:
+    ms_unadjusted_taxable_income_joint: 1_500 #2000-(200+300)
+
+- name: Negative taxable income for head or spouse  
+  period: 2023
+  input:
+    state_code: MS
+    ms_agi: 100
+    ms_deductions_joint: 200
+    ms_total_exemptions_joint: 300
+  output:
+    ms_unadjusted_taxable_income_joint: -400 #100-(200+300)

policyengine_us/variables/gov/states/ms/tax/income/taxable_income/ms_taxable_income_joint.py

@@ -0,0 +1,38 @@
+from policyengine_us.model_api import *
+
+
+class ms_taxable_income_joint(Variable):
+    value_type = float
+    entity = Person
+    label = "Mississippi taxable income when married couple file jointly"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://www.dor.ms.gov/sites/default/files/Forms/Individual/80100221.pdf#page=13",
+        "https://www.dor.ms.gov/sites/default/files/Forms/Individual/80105228.pdf",  # Line 38 - 49,
+    )
+    defined_for = StateCode.MS
+
+    def formula(person, period, parameters):
+        # MS allowes negative taxable income when married couple file jointly
+        ms_unadjusted_taxable_income_joint = person(
+            "ms_unadjusted_taxable_income_joint", period
+        )
+        any_spouse_negative_income = person.tax_unit.any(
+            ms_unadjusted_taxable_income_joint < 0
+        )
+
+        # 1. both head and spouse have positive taxable income (includes 0)
+
+        # 2. at least one head or spouse has negative taxable income
+        # assign total net_income to tax unit head
+        is_head = person("is_tax_unit_head", period)
+
+        total_taxable_income_attributed_to_head = (
+            person.tax_unit.sum(ms_unadjusted_taxable_income_joint) * is_head
+        )
+        return where(
+            any_spouse_negative_income,
+            total_taxable_income_attributed_to_head,
+            ms_unadjusted_taxable_income_joint,
+        )

policyengine_us/variables/gov/states/ms/tax/income/ms_taxable_income_joint.py → policyengine_us/variables/gov/states/ms/tax/income/taxable_income/ms_unadjusted_taxable_income_joint.py

@@ -1,10 +1,10 @@
 from policyengine_us.model_api import *
 
 
-class ms_taxable_income_joint(Variable):
+class ms_unadjusted_taxable_income_joint(Variable):
     value_type = float
     entity = Person
-    label = "Mississippi taxable income when married couple file jointly"
+    label = "Mississippi taxable income for head or spouse when married couple file jointly"
     unit = USD
     definition_period = YEAR
     reference = (
@@ -14,13 +14,12 @@ class ms_taxable_income_joint(Variable):
     defined_for = StateCode.MS
 
     def formula(person, period, parameters):
-        # assign total net_income to tax unit head
-        is_head = person("is_tax_unit_head", period)
         agi = person("ms_agi", period)
-        head_agi = is_head * person.tax_unit.sum(agi)
+
         deductions_and_exemptions = add(
-            person.tax_unit,
+            person,
             period,
             ["ms_deductions_joint", "ms_total_exemptions_joint"],
         )
-        return max_(head_agi - deductions_and_exemptions, 0)
+        # MS allows for negative taxable income
+        return agi - deductions_and_exemptions