EITC changes

llennemann · Jan 23, 2025 · 4a36ffc · 4a36ffc
1 parent ecfbbbb
commit 4a36ffc
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Showing 12 changed files with 27 additions and 27 deletions.
diff --git a/.../earned_income/max_investment_income.yaml → ...arned_income/investment_income/limit.yaml b/.../earned_income/max_investment_income.yaml → ...arned_income/investment_income/limit.yaml
@@ -3,7 +3,7 @@ values:
   2010-12-31: 2_200 
 metadata:
   unit: currency-USD
-  label: Puerto Rico max investment income to receive earned income credit
+  label: Puerto Rico earned income credit investment income limit
   period: year
   reference:
     - title: P.R. Laws tit. 13, § 30211 (e)

diff --git a/..._income/ineligible_income_categories.yaml → ...ned_income/investment_income/sources.yaml b/..._income/ineligible_income_categories.yaml → ...ned_income/investment_income/sources.yaml
@@ -1,4 +1,4 @@
-description: Puerto Rico will deny the earned income credit if the sum of the following forms of income is greater than the defined maximum limit.
+description: Puerto Rico accounts for the following investment income sources, under the earned income tax credit. 
 values:
   2010-12-31: 
   - interest_income
@@ -9,7 +9,7 @@ values:
 metadata:
   unit: list
   period: year
-  label: Puerto Rico investment income sources to calculate for credit denial criteria for earned income credit
+  label: Puerto Rico earned income credit investment income sources
   reference:
     - title: P.R. Laws tit. 13, § 30211 (e)
       href: https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit
diff --git a/...yengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/max_amount.yaml b/...yengine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/max_amount.yaml
@@ -1,4 +1,4 @@
-description: Puerto Rico allows a maximum amount of credit for the earned income credit.
+description: Puerto Rico provides this maximum earned income credit.
 values: 
   2010-12-31: 350
   2011-12-31: 400

diff --git a/...gine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_in_rate.yaml b/...gine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_in_rate.yaml
@@ -1,4 +1,4 @@
-description: Puerto Rico has a phase in rate for the earned income credit. 
+description: Puerto Rico phases the earned income credit in at this rate of state gross income.
 values: 
   2010-12-31: 0.035
   2011-12-31: 0.04

diff --git a/...ine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_out_rate.yaml b/...ine_us/parameters/gov/territories/pr/tax/income/credits/earned_income/phase_out_rate.yaml
@@ -1,4 +1,4 @@
-description: Puerto Rico has a phase out rate for the earned income credit. 
+description: Puerto Rico phases the earned income credit out at this rate of state gross income.
 brackets:
   # if below the threshold, no phase out
   - threshold: 

diff --git a/...e/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_amount.yaml b/...e/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_amount.yaml
@@ -44,4 +44,4 @@
     pr_gross_income_person: 8_000
     pr_earned_income_credit_eligible: true
   output:
-    pr_earned_income_credit_amount: 320
+    pr_earned_income_credit_amount: 280
diff --git a/...gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_eligible.yaml b/...gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_eligible.yaml
@@ -1,15 +1,15 @@
 - name: Dependent
   period: 2024
   input:
-    is_tax_unit_head_or_spouse: true
+    is_tax_unit_head_or_spouse: false
     pr_earned_income_credit_investment_income: 2_000
   output:
     pr_earned_income_credit_eligible: false
 
 - name: Investment income over the limit
   period: 2024
   input:
-    is_tax_unit_head_or_spouse: false
+    is_tax_unit_head_or_spouse: true
     pr_earned_income_credit_investment_income: 2_201
   output:
     pr_earned_income_credit_eligible: false

diff --git a/...tories/pr/tax/income/credits/earned_income/pr_earned_income_credit_investment_income.yaml b/...tories/pr/tax/income/credits/earned_income/pr_earned_income_credit_investment_income.yaml
diff --git a/...les/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_amount.py b/...les/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_amount.py
@@ -1,5 +1,6 @@
 from policyengine_us.model_api import *
 
+
 class pr_earned_income_credit_amount(Variable):
     value_type = float
     entity = Person
@@ -9,14 +10,14 @@ class pr_earned_income_credit_amount(Variable):
     reference = "https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit"
     defined_for = "pr_earned_income_credit_eligible"
 
-    def formula(tax_unit, period, parameters):
+    def formula(person, period, parameters):
         p = parameters(
             period
         ).gov.territories.pr.tax.income.credits.earned_income
 
         gross_income = person("pr_gross_income_person", period)
         # if in the lower bracket: gross_income * rate. if higher, use max credit
-        phase_in = min(gross_income * p.phase_in_rate, p.max_amount)  
+        phase_in = min_(gross_income * p.phase_in_rate, p.max_amount)
         phase_out = p.phase_out_rate.calc(gross_income)
 
-        return phase_in - phase_out
+        return phase_in - phase_out
diff --git a/...s/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_eligible.py b/...s/gov/territories/pr/tax/income/credits/earned_income/pr_earned_income_credit_eligible.py
@@ -1,17 +1,20 @@
 from policyengine_us.model_api import *
 
+
 class pr_earned_income_credit_eligible(Variable):
     value_type = bool
     entity = Person
-    label = "Eligible person for Puerto Rico earned income credit"
+    label = "Puerto Rico earned income credit eligibility"
     definition_period = YEAR
     reference = "https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit"
 
     def formula(person, period, parameters):
         p = parameters(
             period
-        ).gov.territories.pr.tax.income.credits.earned_income
+        ).gov.territories.pr.tax.income.credits.earned_income.investment_income
         head_or_spouse = person("is_tax_unit_head_or_spouse", period)
-        investment_income = person("pr_earned_income_credit_investment_income", period)
-        investment_income_amount_under_limit = investment_income < p.max_investment_income 
-        return head_or_spouse & investment_income_amount_under_limit 
+        investment_income = person(
+            "pr_earned_income_credit_investment_income", period
+        )
+        investment_income_amount_under_limit = investment_income <= p.limit
+        return head_or_spouse & investment_income_amount_under_limit
diff --git a/...ritories/pr/tax/income/credits/earned_income/pr_earned_income_credit_investment_income.py b/...ritories/pr/tax/income/credits/earned_income/pr_earned_income_credit_investment_income.py
@@ -1,16 +1,12 @@
 from policyengine_us.model_api import *
 
+
 class pr_earned_income_credit_investment_income(Variable):
     value_type = float
     entity = Person
     label = "Puerto Rico earned income credit investment income"
     definition_period = YEAR
+    unit = USD
     reference = "https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1007-credits-against-tax/subchapter-b-refundable-credits/30211-earned-income-credit"
 
-    def formula(person, period, parameters):
-        p = parameters(
-            period
-        ).gov.territories.pr.tax.income.credits.earned_income
-        # sum up all defined categories for investment income
-        adds = "gov.territories.pr.tax.income.credits.earned_income.ineligible_income_categories"
-        return adds
+    adds = "gov.territories.pr.tax.income.credits.earned_income.ineligible_income_categories"
diff --git a/...ax/income/pr_gross_income_person_level.py → ...s/pr/tax/income/pr_gross_income_person.py b/...ax/income/pr_gross_income_person_level.py → ...s/pr/tax/income/pr_gross_income_person.py
@@ -1,10 +1,10 @@
 from policyengine_us.model_api import *
 
 
-class pr_gross_income(Variable):
+class pr_gross_income_person(Variable):
     value_type = float
     entity = Person
-    label = "Puerto Rico gross income person level"
+    label = "Puerto Rico gross income person"
     unit = USD
     definition_period = YEAR
-    reference = "https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1005-computation-of-taxable-income/subchapter-a-determination-of-net-income-general-concepts/30101-gross-income"
+    reference = "https://casetext.com/statute/laws-of-puerto-rico/title-thirteen-taxation-and-finance/subtitle-17-internal-revenue-code-of-2011/part-ii-income-taxes/chapter-1005-computation-of-taxable-income/subchapter-a-determination-of-net-income-general-concepts/30101-gross-income"