OH income tax difference with TAXSIM35

[martinholmer]

The following integration test fails. It is not yet known whether the
tax logic problem is in TAXSIM35 or in the current PEUS code, or
whether there are problems in both models. This topic is meant to
facilitate discussion of why this test fails, primarily by reporting
the results of hand calculations required to fill out the relevant tax
form.

- name: Tax unit with taxsimid 92404 in e21.its.csv and e21.ots.csv
  absolute_error_margin: 0.01
  period: 2021
  input:
    people:
      person1:
        age: 43
        employment_income: 9010
        taxable_interest_income: 5505.0
        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
      person2:
        age: 43
        employment_income: 59010
        taxable_interest_income: 5505.0
        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
    tax_units:
      tax_unit:
        members: [person1, person2]
        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
    spm_units:
      spm_unit:
        members: [person1, person2]
        snap: 0  # not in TAXSIM35
        tanf: 0  # not in TAXSIM35
    households:
      household:
        members: [person1, person2]
        state_fips: 39  # OH
  output:  # expected results from patched TAXSIM35 2024-02-05 version
    oh_income_tax: 1768.71

[PavelMakarchuk]

@martinholmer a question to clarify the TAXSIM output. Does Line 40 in the out file represents all of the possible credits or is it a summary of the credits in the lines above? Would this be equal to the PE outputs of refundable + non-refundable state credits

[martinholmer]

Line 40 is the sum of ALL credits.

[PavelMakarchuk]

@martinholmer Thank you for clarifying, this issue then arrises because TAXSIM does not assign a joint filing credit to the tax unit.

In the absence of a fillable form I will try to explain my reasoning,
For the eligibility, both filers have over $500 of income due to employment income

For the amount:
MAGI should be right under 75,000 (TAXSIM and PE align) -> 10%

The line 11 reflects the non refundable credit schedule where line 1 is the tax liability pre certain credits which is over 0 as AGI - exemptions is over 0

While the exact amount can be debated, I am unsure if there is a reason why the credit should be 0

Let me know if this reasoning makes sense

Instructions

[martinholmer]

Thanks for the useful information.