OR 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 74977 in f21.its.csv and f21.ots.csv
  absolute_error_margin: 0.01
  period: 2021
  input:
    people:
      person1:
        age: 71
        employment_income: 3010
        taxable_interest_income: 5505.0
        taxable_private_pension_income: 5500.0
        social_security_retirement: 500.0
        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: 71
        employment_income: 7010
        taxable_interest_income: 5505.0
        taxable_private_pension_income: 5500.0
        social_security_retirement: 500.0
        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
    tax_units:
      tax_unit:
        members: [person1, person2, person3]
        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
        tax_unit_itemizes: False
        state_income_tax: 73.38
    spm_units:
      spm_unit:
        members: [person1, person2, person3]
        snap: 0  # not in TAXSIM35
        tanf: 0  # not in TAXSIM35
    households:
      household:
        members: [person1, person2, person3]
        state_fips: 41  # OR
  output:  # expected results from patched TAXSIM35 2024-02-15 version
    or_income_tax: 1063.38

[PavelMakarchuk]

@Shinuing could you please take a look at the integration test, as far as I can see, the issues arrises from the or_non_refundable_credits :

TAXSIM accounts for $639 (the value of the or_exemption_credit, unless its a huge coincidence)
PE assigns a value of $1,629 (the value of the exemption credit + or_retirement_credit)

The question do we assign it correctly or did we miss somehting?

[Shinuing]

But we don't even need any of the integration inputs here, did I miss something?

[PavelMakarchuk]

They are all calculated from the inputs above:
taxable_pension_income = adds = ["taxable_public_pension_income", "taxable_private_pension_income"]

social_security =

adds = [
        "social_security_" + i
        for i in ["dependents", "disability", "retirement", "survivors"]
    ]

etc.

[Shinuing]

Yes, my question was I can give any value for the inputs.

For example, taxable_private_pension_income: 5500 in the integration, but the taxable_pension_income also includes taxable_public_pension_income. Thus, the 5500 is meaningless here because I can sign any value to the taxable_public_pension_income

[PavelMakarchuk]

The value of the non-existing e.g. taxable_public_pension_income variable is 0 as it is absent in the inputs (unless there is a default value which most variables do not have)
In this case taxable_pension_income = 5,500 + 0

[Shinuing]

Got it. Thanks for clarification

[Shinuing]

Numbers in red are inputs from integration

[Shinuing]

If adding pension in the household income, the result is still the same (in blue)

[PavelMakarchuk]

@martinholmer I believe we are not attributing the or_retirement_credit to this household in TAXSIM

Let me know if we missed anything