KY 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 95730 in e21.its.csv and e21.ots.csv
  absolute_error_margin: 0.01
  period: 2021
  input:
    people:
      person1:
        age: 66
        employment_income: 15010
        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: 66
        employment_income: 1010
        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
      person3:
        age: 11
        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: 11
        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: 11
        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]
        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]
        snap: 0  # not in TAXSIM35
        tanf: 0  # not in TAXSIM35
    households:
      household:
        members: [person1, person2, person3, person4, person5]
        state_fips: 21  # KY
  output:  # expected results from patched TAXSIM35 2024-03-04 version
    ky_income_tax: 100.25

[Shinuing]

@PavelMakarchuk the variances happens in ky_non_refundable_credits

PE results in 1054.25 != TAXSIM 982.25

ky_non_refundable_credits is the sum of ky_family_size_tax_credit, ky_tuition_tax_credit and ky_personal_tax_credits

1. ky_family_size_tax_credit
   = ky_income_tax_before_non_refundable_credits_unit * percentage
   = (taxable income * tax rate) * percentage
   = 21,650 * 0.05 * 0.9
   = 974.25

2. ky_tuition_tax_credit = 0
3. ky_personal_tax_credits = 40 + 40 = 80
   

Let me know if I missed something

- name: Tax unit with taxsimid 95730 in e21.its.csv and e21.ots.csv
  absolute_error_margin: 0.01
  period: 2021
  input:
    people:
      person1:
        age: 66
        employment_income: 15010
        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: 66
        employment_income: 1010
        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
      person3:
        age: 11
        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: 11
        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: 11
        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]
        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]
        snap: 0  # not in TAXSIM35
        tanf: 0  # not in TAXSIM35
    households:
      household:
        members: [person1, person2, person3, person4, person5]
        state_fips: 21  # KY
  output:  # expected results from patched TAXSIM35 2024-03-04 version
    ky_agi: [20_515, 6_515, 0, 0, 0] # total = 27030 = TAXSIM
    ky_taxable_income_indiv: [17_825, 3_825, 0, 0, 0] # total = 21650 = TAXSIM
    ky_standard_deduction_indiv: [2_690,2690,0,0,0] # total = 5380 =TAXSIM
    ky_income_tax_before_non_refundable_credits_unit: 1_082.5 
    ky_family_size_tax_credit: 974.25 #1082.5*0.9  
    ky_tuition_tax_credit: 0
    ky_blind_personal_tax_credits: 0
    ky_aged_personal_tax_credits: [40, 40, 0, 0, 0]
    ky_military_personal_tax_credits: 0
    ky_personal_tax_credits: 80
    ky_non_refundable_credits: 1054.25 #974.25 + 80 != TAXSIM 982.25
    ky_income_tax_before_refundable_credits: 28.25 # =1082.25-1054.25
    ky_refundable_credits: 0
    ky_income_tax: 28.25 # TAXSIM 100.25

[martinholmer]

@Shinuing, Your hand calculation of the ky_family_size_tax_credit (see item 1 above) does not correspond to what you would get if you actually filled out the 2021 KY income tax form.

[Shinuing]

Thank you for pointing that out! Yes, we have some errors in the ky_family_size_tax_credit structure

[Shinuing]

Fixed by #4129

[PavelMakarchuk]

Will be fixed by #4129