PolicyEngine / PolicyEngine/policyengine-taxsim

AR 2022 HoH 26Kpwages 2depx

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Description

See http://taxsim.nber.org/out2psl/1137

Question: In calculating the "additional tax credit for qualified individuals" is the "net income" Adjusted Gross Income or Taxable Income" and what is TA doing when it shows both of those as equal even though there is a standard deduction of 2270? See Line 28 of AR1000F. Then see line 6 of AR1000TC which shows zero for the credit, apparently based on that number.

PE doesn't break out the atcqi so I can't tell what it is doing, but it does show the taxable income, which would be enough to make the atcqi zero.

Thanks.

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Research direction

Start with the TAXSIM output linked in the issue and compare AR1000F line 28 with AR1000TC line 6 for the 2022 case. Trace the Python implementation that calculates net income and the additional tax credit, then verify whether the result uses Adjusted Gross Income or Taxable Income and explain the matching values and zero credit.

Written by the indexing model from the issue text.

Assessment

Tech stack
python
Domain
backend
Issue type
Bug
Difficulty
4/5
Estimated time
3-5 days
Activity status
Quiet
Clarity
Needs clarification
Newbie friendliness
45/100

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