Merge pull request #2508 from Peter-Metz/qbid_ps

Add parameters for QBI deduction phaseout
PSLmodels · Feb 1, 2021 · 0a4bc06 · 0a4bc06
2 parents 2142329 + cd7ccbc
commit 0a4bc06
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Showing 2 changed files with 258 additions and 6 deletions.
diff --git a/taxcalc/calcfunctions.py b/taxcalc/calcfunctions.py
@@ -788,12 +788,11 @@ def StdDed(DSI, earned, STD, age_head, age_spouse, STD_Aged, STD_Dep,
 
 @iterate_jit(nopython=True)
 def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, e26270,
-           e02100, e27200, e00650, c01000,
-           PT_SSTB_income, PT_binc_w2_wages, PT_ubia_property,
-           PT_qbid_rt, PT_qbid_taxinc_thd, PT_qbid_taxinc_gap,
-           PT_qbid_w2_wages_rt, PT_qbid_alt_w2_wages_rt,
-           PT_qbid_alt_property_rt, PT_qbid_limit_switch,
-           c04800, qbided):
+           e02100, e27200, e00650, c01000, PT_SSTB_income,
+           PT_binc_w2_wages, PT_ubia_property, PT_qbid_rt,
+           PT_qbid_taxinc_thd, PT_qbid_taxinc_gap, PT_qbid_w2_wages_rt,
+           PT_qbid_alt_w2_wages_rt, PT_qbid_alt_property_rt, c04800,
+           PT_qbid_ps, PT_qbid_prt, qbided, PT_qbid_limit_switch):
     """
     Calculates taxable income, c04800, and
     qualified business income deduction, qbided.
@@ -845,6 +844,12 @@ def TaxInc(c00100, standard, c04470, c04600, MARS, e00900, e26270,
         net_cg = e00650 + c01000  # per line 34 in 2018 Pub 535 Worksheet 12-A
         taxinc_cap = PT_qbid_rt * max(0., pre_qbid_taxinc - net_cg)
         qbided = min(qbided, taxinc_cap)
+
+        # apply qbid phaseout
+        if qbided > 0. and pre_qbid_taxinc > PT_qbid_ps[MARS - 1]:
+            excess = pre_qbid_taxinc - PT_qbid_ps[MARS - 1]
+            qbided = max(0., qbided - PT_qbid_prt * excess)
+
     # calculate taxable income after qualified business income deduction
     c04800 = max(0., pre_qbid_taxinc - qbided)
     return (c04800, qbided)

diff --git a/taxcalc/policy_current_law.json b/taxcalc/policy_current_law.json
@@ -12384,6 +12384,253 @@
             "cps": false
         }
     },
+    "PT_qbid_ps": {
+        "title": "QBID phaseout taxable income start",
+        "description": "QBID begins to decrease when pre-QBID taxable income is above this level.",
+        "notes": "",
+        "section_1": "Personal Income",
+        "section_2": "Pass-Through",
+        "indexable": true,
+        "indexed": true,
+        "type": "float",
+        "value": [
+            {
+                "year": 2013,
+                "MARS": "single",
+                "value": 9e99
+            },
+            {
+                "year": 2013,
+                "MARS": "mjoint",
+                "value": 9e99
+            },
+            {
+                "year": 2013,
+                "MARS": "mseparate",
+                "value": 9e99
+            },
+            {
+                "year": 2013,
+                "MARS": "headhh",
+                "value": 9e99
+            },
+            {
+                "year": 2013,
+                "MARS": "widow",
+                "value": 9e99
+            },
+            {
+                "year": 2014,
+                "MARS": "single",
+                "value": 9e99
+            },
+            {
+                "year": 2014,
+                "MARS": "mjoint",
+                "value": 9e99
+            },
+            {
+                "year": 2014,
+                "MARS": "mseparate",
+                "value": 9e99
+            },
+            {
+                "year": 2014,
+                "MARS": "headhh",
+                "value": 9e99
+            },
+            {
+                "year": 2014,
+                "MARS": "widow",
+                "value": 9e99
+            },
+            {
+                "year": 2015,
+                "MARS": "single",
+                "value": 9e99
+            },
+            {
+                "year": 2015,
+                "MARS": "mjoint",
+                "value": 9e99
+            },
+            {
+                "year": 2015,
+                "MARS": "mseparate",
+                "value": 9e99
+            },
+            {
+                "year": 2015,
+                "MARS": "headhh",
+                "value": 9e99
+            },
+            {
+                "year": 2015,
+                "MARS": "widow",
+                "value": 9e99
+            },
+            {
+                "year": 2016,
+                "MARS": "single",
+                "value": 9e99
+            },
+            {
+                "year": 2016,
+                "MARS": "mjoint",
+                "value": 9e99
+            },
+            {
+                "year": 2016,
+                "MARS": "mseparate",
+                "value": 9e99
+            },
+            {
+                "year": 2016,
+                "MARS": "headhh",
+                "value": 9e99
+            },
+            {
+                "year": 2016,
+                "MARS": "widow",
+                "value": 9e99
+            },
+            {
+                "year": 2017,
+                "MARS": "single",
+                "value": 9e99
+            },
+            {
+                "year": 2017,
+                "MARS": "mjoint",
+                "value": 9e99
+            },
+            {
+                "year": 2017,
+                "MARS": "mseparate",
+                "value": 9e99
+            },
+            {
+                "year": 2017,
+                "MARS": "headhh",
+                "value": 9e99
+            },
+            {
+                "year": 2017,
+                "MARS": "widow",
+                "value": 9e99
+            },
+            {
+                "year": 2018,
+                "MARS": "single",
+                "value": 9e99
+            },
+            {
+                "year": 2018,
+                "MARS": "mjoint",
+                "value": 9e99
+            },
+            {
+                "year": 2018,
+                "MARS": "mseparate",
+                "value": 9e99
+            },
+            {
+                "year": 2018,
+                "MARS": "headhh",
+                "value": 9e99
+            },
+            {
+                "year": 2018,
+                "MARS": "widow",
+                "value": 9e99
+            },
+            {
+                "year": 2019,
+                "MARS": "single",
+                "value": 9e99
+            },
+            {
+                "year": 2019,
+                "MARS": "mjoint",
+                "value": 9e99
+            },
+            {
+                "year": 2019,
+                "MARS": "mseparate",
+                "value": 9e99
+            },
+            {
+                "year": 2019,
+                "MARS": "headhh",
+                "value": 9e99
+            },
+            {
+                "year": 2019,
+                "MARS": "widow",
+                "value": 9e99
+            }
+        ],
+        "validators": {
+            "range": {
+                "min": 0,
+                "max": 9e99
+            }
+        },
+        "compatible_data": {
+            "puf": true,
+            "cps": true
+        }
+    },
+    "PT_qbid_prt": {
+        "title": "QBID phaseout rate",
+        "description": "QBID will decrease at this rate for each dollar of taxable income exceeding QBID phaseout start.",
+        "notes": "",
+        "section_1": "Personal Income",
+        "section_2": "Pass-Through",
+        "indexable": false,
+        "indexed": false,
+        "type": "float",
+        "value": [
+            {
+                "year": 2013,
+                "value": 0.0
+            },
+            {
+                "year": 2014,
+                "value": 0.0
+            },
+            {
+                "year": 2015,
+                "value": 0.0
+            },
+            {
+                "year": 2016,
+                "value": 0.0
+            },
+            {
+                "year": 2017,
+                "value": 0.0
+            },
+            {
+                "year": 2018,
+                "value": 0.0
+            },
+            {
+                "year": 2019,
+                "value": 0.0
+            }
+        ],
+        "validators": {
+            "range": {
+                "min": 0,
+                "max": 9e99
+            }
+        },
+        "compatible_data": {
+            "puf": true,
+            "cps": true
+        }
+    },
     "AMT_em": {
         "title": "AMT exemption amount",
         "description": "The amount of AMT taxable income exempted from AMT.",