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Add parameters for QBI deduction phaseout #2508

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Feb 1, 2021
Merged

Add parameters for QBI deduction phaseout #2508

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2e7fff1
add params for qbid phaseout
Peter-Metz Nov 2, 2020
6e0a9ab
change phaseout from AGI to taxable income
Peter-Metz Nov 2, 2020
42fd3b0
adjustments to pcl
Peter-Metz Nov 2, 2020
3404912
merge conflicts
Peter-Metz Jan 10, 2021
cd7ccbc
add PT_qbid_limit_switch back to TaxInc
Peter-Metz Jan 11, 2021
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17 changes: 11 additions & 6 deletions taxcalc/calcfunctions.py
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -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.
Expand Down Expand Up @@ -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)
Expand Down
247 changes: 247 additions & 0 deletions taxcalc/policy_current_law.json
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Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -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.",
Expand Down