District Child Tax Credit

changelog_entry.yaml

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+- bump: minor
+  changes:
+    added:
+    - DC Child Tax Credit.

policyengine_us/parameters/gov/states/dc/tax/income/credits/ctc/README.md

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+# Child Tax Credit.

policyengine_us/parameters/gov/states/dc/tax/income/credits/ctc/amount.yaml

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+description: DC provides a Child Tax Credit of this amount per eligible child.
+metadata:
+  unit: currency-USD
+  label: DC Child Tax Credit amount
+  period: year
+  uprating:
+    parameter: gov.irs.uprating
+    rounding:
+      type: downwards
+      interval: 5
+  reference:
+    - title: Code of the District of Columbia § 47–1806.17(b)(1)
+      href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17#(b)(1)
+
+values:
+  2025-01-01: 420

policyengine_us/parameters/gov/states/dc/tax/income/credits/ctc/child/age_threshold.yaml

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+description: DC provides a Child Tax Credit amount for children below this age.
+metadata:
+  unit: age
+  label: DC Child Tax Credit child age threshold
+  period: year
+  reference:
+    - title: Code of the District of Columbia § 47–1806.17(b)(1)
+      href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17#(b)(1)
+
+values:
+  2025-01-01: 6

policyengine_us/parameters/gov/states/dc/tax/income/credits/ctc/child/child_cap.yaml

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+description: DC caps the number of eligible children for the Child Tax Credit at this number. 
+values:
+  2025-01-01: 3
+metadata:
+  type: single_amount 
+  label: DC Child Tax Credit child cap
+  reference:
+    - title: Code of the District of Columbia § 47–1806.17(b)(2)
+      href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17##(b)(2)

policyengine_us/parameters/gov/states/dc/tax/income/credits/ctc/income_threshold.yaml

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+description: DC limits its Child Tax Credit to filers with taxable income below the following amount, based on filing status. 
+metadata:
+  label: DC Child Tax Credit taxable income threshold
+  unit: currency_USD
+  period: year
+  breakdown:
+    - filing_status
+  reference:
+    - title: Code of the District of Columbia § 47–1806.17(e)(5)
+      href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17#(e)(5)
+
+SINGLE:
+  values:
+    2025-01-01: 160_000
+  metadata:
+    uprating:
+      parameter: gov.irs.uprating
+      rounding:
+        type: downwards
+        interval: 100
+JOINT:
+  values:
+    2025-01-01: 240_000
+  metadata:
+    uprating:
+      parameter: gov.irs.uprating
+      rounding:
+        type: downwards
+        interval: 100
+SEPARATE:
+  values:
+    2025-01-01: 120_000
+  metadata:
+    uprating:
+      parameter: gov.irs.uprating
+      rounding:
+        type: downwards
+        interval: 100
+HEAD_OF_HOUSEHOLD:
+  values:
+    2025-01-01: 160_000
+  metadata:
+    uprating:
+      parameter: gov.irs.uprating
+      rounding:
+        type: downwards
+        interval: 100
+SURVIVING_SPOUSE:
+  values:
+    2025-01-01: 160_000
+  metadata:
+    uprating:
+      parameter: gov.irs.uprating
+      rounding:
+        type: downwards
+        interval: 100

policyengine_us/parameters/gov/states/dc/tax/income/credits/ctc/phase_out/amount.yaml

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+description: DC reduces the Child Tax Credit expansion by this amount for each increment by which one's income exceeds the phase-out thresholds.
+values:
+  2025-01-01: 20
+metadata:
+  unit: currency-USD
+  label: DC Child Tax Credit phase-out amount
+  period: year
+  reference:
+    - title: Code of the District of Columbia § 47–1806.17(b)(2)
+      href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17##(b)(2)

policyengine_us/parameters/gov/states/dc/tax/income/credits/ctc/phase_out/increment.yaml

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+description: DC reduces the Child Tax Credit expansion by a certain amount for each of this increment by which one's income exceeds the phase-out thresholds.
+values:
+  2025-01-01: 1_000
+metadata:
+  unit: currency-USD
+  label: DC Child Tax Credit phase-out increment 
+  period: year
+  reference:
+    - title: Code of the District of Columbia § 47–1806.17(b)(2)
+      href: https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17#(b)(2)

policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/ctc/dc_ctc.yaml

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+- name: Case 1, no phase_out, single filer with 2 qualifying children.
+  period: 2025
+  input:
+    adjusted_gross_income: 120_000
+    filing_status: SINGLE
+    dc_ctc_eligible_children_count: 2
+    state_code: DC
+  output:
+    dc_ctc: 840
+
+- name: Case 2, no phase_out, jointly filers with 4 qualifying children. 
+  period: 2025
+  input:
+    adjusted_gross_income: 200_000
+    filing_status: JOINT
+    dc_ctc_eligible_children_count: 4
+    state_code: DC
+  output:
+    dc_ctc: 1_260
+
+- name: Case 3, income above income threshold, single filer with 2 qualifying children.
+  period: 2025
+  input:
+    adjusted_gross_income: 162_000
+    filing_status: SINGLE
+    dc_ctc_eligible_children_count: 2
+    state_code: DC
+  output:
+    dc_ctc: 800
+
+- name: Case 4, income above income threshold, jointly filers with 4 qualifying children. 
+  period: 2025
+  input:
+    adjusted_gross_income: 245_000
+    filing_status: JOINT
+    dc_ctc_eligible_children_count: 4
+    state_code: DC
+  output:
+    dc_ctc: 1_160

policyengine_us/tests/policy/baseline/gov/states/dc/tax/income/ctc/dc_ctc_eligible_children_count.yaml

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+- name: Case 1, 1 dependent child that is also age qualify. 
+  period: 2025
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+      person2:
+        is_tax_unit_spouse: true
+      person3:
+        is_tax_unit_dependent: true
+        age: 5
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: DC
+  output:
+    dc_ctc_eligible_children_count: 1
+
+- name: Case 2, 2 dependent children, both age qualify. 
+  period: 2025
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+      person2:
+        is_tax_unit_dependent: true
+        age: 4
+      person3:
+        is_tax_unit_dependent: true
+        age: 5
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: DC
+  output:
+    dc_ctc_eligible_children_count: 2
+
+- name: Case 3, 2 dependent children, both age unqalify.  
+  period: 2025
+  input:
+    people:
+      person1:
+        is_tax_unit_head: true
+      person2:
+        is_tax_unit_dependent: true
+        age: 8
+      person3:
+        is_tax_unit_dependent: true
+        age: 7
+    tax_units:
+      tax_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: DC
+  output:
+    dc_ctc_eligible_children_count: 0

policyengine_us/variables/gov/states/dc/tax/income/credits/ctc/dc_ctc.py

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+from policyengine_us.model_api import *
+from numpy import ceil
+
+
+class dc_ctc(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "DC Child Tax Credit"
+    unit = USD
+    definition_period = YEAR
+    reference = (
+        "https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17"
+    )
+
+    def formula(tax_unit, period, parameters):
+        p = parameters(period).gov.states.dc.tax.income.credits.ctc
+        income = tax_unit("adjusted_gross_income", period)
+        filing_status = tax_unit("filing_status", period)
+        income_threshold = p.income_threshold[filing_status]
+        # For each $1000 above income threshold, the ctc amount decrease by $20.
+        excess = max_(0, income - income_threshold)
+        increments = ceil(excess / p.phase_out.increment)
+        phase_out = increments * p.phase_out.amount
+
+        eligible_children_count = tax_unit(
+            "dc_ctc_eligible_children_count", period
+        )
+        children_count = min_(p.child.child_cap, eligible_children_count)
+        amount_before_phase_out = p.amount * children_count
+
+        return amount_before_phase_out - phase_out

policyengine_us/variables/gov/states/dc/tax/income/credits/ctc/dc_ctc_qualify_child.py

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+from policyengine_us.model_api import *
+
+
+class dc_ctc_eligible_children_count(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "DC CTC eligible children count"
+    definition_period = YEAR
+    reference = (
+        "https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.17"
+    )
+
+    def formula(tax_unit, period, parameters):
+        p = parameters(period).gov.states.dc.tax.income.credits.ctc.child
+        person = tax_unit.members
+        age = person("age", period)
+        age_qualify = age < p.age_threshold
+        is_dependent = person("is_tax_unit_dependent", period)
+        ctc_eligible_children = age_qualify & is_dependent
+        return tax_unit.sum(ctc_eligible_children)