Apply Iowa, Kansas, Louisiana and Maryland rules for a filer who can be claimed as a dependent

changelog.d/claimable-filer-ia-ks-ky-la-md.fixed.md

@@ -0,0 +1 @@
+Apply Iowa, Kansas, Louisiana and Maryland rules for a filer who can be claimed as a dependent: no dependent exemptions or credits on a return with a claimable filer outside the claimant filing exception (Iowa dependent credit, Kansas dependent exemption and food sales tax credit child, Louisiana dependent exemption, Maryland dependent and aged-dependent exemptions and child tax credit); a claimed Iowa filer gets the low-income exemption only as a single filer with income below $5,000, and no tax reduction; a claimed Kansas filer has no exemptions in 2021-2023; a Maryland filer who can be claimed gets no personal exemption, poverty line credit or childless EITC, and the poverty line credit stays for a spouse who cannot be claimed. Also limit Maryland's aged dependent exemption by federal AGI under Tax-General 10-211(c), as for the personal exemption. Use federal taxable wages, net of pretax payroll contributions, for each spouse's Maryland poverty line credit earned income. Prevent negative Kansas exemptions in the dependent exemption reform for actually claimed filers with the claimant filing exception in the consolidated regime.

policyengine_us/parameters/gov/states/ia/tax/income/tax_exempt/dependent/income_limit.yaml

@@ -0,0 +1,21 @@
+description: Iowa exempts a single filer who is claimed as a dependent on another return from income tax when that filer's income is below this amount.
+values:
+  2021-01-01: 5_000
+
+metadata:
+  label: Iowa tax exemption income limit for single filers claimed as dependents
+  period: year
+  unit: currency-USD
+  reference:
+  - title: Iowa Code 422.13(1)(a), filing requirement for a claimed dependent
+    href: https://www.legis.iowa.gov/docs/code/2026/422.pdf#page=46
+  - title: 2021 IA1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/2650/download?inline#page=38
+  - title: 2022 IA1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/2721/download?inline#page=37
+  - title: 2023 IA 1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/2811/download?inline#page=12
+  - title: 2024 IA 1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/4152/download?inline#page=10
+  - title: 2025 IA 1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/4435/download?inline#page=11

policyengine_us/parameters/gov/states/ia/tax/income/tax_exempt/dependent/income_sources.yaml

@@ -0,0 +1,24 @@
+description: Iowa compares this income of a single filer who can be claimed as a dependent on another return with the dependent tax exemption limit.
+values:
+  # Net income from all sources, IA 1040 line 26.
+  2021-01-01:
+    - ia_net_income
+  # Iowa taxable income, IA 1040 line 4, without adding back deductions.
+  2023-01-01:
+    - ia_taxable_income_consolidated
+
+metadata:
+  unit: list
+  period: year
+  label: Iowa tax exemption income sources for single filers claimed as dependents
+  reference:
+  - title: 2021 IA1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/2650/download?inline#page=38
+  - title: 2022 IA1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/2721/download?inline#page=37
+  - title: 2023 IA 1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/2811/download?inline#page=12
+  - title: 2024 IA 1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/4152/download?inline#page=10
+  - title: 2025 IA 1040 Income Tax Return instructions
+    href: https://revenue.iowa.gov/media/4435/download?inline#page=11

policyengine_us/reforms/state_dependent_exemptions/repeal_state_dependent_exemptions.py

@@ -34,10 +34,13 @@ class md_total_personal_exemptions(Variable):
         defined_for = StateCode.MD
 
         def formula(tax_unit, period, parameters):
-            # Get md_personal_exemption from tax_unit multiplied by tax_unit_size
+            # Only the filers' own exemptions remain; a filer who can be
+            # claimed as a dependent has none (filing status 6).
             md_personal_exemption = tax_unit("md_personal_exemption", period)
-            tax_unit_size = tax_unit("head_spouse_count", period)
-            return md_personal_exemption * tax_unit_size
+            own_exemptions = tax_unit(
+                "head_spouse_count_not_dependent_elsewhere", period
+            )
+            return md_personal_exemption * own_exemptions
 
     class mi_personal_exemptions(Variable):
         value_type = float
@@ -351,6 +354,11 @@ def formula(tax_unit, period, parameters):
             joint = filing_status == statuses.JOINT
             hoh = filing_status == statuses.HEAD_OF_HOUSEHOLD
             adults = where(joint | hoh, 2, 1)
+            # A filer who is claimed as a dependent enters "0" exemptions.
+            person = tax_unit.members
+            filer = person("is_tax_unit_head_or_spouse", period)
+            claimed = person("claimed_as_dependent_on_another_return", period)
+            adults = where(tax_unit.any(filer & claimed), 0, adults)
             return adults * p.consolidated.amount + veterans_exemption_amount
 
     class ma_income_tax_exemption_threshold(Variable):

policyengine_us/reforms/states/ia/dependent_credit/ia_dependent_credit_reform.py

@@ -38,7 +38,12 @@ def formula(tax_unit, period, parameters):
             # dependent is age-eligible, matching the baseline count.
             person = tax_unit.members
             age = person("age", period)
-            is_dependent = person("is_tax_unit_dependent", period)
+            # A return on which the filer (or, if joint, either spouse) can be
+            # claimed as a dependent has no dependents (IRC 152(b)(1)), unless
+            # the would-be claimant meets the filing exception (Publication 501).
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
             if c.age_limit.in_effect:
                 eligible = is_dependent & (age < c.age_limit.threshold)
             else:

policyengine_us/reforms/states/ks/dependent_exemption/ks_dependent_exemption_reform.py

@@ -15,6 +15,21 @@ def formula(tax_unit, period, parameters):
 
             person = tax_unit.members
             age = person("age", period)
+            # A return on which the filer (or, if joint, either spouse) can be
+            # claimed as a dependent has no dependents (IRC 152(b)(1)), unless
+            # the would-be claimant meets the filing exception (Publication 501).
+            no_dependents = tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
+            state_exemptions = parameters(period).gov.states.ks.tax.income.exemptions
+            if not state_exemptions.by_filing_status.in_effect:
+                # The consolidated regime's Total Kansas exemptions are zero
+                # when a filer is actually claimed, even with the federal
+                # filing exception. Match ks_count_exemptions so subtracting
+                # this count cannot leave negative personal exemptions.
+                filer = person("is_tax_unit_head_or_spouse", period)
+                claimed = person("claimed_as_dependent_on_another_return", period)
+                no_dependents = no_dependents | tax_unit.any(filer & claimed)
             is_dependent = person("is_tax_unit_dependent", period)
 
             # Apply age limit if in effect.
@@ -24,7 +39,7 @@ def formula(tax_unit, period, parameters):
             else:
                 eligible_dependents = is_dependent
 
-            return tax_unit.sum(eligible_dependents)
+            return where(no_dependents, 0, tax_unit.sum(eligible_dependents))
 
     class ks_dependent_exemption(Variable):
         value_type = float

policyengine_us/reforms/states/md/dependent_exemption/md_dependent_exemption_reform.py

@@ -14,7 +14,12 @@ def formula(tax_unit, period, parameters):
             p = parameters(period).gov.contrib.states.md.dependent_exemption
             person = tax_unit.members
             age = person("age", period)
-            is_dependent = person("is_tax_unit_dependent", period)
+            # A return on which the filer (or, if joint, either spouse) can be
+            # claimed as a dependent has no dependents (IRC 152(b)(1)), unless
+            # the would-be claimant meets the filing exception (Publication 501).
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
             if p.age_limit.in_effect:
                 eligible = is_dependent & (age < p.age_limit.threshold)
             else:
@@ -97,7 +102,12 @@ class md_older_dependents_count(Variable):
 
         def formula(tax_unit, period, parameters):
             person = tax_unit.members
-            is_dependent = person("is_tax_unit_dependent", period)
+            # A return on which the filer (or, if joint, either spouse) can be
+            # claimed as a dependent has no dependents (IRC 152(b)(1)), unless
+            # the would-be claimant meets the filing exception (Publication 501).
+            is_dependent = person("is_tax_unit_dependent", period) & ~person.tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
             total_dependents = tax_unit.sum(is_dependent)
             eligible = tax_unit("md_eligible_dependents_count", period)
             return max_(0, total_dependents - eligible)
@@ -112,12 +122,15 @@ class md_total_personal_exemptions(Variable):
 
         def formula(tax_unit, period, parameters):
             # Personal portion keeps the baseline per-person (AGI-stepped)
-            # amount; dependents are separated out.
+            # amount; dependents are separated out. These are the filers' own
+            # exemptions (none for a filer who can be claimed as a dependent)
+            # plus over-age dependents.
             per_person = tax_unit("md_personal_exemption", period)
-            tax_unit_size = tax_unit("tax_unit_size", period)
-            dependents = tax_unit("tax_unit_dependents", period)
+            own_exemptions = tax_unit(
+                "head_spouse_count_not_dependent_elsewhere", period
+            )
             older_dependents = tax_unit("md_older_dependents_count", period)
-            personal_count = tax_unit_size - dependents + older_dependents
+            personal_count = own_exemptions + older_dependents
             personal_amount = personal_count * per_person
 
             dependent_exemption_amount = tax_unit("md_dependent_exemption", period)