Apply New York's rules for a filer who can be claimed as a dependent

changelog.d/claimable-filer-ny.fixed.md

@@ -0,0 +1 @@
+Apply New York's rules for a filer who can be claimed as a dependent: no New York State or New York City household credit, school tax credit, real property tax credit, dependent exemptions (also under the dependent exemption and working families tax credit reforms), dependents' college tuition, under-4 New York City child care expenses, New York City income tax elimination credit or 2026 child and dependent care credit when the return's filers do not qualify (Tax Law 606, 616 and 1310), no own college tuition or 2023 inflation refund for a filer who is claimed, and the New York City school tax fixed amount at the individual rate when only one spouse qualifies; the 2026 child and dependent care credit now bars a claimable spouse under either head/spouse label.

policyengine_us/reforms/states/ny/dependent_exemption/ny_dependent_exemption_reform.py

@@ -24,7 +24,13 @@ def formula(tax_unit, period, parameters):
                 eligible = is_child_dependent & (age < p.age_limit.threshold)
             else:
                 eligible = is_child_dependent
-            count = tax_unit.sum(eligible)
+            # As in the baseline, a return on which a filer (or, if joint,
+            # either spouse) can be claimed as a dependent has no dependents
+            # (Tax Law 616(a), IRC 152(b)(1)).
+            dependent_filer = tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
+            count = where(dependent_filer, 0, tax_unit.sum(eligible))
             return count * p.amount
 
     class reform(Reform):

policyengine_us/reforms/states/ny/wftc/ny_working_families_tax_credit.py

@@ -468,7 +468,17 @@ class ny_exemptions(Variable):
         defined_for = StateCode.NY
 
         def formula(tax_unit, period, parameters):
-            count_dependents = add(tax_unit, period, ["ny_exemptions_dependent"])
+            # As in the baseline, a return on which a filer (or, if joint,
+            # either spouse) can be claimed as a dependent has no dependents
+            # (Tax Law 616(a), IRC 152(b)(1)).
+            dependent_filer = tax_unit(
+                "head_or_spouse_is_dependent_elsewhere_without_filing_exception", period
+            )
+            count_dependents = where(
+                dependent_filer,
+                0,
+                add(tax_unit, period, ["ny_exemptions_dependent"]),
+            )
             dependent_exemption = parameters(
                 period
             ).gov.states.ny.tax.income.exemptions.dependent

policyengine_us/tests/core/test_claimable_filer_ny_invariants.py

@@ -0,0 +1,106 @@
+"""New York rules for a filer who can be claimed as a dependent.
+
+The household credit, real property tax credit, dependent exemptions, college
+tuition, 2023 inflation refund and 2026 child and dependent care credit apply
+Tax Law 606 and 616's dependent tests.
+
+For couples with either, both or neither spouse claimed:
+
+1. Swap invariance: each output is the same under either head/spouse
+   labelling (Hypothesis batches, the seeded population and the crafted
+   tuition cases).
+2. Monotonicity: marking another filer as claimed never raises an output
+   (seeded population and crafted cases only).
+
+The crafted cases give both spouses and a dependent student tuition, which the
+generated population never has. The New York City credits need a New York City
+household and, like the contributed reforms, are covered by YAML cases only.
+"""
+
+import pytest
+from hypothesis import HealthCheck, given, settings
+from hypothesis import strategies as st
+
+from policyengine_us.tests.core.test_claimable_filer_federal_invariants import (
+    check_monotone,
+    check_swap,
+)
+from policyengine_us.tests.core.test_dependent_elsewhere_head_spouse_swap_invariance import (
+    CLAIM_PATTERNS,
+    _crafted_cases,
+    _seeded_couples,
+    adults,
+    dependents,
+)
+
+STATES = ["NY"]
+YEARS = [2023, 2025, 2026]
+OUTPUTS = [
+    "ny_household_credit_potential",
+    "ny_real_property_tax_credit",
+    "ny_exemptions",
+    "ny_allowable_college_tuition_expenses",
+    "ny_inflation_refund_credit",
+    "ny_cdcc",
+]
+
+
+def _tuition_cases():
+    # Both spouses and a dependent student with tuition, with and without a
+    # young child and childcare expenses.
+    first = {
+        "age": 45,
+        "employment_income": 20_000.0,
+        "qualified_tuition_expenses": 6_000.0,
+    }
+    second = {
+        "age": 44,
+        "employment_income": 12_000.0,
+        "qualified_tuition_expenses": 3_000.0,
+    }
+    student = {
+        "age": 19,
+        "is_full_time_student": True,
+        "qualified_tuition_expenses": 8_000.0,
+    }
+    child = {"age": 3, "pre_subsidy_childcare_expenses": 4_000.0}
+    return [
+        {
+            "state": "NY",
+            "adults": [first, second],
+            "dependents": others,
+            "claimed": claimed,
+        }
+        for others in ([], [student], [student, child])
+        for claimed in [(True, False), (False, True), (True, True)]
+    ]
+
+
+@st.composite
+def couples(draw):
+    return {
+        "state": draw(st.sampled_from(STATES)),
+        "adults": [draw(adults()), draw(adults())],
+        "dependents": draw(st.lists(dependents(), max_size=2)),
+        "claimed": draw(st.sampled_from(CLAIM_PATTERNS)),
+    }
+
+
+@settings(
+    max_examples=2,
+    deadline=None,
+    derandomize=True,
+    suppress_health_check=[HealthCheck.too_slow, HealthCheck.data_too_large],
+)
+@given(st.sampled_from(YEARS), st.lists(couples(), min_size=6, max_size=12))
+def test_ny_claimable_filer_rules_are_label_free(year, units):
+    check_swap(units, year, OUTPUTS)
+
+
+@pytest.mark.parametrize("year", YEARS)
+def test_ny_claimable_filer_rules_seeded_population(year):
+    units = (
+        _seeded_couples(STATES, per_state=3) + _crafted_cases(STATES) + _tuition_cases()
+    )
+    check_swap(units, year, OUTPUTS)
+    check_monotone(units, year, OUTPUTS)

policyengine_us/tests/policy/baseline/gov/local/ny/nyc/tax/income/credits/cdcc/nyc_cdcc_age_restricted_expenses.yaml

@@ -27,3 +27,85 @@
     in_nyc: true
   output:
     nyc_cdcc_age_restricted_expenses: 0
+
+
+- name: 2025 joint return with one claimable spouse has no NYC child care dependent (the claimable spouse is the head)
+  period: 2025
+  input:
+    people:
+      person_a:
+        age: 22
+        claimed_as_dependent_on_another_return: true
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_b:
+        age: 22
+        is_tax_unit_head: false
+        is_tax_unit_spouse: true
+      child:
+        age: 3
+        pre_subsidy_childcare_expenses: 1000
+    tax_units:
+      tax_unit:
+        members: [person_a, person_b, child]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person_a, person_b, child]
+        state_code: NY
+        in_nyc: true
+  output:
+    # NYC Admin Code 11-1706(e)(1): children "who are dependents of the
+    # taxpayer"; IRC 152(b)(1).
+    nyc_cdcc_age_restricted_expenses: 0
+
+- name: 2025 joint return with one claimable spouse has no NYC child care dependent (the claimable spouse is the spouse)
+  period: 2025
+  input:
+    people:
+      person_b:
+        age: 22
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_a:
+        age: 22
+        claimed_as_dependent_on_another_return: true
+        is_tax_unit_head: false
+        is_tax_unit_spouse: true
+      child:
+        age: 3
+        pre_subsidy_childcare_expenses: 1000
+    tax_units:
+      tax_unit:
+        members: [person_b, person_a, child]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person_b, person_a, child]
+        state_code: NY
+        in_nyc: true
+  output:
+    nyc_cdcc_age_restricted_expenses: 0
+
+- name: 2025 joint return with neither spouse claimable counts the child under 4
+  period: 2025
+  input:
+    people:
+      person_a:
+        age: 22
+      person_b:
+        age: 22
+      child:
+        age: 3
+        pre_subsidy_childcare_expenses: 1000
+    tax_units:
+      tax_unit:
+        members: [person_a, person_b, child]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person_a, person_b, child]
+        state_code: NY
+        in_nyc: true
+  output:
+    nyc_cdcc_age_restricted_expenses: 1_000

policyengine_us/tests/policy/baseline/gov/local/ny/nyc/tax/income/credits/household/nyc_household_credit.yaml

@@ -233,3 +233,119 @@
     tax_unit_size: 4
   output:
     nyc_household_credit: 0
+
+
+- name: 2025 single filer who can be claimed as a dependent gets no NYC household credit
+  period: 2025
+  input:
+    people:
+      filer:
+        age: 22
+        employment_income: 10000
+        claimed_as_dependent_on_another_return: true
+    tax_units:
+      tax_unit:
+        members: [filer]
+    households:
+      household:
+        members: [filer]
+        state_code: NY
+        in_nyc: true
+  output:
+    # Tax Law 1310(d); IT-201 line 48.
+    nyc_household_credit: 0
+
+- name: 2025 single filer who cannot be claimed gets the NYC household credit
+  period: 2025
+  input:
+    people:
+      filer:
+        age: 22
+        employment_income: 10000
+    tax_units:
+      tax_unit:
+        members: [filer]
+    households:
+      household:
+        members: [filer]
+        state_code: NY
+        in_nyc: true
+  output:
+    nyc_household_credit: 15
+
+- name: 2025 joint return with one claimable spouse gets no NYC household credit (the claimable spouse is the head)
+  period: 2025
+  input:
+    people:
+      person_a:
+        age: 22
+        employment_income: 5000
+        claimed_as_dependent_on_another_return: true
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_b:
+        age: 22
+        employment_income: 5000
+        is_tax_unit_head: false
+        is_tax_unit_spouse: true
+    tax_units:
+      tax_unit:
+        members: [person_a, person_b]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person_a, person_b]
+        state_code: NY
+        in_nyc: true
+  output:
+    nyc_household_credit: 0
+
+- name: 2025 joint return with one claimable spouse gets no NYC household credit (the claimable spouse is the spouse)
+  period: 2025
+  input:
+    people:
+      person_b:
+        age: 22
+        employment_income: 5000
+        is_tax_unit_head: true
+        is_tax_unit_spouse: false
+      person_a:
+        age: 22
+        employment_income: 5000
+        claimed_as_dependent_on_another_return: true
+        is_tax_unit_head: false
+        is_tax_unit_spouse: true
+    tax_units:
+      tax_unit:
+        members: [person_b, person_a]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person_b, person_a]
+        state_code: NY
+        in_nyc: true
+  output:
+    nyc_household_credit: 0
+
+- name: 2025 joint return with neither spouse claimable gets the NYC household credit
+  period: 2025
+  input:
+    people:
+      person_a:
+        age: 22
+        employment_income: 5000
+      person_b:
+        age: 22
+        employment_income: 5000
+    tax_units:
+      tax_unit:
+        members: [person_a, person_b]
+        filing_status: JOINT
+    households:
+      household:
+        members: [person_a, person_b]
+        state_code: NY
+        in_nyc: true
+  output:
+    # $30 x 2.
+    nyc_household_credit: 60