Apply Mississippi TANF's $90 work expense and dependent care deductions and $10 minimum payment

changelog.d/fix-10209-ms-tanf-deductions.fixed.md

@@ -0,0 +1 @@
+Deduct Mississippi TANF's $90 work expense and actual dependent care costs from each earner's earnings, and do not issue benefits under $10 a month.

policyengine_us/parameters/gov/states/ms/dhs/tanf/income/deductions/work_expense.yaml

@@ -0,0 +1,14 @@
+description: Mississippi deducts this amount of monthly work expenses from each earner's earned income under the Temporary Assistance for Needy Families program.
+
+values:
+  2017-01-01: 90
+
+metadata:
+  unit: currency-USD
+  period: month
+  label: Mississippi TANF work expense deduction
+  reference:
+    - title: "MDHS TANF Policy Manual, Volume III (July 2019), Chapter 4 - Earned Income Disregards and Chapter 6 - Budgeting Net Monthly Earned Income #page 370,470"
+      href: https://www.mdhs.ms.gov/wp-content/uploads/2019/07/TANF-Manual-Revised_7.19.pdf#page=370
+    - title: "Miss. Admin. Code tit. 18, pt. 13, TANF Policy Manual, Volume III, Chapter 4 - Earned Income Disregards and Chapter 6 - Budgeting Net Monthly Earned Income #page 362,469"
+      href: https://www.sos.ms.gov/adminsearch/ACCode/00000330c.pdf#page=362

policyengine_us/parameters/gov/states/ms/dhs/tanf/minimum_payment.yaml

@@ -0,0 +1,14 @@
+description: Mississippi does not issue Temporary Assistance for Needy Families program payments below this amount.
+
+values:
+  2017-01-01: 10
+
+metadata:
+  unit: currency-USD
+  period: month
+  label: Mississippi TANF minimum payment
+  reference:
+    - title: "MDHS TANF Policy Manual, Volume III (July 2019), Chapter 6 - Minimum Benefit and Chapter 15 - Table II #page 459,888"
+      href: https://www.mdhs.ms.gov/wp-content/uploads/2019/07/TANF-Manual-Revised_7.19.pdf#page=459
+    - title: "Miss. Admin. Code tit. 18, pt. 13, TANF Policy Manual, Volume III, Chapter 6 - Minimum Benefit and Chapter 15 - Table II #page 459,970"
+      href: https://www.sos.ms.gov/adminsearch/ACCode/00000330c.pdf#page=459

policyengine_us/tests/policy/baseline/gov/states/ms/dhs/tanf/integration.yaml

@@ -6,7 +6,15 @@
 # - Income limits by size: 1=$627, 2=$851, 3=$1,074, 4=$1,298, 5=$1,523
 # - Payment standards: First person $200, second $36, each additional $24
 # - Resource limit: $2,000
-# - Benefit: Maximum Payment Standard - Countable Income
+# - Countable earned income: each earner's earnings less $90, then less
+#   actual dependent care costs
+# - Benefit: Maximum Payment Standard - Countable Income; no benefit under $10
+#
+# The benefit formula is PolicyEngine's current one. MDHS pays 60% of the
+# deficit (need standard less net income), up to the maximum (Title 18,
+# Part 13, Chapter 6, Computing Benefit; Chapter 15, Table II). That change
+# is tracked in PolicyEngine/policyengine-us#10269; the Case 9 and Case 10
+# comments give the amounts under the 60% rule.
 
 - name: Case 1, single parent with one child, no income, receives maximum benefit.
   period: 2026-01
@@ -304,3 +312,68 @@
     # $500 <= $1,522.55 = true
     ms_tanf_income_eligible: true
     ms_tanf_eligible: true
+
+- name: Case 9, parent of two with $200 a month of earnings gets the $90 work expense deduction.
+  period: 2026
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income_before_lsr: 2_400
+      child1:
+        age: 5
+        is_tax_unit_dependent: true
+      child2:
+        age: 2
+        is_tax_unit_dependent: true
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        spm_unit_cash_assets: 0
+    tax_units:
+      tax_unit:
+        members: [parent, child1, child2]
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: MS
+  output:
+    # Monthly countable income: 200 - 90 = 110
+    ms_tanf_countable_income: 110 * 12
+    # PolicyEngine's current formula: (260 - 110) * 12 = 1_800
+    # 60% of the deficit (#10269): min(floor(0.6 * (581 - 110)), 260) * 12
+    # = min(282, 260) * 12 = 3_120
+    ms_tanf: 1_800
+
+- name: Case 10, parent of two with $200 a month of earnings and $50 a month of child care.
+  period: 2026
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income_before_lsr: 2_400
+      child1:
+        age: 5
+        is_tax_unit_dependent: true
+      child2:
+        age: 2
+        is_tax_unit_dependent: true
+    spm_units:
+      spm_unit:
+        members: [parent, child1, child2]
+        spm_unit_cash_assets: 0
+        childcare_expenses: 600
+    tax_units:
+      tax_unit:
+        members: [parent, child1, child2]
+    households:
+      household:
+        members: [parent, child1, child2]
+        state_code: MS
+  output:
+    # Monthly countable income: 200 - 90 - 50 = 60
+    ms_tanf_countable_income: 60 * 12
+    # PolicyEngine's current formula: (260 - 60) * 12 = 2_400
+    # 60% of the deficit (#10269): min(floor(0.6 * (581 - 60)), 260) * 12
+    # = min(312, 260) * 12 = 3_120
+    ms_tanf: 2_400

policyengine_us/tests/policy/baseline/gov/states/ms/dhs/tanf/ms_tanf.yaml

@@ -1,7 +1,14 @@
 # Mississippi TANF benefit calculation tests
 # Benefit = Maximum Payment Standard - Countable Income
 # If countable income exceeds payment standard, benefit = $0
+# No benefit is issued when the monthly benefit is less than $10
 # Must be eligible (ms_tanf_eligible) to receive any benefit
+#
+# These cases test PolicyEngine's current formula. MDHS pays 60% of the
+# deficit (need standard less net income), up to the maximum (Title 18,
+# Part 13, Chapter 6, Computing Benefit; Chapter 15, Table II). That change
+# is tracked in PolicyEngine/policyengine-us#10269 and will change these
+# expectations.
 
 - name: Case 1, ineligible household receives zero benefit.
   period: 2026-01
@@ -112,13 +119,29 @@
     # $200 - $50 = $150
     ms_tanf: 150
 
-- name: Case 11, high income reduces benefit to near zero.
+- name: Case 11, benefit under the $10 minimum payment is not issued.
   period: 2026-01
   input:
     state_code: MS
     ms_tanf_eligible: true
     ms_tanf_maximum_benefit: 260
     ms_tanf_countable_income: 255
   output:
-    # $260 - $255 = $5
-    ms_tanf: 5
+    # $260 - $255 = $5 < $10 minimum payment
+    # Under the 60% rule (#10269), countable income of 255 for a family of 3
+    # gives floor(0.6 * (581 - 255)) = 195; this case would then need
+    # countable income of 570: floor(0.6 * 11) = 6 < 10.
+    ms_tanf: 0
+
+- name: Case 12, benefit equal to the $10 minimum payment is issued.
+  period: 2026-01
+  input:
+    state_code: MS
+    ms_tanf_eligible: true
+    ms_tanf_maximum_benefit: 260
+    ms_tanf_countable_income: 250
+  output:
+    # $260 - $250 = $10 >= $10 minimum payment
+    # Under the 60% rule (#10269), this case would need countable income of
+    # 564: floor(0.6 * 17) = 10.
+    ms_tanf: 10

policyengine_us/tests/policy/baseline/gov/states/ms/dhs/tanf/ms_tanf_countable_earned_income.yaml

@@ -0,0 +1,178 @@
+# Mississippi TANF countable earned income
+# MDHS TANF Policy Manual, Volume III, Chapter 6, Budgeting Net Monthly
+# Earned Income: deduct from each earner's monthly earnings (a) $90 for work
+# expenses, then (b) the actual cost of dependent care.
+
+- name: Case 1, no earnings.
+  period: 2026-01
+  input:
+    people:
+      parent:
+        age: 30
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+        state_code: MS
+  output:
+    ms_tanf_countable_earned_income: 0
+
+- name: Case 2, one earner, $90 work expense deduction.
+  period: 2026-01
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income_before_lsr: 2_400
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+        state_code: MS
+  output:
+    # 2_400 / 12 - 90 = 200 - 90 = 110
+    ms_tanf_countable_earned_income: 110
+
+- name: Case 3, one earner with child care costs.
+  period: 2026-01
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income_before_lsr: 2_400
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        childcare_expenses: 600
+    households:
+      household:
+        members: [parent, child]
+        state_code: MS
+  output:
+    # 200 - 90 - 600 / 12 = 200 - 90 - 50 = 60
+    ms_tanf_countable_earned_income: 60
+
+- name: Case 4, two earners each get the $90 deduction.
+  period: 2026-01
+  input:
+    people:
+      parent1:
+        age: 30
+        employment_income_before_lsr: 6_000
+      parent2:
+        age: 32
+        employment_income_before_lsr: 3_600
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent1, parent2, child]
+        childcare_expenses: 1_200
+    households:
+      household:
+        members: [parent1, parent2, child]
+        state_code: MS
+  output:
+    # (500 - 90) + (300 - 90) - 1_200 / 12 = 410 + 210 - 100 = 520
+    ms_tanf_countable_earned_income: 520
+
+- name: Case 5, earnings below $90 are fully deducted.
+  period: 2026-01
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income_before_lsr: 720
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+        state_code: MS
+  output:
+    # max(60 - 90, 0) = 0
+    ms_tanf_countable_earned_income: 0
+
+- name: Case 6, dependent care above earnings does not reduce unearned income.
+  period: 2026-01
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income_before_lsr: 2_400
+        alimony_income: 600
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        childcare_expenses: 3_600
+    households:
+      household:
+        members: [parent, child]
+        state_code: MS
+  output:
+    # max(200 - 90 - 300, 0) = 0
+    ms_tanf_countable_earned_income: 0
+    # 0 earned + 600 / 12 unearned
+    ms_tanf_countable_income: 50
+
+- name: Case 7, the $90 deduction is floored for each earner, not for the unit.
+  period: 2026-01
+  input:
+    people:
+      parent1:
+        age: 30
+        employment_income_before_lsr: 720
+      parent2:
+        age: 32
+        employment_income_before_lsr: 3_600
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent1, parent2, child]
+    households:
+      household:
+        members: [parent1, parent2, child]
+        state_code: MS
+  output:
+    # max(60 - 90, 0) + (300 - 90) = 0 + 210 = 210
+    # (a floor on the pooled amount would give 360 - 180 = 180)
+    ms_tanf_countable_earned_income: 210
+
+- name: Case 8, care costs for an incapacitated adult are deducted.
+  period: 2026-01
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income_before_lsr: 6_000
+      spouse:
+        age: 32
+        care_expenses: 1_200
+      child:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [parent, spouse, child]
+    households:
+      household:
+        members: [parent, spouse, child]
+        state_code: MS
+  output:
+    # (500 - 90) - 1_200 / 12 = 410 - 100 = 310
+    ms_tanf_countable_earned_income: 310

policyengine_us/variables/gov/states/ms/dhs/tanf/ms_tanf.py

@@ -11,10 +11,24 @@ class ms_tanf(Variable):
     reference = (
         "https://www.mdhs.ms.gov/wp-content/uploads/2018/02/MDHS_TANF-Eligibility-Flyer.pdf",
         "https://www.law.cornell.edu/regulations/mississippi/Miss-Code-tit-18-pt-19",
+        # PDF pages 459, 888
+        "https://www.mdhs.ms.gov/wp-content/uploads/2019/07/TANF-Manual-Revised_7.19.pdf#page=459",
+        # PDF pages 459, 970
+        "https://www.sos.ms.gov/adminsearch/ACCode/00000330c.pdf#page=459",
     )
 
     def formula(spm_unit, period, parameters):
+        p = parameters(period).gov.states.ms.dhs.tanf
         maximum_benefit = spm_unit("ms_tanf_maximum_benefit", period)
         countable_income = spm_unit("ms_tanf_countable_income", period)
+        # This pays the maximum benefit less countable income. Title 18,
+        # Part 13, Chapter 6 (Computing Benefit) and Chapter 15, Table II
+        # pay 60% of the deficit (need standard less net income), up to the
+        # maximum benefit. PolicyEngine/policyengine-us#10269 tracks that
+        # change.
         benefit = max_(maximum_benefit - countable_income, 0)
-        return min_(benefit, maximum_benefit)
+        benefit = min_(benefit, maximum_benefit)
+        # MDHS TANF Policy Manual, Volume III, Chapter 6, Minimum Benefit,
+        # and Chapter 15, Table II: no benefit is issued when the monthly
+        # benefit is less than $10.
+        return where(benefit >= p.minimum_payment, benefit, 0)