Merge pull request #1039 from MattHJensen/expand_ctc

Implement Clinton CTC expansion
PSLmodels · Nov 9, 2016 · 773e87a · 773e87a
2 parents aae605b + 8258dfd
commit 773e87a
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Showing 4 changed files with 43 additions and 6 deletions.
diff --git a/taxcalc/current_law_policy.json b/taxcalc/current_law_policy.json
@@ -1617,6 +1617,20 @@
         "value": [64]
     },
 
+        "_CTC_c_under5_bonus": {
+        "long_name": "Bonus child tax credit maximum for qualifying children under five",
+        "description": "The maximum amount of child tax credit allowed for each child is increased by this amount for qualifying children under 5 years old. ",
+        "irs_ref": "",
+        "notes": "",
+        "start_year": 2013,
+        "col_var": "",
+        "row_var": "FLPDYR",
+        "row_label": ["2013"],
+        "cpi_inflated": false,
+        "col_label": "",
+        "value": [0.0]
+    },
+
     "_CTC_c": {
         "long_name": "Maximum child tax credit per child",
         "description": "The maximum amount of credit allowed for each child. ",
@@ -1723,6 +1737,21 @@
         "value": [3000]
     },
 
+
+    "_ACTC_rt_bonus_under5family": {
+        "long_name": "Bonus additional child tax credit rate for families with qualifying children under 5",
+        "description": "For families with qualifying children under 5 years old, this bonus rate is added to the fraction of earnings used in calculating the ACTC (_ACTC_rt).",
+        "irs_ref": "Form 8812, line 6, inline.",
+        "notes": "",
+        "start_year": 2013,
+        "col_var": "",
+        "row_var": "FLPDYR",
+        "row_label": ["2013"],
+        "cpi_inflated": false,
+        "col_label": "",
+        "value": [0.0]
+    },
+
     "_ACTC_rt": {
         "long_name": "Additional Child Tax Credit rate",
         "description": "This is the fraction of earnings used in calculating the ACTC, which is a partially refundable credit that supplements the CTC for some taxpayers. ",

diff --git a/taxcalc/functions.py b/taxcalc/functions.py
@@ -897,11 +897,12 @@ def EITC(MARS, DSI, EIC, c00100, e00300, e00400, e00600, c01000,
 
 @iterate_jit(nopython=True)
 def ChildTaxCredit(n24, MARS, c00100, _exact,
-                   CTC_c, CTC_ps, CTC_prt, prectc):
+                   CTC_c, CTC_ps, CTC_prt, prectc, nu05,
+                   CTC_c_under5_bonus):
     """
     ChildTaxCredit function computes prectc amount
     """
-    prectc = CTC_c * n24
+    prectc = CTC_c * n24 + CTC_c_under5_bonus * nu05
     modAGI = c00100  # no deducted foreign earned income to add
     if modAGI > CTC_ps[MARS - 1]:
         excess = modAGI - CTC_ps[MARS - 1]
@@ -1107,7 +1108,8 @@ def NonrefundableCredits(c05800, e07240, e07260, e07300, e07400,
 @iterate_jit(nopython=True)
 def AdditionalCTC(n24, prectc, _earned, c07220, ptax_was,
                   ACTC_Income_thd, ACTC_rt, ACTC_ChildNum,
-                  c03260, e09800, c59660, e11200, c11070):
+                  c03260, e09800, c59660, e11200, c11070, nu05,
+                  ACTC_rt_bonus_under5family):
     """
     Calculates Additional (refundable) Child Tax Credit, c11070
     """
@@ -1133,8 +1135,13 @@ def AdditionalCTC(n24, prectc, _earned, c07220, ptax_was,
         # CTC not applied to tax
         c82880 = max(0., _earned)
         c82885 = max(0., c82880 - ACTC_Income_thd)
-        c82890 = ACTC_rt * c82885
-    # Part II of 2005 Form 8812
+        # Accomodate ACTC rate bonus for families with children under 5
+        if nu05 == 0:
+            ACTC_rate = ACTC_rt
+        else:
+            ACTC_rate = ACTC_rt + ACTC_rt_bonus_under5family
+        c82890 = ACTC_rate * c82885
+    # Part II of 2005 Foreignorm 8812
     if n24 >= ACTC_ChildNum and c82890 < c82935:
         c82900 = 0.5 * ptax_was
         c82905 = c03260 + e09800

diff --git a/taxcalc/records.py b/taxcalc/records.py
@@ -122,7 +122,7 @@ class instance: Records
         'cmbtp_standard', 'cmbtp_itemizer',
         'age_head', 'age_spouse', 'blind_head', 'blind_spouse',
         'nu13', 'elderly_dependent',
-        's006'])
+        's006', 'nu05'])
 
     # specify set of input variables that MUST be read by Tax-Calculator:
     MUST_READ_VARS = set(['RECID', 'MARS'])

diff --git a/taxcalc/var_labels.txt b/taxcalc/var_labels.txt
@@ -72,6 +72,7 @@ MARS = Marital (filing) status: categorical variable
 MIDR = Married filing separately itemized deductions requirement indicator
 N24 = Number of children eligible for Child Tax Credit
 NU13 = Number of dependents under 13
+NU05 = Number of dependents under 5
 P08000 = Other tax credits
 P22250 = Schedule D: Short-term gains less losses
 P23250 = Schedule D: Long-term gains less losses