Leave dependents' Social Security out of per-return readers of nontaxable benefits

changelog.d/per-return-tax-exempt-ss.fixed.md

@@ -0,0 +1 @@
+Leave a tax unit dependent's Social Security benefits and other nontaxable income out of income measures that describe the filers' own return: the federal Optional State Sales Tax Table income, the Working Americans' Tax Cut Act alternative tax modified AGI, Colorado's sales tax refund modified AGI, Maine's sales and property tax fairness credit income and Washington's senior and disabled property tax exemption combined disposable income.

policyengine_us/parameters/gov/irs/deductions/itemized/salt_and_real_estate/state_sales_tax_table/income_sources.yaml

@@ -45,8 +45,9 @@ values:
     # Nontaxable combat pay - not available.
     - workers_compensation
     # Nontaxable part of social security and railroad retirement benefits;
-    # railroad retirement benefits are not included.
-    - tax_exempt_social_security
+    # railroad retirement benefits are not included. The head's and spouse's
+    # benefits only: a tax unit dependent's benefits are the dependent's own.
+    - filer_tax_exempt_social_security
     # Nontaxable IRA, pension, or annuity distributions (excluding rollovers).
     - tax_exempt_pension_income
     - tax_exempt_retirement_distributions

policyengine_us/parameters/gov/states/co/tax/income/credits/sales_tax_refund/magi_sources.yaml

@@ -2,20 +2,25 @@ description: Colorado accounts for these income sources for the modified adjuste
 values:
   1999-01-01:
     - adjusted_gross_income
-    - tax_exempt_social_security
+    # "Social security benefits excluded from federal adjusted gross income":
+    # the filers' own, Form 1040 line 6a less line 6b (DR 0104 line 35). A tax
+    # unit dependent's benefits are the dependent's own.
+    - filer_tax_exempt_social_security
 #    - non_taxable_interest_income_from_state_and_local_bonds
 metadata:
   period: year
   unit: list
   label: Colorado modified adjusted gross income sources
   reference:
-  - title: Colo. Code Regs. 39-22-2003 State Sales Tax Refund (1.5)
+  - title: C.R.S. 39-22-2003(1.5)
     href: https://law.justia.com/codes/colorado/2022/title-39/article-22/part-20/section-39-22-2003/
+  - title: "Colorado Revised Statutes 2024, Title 39, C.R.S. 39-22-2003(1.5)(b) and (3)(c)-(d) #page 760-762"
+    href: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf#page=760
   - title: 2021 Colorado Individual Income Tax Filing Guide
     href: https://tax.colorado.gov/sites/tax/files/documents/DR_104_Book_2021.pdf#page=21
   - title: 2022 Colorado Individual Income Tax Filing Guide
     href: https://tax.colorado.gov/sites/tax/files/documents/DR_104_Book_2022.pdf#page=23
   - title: 2024 Colorado State Sales Tax Refund
     href: https://tax.colorado.gov/income-tax-topics-state-sales-tax-refund
-  - title: 2025 Colorado Individual Tax Filing Guide 104 Book
-    href: https://tax.colorado.gov/sites/tax/files/documents/Book104_2025.pdf#page=23
+  - title: "2025 Colorado Individual Income Tax Filing Guide (Book 104), DR 0104 lines 34-37 #page 13,42"
+    href: https://tax.colorado.gov/sites/tax/files/documents/Book104_2025.pdf#page=13

policyengine_us/parameters/gov/states/me/tax/income/credits/fairness/income_sources.yaml

@@ -2,13 +2,21 @@ description: Maine accounts for the following income sources for the sales and p
 values:
   2021-01-01:
     - irs_gross_income
-    - tax_exempt_social_security
+    # Social Security "to the extent not included in federal adjusted gross
+    # income": the filers' own, Form 1040 line 6a less line 6b (Schedule
+    # PTFC/STFC line 2b). A tax unit dependent's benefits are the dependent's
+    # own.
+    - filer_tax_exempt_social_security
     - tax_exempt_interest_income
 metadata:
   unit: list
   label: Maine sales and property tax credit income sources
   reference:
-    - title: §5213-A. Sales tax fairness credit (1) (B) 
+    - title: §5213-A. Sales tax fairness credit (1) (B)
       href: https://legislature.maine.gov/statutes/36/title36sec5213-A.html
     - title: §5219-KK. Property tax fairness credit for tax (1) (D)
       href: https://legislature.maine.gov/statutes/36/title36sec5219-KK.html
+    - title: "Maine Revenue Services Rule 813, Property Tax Fairness Credit, .01(C) and .03 #page 1,4"
+      href: https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/Rule_813_May_2023.pdf#page=1
+    - title: 2025 Form 1040ME Schedule PTFC/STFC, lines 2a-3
+      href: https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_1040me_sch_ptfc_fillable.pdf#page=1

policyengine_us/parameters/gov/states/wa/dor/property_tax_exemption/senior_disabled/income/sources.yaml

@@ -12,8 +12,11 @@ values:
     # dominated by those excluded categories, so adding it back would
     # systematically over-count CDI. We omit it conservatively at the moment
     # and don't track the included subcomponents separately.
-    # RCW 84.36.383(7)(g) — Social Security and Railroad Retirement not in AGI
-    - tax_exempt_social_security
+    # RCW 84.36.383(7)(g) — Social Security and Railroad Retirement not in AGI,
+    # added to the AGI of "the person receiving these benefits" (WAC
+    # 458-16A-120(2)(b)(vi)). The head's and spouse's benefits only: a tax
+    # unit dependent's benefits are the dependent's own disposable income.
+    - filer_tax_exempt_social_security
     # RCW 84.36.383(7)(i) — state/municipal bond interest not in AGI
     - tax_exempt_interest_income
     # RCW 84.36.383(7)(a) — capital gains add-back. AGI already includes

policyengine_us/reforms/congress/watca/working_americans_tax_cut_act.py

@@ -6,6 +6,10 @@
         "title": "Working Americans' Tax Cut Act",
         "href": "https://www.vanhollen.senate.gov/imo/media/doc/working_americans_tax_cut_act_bill_text.pdf",
     },
+    {
+        "title": "S. 4083 (119th Congress), Working Americans' Tax Cut Act, as introduced",
+        "href": "https://www.govinfo.gov/content/pkg/BILLS-119s4083is/html/BILLS-119s4083is.htm",
+    },
 ]
 
 
@@ -17,14 +21,21 @@ class watca_alternative_tax_magi(Variable):
         definition_period = YEAR
         unit = USD
         reference = WATCA_REFERENCES
-        documentation = "Section 1A(d): AGI + foreign income exclusions (sec 911, 931, 933) + non-taxable Social Security."
+        documentation = (
+            "Section 1A(d): AGI + foreign income exclusions (sec 911, 931, 933) "
+            "+ the filers' non-taxable Social Security. A tax unit dependent's "
+            "benefits are the dependent's own and stay out."
+        )
 
         adds = [
             "adjusted_gross_income",
             "foreign_earned_income_exclusion",
             "specified_possession_income",
             "puerto_rico_income",
-            "tax_exempt_social_security",
+            # Section 1A(d)(2): "the portion of the taxpayer's social security
+            # benefits (as defined in section 86(d)) which is not included in
+            # gross income under section 86".
+            "filer_tax_exempt_social_security",
         ]
 
     class watca_surtax_magi(Variable):