Count SSI and TANF in North Dakota renter's refund income

changelog.d/nd-renters-refund-public-assistance.fixed.md

@@ -0,0 +1 @@
+North Dakota renter's refund income counts Supplemental Security Income and TANF, which N.D.C.C. 57-02-08.1(5)(c) includes as public assistance benefits.

policyengine_us/parameters/gov/states/nd/tax/property/renters_refund/income_sources.yaml

@@ -4,7 +4,16 @@ values:
     - market_income
     - social_security
     - total_unemployment_compensation
+    # NDCC 57-02-08.1(5)(c) counts "any county, state, or federal public
+    # assistance benefits". The IRS leaves general assistance, SSI and TANF out
+    # of gross income under its general welfare exclusion, which rests on IRS
+    # rulings, not a statute or regulation, so no federal or state law
+    # excludes them from income. SNAP (7 U.S.C. 2017(b)) and LIHEAP, including
+    # nd_liheap (42 U.S.C. 8624(f)(1)), stay out because federal law excludes
+    # them from income for any purpose under state law.
     - general_assistance
+    - ssi
+    - tanf
 metadata:
   unit: list
   period: year
@@ -14,3 +23,5 @@ metadata:
       href: https://ndlegis.gov/cencode/t57c02.pdf#page=16
     - title: North Dakota Office of State Tax Commissioner | Property Tax Credits for North Dakota Homeowners and Renters
       href: https://www.tax.nd.gov/sites/www/files/documents/guidelines/homestead-veterans-renters/credits-for-nd-homeowners-renters-guideline.pdf#page=2
+    - title: North Dakota Office of State Tax Commissioner | SFN 24777 (10-2025), Application for Senior Citizens or Permanently and Totally Disabled Renter's Property Tax Refund, line 7
+      href: https://www.tax.nd.gov/sites/www/files/documents/forms/homestead-disabled-renters/renters-refund-application.pdf#page=1

policyengine_us/tests/core/test_medical_expense_premium_conservation.py

@@ -370,7 +370,7 @@ def _state_case(**values):
 
 
 def _state_simulation(cases, reference_system, with_se_deduction):
-    people, tax_units, households, marital_units = {}, {}, {}, {}
+    people, tax_units, spm_units, households, marital_units = {}, {}, {}, {}, {}
     expectations = {
         "nd_renters_refund_income": [],
         "nm_medical_expense_credit": [],
@@ -429,6 +429,10 @@ def _state_simulation(cases, reference_system, with_se_deduction):
                     ),
                     "employment_income": case["income"] if person_index == 0 else 0,
                     "medicare_enrolled": False,
+                    # NDCC 57-02-08.1(5)(c) also counts public assistance. These
+                    # households receive none, so the ND expectation tests the
+                    # medical base alone.
+                    "ssi": 0,
                     premium_variable: premiums[position],
                     "other_medical_expenses": other[position],
                 }
@@ -448,6 +452,7 @@ def _state_simulation(cases, reference_system, with_se_deduction):
             if supplied:
                 tax_unit["itemized_medical_expenses"] = {PERIOD: case["subtotal"]}
             tax_units[unit_name] = tax_unit
+            spm_units[unit_name] = {"members": names, "tanf": {PERIOD: 0}}
             households[unit_name] = {"members": names, "state_code": {PERIOD: state}}
             accounting["main_base"].append(main_base)
             accounting["gross"].append(gross)
@@ -475,6 +480,7 @@ def _state_simulation(cases, reference_system, with_se_deduction):
         situation={
             "people": people,
             "tax_units": tax_units,
+            "spm_units": spm_units,
             "households": households,
             "marital_units": marital_units,
         },

policyengine_us/tests/policy/baseline/gov/states/nd/tax/property/renters_refund/nd_renters_refund.yaml

@@ -134,3 +134,29 @@
         state_code: ND
   output:
     nd_renters_refund: 400
+
+- name: Case 8, SSI counts in income and lowers the refund.
+  absolute_error_margin: 0.01
+  period: 2026
+  input:
+    people:
+      person1:
+        age: 70
+        social_security_retirement: 6_000
+        ssi: 9_000
+        rent: 4_800
+    tax_units:
+      tax_unit:
+        members: [person1]
+        itemized_medical_expenses: 0
+    households:
+      household:
+        members: [person1]
+        state_code: ND
+  output:
+    # NDCC 57-02-08.1(5)(c) counts social security and federal public
+    # assistance benefits: 6,000 + 9,000.
+    nd_renters_refund_income: 15_000
+    # NDCC 57-02-08.1(2)(b): 20% of the rent less 4% of income,
+    # 960 - 600.
+    nd_renters_refund: 360

policyengine_us/tests/policy/baseline/gov/states/nd/tax/property/renters_refund/nd_renters_refund_income.yaml

@@ -40,7 +40,7 @@
   output:
     nd_renters_refund_income: 0
 
-- name: Case 3, income includes unemployment and excludes nonincome sources.
+- name: Case 3, income includes unemployment and public assistance and excludes nonincome sources.
   absolute_error_margin: 0.01
   period: 2025
   input:
@@ -61,7 +61,10 @@
         members: [person1]
         state_code: ND
   output:
-    nd_renters_refund_income: 12_000
+    # NDCC 57-02-08.1(5)(c) counts "any county, state, or federal public
+    # assistance benefits", so general assistance and SSI count with
+    # unemployment compensation: 8,000 + 4,000 + 6,000.
+    nd_renters_refund_income: 18_000
 
 - name: Case 4, after-tax premiums reduce renter refund income as medical expenses.
   absolute_error_margin: 0.01
@@ -346,7 +349,9 @@
     people:
       parent:
         age: 40
-        employment_income: 30_000
+        # Wages go in before any labor supply response, where TANF reads
+        # them, so the family has no TANF.
+        employment_income_before_lsr: 30_000
       child:
         age: 15
         is_tax_unit_dependent: true
@@ -411,7 +416,9 @@
     people:
       parent:
         age: 40
-        employment_income: 45_000
+        # Wages go in before any labor supply response, where TANF reads
+        # them, so the family has no TANF.
+        employment_income_before_lsr: 45_000
       child:
         age: 3
         is_tax_unit_dependent: true
@@ -480,3 +487,55 @@
   output:
     # 30,000 + 5,000 + 1,000, with no state-law subtraction.
     nd_renters_refund_income: 36_000
+
+- name: North Dakota counts TANF, which no law excludes from income, and leaves out SNAP, which federal law excludes.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 40
+        employment_income: 10_000
+      child:
+        age: 8
+    tax_units:
+      tax_unit:
+        members: [parent, child]
+    spm_units:
+      spm_unit:
+        members: [parent, child]
+        tanf: 3_600
+        snap: 2_400
+    households:
+      household:
+        members: [parent, child]
+        state_code: ND
+  output:
+    # NDCC 57-02-08.1(5)(c) counts "any county, state, or federal public
+    # assistance benefits" and excludes "any amount excluded from income by
+    # federal or state law". 7 U.S.C. 2017(b) keeps SNAP out of income "for
+    # any purpose under any Federal, State, or local laws": 10,000 + 3,600.
+    nd_renters_refund_income: 13_600
+
+- name: North Dakota counts a dependent's SSI with the applicant's social security.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      grandparent:
+        age: 70
+        social_security_retirement: 18_000
+      grandchild:
+        age: 10
+        ssi: 9_000
+    tax_units:
+      tax_unit:
+        members: [grandparent, grandchild]
+    households:
+      household:
+        members: [grandparent, grandchild]
+        state_code: ND
+  output:
+    # The statute counts "the income of any dependent of the applicant" and
+    # federal public assistance benefits: 18,000 + 9,000.
+    nd_renters_refund_income: 27_000