From f18282e96c6dc2496d4f022ac82550df80394d48 Mon Sep 17 00:00:00 2001 From: policyengine-bot Date: Mon, 15 Dec 2025 23:06:56 +0000 Subject: [PATCH 1/2] Fix Arizona Family Tax Credit income calculation per ARS 43-1073 MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit Per ARS 43-1073, the income threshold for Family Tax Credit eligibility should be "Arizona adjusted gross income, plus the amount subtracted for exemptions under section 43-1023". This fixes the implementation to add exemptions back to az_agi. Changes: - Updated az_family_tax_credit_eligible.py to use az_agi + az_exemptions - Added reference to ARS 43-1073 in variable metadata - Updated all test cases to explicitly set az_exemptions - Added new test cases demonstrating exemptions affect eligibility Fixes #6989 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude --- changelog_entry.yaml | 4 ++ .../az_family_tax_credit_eligible.yaml | 40 ++++++++++++++++--- .../az_family_tax_credit_eligible.py | 7 +++- 3 files changed, 44 insertions(+), 7 deletions(-) diff --git a/changelog_entry.yaml b/changelog_entry.yaml index e69de29bb2d..f79f9097492 100644 --- a/changelog_entry.yaml +++ b/changelog_entry.yaml @@ -0,0 +1,4 @@ +- bump: minor + changes: + fixed: + - Arizona Family Tax Credit now correctly uses Arizona AGI plus exemptions for income eligibility determination per ARS 43-1073. diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml index c2cd8bc95b7..151d5d2f5f6 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml @@ -1,59 +1,87 @@ -- name: Family tax credits for joint filers with 5 dependents ($30000 income) +- name: Family tax credits for joint filers with 5 dependents ($30000 income, no exemptions) period: 2023 input: state_code: AZ az_filing_status: JOINT az_agi: 30_000 + az_exemptions: 0 tax_unit_dependents: 5 output: az_family_tax_credit_eligible: true -- name: Family tax credits for single filers without dependents ($9000 income) +- name: Family tax credits for single filers without dependents ($9000 income, no exemptions) period: 2023 input: state_code: AZ az_filing_status: SINGLE az_agi: 9_000 + az_exemptions: 0 tax_unit_dependents: 0 output: az_family_tax_credit_eligible: true -- name: Family tax credits for separate couple with 2 dependents ($11000 income) +- name: Family tax credits for separate couple with 2 dependents ($11000 income, no exemptions) period: 2023 input: state_code: AZ az_filing_status: SEPARATE az_agi: 11_000 + az_exemptions: 0 tax_unit_dependents: 2 output: az_family_tax_credit_eligible: false -- name: Family tax credits for head of household with 5 dependents ($26000 income) +- name: Family tax credits for head of household with 5 dependents ($26000 income, no exemptions) period: 2023 input: state_code: AZ az_filing_status: HEAD_OF_HOUSEHOLD az_agi: 26_000 + az_exemptions: 0 tax_unit_dependents: 5 output: az_family_tax_credit_eligible: true -- name: Family tax credits for surviving spouse with 3 dependents ($23000 income) +- name: Family tax credits for surviving spouse with 3 dependents ($23000 income, no exemptions) period: 2023 input: state_code: AZ filing_status: SURVIVING_SPOUSE az_agi: 23_000 + az_exemptions: 0 tax_unit_dependents: 3 output: az_family_tax_credit_eligible: true -- name: Family tax credits for head of household with 5 dependents (no income) +- name: Family tax credits for head of household with 5 dependents (no income, no exemptions) period: 2023 input: state_code: AZ az_filing_status: HEAD_OF_HOUSEHOLD az_agi: 0 + az_exemptions: 0 tax_unit_dependents: 5 output: az_family_tax_credit_eligible: true + +- name: Family tax credits with exemptions - eligible case (AGI $19900 + exemptions $2100 = $22000) + period: 2023 + input: + state_code: AZ + az_filing_status: SINGLE + az_agi: 19_900 + az_exemptions: 2_100 + tax_unit_dependents: 0 + output: + az_family_tax_credit_eligible: true + +- name: Family tax credits with exemptions - ineligible case (AGI $23000 + exemptions $2100 = $25100) + period: 2023 + input: + state_code: AZ + az_filing_status: SINGLE + az_agi: 23_000 + az_exemptions: 2_100 + tax_unit_dependents: 0 + output: + az_family_tax_credit_eligible: false diff --git a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py index acdb8820cc1..1526c765a2f 100644 --- a/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py +++ b/policyengine_us/variables/gov/states/az/tax/income/credits/family_tax_credit/az_family_tax_credit_eligible.py @@ -6,13 +6,18 @@ class az_family_tax_credit_eligible(Variable): entity = TaxUnit label = "Eligible for the Arizona Family Tax Credit" definition_period = YEAR + reference = "https://www.azleg.gov/ars/43/01073.htm" defined_for = StateCode.AZ def formula(tax_unit, period, parameters): p = parameters( period ).gov.states.az.tax.income.credits.family_tax_credits - income = tax_unit("az_agi", period) + # Per ARS 43-1073: "Arizona adjusted gross income, plus the amount + # subtracted for exemptions under section 43-1023" + az_agi = tax_unit("az_agi", period) + exemptions = tax_unit("az_exemptions", period) + income = az_agi + exemptions filing_status = tax_unit("az_filing_status", period) status = filing_status.possible_values dependents = tax_unit("tax_unit_dependents", period) From bdbecbea37bff7f85ccf0ac87b666724c421078e Mon Sep 17 00:00:00 2001 From: policyengine-bot Date: Mon, 15 Dec 2025 23:12:55 +0000 Subject: [PATCH 2/2] Fix test cases for Arizona Family Tax Credit with exemptions MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit The previous test cases used SINGLE filing status with 0 dependents (income limit $10,000), but tested with total income of $22,000, which would always be ineligible. Updated both test cases to use JOINT filing status with 2 dependents (income limit $23,600): - Eligible case: AGI $19,900 + exemptions $2,100 = $22,000 (under $23,600 limit) - Ineligible case: AGI $23,000 + exemptions $2,100 = $25,100 (over $23,600 limit) This properly demonstrates how exemptions are added to AGI per ARS 43-1073. 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude --- .../credits/az_family_tax_credit_eligible.yaml | 12 ++++++------ 1 file changed, 6 insertions(+), 6 deletions(-) diff --git a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml index 151d5d2f5f6..c1261a443de 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/az/tax/income/credits/az_family_tax_credit_eligible.yaml @@ -64,24 +64,24 @@ output: az_family_tax_credit_eligible: true -- name: Family tax credits with exemptions - eligible case (AGI $19900 + exemptions $2100 = $22000) +- name: Family tax credits with exemptions - eligible case (AGI $19900 + exemptions $2100 = $22000, limit $23600) period: 2023 input: state_code: AZ - az_filing_status: SINGLE + az_filing_status: JOINT az_agi: 19_900 az_exemptions: 2_100 - tax_unit_dependents: 0 + tax_unit_dependents: 2 output: az_family_tax_credit_eligible: true -- name: Family tax credits with exemptions - ineligible case (AGI $23000 + exemptions $2100 = $25100) +- name: Family tax credits with exemptions - ineligible case (AGI $23000 + exemptions $2100 = $25100, limit $23600) period: 2023 input: state_code: AZ - az_filing_status: SINGLE + az_filing_status: JOINT az_agi: 23_000 az_exemptions: 2_100 - tax_unit_dependents: 0 + tax_unit_dependents: 2 output: az_family_tax_credit_eligible: false