Fix Head of Household eligibility for qualifying relatives

changelog_entry.yaml

@@ -0,0 +1,9 @@
+- bump: minor
+  changes:
+    added:
+      - is_qualifying_child_dependent variable for age-based qualifying child test
+      - is_qualifying_relative_dependent variable for income-based qualifying relative test
+      - dependent_gross_income variable for calculating dependent gross income
+    changed:
+      - is_child_dependent now includes qualifying child, qualifying relative, and disability pathways
+      - Head of household eligibility now correctly includes qualifying relatives (fixes issue 6994)

policyengine_us/reforms/states/ny/wftc/ny_working_families_tax_credit.py

@@ -475,10 +475,12 @@ class ny_exemptions_dependent(Variable):
         def formula(person, period, parameters):
             p = parameters(period).gov.contrib.states.ny.wftc.exemptions
             if p.in_effect:
-                child_dependent = person("is_child_dependent", period)
+                child_dependent = person(
+                    "is_qualifying_child_dependent", period
+                )
                 wftc_eligible_child = person("ny_wftc_eligible_child", period)
                 return child_dependent & ~wftc_eligible_child
-            return person("is_child_dependent", period)
+            return person("is_qualifying_child_dependent", period)
 
     class ny_exemptions(Variable):
         value_type = float

policyengine_us/tests/policy/baseline/gov/irs/credits/earned_income/eitc_child_count.yaml

@@ -6,7 +6,7 @@
         is_tax_unit_head_or_spouse: true
         meets_eitc_identification_requirements: true
       person2:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         meets_eitc_identification_requirements: true
     tax_units:
       tax_unit:
@@ -22,10 +22,10 @@
         is_tax_unit_head_or_spouse: true
         meets_eitc_identification_requirements: true
       person2:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         meets_eitc_identification_requirements: true
       person3:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         meets_eitc_identification_requirements: true
     tax_units:
       tax_unit:
@@ -41,10 +41,10 @@
         is_tax_unit_head_or_spouse: true
         meets_eitc_identification_requirements: true
       person2:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         meets_eitc_identification_requirements: true
       person3:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         meets_eitc_identification_requirements: false
     tax_units:
       tax_unit:

policyengine_us/tests/policy/baseline/gov/irs/income/dependent_gross_income.yaml

@@ -0,0 +1,67 @@
+- name: Dependent with employment income.
+  period: 2024
+  input:
+    people:
+      parent:
+        age: 45
+        is_tax_unit_head: true
+        employment_income: 50_000
+      child:
+        age: 20
+        is_tax_unit_dependent: true
+        is_tax_unit_spouse: false
+        employment_income: 5_000
+    tax_units:
+      tax_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+  output:
+    # Only dependent's income counts, head's income excluded
+    dependent_gross_income: [0, 5_000]
+
+- name: Head or spouse has zero dependent gross income.
+  period: 2024
+  input:
+    people:
+      head:
+        age: 45
+        is_tax_unit_head: true
+        employment_income: 100_000
+      spouse:
+        age: 43
+        is_tax_unit_spouse: true
+        employment_income: 50_000
+    tax_units:
+      tax_unit:
+        members: [head, spouse]
+    households:
+      household:
+        members: [head, spouse]
+  output:
+    # Head and spouse are not dependents, so their dependent_gross_income is 0
+    dependent_gross_income: [0, 0]
+
+- name: Dependent with multiple income sources.
+  period: 2024
+  input:
+    people:
+      parent:
+        age: 50
+        is_tax_unit_head: true
+      child:
+        age: 22
+        is_tax_unit_dependent: true
+        is_tax_unit_spouse: false
+        employment_income: 3_000
+        taxable_interest_income: 500
+    tax_units:
+      tax_unit:
+        members: [parent, child]
+    households:
+      household:
+        members: [parent, child]
+  output:
+    # Sum of all income sources
+    dependent_gross_income: [0, 3_500]

policyengine_us/tests/policy/baseline/gov/states/co/tax/income/credits/family_affordability/co_family_affordability_credit.yaml

@@ -7,7 +7,7 @@
         is_tax_unit_dependent: false
       dependent:
         age: 1
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
     tax_units:
       tax_unit: 
         members: [head, dependent]
@@ -35,10 +35,10 @@
         is_tax_unit_dependent: false
       dependent:
         age: 1
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
       dependent2:
         age: 15
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
     tax_units:
       tax_unit: 
         members: [head, dependent, dependent2]
@@ -66,10 +66,10 @@
         is_tax_unit_dependent: false
       dependent:
         age: 1
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
       dependent2:
         age: 15
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
     tax_units:
       tax_unit: 
         members: [head, dependent, dependent2]
@@ -97,10 +97,10 @@
         is_tax_unit_dependent: false
       dependent:
         age: 1
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
       dependent2:
         age: 15
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
     tax_units:
       tax_unit: 
         members: [head, dependent, dependent2]

policyengine_us/tests/policy/baseline/gov/states/mt/tax/income/exemptions/mt_dependent_exemptions_person.yaml

@@ -3,13 +3,13 @@
   input:
     people:
       person1:
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
         is_disabled: false
       person3:
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
         is_disabled: false
       person4:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         is_disabled: false
     tax_units:
       tax_unit:
@@ -27,10 +27,10 @@
     people:
       person1: {}
       person3:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         is_disabled: false
       person4:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         is_disabled: false
     tax_units:
       tax_unit:
@@ -49,10 +49,10 @@
       person1:
         is_tax_unit_head: true
       person3:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         is_disabled: false
       person4:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         is_disabled: true
     tax_units:
       tax_unit:
@@ -71,10 +71,10 @@
       person1:
         is_tax_unit_head: true
       person3:
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
         is_disabled: false
       person4:
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
         is_disabled: true
     tax_units:
       tax_unit:
@@ -91,13 +91,13 @@
   input:
     people:
       person1:
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
         is_disabled: false
       person3:
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
         is_disabled: false
       person4:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
         is_disabled: false
     tax_units:
       tax_unit:

policyengine_us/tests/policy/baseline/gov/states/nj/tax/income/credits/eitc/nj_childless_eitc_age_eligible.yaml

@@ -63,7 +63,7 @@
         age: 30
       person2:
         age: 15
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
     households:
       household:
         members: [person1, person2]

policyengine_us/tests/policy/baseline/gov/states/or/tax/income/credits/exemption/or_disabled_child_dependent_exemptions.yaml

@@ -4,7 +4,7 @@
     state_code: OR
     adjusted_gross_income: 100_000
     is_disabled: true
-    is_child_dependent: true
+    is_qualifying_child_dependent: true
   output:
     or_disabled_child_dependent_exemptions: 1
 
@@ -14,6 +14,6 @@
     state_code: OR
     adjusted_gross_income: 100_001
     is_disabled: true
-    is_child_dependent: true
+    is_qualifying_child_dependent: true
   output:
     or_disabled_child_dependent_exemptions: 0

policyengine_us/tests/policy/baseline/gov/states/pa/tax/income/forgiveness/pa_tax_forgiveness_rate.yaml

@@ -31,9 +31,9 @@
     people:
       filer: {}
       grandparent:   
-        is_child_dependent: false
+        is_qualifying_child_dependent: false
       child: 
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
     tax_units:
       tax_unit:
         members: [filer, grandparent, child]
@@ -52,7 +52,7 @@
       father: {}
       mother: {}    
       child: 
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
     tax_units:
       tax_unit:
         members: [father, mother, child]
@@ -71,9 +71,9 @@
       father: {}
       mother: {}    
       child 1: 
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
       child 2:
-        is_child_dependent: true
+        is_qualifying_child_dependent: true
     tax_units:
       tax_unit:
         members: [father, mother, child 1, child 2]