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Apply the TCJA mortgage interest deduction limits
Fixes #5128
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- bump: minor | ||
changes: | ||
added: | ||
- Apply the TCJA mortgage interest deduction limits. |
24 changes: 18 additions & 6 deletions
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policyengine_us/parameters/gov/irs/deductions/itemized/interest/mortgage/cap.yaml
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description: IRS limits the total home mortgage interest deduction to this amount, based on filing status. | ||
SINGLE: | ||
2018-01-01: 1_000_000 | ||
2017-01-01: 1_000_000 | ||
2018-01-01: 750_000 | ||
2026-01-01: 1_000_000 | ||
JOINT: | ||
2018-01-01: 1_000_000 | ||
2017-01-01: 1_000_000 | ||
2018-01-01: 750_000 | ||
2026-01-01: 1_000_000 | ||
SEPARATE: | ||
2018-01-01: 500_000 | ||
2017-01-01: 500_000 | ||
2018-01-01: 375_000 | ||
2026-01-01: 500_000 | ||
HEAD_OF_HOUSEHOLD: | ||
2018-01-01: 1_000_000 | ||
2017-01-01: 1_000_000 | ||
2018-01-01: 750_000 | ||
2026-01-01: 1_000_000 | ||
SURVIVING_SPOUSE: | ||
2018-01-01: 1_000_000 | ||
2017-01-01: 1_000_000 | ||
2018-01-01: 750_000 | ||
2026-01-01: 1_000_000 | ||
metadata: | ||
breakdown: filing_status | ||
unit: currency-USD | ||
period: year | ||
label: IRS home mortgage interest deduction amount cap | ||
reference: | ||
# Hawaii applies this AGI threshold in the state itemized deductions computation | ||
- title: Hawaii Income Tax Law, Chapter 235, Section 235-2.4, (j)(3) | ||
href: https://files.hawaii.gov/tax/legal/hrs/hrs_235.pdf#page=10 | ||
- title: 26 U.S. Code § 163 - Interest, (h)(3)(F) | ||
# TCJA adjustemnts described in (h)(3)(F)(i)(II) | ||
- title: 26 U.S. Code § 163 - Interest, (h)(3)(b)(ii) | ||
href: https://www.law.cornell.edu/uscode/text/26/163 |
19 changes: 19 additions & 0 deletions
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policyengine_us/tests/policy/baseline/household/expense/interest_expense.yaml
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- name: Capped mortageg interest, joint | ||
absolute_error_margin: 0.01 | ||
period: 2021 | ||
input: | ||
mortgage_interest: 1_200_000 | ||
filing_status: JOINT | ||
non_mortgage_interest: 0 | ||
output: | ||
interest_expense: 750_000 | ||
|
||
- name: Uncapped mortageg interest, joint | ||
absolute_error_margin: 0.01 | ||
period: 2021 | ||
input: | ||
mortgage_interest: 700_000 | ||
filing_status: JOINT | ||
non_mortgage_interest: 100_000 | ||
output: | ||
interest_expense: 800_000 |
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