PolicyEngine
Deviation from IRS EITC calculator for single parent of one earning $4,800
https://apps.irs.gov/app/eitc/results/ shows that they receive $1,641, but we get $1,632.
EITC - Results _ Internal Revenue Service.pdf
Looking at the CBO tax parameters here -
The EITC phases-in at a 34% rate, at $4,800 of earnings this would amount to - 4,800 * 0.34 = $1,632 - not sure how this would result in $1,641 - leaning towards not a bug in PE
The IRS publication states a phase-in up to earnings of 12,730 and a maximum credit amount of $4,328 which is phase-in rate of (0.34003228) - this would not equal $1,641 and the legal code states the 34% -
For one qualifying child, the IRS calculation result is $1,641. However, when adding two qualifying children in both the IRS calculation and the benefits calculator, there's a significant difference. The Estimated Savings for EITC should be $1,930/year per the IRS calculator, but the screener results show only $1,632/year.
@SonaliBedge that's because MFB is splitting the two children into separate tax units. You mentioned https://github.com/Gary-Community-Ventures/benefits-api/issues/475 in Slack but I don't think that's the cause here. Regardless it is not an issue with PolicyEngine.
OK, @MaxGhenis, I will talk with Louise and the MFB team in tomorrow's meeting. Louise is not available today.
@MaxGhenis and @SonaliBedge I understand the splitting into 2 households rule b/c child provides ore than half of own support. I was not aware of that rule before so was counting 2 qualifying children instead of one, so you can close out this ticket - I was wrong when I said the screener results were off. Thank you and sorry for wasted time!
