Include incapacitated adult care expenses in state TANF dependent care deductions

changelog.d/tanf-adult-care-expenses.changed.md

@@ -0,0 +1 @@
+Include incapacitated or disabled adult care expenses in the dependent care deductions of 21 state TANF-family cash assistance programs (AK, AL, AZ, DC, DE, GA, HI, IL, KY, MA TAFDC/EAEDC, MD, ME, MN, MO, MT, NH, OK, RI, TX, VA, VT, WV).

policyengine_us/tests/policy/baseline/gov/states/ak/dpa/atap/ak_atap_childcare_deduction.yaml

@@ -231,3 +231,53 @@
     # Monthly expenses = $0
     # Disregard = min($0, $175) = $0
     ak_atap_childcare_deduction: 0
+
+- name: Case 11, incapacitated parent care expenses count toward the disregard.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 32
+        is_tax_unit_head_or_spouse: true
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: AK
+  output:
+    # Per 7 AAC 45.485(a)(2)(C): $175/month cap for an incapacitated parent.
+    # Expenses = 1,200 / 12 = 100/month, below the 175 cap.
+    ak_atap_childcare_deduction: 100
+
+- name: Case 12, incapacitated non-parent adult does not count toward the disregard.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 70
+        is_tax_unit_head_or_spouse: false
+        is_tax_unit_dependent: false
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: AK
+  output:
+    # 7 AAC 45.485(a)(2)(C) covers only an incapacitated PARENT; an
+    # incapacitated non-parent, non-dependent adult adds nothing to the
+    # cap: min(100, 0) = 0.
+    ak_atap_childcare_deduction: 0

policyengine_us/tests/policy/baseline/gov/states/al/dhs/tanf/al_tanf_countable_earned_income.yaml

@@ -222,3 +222,33 @@
     # Childcare: $200/month
     # Countable earned: max($315 - $200, 0) = $115
     al_tanf_countable_earned_income: 115
+
+- name: Edge Case 2, incapacitated adult care costs are deducted.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        employment_income_before_lsr: 12_000  # $1,000/month
+      person2:
+        age: 35
+        # Describes the legal scenario (r. 660-2-2-.30(2)(c) covers an
+        # incapacitated adult); the formula pools care_expenses without an
+        # incapacity filter, symmetric with the childcare side.
+        is_incapable_of_self_care: true
+        care_expenses: 1_200  # $100/month
+      person3:
+        age: 5
+    spm_units:
+      spm_unit:
+        members: [person1, person2, person3]
+    households:
+      household:
+        members: [person1, person2, person3]
+        state_code: AL
+  output:
+    # Gross earned = $1,000/month; work expense = 30% = $300
+    # Incapacitated adult care = 1,200 / 12 = $100/month (no cap)
+    # Countable = 1,000 - 300 - 100 = $600
+    al_tanf_countable_earned_income: 600

policyengine_us/tests/policy/baseline/gov/states/az/hhs/tanf/az_tanf_dependent_care_deduction.yaml

@@ -155,3 +155,49 @@
     # Child at age 2: $175/month max (not $200)
     # Expenses ($250/mo) > max ($175), so deduction = $175
     az_tanf_dependent_care_deduction: 175
+
+- name: Case 7, adult dependent care expenses count toward the deduction.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 28
+        is_tax_unit_dependent: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: AZ
+  output:
+    # Per ARS 46-292: care of an adult dependent household member,
+    # capped at $175/month. Expenses = 1,200 / 12 = 100/month.
+    az_tanf_dependent_care_deduction: 100
+
+- name: Case 8, non-dependent adult care expenses are not deducted.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_tax_unit_dependent: false
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: AZ
+  output:
+    # ARS 46-292(P)(1) covers a DEPENDENT household member; a
+    # non-dependent adult adds nothing to the cap: min(100, 0) = 0.
+    az_tanf_dependent_care_deduction: 0

policyengine_us/tests/policy/baseline/gov/states/dc/dhs/tanf/income/dc_tanf_childcare_deduction.yaml

@@ -72,3 +72,49 @@
         state_code: DC
   output:
     dc_tanf_childcare_deduction: [2_100, 2_100]   # min(1200, 175*12)
+
+- name: Case 5, incapacitated adult care expenses count toward the deduction.
+  period: 2023-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: DC
+  output:
+    # Per DC Code 4-205.11(a)(2): incapacitated adult care capped at
+    # $175/month. Expenses = 1,200 / 12 = 100/month, below the cap.
+    dc_tanf_childcare_deduction: 100
+
+- name: Case 6, adult care expenses without incapacity are not deducted.
+  period: 2023-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_tax_unit_dependent: false
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: DC
+  output:
+    # Person2 is neither a dependent nor incapacitated, so the cap is $0:
+    # min(100, 0) = 0.
+    dc_tanf_childcare_deduction: 0

policyengine_us/tests/policy/baseline/gov/states/de/dhss/tanf/income/earned/de_tanf_dependent_care_deduction.yaml

@@ -207,3 +207,49 @@
     # 3 children age 2+: 3 * $175 = $525
     # Expenses $800 > $525, capped at $525
     de_tanf_dependent_care_deduction: 525
+
+- name: Case 11, incapacitated adult care expenses count toward the deduction.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: DE
+  output:
+    # Per DSSM 4004.2(4): incapacitated adult care capped at $175/month.
+    # Expenses = 1,200 / 12 = 100/month, below the cap.
+    de_tanf_dependent_care_deduction: 100
+
+- name: Case 12, adult care expenses without incapacity are not deducted.
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_tax_unit_dependent: false
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: DE
+  output:
+    # Person2 is neither a dependent nor incapacitated, so the cap is $0:
+    # min(100, 0) = 0.
+    de_tanf_dependent_care_deduction: 0

policyengine_us/tests/policy/baseline/gov/states/ga/dfcs/tanf/income/ga_tanf_childcare_deduction.yaml

@@ -315,3 +315,50 @@
     # Child is not a dependent, so no deduction
     # Total max: $0
     # min(200, 0) = $0
+
+- name: Incapacitated adult care expenses count toward the deduction
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: GA
+  output:
+    # Per PAMMS 1615: $175/month for each individual age two or above,
+    # including an incapacitated individual in the home.
+    # Expenses = 1,200 / 12 = 100/month, below the cap.
+    ga_tanf_childcare_deduction: 100
+
+- name: Adult care expenses without incapacity are not deducted
+  period: 2025-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_tax_unit_dependent: false
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: GA
+  output:
+    # Person2 is neither a dependent nor incapacitated, so the cap is $0:
+    # min(100, 0) = 0.
+    ga_tanf_childcare_deduction: 0

policyengine_us/tests/policy/baseline/gov/states/hi/dhs/tanf/income/hi_tanf_dependent_care_deduction.yaml

@@ -319,3 +319,51 @@
     # 40 hrs = full-time, $175 per child
     # $700/month > $525 cap, capped at 3 children × $175 = $525
     hi_tanf_dependent_care_deduction: 525
+
+- name: Case 13, disabled adult household member care expenses.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        weekly_hours_worked_before_lsr: 40
+      person2:
+        age: 25
+        is_disabled: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: HI
+  output:
+    # Per State Plan 10.2.1(D): care of a disabled adult household member
+    # up to $175/month (full-time employment, 40 hours >= 32).
+    # Expenses = 1,200 / 12 = 100/month, below the cap.
+    hi_tanf_dependent_care_deduction: 100
+
+- name: Case 14, adult care expenses without disability are not deducted.
+  period: 2024-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+        weekly_hours_worked_before_lsr: 40
+      person2:
+        age: 25
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: HI
+  output:
+    # Person2 is neither a child nor a disabled adult, so no care
+    # recipients: min(100, 0) = 0.
+    hi_tanf_dependent_care_deduction: 0

policyengine_us/tests/policy/baseline/gov/states/il/dhs/tanf/income/deductions/il_tanf_childcare_deduction.yaml

@@ -37,3 +37,49 @@
     childcare_expenses: 250 * 12
   output:
     il_tanf_childcare_deduction: 0
+
+- name: Case 5, incapacitated adult care expenses count toward the deduction.
+  period: 2023-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_incapable_of_self_care: true
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: IL
+  output:
+    # Per 89 Ill. Adm. Code 112.143(b)(1)(C): incapacitated adult care
+    # at the $175/month age-2+ tier. Expenses = 1,200 / 12 = 100/month.
+    il_tanf_childcare_deduction: 100
+
+- name: Case 6, adult care expenses without incapacity are not deducted.
+  period: 2023-01
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person1:
+        age: 30
+      person2:
+        age: 35
+        is_tax_unit_dependent: false
+        care_expenses: 1_200
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+    households:
+      household:
+        members: [person1, person2]
+        state_code: IL
+  output:
+    # Person2 is neither a dependent nor incapacitated, so the cap is $0:
+    # min(100, 0) = 0.
+    il_tanf_childcare_deduction: 0