Add Idaho senior deduction conformity

changelog.d/id-hb559-senior-deduction.fixed.md

@@ -0,0 +1 @@
+Added Idaho conformity to the federal enhanced senior deduction through Idaho's qualified business income and federal Schedule 1-A deduction path starting in 2025.

policyengine_us/tests/policy/baseline/gov/states/id/tax/income/deductions/id_additional_senior_deduction.yaml

@@ -0,0 +1,28 @@
+- name: Idaho conforms to the federal additional senior deduction in 2025.
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+      person2:
+        age: 70
+        is_tax_unit_spouse: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        adjusted_gross_income: 200_000
+        salt_deduction: 0
+        standard_deduction: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_code: ID
+  output:
+    additional_senior_deduction: 9_000
+    id_additional_senior_deduction: 9_000

policyengine_us/tests/policy/baseline/gov/states/id/tax/income/deductions/id_qualified_business_income_and_federal_schedule_1a_deductions.yaml

@@ -0,0 +1,8 @@
+- name: Idaho qualified business income and federal Schedule 1-A deductions include the senior deduction
+  period: 2025
+  input:
+    qualified_business_income_deduction: 2_000
+    id_additional_senior_deduction: 9_000
+    state_code: ID
+  output:
+    id_qualified_business_income_and_federal_schedule_1a_deductions: 11_000

policyengine_us/tests/policy/baseline/gov/states/id/tax/income/id_taxable_income.yaml

@@ -12,17 +12,27 @@
   input:
     id_agi: 500
     id_deductions: 1_000
-    qualified_business_income_deduction: 200
+    id_qualified_business_income_and_federal_schedule_1a_deductions: 200
     state_code: ID
   output:
     id_taxable_income: 0
 
-- name: AGI after deductions is reduced by QBID
+- name: AGI after deductions is reduced by Idaho conformity deductions
   period: 2021
   input:
     id_agi: 1_000
     id_deductions: 500
-    qualified_business_income_deduction: 300
+    id_qualified_business_income_and_federal_schedule_1a_deductions: 300
     state_code: ID
   output:
     id_taxable_income: 200
+
+- name: Idaho conformity deductions include the federal senior deduction in 2025
+  period: 2025
+  input:
+    id_agi: 200_000
+    id_deductions: 60_000
+    id_qualified_business_income_and_federal_schedule_1a_deductions: 9_000
+    state_code: ID
+  output:
+    id_taxable_income: 131_000

policyengine_us/tests/policy/baseline/gov/states/id/tax/income/integration.yaml

@@ -228,3 +228,41 @@
   output:
     # Grocery credit: 2 people * $155 = $310 (aged credit not in effect for 2025)
     id_grocery_credit: 310
+
+- name: Idaho joint senior filers receive the OBBBA enhanced senior deduction in 2025
+  absolute_error_margin: 0.01
+  period: 2025
+  input:
+    people:
+      person1:
+        age: 70
+        taxable_interest_income: 100_000
+        is_tax_unit_head: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+      person2:
+        age: 70
+        taxable_interest_income: 100_000
+        is_tax_unit_spouse: true
+        is_tax_unit_head_or_spouse: true
+        ssn_card_type: CITIZEN
+    tax_units:
+      tax_unit:
+        members: [person1, person2]
+        filing_status: JOINT
+        itemized_taxable_income_deductions: 60_000
+        id_salt_deduction: 0
+    spm_units:
+      spm_unit:
+        members: [person1, person2]
+        snap: 0
+        tanf: 0
+    households:
+      household:
+        members: [person1, person2]
+        state_fips: 16
+  output:
+    additional_senior_deduction: 9_000
+    id_additional_senior_deduction: 9_000
+    id_qualified_business_income_and_federal_schedule_1a_deductions: 9_000
+    id_taxable_income: 131_000

policyengine_us/variables/gov/states/id/tax/income/deductions/id_additional_senior_deduction.py

@@ -0,0 +1,17 @@
+from policyengine_us.model_api import *
+
+
+class id_additional_senior_deduction(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Idaho additional senior deduction"
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.ID
+    reference = (
+        "https://legislature.idaho.gov/sessioninfo/2026/legislation/H0559/",
+        "https://tax.idaho.gov/pressrelease/update-on-filing-2025-idaho-income-taxes-now-that-conformity-is-law/",
+    )
+
+    def formula(tax_unit, period, parameters):
+        return tax_unit("additional_senior_deduction", period)

policyengine_us/variables/gov/states/id/tax/income/deductions/id_deductions.py

@@ -16,5 +16,6 @@ class id_deductions(Variable):
     def formula(tax_unit, period, parameters):
         itm_ded = tax_unit("id_itemized_deductions", period)
         std_ded = tax_unit("standard_deduction", period)
-        # We do not model qualified business income deduction for Idaho
+        # Idaho qualified business income and federal Schedule 1-A deductions
+        # are modeled separately.
         return max_(itm_ded, std_ded)

policyengine_us/variables/gov/states/id/tax/income/deductions/id_qualified_business_income_and_federal_schedule_1a_deductions.py

@@ -0,0 +1,19 @@
+from policyengine_us.model_api import *
+
+
+class id_qualified_business_income_and_federal_schedule_1a_deductions(Variable):
+    value_type = float
+    entity = TaxUnit
+    label = "Idaho qualified business income and federal Schedule 1-A deductions"
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.ID
+    reference = (
+        "https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_03-02-2026.pdf",
+        "https://tax.idaho.gov/pressrelease/update-on-filing-2025-idaho-income-taxes-now-that-conformity-is-law/",
+    )
+
+    adds = [
+        "qualified_business_income_deduction",
+        "id_additional_senior_deduction",
+    ]

policyengine_us/variables/gov/states/id/tax/income/id_taxable_income.py

@@ -8,11 +8,14 @@ class id_taxable_income(Variable):
     unit = USD
     documentation = "Idaho taxable income"
     definition_period = YEAR
-    reference = "https://tax.idaho.gov/wp-content/uploads/forms/EFO00089/EFO00089_12-30-2022.pdf#page=1"
+    reference = "https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_03-02-2026.pdf"
     defined_for = StateCode.ID
 
     def formula(tax_unit, period, parameters):
         agi = tax_unit("id_agi", period)
         deductions = tax_unit("id_deductions", period)
-        qbid = tax_unit("qualified_business_income_deduction", period)
-        return max_(0, agi - deductions - qbid)
+        conformity_deductions = tax_unit(
+            "id_qualified_business_income_and_federal_schedule_1a_deductions",
+            period,
+        )
+        return max_(0, agi - deductions - conformity_deductions)