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Gary-Community-Ventures / benefits-api

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Adjust calculations for Family Affordability Tax Credit #440

Closed kbottagaro closed 3 months ago

kbottagaro commented 3 months ago

Adjust calculations for the Family Affordability Tax Credit based on the following:

  1. See this sheet - https://docs.google.com/spreadsheets/d/18a2ZfZTiAN5WLhRC3N3Nhx_dcfJrxSOW3fXi1Hb8SlA/edit?gid=50007289#gid=50007289. PE's calculations double-count the first reduction from $3200/$2400, reducing those amounts by 13.75%/13.5% instead of 6.875%. As a result, the first reduction in the credit is too high, and that has waterfall effects on all subsequent income tiers.
  2. Colorado HB24-1311 (at https://leg.colorado.gov/sites/default/files/2024a_1311_signed.pdf) states that the credit is adjusted for each $5k by which AGI increases - not $5,001. If, for example, you have a single filer w/a 5-year-old, MFB shows that HH getting the same credit at $15k & $20k. This should be adjusted so that the credit reduces for each additional $5k of income.
kbottagaro commented 3 months ago

@sydney-devine I'm closing this ticket. I talked to Zach about the intention behind the bill, and we're going to leave the calculations as-is.