# Itemized-deduction scenarios for the PolicyEngine oracle. # # FOR THE TYPESCRIPT ENGINE ONLY. The Python engine is frozen and never learned # to itemize, so compare.py refuses these; gen_engine_oracle.py runs them into # the frontend fixture. Design: docs/itemized-deductions-design.md (frontend). # # Each scenario sits on one threshold the engine has to get right. The state # tax in SALT is STATED (`state_income_tax_paid`) rather than left to PE, so # these check the federal itemizing math on its own; see build_pe_situation in # compare.py for the three PE auto-fills an `itemized` block overrides. # # Schema, on top of scenarios.yaml's: # itemized: tax-unit totals; all optional, default 0 # real_estate_taxes # mortgage_interest, mortgage_balance, mortgage_origination_year (default 2020) # medical_premiums Medicare / insurance premiums # medical_expenses everything else, LTC included # state_income_tax_paid the state income tax inside SALT # people[].charitable_cash_donations as in scenarios.yaml # # The 2026 single 65+ standard deduction is $18,150 ($16,100 + $2,050) before # the OBBB senior deduction, which applies whether or not you itemize. scenarios: - name: 'I01 - Single 67, mortgage + property tax + charity, itemizes (TX)' year: 2026 state: TX filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 12000 mortgage_interest: 14000 mortgage_balance: 400000 mortgage_origination_year: 2015 people: - {age: 67, ira_distributions: 150000, charitable_cash_donations: 8000} - name: 'I02 - Single 67, itemized just BELOW the standard deduction (TX)' year: 2026 state: TX filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 9000 people: # 9,000 + (9,000 - 0.5% x 60,000) = 17,700 < 18,150 - {age: 67, ira_distributions: 60000, charitable_cash_donations: 9000} - name: 'I03 - Single 67, itemized just ABOVE the standard deduction (TX)' year: 2026 state: TX filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 9000 people: # 9,000 + (9,800 - 300) = 18,500 > 18,150 - {age: 67, ira_distributions: 60000, charitable_cash_donations: 9800} - name: 'I04 - MFJ 70/70, LTC year, medical over the 7.5% floor (FL)' year: 2026 state: FL filing_status: mfj default_tolerance: 1 itemized: real_estate_taxes: 6000 medical_premiums: 5000 medical_expenses: 40000 people: - {age: 70, social_security_gross: 30000, ira_distributions: 120000, charitable_cash_donations: 5000} - {age: 70, social_security_gross: 20000} - name: 'I05 - Single 60, SALT over the $40,400 cap (CA)' year: 2026 state: CA filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 20000 state_income_tax_paid: 25000 people: - {age: 60, wages: 300000} - name: 'I06 - MFJ 55/55, SALT cap phased down above $505k MAGI (NY)' year: 2026 state: NY filing_status: mfj default_tolerance: 1 itemized: real_estate_taxes: 25000 state_income_tax_paid: 45000 people: - {age: 55, wages: 400000} - {age: 55, wages: 200000} - name: 'I07 - Single 50, 37% bracket, the OBBB 2/37 limit (CA)' year: 2026 state: CA filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 20000 state_income_tax_paid: 60000 mortgage_interest: 30000 mortgage_balance: 700000 mortgage_origination_year: 2019 people: - {age: 50, wages: 900000, charitable_cash_donations: 50000} - name: 'I08 - MFJ 45/45, mortgage over the $750k cap (post-2017 loan) (TX)' year: 2026 state: TX filing_status: mfj default_tolerance: 1 itemized: real_estate_taxes: 15000 mortgage_interest: 50000 mortgage_balance: 1200000 mortgage_origination_year: 2020 people: - {age: 45, wages: 250000} - {age: 45} - name: 'I09 - MFJ 45/45, same loan taken out in 2015, $1M cap (TX)' year: 2026 state: TX filing_status: mfj default_tolerance: 1 itemized: real_estate_taxes: 15000 mortgage_interest: 50000 mortgage_balance: 1200000 mortgage_origination_year: 2015 people: - {age: 45, wages: 250000} - {age: 45} - name: 'I10 - Single 75, charity over the 60% of AGI ceiling (TX)' year: 2026 state: TX filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 4000 people: - {age: 75, ira_distributions: 50000, charitable_cash_donations: 40000} - name: 'I11 - Single 85, nursing-home year (FL)' year: 2026 state: FL filing_status: single default_tolerance: 1 itemized: medical_premiums: 2400 medical_expenses: 90000 people: - {age: 85, social_security_gross: 30000, ira_distributions: 80000} - name: 'I12 - Single 67, small gift, standard wins, non-itemizer charity (TX)' year: 2026 state: TX filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 3000 people: - {age: 67, ira_distributions: 70000, charitable_cash_donations: 1500} - name: 'I13 - Single 60, 2030, SALT cap back to $10,000 (CA)' year: 2030 state: CA filing_status: single default_tolerance: 1 itemized: real_estate_taxes: 10000 state_income_tax_paid: 15000 mortgage_interest: 12000 mortgage_balance: 350000 people: - {age: 60, wages: 200000} - name: 'I14 - Head of household 50, mortgage + SALT (VA)' year: 2026 state: VA filing_status: hoh default_tolerance: 1 itemized: real_estate_taxes: 8000 state_income_tax_paid: 6000 mortgage_interest: 15000 mortgage_balance: 300000 people: - {age: 50, wages: 120000} - name: 'I15 - MFJ 68/66, itemizing inside the senior-deduction phase-out (OR)' year: 2026 state: OR filing_status: mfj default_tolerance: 1 itemized: real_estate_taxes: 15000 state_income_tax_paid: 10000 people: - {age: 68, social_security_gross: 36000, ira_distributions: 200000, charitable_cash_donations: 10000} - {age: 66, social_security_gross: 24000} - name: 'I16 - MFJ 66/64, one senior, mortgage + SALT, itemizes (MN)' year: 2026 state: MN filing_status: mfj default_tolerance: 1 itemized: real_estate_taxes: 9000 state_income_tax_paid: 8000 mortgage_interest: 11000 mortgage_balance: 280000 medical_premiums: 2400 people: - {age: 66, ira_distributions: 90000, social_security_gross: 30000, charitable_cash_donations: 6000} - {age: 64, wages: 40000} # Phase 2: states that follow the federal itemized deductions. Each is the # I01 household moved to that state, with $5,000 of state tax stated in SALT. # gen_engine_oracle.py also emits each one's STANDARD-deduction state tax, so # the frontend test checks the change itemizing makes, apart from any # pre-existing gap in the state's base model. - name: 'I17 - Colorado follows federal itemizing, adds back state tax (CO)' year: 2026 state: CO filing_status: single default_tolerance: 1 itemized: {real_estate_taxes: 12000, mortgage_interest: 14000, mortgage_balance: 400000, mortgage_origination_year: 2015, state_income_tax_paid: 5000} people: - {age: 67, ira_distributions: 150000, charitable_cash_donations: 8000} - name: 'I18 - North Dakota follows federal itemizing, no add-back (ND)' year: 2026 state: ND filing_status: single default_tolerance: 1 itemized: {real_estate_taxes: 12000, mortgage_interest: 14000, mortgage_balance: 400000, mortgage_origination_year: 2015, state_income_tax_paid: 5000} people: - {age: 67, ira_distributions: 150000, charitable_cash_donations: 8000} - name: 'I19 - Montana follows federal itemizing, adds back state tax (MT)' year: 2026 state: MT filing_status: single default_tolerance: 1 itemized: {real_estate_taxes: 12000, mortgage_interest: 14000, mortgage_balance: 400000, mortgage_origination_year: 2015, state_income_tax_paid: 5000} people: - {age: 67, ira_distributions: 150000, charitable_cash_donations: 8000} - name: 'I20 - Utah taxpayer credit on the itemized deduction (UT)' year: 2026 state: UT filing_status: single default_tolerance: 1 itemized: {real_estate_taxes: 12000, mortgage_interest: 14000, mortgage_balance: 400000, mortgage_origination_year: 2015, state_income_tax_paid: 5000} people: - {age: 67, ira_distributions: 150000, charitable_cash_donations: 8000}