Description of Input Columns
Shane Orr
usincometaxes calculates taxes through the function
taxsim_calculate_taxes(.data). The key parameter in this
function is .data, which is a data frame containing the
information used to calculate income taxes. Each column in
.data contains financial or household information and maps
to the variables in TAXSIM
35 . All variables in TAXSIM 35 can be used in
usincometaxes.
The column names in usincometaxes are the same as TAXSIM
35’s variable names. The data types for inputs are also the same as what
is noted in the TAXSIM 35
documentation, except for two exceptions.
- For filing status,
mstat, users can either enter a
description of the filing status (shown below) or the number required by
TAXSIM.
- For state,
state, users can enter the two letter state
abbreviation or the SOI code, as required by TAXSIM.
usincometaxes will convert descriptions of filing
statuses or state abbreviations to the numbers required by TAXSIM.
.data can contain columns beyond those listed below. The
additional columns will be ignored.
Required columns
- taxsimid: An arbitrary, non-negative, whole
number greater than zero. This number links the results from TAXSIM
35 to the original input data frame specified with
.data.
- year: Tax year ending Dec 31 (4 digits between 1960
and 2023). State must be zero if year is before 1977 or after 2023.
- mstat: Filing status of tax unit. One of the
following:
- “single” or 1 for single;
- “married, jointly” or 2 for married, filing jointly;
- “married, separately” or 6 for married, filing separately;
- “dependent child” or 8 for dependent, usually a child with income;
or
- “head of household” or 1 for head of household filing status.
- state: State two letter abbreviation (‘NC’), full
state name (‘North Carolina’) or state SOI code
(32).
If state income taxes are not needed, either label as “No State” or
remove this variable. State income tax information is only available
from 1977 to 2023.
Optional columns
- page: Age of primary taxpayer as of December 31st
of tax year. Taxpayer age variables determine eligibility for additional
standard deductions, personal exemption, EITC and AMT exclusion.
- sage: Age of spouse as of December 31st of tax year
(or 0 / NA if no spouse).
- depx: Total number of dependents (part of personal
exemption calculation).
- age1: Age of youngest dependent. Used for EITC, CTC
and CCC. For 1991+ code students between 20 and 23 as 19 to get the EITC
calculation correct. Code infants as “1”. If age1 is not present depx is
used for the number of child eligible for the EIC, CTC and CDCC.
- age2: Age of 2nd youngest dependent.
- age3: Age of 3rd youngest dependent.
Ages of any additional dependents are not relevant for the tax
calculation, but all dependents should be included in .
Incomes
- pwages: Wage and salary income of Primary Taxpayer
(exclude QBI).
- swages: Wage and salary income of Spouse (include
self-employment but no QBI). Must be zero or the column should not exist
for non-joint returns.
- psemp: Self-employment income of Primary Taxpayer
(exclude QBI).
- ssemp: Self-empoyment income of Spouse.
- dividends: Dividend income (qualified dividends
only for 2003 on).
- intrec: Interest income received (+/-).
- stcg: Short Term Capital Gains or losses (+/-).
- ltcg: Long Term Capital Gains or losses (+/-).
- otherprop: Other property income subject to NIIT,
including:
- Unearned or limited partnership and passive S-Corp profits;
- Rent not eligible for QBI deduction;
- Non-qualified dividends;
- Other income or loss not otherwise enumerated here.
- nonprop: Other non-property income not subject to
Medicare NIIT such as:
- Alimony;
- Nonwage fellowships;
- State income tax refunds (itemizers only);
- Alimony paid;
- Keogh and IRA contributions;
- Foreign income exclusion; and
- NOLs.
- pensions: Taxable Pensions and IRA distributions.
- ggsi: Gross Social Security Benefits.
- pui: Unemployment Compensation received - primary
taxpayer.
- sui: Unemployment compensation received - secondary
taxpayer. The split is relevant only 2020-2021.
- transfers: Other non-taxable transfer income such
as:
- Welfare;
- Workers comp;
- Veterans benefits; and
- Child support that would affect eligibility for state property tax
rebates but would not be taxable at the federal level.
- rentpaid: Rent paid (used only for calculating
state property tax rebates).
- proptax: Real Estate taxes paid. This is a
preference for the AMT and is is also used to calculate state property
tax rebates.
- otheritem: Other Itemized deductions that are a
preference for the Alternative Minimum Tax. These would include:
- Other state and local taxes (line 8 of Schedule A) plus local income
tax;
- Preference share of medical expenses; and
- Miscellaneous (line 27).
- childcare: Child care expenses.
The following are for the TCJA Business Tax
Deduction.
- scorp: Active S-Corp income (is SSTB).
- pbusinc: Primary Taxpayer’s Qualified Business
Income (QBI) subject to a preferential rate without phaseout and
assuming sufficient wages paid or capital to be eligible for the full
deduction. Subject to SECA and Medicare additional Earnings Tax.
- pprofinc: Primary Taxpayer’s Specialized Service
Trade or Business service (SSTB) with a preferential rate subject to
claw-back. Subject to SECA and Medicare Additional Earnings Tax.
- sbusinc: Spouse’s QBI. Must be zero for non-joint
returns, or the column should not exist.
- sprofinc: Spouse’s SSTB. Must be zero for non-joint
returns, or the column should not exist.