Fix NY inflation refund credit to use 2023 tax year

changelog.d/ny-inflation-refund-year-fix.fixed.md

@@ -0,0 +1 @@
+Clarify NY inflation refund credit is a 2025 tax year credit with eligibility based on 2023 data.

policyengine_us/tests/policy/baseline/gov/states/ny/tax/income/credits/ny_inflation_refund_credit.yaml

@@ -1,131 +1,121 @@
-- name: NY 2025 inflation refund credits - joint filer under $150k gets $400
+# NY inflation refund credit: Tax Law §606(qqq)
+# Credit is for tax year 2025, but eligibility uses 2023 tax return data.
+# Note: PE uses 2025 NY AGI as a proxy since cross-year lookups are not
+# supported. The statute determines eligibility from 2023 IT-201 line 33.
+
+- name: NY inflation refund credit, joint filer under $150k gets $400.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 100_000
     filing_status: JOINT
   output:
     ny_inflation_refund_credit: 400
 
-- name: NY 2025 inflation refund credits - joint filer between $150k-$300k gets $300
+- name: NY inflation refund credit, joint filer between $150k-$300k gets $300.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 200_000
     filing_status: JOINT
   output:
     ny_inflation_refund_credit: 300
 
-- name: NY 2025 inflation refund credits - joint filer over $300k gets $0
+- name: NY inflation refund credit, joint filer over $300k gets $0.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 350_000
     filing_status: JOINT
   output:
     ny_inflation_refund_credit: 0
 
-- name: NY 2025 inflation refund credits - surviving spouse under $150k gets $400
+- name: NY inflation refund credit, surviving spouse under $150k gets $400.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 100_000
     filing_status: SURVIVING_SPOUSE
   output:
     ny_inflation_refund_credit: 400
 
-- name: NY 2025 inflation refund credits - single filer under $75k gets $200
+- name: NY inflation refund credit, single filer under $75k gets $200.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 50_000
     filing_status: SINGLE
   output:
     ny_inflation_refund_credit: 200
 
-- name: NY 2025 inflation refund credits - single filer between $75k-$150k gets $150
+- name: NY inflation refund credit, single filer between $75k-$150k gets $150.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 100_000
     filing_status: SINGLE
   output:
     ny_inflation_refund_credit: 150
 
-- name: NY 2025 inflation refund credits - single filer over $150k gets $0
+- name: NY inflation refund credit, single filer over $150k gets $0.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 175_000
     filing_status: SINGLE
   output:
     ny_inflation_refund_credit: 0
 
-- name: NY 2025 inflation refund credits - head of household under $75k gets $200
+- name: NY inflation refund credit, head of household under $75k gets $200.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 60_000
     filing_status: HEAD_OF_HOUSEHOLD
   output:
     ny_inflation_refund_credit: 200
 
-- name: NY 2025 inflation refund credits - married filing separate between $75k-$150k gets $150
+- name: NY inflation refund credit, married filing separate between $75k-$150k gets $150.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 100_000
     filing_status: SEPARATE
   output:
     ny_inflation_refund_credit: 150
 
-- name: NY 2025 inflation refund credits - not available outside of NY
+- name: NY inflation refund credit, not available outside of NY.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: CA
     ny_agi: 50_000
     filing_status: SINGLE
   output:
     ny_inflation_refund_credit: 0
 
-
-- name: NY 2024 inflation refund credits - not available before 2025
+- name: NY inflation refund credit, not available before 2025.
   period: 2024
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 50_000
     filing_status: SINGLE
   output:
     ny_inflation_refund_credit: 0
 
-- name: NY 2026 inflation refund credits - not available after 2025
+- name: NY inflation refund credit, not available after 2025.
   period: 2026
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 50_000
     filing_status: SINGLE
   output:
     ny_inflation_refund_credit: 0
 
-- name: NY 2025 inflation refund credits - single filer with zero AGI should get credit
+- name: NY inflation refund credit, single filer with zero AGI gets $200.
   period: 2025
-  absolute_error_margin: 0
   input:
     state_code: NY
     ny_agi: 0
     filing_status: SINGLE
   output:
     ny_inflation_refund_credit: 200
-

policyengine_us/variables/gov/states/ny/tax/income/credits/ny_inflation_refund_credit.py

@@ -4,16 +4,21 @@
 class ny_inflation_refund_credit(Variable):
     value_type = float
     entity = TaxUnit
-    label = "New York 2025 inflation refund credits"
+    label = "New York inflation refund credit"
     unit = USD
     definition_period = YEAR
-    reference = "https://www.nysenate.gov/legislation/laws/TAX/606#QQQ"
+    reference = (
+        "https://www.nysenate.gov/legislation/laws/TAX/606#QQQ",
+        "https://www.tax.ny.gov/pit/inflation-refund-checks.htm",
+    )
     defined_for = StateCode.NY
 
     def formula(tax_unit, period, parameters):
         return 0
 
     def formula_2025(tax_unit, period, parameters):
+        # Credit is for tax year 2025 per Tax Law §606(qqq), but eligibility
+        # is determined using 2023 tax return data (NY AGI from IT-201 line 33).
         p = parameters(period).gov.states.ny.tax.income.credits.inflation_refund
         agi = tax_unit("ny_agi", period)
         filing_status = tax_unit("filing_status", period)