Maryland Standard Deduction#
Maryland’s Earned Income Tax Credit (EITC) matches a percentage of the federal EITC depending on income and family structure. In 2021, single childless filers received 100% of the federal EITC up to $530, while other filers received 50% as a non-refundable credit and 45% as a refundable credit.
Examples#
Consider a set of Maryland households whose income is solely from earnings.
from policyengine_us import IndividualSim
import pandas as pd
import plotly.express as px
import numpy as np
def make(adults, children):
sim = IndividualSim(year=2022)
sim.add_person(name="head", age=25, is_tax_unit_head=True)
members = ["head"]
if adults > 1:
sim.add_person(name="spouse", is_tax_unit_head=False)
members += ["spouse"]
for i in range(children):
child = "child{}".format(i)
sim.add_person(name=child, age=5)
members += [child]
sim.add_tax_unit(
name="tax_unit",
members=members,
)
sim.add_spm_unit(name="spm_unit", members=members)
sim.add_household(name="household", members=members, state_code="MD")
sim.vary("employment_income", max=60_000, step=100)
return pd.DataFrame(
dict(
employment_income=sim.calc("employment_income")[0],
standard_deduction=sim.calc("md_standard_deduction")[0].round(),
adults=adults,
children=children,
)
)
l = []
for adults in range(1, 3):
l.append(make(adults, 0))
df = pd.concat(l)
df["Filing Status"] = np.where(df.adults == 1, "Single", "Other")
LABELS = dict(
employment_income="Employment income",
standard_deduction="MD Standard Deduction",
adults="Adults",
children="Children",
)
fig = px.line(
df,
"employment_income",
"standard_deduction",
color="Filing Status",
labels=LABELS,
title="Maryland Standard Deduction",
)
fig.update_layout(
xaxis_tickformat="$,",
yaxis_tickformat="$,",
yaxis_range=[0, df.standard_deduction.max() * 1.05],
)
fig.show()