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Merged
PavelMakarchuk merged 3 commits into from
Jan 29, 2026
Merged

Update Virginia 2025 income tax parameters and tests #7059

PavelMakarchuk merged 3 commits into from
Jan 29, 2026

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@DTrim99
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@DTrim99 DTrim99 commented Dec 29, 2025

Summary

Update the Virginia individual income tax model for tax year 2025 based on the 2025 Form 760 Instructions.

Parameter Updates (21 files)

  • Added 2025 Form 760 references with page numbers to all parameter files
  • Updated rebate parameter with 2024 values ($200/$400) and 2025 values ($0)

Tests Added

  • Standard deduction: $8,750 single, $17,500 joint, $8,750 separate
  • Refundable EITC: 20% match rate
  • Non-refundable EITC: 20% match rate
  • Military benefit subtraction: $40,000 limit for 2025
  • Age deduction: Full amount and phase-out tests
  • Exemptions: Personal ($930) and aged/blind ($800) unchanged
  • Rebate: 2024 ($200/$400) and 2025 ($0)

Key 2025 Values

Parameter 2025 Value
Standard Deduction (Single) $8,750
Standard Deduction (Joint) $17,500
Personal Exemption $930
Aged/Blind Exemption $800
EITC Match Rate 20%
Military Benefit Subtraction Limit $40,000
Age Deduction Maximum $12,000
Rebate $0 (discontinued)

References

Fixes #7056

🤖 Generated with Claude Code

@DTrim99 @claude
Update Virginia 2025 income tax parameters and tests
9730918 
- Add 2025 Form 760 references to 21 parameter files
- Update rebate parameter with 2024 values ($200/$400) and 2025 values ($0)
- Add 2025 tests for standard deduction ($8,750 single, $17,500 joint)
- Add 2025 tests for EITC at 20% match rate
- Add 2025 tests for military benefit subtraction ($40,000 limit)
- Add 2025 tests for age deduction, exemptions, and rebate

Fixes PolicyEngine#7056

🤖 Generated with [Claude Code](https://claude.com/claude-code)

Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
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codecov bot commented Dec 29, 2025 •
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Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 72.72%. Comparing base (5bff5a6) to head (66ccff2).
⚠️ Report is 436 commits behind head on main.

Additional details and impacted files 
@@             Coverage Diff              @@
##              main    #7059       +/-   ##
============================================
- Coverage   100.00%   72.72%   -27.28%     
============================================
  Files            7     3757     +3750     
  Lines           94    54115    +54021     
  Branches         0      267      +267     
============================================
+ Hits            94    39353    +39259     
- Misses           0    14742    +14742     
- Partials         0       20       +20
Flag Coverage Δ
unittests 72.72% <ø> (-27.28%) ⬇️

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@DTrim99 DTrim99 marked this pull request as ready for review December 29, 2025 20:51
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DTrim99 commented Jan 29, 2026

PR Review: Virginia 2025 Income Tax Updates

🟢 No Critical Issues Found

This PR correctly updates Virginia income tax parameters for tax year 2025. All key values have been verified against official Virginia Department of Taxation sources.

✅ Verified Against Official Sources

Parameter PR Value Official Source Status
Standard Deduction (Single) $8,750 Form 760 Instructions ✅ Verified
Standard Deduction (Joint) $17,500 Form 760 Instructions ✅ Verified
Standard Deduction (Separate) $8,750 Form 760 Instructions ✅ Verified
EITC Refundable Match 20% VA Tax Website ✅ Verified
EITC Non-Refundable Match 20% Form 760 p.31 ✅ Verified
Personal Exemption $930 Form 760 p.15 ✅ Unchanged
Aged/Blind Exemption $800 Form 760 p.15 ✅ Unchanged
Military Benefit Subtraction $40,000 Form 760 p.27 ✅ Verified
Age Deduction Maximum $12,000 Form 760 p.16 ✅ Verified
2024 Rebate (Single) $200 HB 1600 ✅ Verified
2024 Rebate (Joint) $400 HB 1600 ✅ Verified
2025 Rebate $0 No rebate for TY2025 ✅ Correct

🟡 Minor Suggestions (Optional)

  1. Typo fix already included: Good catch on fixing "Appropirations" → "Appropriations" in the EITC refundable parameter.

  2. Reference ordering: References are now consistently ordered newest-to-oldest (2025 first), which improves readability.

Validation Summary

Check Result
Regulatory Accuracy ✅ All values match official sources
Reference Quality ✅ All parameters have 2025 Form 760 references with page numbers
Code Patterns ✅ Proper YAML structure and date formatting
Test Coverage ✅ Comprehensive 2025 tests for all updated parameters
CI Status ✅ All tests passing

Test Coverage Review

Excellent test coverage including:

  • Standard deduction for all filing statuses
  • Refundable and non-refundable EITC at 20%
  • Military benefit subtraction at $40,000 limit
  • Age deduction full amount and phase-out scenarios
  • Rebate tests for 2024 ($200/$400) and 2025 ($0)
  • Personal and aged/blind exemptions confirmed unchanged

Recommendation

APPROVE - This PR is well-constructed with proper references to the 2025 Form 760 Instructions and comprehensive test coverage. All parameter values have been verified against official Virginia Department of Taxation guidance.

Sources:

🤖 Generated with Claude Code

@DTrim99 @claude
Address review feedback: remove redundant rebate entries, add 2025 it…
66ccff2 
…emized deduction thresholds.

- Remove redundant 2024-01-01 rebate entries (2023 values carry forward)
- Add 2025-01-01 itemized deduction thresholds per 2025 VA Schedule A:
  - Joint/Surviving Spouse: $399,200
  - Single: $332,700
  - Separate: $199,600
  - Head of Household: $365,950

Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
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DTrim99 commented Jan 29, 2026

Addressed Pavel's Review Comments

Changes made:

  1. Rebate parameter (amount.yaml): Removed redundant 2024-01-01 entries. The 2023 values ($200/$400) now carry forward to 2024 automatically. Kept 2025-01-01: 0 to disable the rebate for tax year 2025.

  2. Itemized deduction thresholds (applicable_amount.yaml): Added 2025 inflation-adjusted values per 2025 Virginia Schedule A:

    Filing Status 2025 Threshold
    Joint / Surviving Spouse $399,200
    Single $332,700
    Separate $199,600
    Head of Household $365,950

The 2024 rebate tests still pass because the 2023 values carry forward.

@PavelMakarchuk PavelMakarchuk merged commit 93aac92 into PolicyEngine:main Jan 29, 2026
8 of 9 checks passed
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@PavelMakarchuk PavelMakarchuk PavelMakarchuk approved these changes

@hua7450 hua7450 Awaiting requested review from hua7450

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Update Virginia 2025 Individual Income Tax Model

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@DTrim99 @PavelMakarchuk