Derive partnership_se_income from PUF source columns #485
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…columns The raw IRS PUF doesn't contain k1bx14p/k1bx14s columns - these are derived by PSLmodels/taxdata from the total SE income (E30400/E30500) minus Schedule C (E00900) and Schedule F (E02100) income. This fix implements the same derivation logic from taxdata's finalprep.py split_earnings_variables function. The formula is: partnership_se = (E30400 + E30500) - E00900 - E02100 This ensures partnership_se_income has non-zero values in the PUF-based datasets, enabling accurate SE tax calculations for general partners. Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
The E30400/E30500 PUF columns are already TAXABLE SE income (post-0.9235
deduction factor). Since PolicyEngine applies the 0.9235 factor itself in
taxable_self_employment_income, we need to provide GROSS partnership SE income.
Changes:
- Gross up E30400+E30500 by dividing by 0.9235 before subtracting Sch C/F
- Only compute when partnership activity exists (E25940+E25980-E25920-E25960 != 0)
This aligns with Yale Budget Lab's Tax-Data approach in process_puf.R:
part_se = if_else(E25940 + E25980 - E25920 - E25960 != 0,
(E30400 + E30500) / 0.9235 - E00900 - E02100, 0)
Weighted sum increases from $12.7B to $55.7B, which is more realistic given
total SE income of ~$400B.
Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
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Summary
partnership_se = (E30400 + E30500) - E00900 - E02100Background
The previous code looked for
k1bx14pandk1bx14scolumns in the PUF, defaulting to 0 when not found. However, these columns don't exist in the raw IRS PUF - they're derived by PSLmodels/taxdata infinalprep.py.The derivation logic is:
This ensures the SE tax calculation in PolicyEngine correctly includes partnership income for general partners.
Test plan
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