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@DTrim99 DTrim99 commented Dec 29, 2025

Summary

Update the Virginia individual income tax model for tax year 2025. This includes:

  • Adding 2025 references (with page numbers) to all parameters
  • Updating parameter values where they have changed
  • Adding new 2025 integration tests
  • Implementing new programs that can be modeled with existing variables

Fixes #7056

Status

  • Add 2025 references to all 26 parameter files
  • Update itemized deduction applicable amounts for 2025
  • Add 2024 rebate values ($200/$400) and 2025 values ($0)
  • Verify filing requirement thresholds for 2025
  • Verify spouse tax adjustment cap for 2025
  • Create 2025 integration tests
  • Update existing tests to cover 2025 scenarios
  • Add changelog entry
  • Consider implementing Credit for Taxes Paid to Another State
  • Consider implementing Food Donation Tax Credit
  • Consider implementing Firearm Safety Device Credit

Primary Source

2025 Virginia Form 760 Instructions


This is a draft PR created for early visibility. Implementation work is in progress.

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codecov bot commented Dec 29, 2025

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 72.81%. Comparing base (fd6b2c5) to head (27d1932).
⚠️ Report is 71 commits behind head on main.

Additional details and impacted files
@@             Coverage Diff              @@
##              main    #7057       +/-   ##
============================================
- Coverage   100.00%   72.81%   -27.19%     
============================================
  Files           11     3550     +3539     
  Lines          146    51113    +50967     
  Branches         0      263      +263     
============================================
+ Hits           146    37219    +37073     
- Misses           0    13874    +13874     
- Partials         0       20       +20     
Flag Coverage Δ
unittests 72.81% <ø> (-27.19%) ⬇️

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- 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>
@DTrim99 DTrim99 force-pushed the update-va-2025-income-tax branch from 0befdbf to 27d1932 Compare December 29, 2025 19:05
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PR Review Summary

This PR updates Virginia individual income tax parameters and tests for tax year 2025. The changes are well-organized and comprehensive.

Strengths

Parameter Updates (22 files):

  • Added 2025 references to all parameter files pointing to 2025 Form 760 Instructions with specific page numbers
  • Rebate values properly updated: 2024 ($200/$400) and 2025 ($0)
  • References reordered chronologically (newest first) for better readability
  • Fixed typo: "Appropirations" -> "Appropriations" in refundable.yaml

Test Coverage:

  • Added 2025 EITC tests (both refundable and non-refundable at 20%)
  • Added 2025 standard deduction tests for all filing statuses
  • Added 2025 age deduction, personal exemption, aged/blind exemption tests
  • Added 2025 military benefit subtraction tests
  • Added 2025 rebate tests (correctly expecting $0)
  • Tests properly use underscore thousands separators

Documentation:

  • Changelog entry properly formatted with all major changes listed
  • PR description includes clear status checklist and primary source reference

CI Status

Failing:

  • Check uv.lock freshness - The lock file needs to be updated. Run uv lock to regenerate it.

Pending:

  • Full test suites are still running

Passing:

  • Lint
  • Quick Feedback tests
  • Check version

Verification

EITC match rates verified against Virginia Tax guidance:

  • Non-refundable EITC: 20% of federal EITC (unchanged)
  • Refundable EITC: 20% of federal EITC (increased from 15% for 2025)

Minor Observations

  1. Draft PR: The PR description indicates this is a draft for early visibility. The checklist shows several items still pending completion.

  2. Future work mentioned: The PR description mentions potential future credits to implement (Credit for Taxes Paid to Another State, Food Donation Tax Credit, Firearm Safety Device Credit) - these are appropriately tracked as future considerations.

Required Action

To fix the CI failure, run:

uv lock

Then commit and push the updated uv.lock file.

Summary

This is a well-structured parameter update with comprehensive test coverage for Virginia 2025 income tax. The EITC rates have been verified against official sources. Once the uv.lock file is updated and full test suites pass, this should be ready for merge.

@DTrim99 DTrim99 merged commit 27d1932 into PolicyEngine:main Dec 29, 2025
8 of 10 checks passed
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Update Virginia 2025 Individual Income Tax Model

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