Input parameters needed for qualified business income deduction

[Peter-Metz]

The phaseout of the qualified business income deduction (QBID) is determined by three factors:

• Whether the business is a specialized service business (PT_SSTB_income).
• The amount of W-2 wages that business pays (PT_binc_w2_wages).
• The filer's share of qualified properties (PT_ubia_property).

However, all three of these variables are zero in the PUF and CPS. Even though the Tax-Calculator logic appears correct, the aggregate amounts of QBID do not align with outside revenue estimates because the phaseout is not being applied properly.

This issue was first identified by @erinmelly and @kpomerleau over in PSLmodels/Tax-Calculator#2385 but I thought I'd bring it to taxdata because the root of the problem is with the data.

[andersonfrailey]

Thanks for bringing this over, @Peter-Metz. Do you think we have the data needed to impute these variables already or will we probably have to find another data source to do so?

[martinholmer]

@Peter-Metz said:

This issue was first identified by @erinmelly and @kpomerleau over in PSLmodels/Tax-Calculator#2385 but I thought I'd bring it to taxdata because the root of the problem is with the data.

This statement is simply not true. This issue was raised long ago on June 23 of 2019 in taxdata issue #319.