Apply New Jersey, North Dakota, Ohio, Oklahoma and Pennsylvania rules for a filer who can be claimed as a dependent

[MaxGhenis]

Summary

A return on which the filer (or, if joint, either spouse) can be claimed as a dependent on another return has no dependents (IRC 152(b)(1); Publication 501: "you and your spouse can't claim any dependents on your joint return"), unless the would-be claimant is not required to file and files only for a refund (Publication 501's exception). New Jersey, North Dakota, Ohio, Oklahoma and Pennsylvania count only federal dependents, and several of their provisions also bar the claimable or claimed filer directly. The model applied none of these state rules. This PR applies them, reading the federal branch's three inputs as each rule's wording requires and never reading only the head:

• "can be claimed" (an own exemption): claimable_as_dependent_on_another_return;
• the Dependent Taxpayer Test and the childless EITC (152(b)(1), 32(c)(1)(A)(ii)(III)): head_or_spouse_is_dependent_elsewhere_without_filing_exception;
• "is a dependent on / listed as a dependent on another return" (an actual claim): claimed_as_dependent_on_another_return.

Stacked on #10087 (claimable-filer-federal, head 35a2cbc: federal CTC/ODC, child care qualifying child, exemptions_count, education credits, student loan interest and the input split) and #10024. Retarget to main once both have merged. repeal_state_dependent_exemptions.py is also changed by #10045 and #10053; the hub's landing order is #10045, then this PR, then #10053.

Formula	Rule now	Source
nj_dependents_exemption	No dependents when a filer can be claimed (outside the refund-only exception); the filer's own exemption stays	N.J.S.A. 54A:3-1; NJ-1040 lines 10-11: "each child who qualifies as your dependent for federal tax purposes" (2025 instructions p.9)
nj_dependents_attending_college_exemption	Same dependent test	N.J.S.A. 54A:3-1.1; line 12: "Student must be claimed as a dependent on line 10 or 11" (p.9)
nj_ctc	Counts only dependents the return can claim	N.J.S.A. 54A:4-17.1 (dependents under 54A:3-1); line 65 "each dependent who is age 5 or younger" (p.46)
nj_childless_eitc_age_eligible	The age fallback applies the federal childless dependency test (either spouse, with the refund-only exception) and the form's "not listed as a dependent" test (an actual claim, either spouse); the age test applies to filers only; the section 911 condition from #9750 stays	P.L.2021 c.130 keeps "all qualifications, except for the minimum or maximum age"; IRC 32(c)(1)(A)(ii)(III); line 58: "You are not listed as a dependent on another tax return" (p.44)
nd_stillborn_subtraction	None when a filer can be claimed (outside the exception)	Schedule ND-1SA line 8: "You would have been eligible to claim the child as a dependent on your 2025 federal income tax return" (2025 ND-1SA p.2); see reading 1
oh_non_public_school_credits_potential	Tuition paid for the return's dependents only	R.C. 5747.75: tuition "for all of the taxpayer's dependents"; 5747.01(O): "Dependents" means dependents as defined in the IRC
ok_count_exemptions (and ok_exemptions)	No regular exemption for a filer who can be claimed (per filer); no dependents when a filer can be claimed (outside the exception); the special (65+) and blind exemptions stay	Form 511 item F: "If you can be claimed as a dependent on another return, enter '0' for your exemption"; spouse only if the "spouse cannot be claimed"; dependents "as defined in IRC Sec. 152" (2025 Form 511 packet p.8-9)
ok_stc	$40 per allowable exemption, read from exemptions_count (filers who cannot be claimed, plus dependents unless a filer can be claimed outside the exception); the $50,000 limit needs a dependent the return can claim	68 O.S. 5011(D): $40 "multiplied by the number of allowable personal exemptions", those under the Income Tax Act except the blind and 65+ ones (as codified in 2021, quoted in HB 1013XX p.5); 68 O.S. 2358(E) ("in lieu of the personal exemptions allowed by the Internal Revenue Code"); Form 538-S: a dependent "must qualify and be claimed as a dependent for federal income tax purposes"
ok_federal_eitc_demographic_eligible	The frozen-2020 childless route applies the dependency test (either spouse, with the exception), and the age test to filers only	68 O.S. 2357.43 uses the 2020 federal rules; IRC 32(c)(1)(A)(ii)(II)-(III); 2020 Pub. 596 p.17: "neither you nor your spouse can be claimed as a dependent by another person"
pa_tax_forgiveness_rate	No dependent child allowance when a filer can be claimed (outside the exception)	Tax Reform Code 301(e.1): "Dependent" means "a child who is the dependent of a claimant for purposes of section 151" (p.113)
pa_tax_forgiveness_amount, new pa_tax_forgiveness_eligible, pa_tax_forgiveness_eligible_share, input pa_tax_forgiveness_parent_qualifies	Forgiveness only on the tax of a filer who is not claimed elsewhere (an actual claim) or whose claiming parent qualifies; one claimed spouse leaves the other spouse's separate claim on joint eligibility income	301(c.2): a "Claimant" "is not a dependent of another taxpayer for purposes of section 151" (p.112); Schedule SP line 1: "Are you a dependent on another taxpayer's ... federal tax return?"; "A dependent child may also be eligible if he or she is a dependent on the PA-40 Schedule SP of his or her parents"; "When one spouse is claimed as a dependent on another person's federal income tax return, otherwise qualifying married taxpayers must file separately" (2025 PA-40 SP p.3-5); PIT guide: "Each spouse's tax forgiveness, if any, must be determined separately"

The contributed reforms that copy these formulas follow suit: nj_dependent_exemption_reform, ok_dependent_exemption_reform, the Oklahoma count in repeal_state_dependent_exemptions (own exemption reads claimability), and TAXSIM's PA forgiveness rate.

Audit rows already fixed upstream (checked against the code on #10087)

These state formulas read a federal output that the base branches correct, so this PR changes no code for them; it adds YAML cases that pin the inherited result (S / J1 / J2 / J0, 2025, hand-computed).

Audit row	Reads	Fixed by	Pinned here
NC child deduction (G.S. 105-153.5(a1))	ctc_qualifying_children	#10087: ctc_qualifying_child	nc_child_deduction $0 / $0 / $0 / $3,000
NJ EITC, federal path	eitc_eligible, eitc	#10024 childless gate	nj_eitc $0 / $0 / $0 / $91.80
OH EITC (5747.71)	eitc	#10024	not pinned (30% of the federal credit)
PA Working Pennsylvanians credit	eitc	#10024	pa_eitc $0 / $0 / $0 / $22.95
NJ, OH, OK, PA child and dependent care credits	cdcc, cdcc_potential	#10087: is_cdcc_eligible ordinary-child branch and cdcc_qualifying_childcare_expenses	pa_cdcc $0 / $0 / $0 / $320
OK combined child care / child tax credit, CTC branch	ok_federal_ctc (federal CTC)	#10087	ok_child_care_child_tax_credit $0 / $0 / $0 / $56.25
OH dependent personal exemptions and $20 exemption credit	oh_personal_exemptions_eligible_person, exemptions_count	#10087	(#10087 tests)
Student loan interest in the NC, ND, OH and OK income bases	federal AGI	#10087	(#10087 tests)

Readings for Max (for the US + core hub to batch)

1. North Dakota stillborn subtraction. N.D.C.C. 57-38-30.3(2)(p) allows it "for each birth resulting in stillbirth" with no dependency condition (current code p.35); Schedule ND-1SA adds "You would have been eligible to claim the child as a dependent". Implemented: the form (S / J1 / J2 / J0 = $0 / $0 / $0 / $5,241 in 2025). Statute-only alternative: $5,241 in all four.
2. Pennsylvania, one claimed spouse. Implemented: the unclaimed spouse claims Tax Forgiveness on their own tax, using joint eligibility income and the married table, as Schedule SP says for "Married with a spouse who is a dependent" (Columns B and C; Table 2 "Married Claimants, even if filing separately"); J1 with $3,000 each = $92.10. Alternatives: treat the federal joint return as an invalid PA joint claim ($0), or forgive the whole return ($184.20). The PIT guide also lists married-filing-separately claimants among single claimants, which would point to Table 1. Each spouse's own tax is approximated by that spouse's share of the spouses' Pennsylvania taxable income, leaving out amounts recorded only for the tax unit (US government interest, the 529 deduction).
3. Pennsylvania parent exception as an input. A claimed filer qualifies only if "the taxpayer on whose return the dependency is claimed also qualifies" (Schedule SP line 2). The model does not link the claiming parent's return, so this is a new person input, pa_tax_forgiveness_parent_qualifies (default false), the answer to that form line. Alternative: no input, always deny. (The Axiom report notes 301(c.2) on its face excludes any dependent from being a claimant; the route rests on Schedule SP and the PIT guide.)
4. Oklahoma special (65+) and blind exemptions for a claimable filer. Kept: Form 511 asks for "0" only on the regular exemption, and the special and blind exemptions are separate boxes "for each taxpayer or spouse" with no dependency bar. Alternative: drop them with the regular exemption (a claimable 66-year-old single filer: 1 exemption kept vs 0).
5. Ohio unsubsidized health insurance / LTC deduction (audit P2). Not changed. R.C. 5747.01(A)(10) imports IRC 213's rules, and 213 defines a dependent "without regard to subsections (b)(1), (b)(2), and (d)(1)(B)" of 152, which supports the current (broad) reading; the narrower reading would deny a claimable filer's dependents' premiums. The audit recommends getting the department's interpretation first.

The earlier reading on actual claim vs claimability is no longer a reading: with the federal branch's split inputs, the actual-claim wording (NJ line 58, PA Schedule SP) reads claimed_as_dependent_on_another_return, and the "can be claimed" and dependent rules read claimability.

Not implemented (audit P2/P3 and unmodeled programs)

• ND renter refund: related co-residents share one refund (N.D.C.C. 57-02-08.1); this needs linked households and a claimant choice, not a claimability gate.
• OH Pell/OCO grant deduction: modeled from raw pell_grant; the error is not claimability-specific (needs a qualifying-grant input).
• Unmodeled programs with a dependent branch: NJ organ donor and college tuition deductions, NJ health insurance mandate, ND organ donor deduction and homestead credit, OH home-instruction credit and adopted-student grant deduction, OK living organ donor deduction, PA HSA/MSA deductions and 2025-26 student loan deduction (statute/form conflict).
• Federal HSA deduction (IRC 223(b)(6), per account beneficiary), which the NC, ND, OH and OK income bases inherit: health_savings_account_ald is an input with no eligibility formula, so there is nothing to gate (audit P2, model scope).
• PA child care credit's 2022 federal-percentage freeze (Fiscal Code 1605-W) is a separate year issue, not a claimability one; so is the audit's note that the model applies Oklahoma's frozen 2020 EITC rules in 2021, while the 2021 Form 511 refers to the current federal credit and HB 2962's change begins in 2022.
• PA's dependent-child definition (children, grandchildren and foster children only) is not applied; is_qualifying_child_dependent is the existing proxy.

Changes not gated on the claimability inputs

Three fixes sit in lines this PR touches and apply even when nobody can be claimed: Ohio's tuition credit no longer counts tuition recorded on a filer (the existing cases now record it on a dependent child), and the NJ and Oklahoma childless-EITC age tests look only at filers, as the federal formula does, so a dependent's age no longer qualifies a filer. MICROSIM_UNGATED_PLACEHOLDER

Invariants

1. Swap invariance. Every changed output is the same under either head/spouse labelling, with claimability, the actual claim and the refund-only exception drawn per adult.
2. Monotonicity. Marking another filer as claimed (and so claimable) never raises any changed benefit, exemption, deduction or forgiveness amount.
3. No change when nobody can be claimed, apart from the three ungated fixes above (checked on the default dataset, where nobody is flagged).
4. Pennsylvania share. pa_tax_forgiveness_eligible_share is in [0, 1] and equals 1 when no filer is claimed; forgiveness never exceeds tax before forgiveness.

Tests

• YAML: variable-named cases for every changed formula: a single claimable filer, a joint return with one claimable spouse under both head/spouse labellings (person_a keeps every input), both claimed, neither claimed, and an unclaimed single control; cases where a filer can be claimed but is not, and where the would-be claimant files only for a refund; the PA parent exception, the OK special/blind boxes, the OK $50,000 limit, filer-only age tests, the reform copies and the rewritten Ohio tuition cases. YAML_RESULTS_PLACEHOLDER
• Property test policyengine_us/tests/core/test_claimable_filer_nj_pa_invariants.py reuses check_swap and check_monotone on Hypothesis batches (tuition on dependents, the PA parent input, and claimability, claim and exception drawn per adult) and a seeded population in the six states, 2022, 2025 and 2026. PROPERTY_RESULTS_PLACEHOLDER

Microsimulation impact

MICROSIM_PLACEHOLDER

Axiom parity

AXIOM_PLACEHOLDER

🤖 Generated with Claude Code

Merge with main after #10087

Merged main at 6989afda4698d6c643f5dd0ef7ad19aff9f769b8. Conflicts in nm_medical_expense_credit.py, nm_medical_expense_credit.yaml, and ca_cdcc_relevant_expenses.yaml take main's reviewed versions because this PR left all three unchanged from its federal base. Removed the obsolete federal changelog fragments claimable-filer-federal.fixed.md and head-dependent-elsewhere-swap.fixed.md. Before the syntax-only repair below, the exact replay check passed: the merge diff against main matched all 39 paths in this PR's original patch, with no unrelated changes.

A separate syntax-only commit quotes 148 YAML case names across 14 files whose unquoted colons prevented parsing. Verification confirms that the intended names and every test input/output value are preserved, with no other line changes; all 19 YAML files parse into 299 cases. The final diff matches the original patch in substance, with this name-quoting syntax repair as the only exception.

Validation: all 20 changed test files passed (299 YAML cases and 4 Python tests). make format and Ruff 0.15.5 format --check / check passed.

[MaxGhenis]

Status (owner session resumed 2026-10-11 ~16:00Z; not for adoption):

• Merged Apply the federal rules for a filer who can be claimed as a dependent #10087 (claimable-filer-federal 35a2cbc); no conflicts. nj_childless_eitc_age_eligible keeps the section 911 condition from Deny the refundable CTC and the EITC to section 911 filers (26 U.S.C. 24(d)(3), 32(c)(1)(C), 6012(c)) #9750/Add excluded foreign earnings to Massachusetts gross income #9976.
• Reads repointed to the split inputs: the 152(b)(1) and childless-EITC gates use head_or_spouse_is_dependent_elsewhere_without_filing_exception; Oklahoma's own exemption uses claimable_as_dependent_on_another_return; NJ line 58 and Pennsylvania's Schedule SP rules use claimed_as_dependent_on_another_return. New cases cover a filer who can be claimed but is not, and a claimant who files only for a refund.
• In progress: YAML and property tests under the shared heavy lock, microsims (federal vs this branch, 2025 and 2026), and an independent review (Subfleet 20261011-122316-cf-nj-pa-review-r1). The body's placeholders are filled when these finish; then the PR goes to the US + core hub.
• Axiom: 16 provisions, all queued; 6 dispatch-ready drafts are held for Max's go (claimable-filer-rules/axiom/nj-pa.out.md plus nj-pa-addendum.md).