# Copyright 2022 Google LLC # # Licensed under the Apache License, Version 2.0 (the "License"); # you may not use this file except in compliance with the License. # You may obtain a copy of the License at # # http://www.apache.org/licenses/LICENSE-2.0 # # Unless required by applicable law or agreed to in writing, software # distributed under the License is distributed on an "AS IS" BASIS, # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. # See the License for the specific language governing permissions and # limitations under the License. # type: ignore """Tax Processing Functions""" from decimal import Decimal from typing import Dict, List, Tuple _FORM_1099DIV = "FORM_1099DIV" _FORM_1099INT = "FORM_1099INT" _FORM_1099MISC = "FORM_1099MISC" _FORM_1099NEC = "FORM_1099NEC" _FORM_W2 = "FORM_W2" # Standard Deduction for Single Filing in 2020 _STANDARD_DEDUCTION = 12400 def calculate_tax_values(data: dict) -> List[List]: # pylint: disable=too-many-locals """ Calculate tax values based on extracted data from documents """ form_1099div = data.get(_FORM_1099DIV) form_1099int = data.get(_FORM_1099INT) form_1099misc = data.get(_FORM_1099MISC) form_1099nec = data.get(_FORM_1099NEC) form_w2 = data.get(_FORM_W2) all_forms = [form_1099div, form_1099int, form_1099misc, form_1099nec, form_w2] # Don't continue if no data provided if not any(all_forms): return [] # Personal Information full_name, ssn, address = get_personal_info(all_forms) # Wages, salaries, tips, etc line_1 = get_numerical_form_value(form_w2, "WagesTipsOtherCompensation") # Taxable interest line_2b = get_numerical_form_value(form_1099int, "InterestIncome") # Qualified dividends line_3a = get_numerical_form_value(form_1099div, "QualifiedDividends") # Ordinary dividends line_3b = get_numerical_form_value(form_1099div, "TotalOrdinaryDividends") # Not used for this demo line_4b = 0 line_5b = 0 line_6b = 0 # Capital gain or (loss). line_7 = get_numerical_form_value(form_1099div, "TotalCapitalGainDistribution") # Other income from Schedule 1, line 9 line_8 = get_numerical_form_value( form_1099nec, "NonemployeeCompensation" ) + get_numerical_form_value(form_1099misc, "Rents") # Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8 line_9 = line_1 + line_2b + line_3b + line_4b + line_5b + line_6b + line_7 + line_8 # total adjustments to income line_10c = 0 # adjusted gross income line_11 = line_9 - line_10c # Standard Deduction line_12 = _STANDARD_DEDUCTION # Qualified business income deduction line_13 = 0 # Add lines 12 and 13 line_14 = line_12 + line_13 # Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- line_15 = max(0, line_11 - line_14) # Tax from Taxable Income line_16 = calculate_owed_tax(line_15) # Total Tax line_24 = line_16 # Tax Withheld from Form W-2 line_25a = get_numerical_form_value(form_w2, "FederalIncomeTaxWithheld") # Tax Withheld from Form 1099s line_25b = ( get_numerical_form_value(form_1099div, "FederalIncomeTaxWithheld") + get_numerical_form_value(form_1099int, "FederalIncomeTaxWithheld") + get_numerical_form_value(form_1099misc, "FederalIncomeTaxWithheld") + get_numerical_form_value(form_1099nec, "FederalIncomeTaxWithheld") ) # Total Tax Withheld line_25d = line_25a + line_25b # Total Payments line_33 = line_25d # FORMAT: Line Number, Comment, Data output_1040 = [ # Headers # ["Line Number", "Comment", "Data", "Source"], ["", "Full Name", full_name, ""], ["", "Social Security Number", ssn, ""], ["", "Home address", address, ""], ["1", "Wages, salaries, tips, etc.", line_1, _FORM_W2], ["2b", "Taxable interest", line_2b, _FORM_1099INT], ["3a", "Qualified dividends", line_3a, _FORM_1099DIV], ["3b", "Ordinary dividends", line_3b, _FORM_1099DIV], ["4b", "IRA distributions, Taxable Amount", line_4b, ""], ["5b", "Pensions and annuities, Taxable Amount", line_5b, ""], ["7", "Capital gain or (loss)", line_7, _FORM_1099DIV], [ "8", "Other income from Schedule 1, line 9", line_8, f"{_FORM_1099NEC} & {_FORM_1099MISC}", ], [ "9", "Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. \ This is your total income", line_9, "", ], ["10c", "Total adjustments to income", line_10c, ""], ["11", "Adjusted gross income", line_11, ""], ["12", "Standard deduction", line_12, ""], ["13", "Qualified business income deduction", line_13, ""], ["14", "Add lines 12 and 13", line_14, ""], [ "15", "Taxable income. Subtract line 14 from line 11. \ If zero or less, enter 0", line_15, "", ], ["16", "Tax from Taxable Income", line_16, ""], ["24", "Total Tax", line_24, ""], ["25a", "Tax Withheld from Form W-2", line_25a, _FORM_W2], [ "25b", "Tax Withheld from Form 1099(s)", line_25b, f"{_FORM_1099DIV}, {_FORM_1099INT}, {_FORM_1099NEC}, \ {_FORM_1099MISC}", ], ["25d", "Total Tax Withheld", line_25d, ""], ["33", "Total Payments", line_33, ""], ] # If line 33 is more than line 24, subtract line 24 from line 33. # This is the amount you overpaid if line_33 > line_24: line_34 = line_33 - line_24 output_1040.append( [ "34", "If line 33 is more than line 24, subtract line 24 from line 33. \ This is the amount you overpaid", line_34, ] ) else: # Subtract line 33 from line 24. # This is the amount you owe now line_37 = line_24 - line_33 output_1040.append( [ line_37, "If line 33 is less than line 24, subtract line 33 from line 24. \ This is the amount you owe now", line_37, ] ) return output_1040 def get_personal_info(forms: List[Dict]) -> Tuple[str, str, str]: """ Extract Name, SSN, and address from forms. Checks each form to see if it has the information. """ # pylint: disable=line-too-long full_name, ssn, address = "", "", "" for form in forms: if full_name and ssn and address: break if not form: continue if not full_name: full_name = form.get("EmployeeName", "") or form.get("RecipientName", "") if not ssn: ssn = form.get("SSN", "") or form.get("RecipientTIN", "") if not address: # Get Address as a single string address = ( form.get("EmployeeAddress", "") or form.get("RecipientAddress", "") or f'{form.get("RecipientAddressLine1", "")} {form.get("RecipientAddressLine2", "")}' or f'{form.get("RecipientStreetAddress", "")} {form.get("RecipientCityStateCountry", "")}' ) return full_name, ssn, address def get_numerical_form_value(form: dict, form_key: str) -> Decimal: """ Get the value of a form field as a Decimal. Remove $ and , from numbers """ if not form: return Decimal() raw_value = form.get(form_key, "0") clean_value = raw_value.replace("$", "").replace(",", "") or "0" return Decimal(clean_value) def calculate_owed_tax(line_15: Decimal) -> Decimal: """ Calculate Tax Based on 2020 Brackets Assumes Filing Single. """ brackets_2020 = [9_875, 40_125, 85_525, 163_300, 207_350, 518_400, -1] tax_rates_2020 = [0.10, 0.12, 0.22, 0.24, 0.32, 0.35, 0.37] cumulative_tax = Decimal(0) subtractive_income = line_15 for bracket, tax_rate in zip(brackets_2020, tax_rates_2020): tax_rate = Decimal(tax_rate) bracket = Decimal(bracket) if subtractive_income > bracket and bracket != -1: cumulative_tax += tax_rate * bracket subtractive_income -= bracket else: cumulative_tax += tax_rate * subtractive_income break return cumulative_tax.quantize(Decimal("0.01"))