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Fix VA spouse tax adjustment using incorrectly prorated VAGI#7480

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PavelMakarchuk wants to merge 4 commits intomainfrom
fix-va-spouse-tax-adjustment-vagi
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Fix VA spouse tax adjustment using incorrectly prorated VAGI#7480
PavelMakarchuk wants to merge 4 commits intomainfrom
fix-va-spouse-tax-adjustment-vagi

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Summary

  • Fix va_agi_person to apply the age deduction directly to eligible persons instead of prorating it across both spouses by federal AGI share
  • Create va_age_deduction_person variable to allocate the TaxUnit-level age deduction to each eligible person
  • Non-age subtractions remain prorated by federal AGI share (appropriate since they correlate with income)

Closes #6958

Test plan

  • 3 va_agi_person tests pass (2 updated + 1 new)
  • 7 va_spouse_tax_adjustment_eligible tests pass (6 existing + 1 new integration test from issue)
  • All 267 VA tests pass with no regressions

🤖 Generated with Claude Code

PavelMakarchuk and others added 4 commits February 23, 2026 16:48
The va_agi_person formula prorated combined VA AGI by each person's
federal AGI share, which incorrectly spread person-specific subtractions
(especially the $12K age deduction) across both spouses. This made
elderly spouses with income below the age deduction appear to have
positive VAGI, incorrectly qualifying the couple for the spouse tax
adjustment.

Now applies the age deduction directly to each eligible person and only
prorates non-age subtractions by federal AGI share.

Closes #6958

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
Tests the full computation chain from employment_income through
va_income_tax, matching TaxAct output exactly ($1,402.22).

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
@PavelMakarchuk PavelMakarchuk marked this pull request as ready for review February 23, 2026 22:17
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codecov bot commented Feb 23, 2026

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (fe9f829) to head (4990e2d).
⚠️ Report is 34 commits behind head on main.

Additional details and impacted files
@@             Coverage Diff              @@
##             main     #7480       +/-   ##
============================================
+ Coverage   70.60%   100.00%   +29.39%     
============================================
  Files        3896         2     -3894     
  Lines       56278        38    -56240     
  Branches      277         0      -277     
============================================
- Hits        39735        38    -39697     
+ Misses      16542         0    -16542     
+ Partials        1         0        -1     
Flag Coverage Δ
unittests 100.00% <100.00%> (+29.39%) ⬆️

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VA Spouse Tax Adjustment uses incorrectly prorated VAGI

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