{ "name": "Pascaline Deterministic Tax Eval Suite", "version": "1", "generated_from": "the live Pascaline calculation engine (pure, statute-cited)", "license": "CC-BY-4.0", "about": "Inputs plus the correct, statute-cited output for defining U.S. tax/estate/benefit scenarios. Run it against any calculation tool or LLM to measure deterministic accuracy. See README.md.", "contract": "POST each case.endpoint with case.request (JSON) to your target; compare the returned result to case.expected.result.", "count": 12, "cases": [ { "id": "state-estate-ma-12m", "api": "state-estate-tax", "suite": "estate", "title": "Massachusetts full cliff — $12M estate", "why": "MA taxes the ENTIRE estate once it exceeds the threshold, not just the excess. The single most common six-figure error in estate-tax tools.", "endpoint": "/estate/calculate-state-tax", "request": { "state": "MA", "tax_year": 2026, "gross_estate": 12000000 }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "M.G.L. c.65C §2A as amended by St. 2023, c.50 (Oct 2023) — $2,000,000 threshold; tax computed on the ENTIRE estate via the pre-EGTRRA IRC §2011 credit table on (federal taxable estate − $60,000), less a $99,600 credit; credit zeroes out tax at exactly $2M" ], "expected": { "result": { "state": "MA", "tax_year": 2026, "net_taxable_estate": 12000000, "state_estate_tax": 1287200, "inheritance_tax": 0, "total_state_death_tax": 1287200, "cliff_warning": { "triggered": true, "cliff_type": "full", "cliff_amount": 2000000, "tax_on_estate": 1287200, "after_tax_estate": 10712800, "if_reduced_to_exemption_minus_1": { "net_estate": 1999999, "tax": 0, "after_tax_estate": 1999999 }, "gifting_to_avoid_cliff": 10000001, "tax_saved_by_gifting": 1287200 }, "portability_warning": null, "bypass_trust_recommendation": null, "state_qtip_planning_opportunity": null, "per_beneficiary_inheritance_tax_breakdown": [], "notes": [] } } }, { "id": "state-estate-or-cliff", "api": "state-estate-tax", "suite": "estate", "title": "Oregon cliff — $1.1M estate", "why": "Oregon's $1M threshold is a cliff in Pascaline's model; the tax on a $1.1M estate is far larger than a naive 'tax the excess' calculation.", "endpoint": "/estate/calculate-state-tax", "request": { "state": "OR", "tax_year": 2026, "gross_estate": 1100000 }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "ORS 118.010 — $1,000,000 threshold (fixed since 2012, not indexed); rates 10%-16%" ], "expected": { "result": { "state": "OR", "tax_year": 2026, "net_taxable_estate": 1100000, "state_estate_tax": 111500, "inheritance_tax": 0, "total_state_death_tax": 111500, "cliff_warning": { "triggered": true, "cliff_type": "full", "cliff_amount": 1000000, "tax_on_estate": 111500, "after_tax_estate": 988500, "if_reduced_to_exemption_minus_1": { "net_estate": 999999, "tax": 0, "after_tax_estate": 999999 }, "gifting_to_avoid_cliff": 100001, "tax_saved_by_gifting": 111500 }, "portability_warning": null, "bypass_trust_recommendation": null, "state_qtip_planning_opportunity": null, "per_beneficiary_inheritance_tax_breakdown": [], "notes": [] } } }, { "id": "state-estate-ny-cliff", "api": "state-estate-tax", "suite": "estate", "title": "New York 105% cliff — $8M estate", "why": "NY phases out the exemption between 100% and 105% of the threshold; above 105% the whole estate is taxed. A 3-zone cliff almost no tool models.", "endpoint": "/estate/calculate-state-tax", "request": { "state": "NY", "tax_year": 2026, "gross_estate": 8000000 }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "N.Y. Tax Law §952 — basic exclusion amount $7,160,000 (spec value, 2025 indexed figure; CPI-indexed — VERIFY 2026 amount); rate schedule 3.06%-16% applied to the ENTIRE taxable estate" ], "expected": { "result": { "state": "NY", "tax_year": 2026, "net_taxable_estate": 8000000, "state_estate_tax": 773200, "inheritance_tax": 0, "total_state_death_tax": 773200, "ny_cliff_zone": "above_cliff", "cliff_warning": { "triggered": true, "cliff_type": "ny_105pct", "cliff_amount": 7160000, "ny_cliff_threshold": 7518000, "exemption_eliminated": 7160000, "tax_on_estate": 773200, "after_tax_estate": 7226800, "marginal_dollar_cliff": "Estates over 105% of the exclusion ($7,518,000) lose the entire exclusion; tax at the threshold is already $707,648. Gifting below the $7,160,000 exclusion reduces the tax to $0.", "gifting_to_avoid_cliff": 840001, "tax_saved_by_gifting": 773200 }, "portability_warning": null, "bypass_trust_recommendation": null, "state_qtip_planning_opportunity": null, "per_beneficiary_inheritance_tax_breakdown": [], "notes": [] } } }, { "id": "grat-zero-out", "api": "grat-grut", "suite": "estate", "title": "Zeroed-out GRAT — $2M, 5yr, §7520 4.6%", "why": "The GRAT annuity that produces a ~$0 taxable gift depends on the §7520 rate and the Rev. Proc. 2019-44 annuity factor. Rate pinned to the spec's worked example.", "endpoint": "/estate/calculate-grat", "request": { "trust_type": "grat", "transfer_year": 2026, "transfer_month": 6, "asset_fmv": 2000000, "trust_term_years": 5, "section_7520_rate_override": 0.046 }, "tier": "beta", "data_as_of": "2026-07-07", "formula_version": "2026.1", "citations": [ "IRC §7520; monthly rate = 120% of the federal midterm AFR rounded to the nearest 0.2% (published by Revenue Ruling)", "Rev. Proc. 2019-44 — term-certain annuity factors (Table B) and payment-frequency adjustment factors (Table K); computed from the closed forms the tables codify, rounded to 4 decimals", "IRC §2702 (GRAT qualified interests); IRC §170/§2055 (CLAT charitable deduction); IRC §2036 (SLAT inclusion risk)" ], "expected": { "result": { "trust_type": "grat", "section_7520_rate": 0.046, "rate_source": "caller_override", "annuity_factor": 4.3778, "frequency_factor": 1, "combined_factor": 4.3778, "rev_proc_version": "Rev. Proc. 2019-44", "notes": [ "§7520 rate supplied by caller — verify against the Revenue Ruling for the transfer month." ], "grat": { "zero_out_annuity": 456850.47, "annuity_payment_used": 456850.47, "pv_retained_annuity": 2000000, "taxable_gift": 0, "break_even_return_rate": 0.045998, "projection": null }, "clat": null, "slat": null } } }, { "id": "clat-deduction", "api": "grat-grut", "suite": "estate", "title": "CLAT charitable deduction — $1M, 10yr", "why": "The charitable deduction is the annuity times the term-certain factor at the §7520 rate; remainder passes to heirs.", "endpoint": "/estate/calculate-grat", "request": { "trust_type": "clat", "asset_fmv": 1000000, "trust_term_years": 10, "annuity_payment": 80000, "transfer_year": 2026, "transfer_month": 6, "section_7520_rate_override": 0.046 }, "tier": "beta", "data_as_of": "2026-07-07", "formula_version": "2026.1", "citations": [ "IRC §7520; monthly rate = 120% of the federal midterm AFR rounded to the nearest 0.2% (published by Revenue Ruling)", "Rev. Proc. 2019-44 — term-certain annuity factors (Table B) and payment-frequency adjustment factors (Table K); computed from the closed forms the tables codify, rounded to 4 decimals", "IRC §2702 (GRAT qualified interests); IRC §170/§2055 (CLAT charitable deduction); IRC §2036 (SLAT inclusion risk)" ], "expected": { "result": { "trust_type": "clat", "section_7520_rate": 0.046, "rate_source": "caller_override", "annuity_factor": 7.874, "frequency_factor": 1, "combined_factor": 7.874, "rev_proc_version": "Rev. Proc. 2019-44", "notes": [ "§7520 rate supplied by caller — verify against the Revenue Ruling for the transfer month." ], "grat": null, "clat": { "zero_out_annuity": 127000.25, "annuity_payment_used": 80000, "charitable_deduction": 629920, "remainder_to_heirs": 370080, "charitable_deduction_ratio": 0.62992 }, "slat": null } } }, { "id": "inherited-ira-10yr", "api": "inherited-ira-rmd", "suite": "estate", "title": "Non-spouse 10-year rule with RMDs", "why": "A non-spouse beneficiary of a decedent who had reached their required beginning date must take annual RMDs AND empty the account by year 10 (SECURE Act).", "endpoint": "/inherited-ira/schedule", "request": { "decedent": { "birth_year": 1950, "death_year": 2024, "account_type": "traditional_ira", "rbd_reached": true }, "beneficiary": { "type": "non_spouse", "birth_year": 1975 }, "account_balance_at_year_end": 485000, "inheritance_year": 2024, "assumed_annual_growth_rate": 0 }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "IRS Publication 590-B, Appendix B, Table I (Single Life Expectancy) — post-2022 values per T.D. 9930", "SECURE Act final regulations T.D. 10001 (July 2024) — 10-year rule with annual RMDs when death on/after RBD; EDB categories per IRC §401(a)(9)(E)(ii)" ], "expected": { "result": { "spousal_options": null, "edb_status": { "is_edb": false, "edb_category": null, "edb_categories_checked": [ "surviving_spouse", "minor_child", "disabled", "chronically_ill", "within_10_years_of_age" ], "why_not_edb": "Beneficiary (born 1975) is 25 years younger than the decedent (born 1950) — more than 10 years younger, and no other EDB category applies." }, "tax_note": "All distributions from an inherited traditional (pre-tax) account are taxable as ordinary income in the year of distribution.", "penalty_for_missed_rmd": "25% excise tax on the shortfall (reduced to 10% if corrected within the correction window, IRC §4974 as amended by SECURE 2.0).", "irs_rules_applied": "SECURE Act final regulations, T.D. 10001 (July 2024)", "notes": [], "rule_applied": "10_year_rule_with_annual_rmds", "rule_explanation": "Non-EDB beneficiary. Decedent died on or after the required beginning date, so the July 2024 final regulations require annual RMDs in years 1-9 (single life factor, minus 1 each year) PLUS full distribution by December 31, 2034.", "empty_by_deadline": "2034-12-31", "annual_rmd_schedule": [ { "year": 2025, "age_of_beneficiary": 50, "life_expectancy_factor": 36.2, "rmd_amount": 13397.79, "projected_balance_eoy": 471602.21 }, { "year": 2026, "age_of_beneficiary": 51, "life_expectancy_factor": 35.2, "rmd_amount": 13397.79, "projected_balance_eoy": 458204.42 }, { "year": 2027, "age_of_beneficiary": 52, "life_expectancy_factor": 34.2, "rmd_amount": 13397.79, "projected_balance_eoy": 444806.63 }, { "year": 2028, "age_of_beneficiary": 53, "life_expectancy_factor": 33.2, "rmd_amount": 13397.79, "projected_balance_eoy": 431408.84 }, { "year": 2029, "age_of_beneficiary": 54, "life_expectancy_factor": 32.2, "rmd_amount": 13397.79, "projected_balance_eoy": 418011.05 }, { "year": 2030, "age_of_beneficiary": 55, "life_expectancy_factor": 31.2, "rmd_amount": 13397.79, "projected_balance_eoy": 404613.26 }, { "year": 2031, "age_of_beneficiary": 56, "life_expectancy_factor": 30.2, "rmd_amount": 13397.79, "projected_balance_eoy": 391215.47 }, { "year": 2032, "age_of_beneficiary": 57, "life_expectancy_factor": 29.2, "rmd_amount": 13397.79, "projected_balance_eoy": 377817.68 }, { "year": 2033, "age_of_beneficiary": 58, "life_expectancy_factor": 28.2, "rmd_amount": 13397.79, "projected_balance_eoy": 364419.89 }, { "year": 2034, "age_of_beneficiary": 59, "rmd_amount": 364419.89, "projected_balance_eoy": 0, "note": "Year 10 — full remaining balance must be distributed" } ] } } }, { "id": "iso-amt-exercise", "api": "iso-amt", "suite": "premium", "title": "ISO exercise-and-hold AMT", "why": "Exercising 50,000 ISOs at $1 with an $8 FMV creates a $350k AMT preference item; the tentative minimum tax vs regular tax delta is the AMT owed.", "endpoint": "/equity/calculate-tax", "request": { "tax_year": 2026, "filing_status": "single", "regular_agi_before_equity": 150000, "grants": [ { "grant_type": "iso", "shares": 50000, "exercise_price": 1, "fmv_at_exercise": 8, "grant_date": "2024-06-01", "exercise_date": "2026-02-15" } ] }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "IRC §55(d) as amended by OBBBA (P.L. 119-21) §70107 — TCJA-level AMT exemption made permanent; exemption phaseout thresholds reset to $500,000 ($1,000,000 MFJ) for taxable years beginning in 2026, indexed thereafter; phaseout rate increased from 25% to 50% of excess AMTI", "Rev. Proc. 2025-32 (2026 inflation adjustments) — AMT exemption $90,100 single/HOH, $140,200 MFJ, $70,100 MFS; 28% rate breakpoint (excess taxable income above which 28% applies) $244,500 ($122,250 MFS)", "IRC §1(j) as amended by OBBBA (P.L. 119-21) §70101 — 10/12/22/24/32/35/37% rate structure made permanent, with the extra inflation adjustment for the 10% and 12% bracket ceilings", "IRC §3101(a), (b)(1) — employee OASDI 6.2%, Medicare 1.45%" ], "expected": { "result": { "tax_year": 2026, "filing_status": "single", "ordinary_income": { "regular_agi_before_equity": 150000, "nso_exercise_income": 0, "rsu_vest_income": 0, "disqualifying_disposition_income": 0, "espp_ordinary_income": 0, "short_term_capital_gain": 0, "total_agi": 150000 }, "regular_tax": { "regular_income_tax": 28598, "credits_before_amt": 0, "regular_tax_after_credits": 28598, "mtc_recovered": 0, "regular_tax_after_mtc": 28598 }, "fica": { "supplemental_fica_wages": 0, "social_security": 0, "medicare": 0, "additional_medicare": 0, "total": 0 }, "amt": { "iso_amt_preference": 350000, "other_amt_adjustments": 0, "amti": 500000, "raw_exemption": 90100, "phaseout_start": 500000, "phaseout_rate": 0.5, "exemption_reduction": 0, "final_exemption": 90100, "amti_after_exemption": 409900, "rate_26_ceiling": 244500, "tentative_minimum_tax": 109882, "regular_tax_for_comparison": 28598, "amt_liability": 81284 }, "mtc": { "prior_year_carryforward": 0, "generated_this_year": 81284, "recovered_this_year": 0, "remaining_carryforward": 81284 }, "capital_gains": { "long_term_gain_total": 0, "short_term_gain_total": 0, "capital_loss_total": 0, "note": "Net long-term capital gain is reported but NOT included in the tax computed here (preferential 0/15/20% LTCG rates are not modeled in v1). Net short-term gain is taxed as ordinary income. Net capital losses are reported, not deducted." }, "total_federal_tax": 109882, "per_grant_analysis": [ { "grant_index": 0, "grant_type": "iso", "shares": 50000, "taxable_event": "exercise", "ordinary_income": 0, "fica_wages": 0, "amt_preference_item": 350000, "short_term_gain": 0, "long_term_gain": 0, "capital_loss": 0, "disposition": null, "notes": [ "ISO exercise: $0 regular income tax; the spread is an AMT preference item (IRC §56(b)(3))." ] } ], "warnings": [ "AMT trap: ISO shares exercised this year and still held are driving an AMT liability. A disqualifying disposition of those shares before December 31 would retroactively eliminate the AMT preference for those lots (ordinary income on the spread instead)." ] } } }, { "id": "ptet-salt-workaround", "api": "ptet-salt", "suite": "premium", "title": "PTET SALT-cap workaround — CA S-corp", "why": "A pass-through entity tax election converts non-deductible personal SALT into a deductible entity expense; the net federal benefit accounts for the QBI interaction.", "endpoint": "/ptet/calculate-benefit", "request": { "tax_year": 2026, "filing_status": "single", "entity_type": "s_corp", "federal_marginal_rate": 0.37, "owner_qbi_before_ptet": 400000, "state_income_tax_allocations": [ { "state": "CA", "state_taxable_income": 400000 } ] }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "IRC §164(b)(6) as amended by OBBBA (P.L. 119-21, enacted 7/4/2025) §70120 — SALT cap $40,000 for 2025, increased 1% annually through 2029 ($40,400 for 2026), reverting to $10,000 in 2030; MFS cap is half of the joint cap", "IRC §199A(a) — qualified business income deduction = 20% of QBI. NOTE: v1 uses the flat 20% model per spec; wage/UBIA limitation and SSTB phase-out for owners above the taxable-income threshold are out of scope (spec FM1 mitigation note 4)", "Cal. Rev. & Tax. Code §§19900-19906, 17052.10 (AB 150, 2021; SB 113, 2022; SB 132, 2023) — elective 9.3% flat on consenting owners' qualified net income" ], "expected": { "result": { "tax_year": 2026, "filing_status": "single", "entity_type": "s_corp", "salt_cap_applied": 40400, "per_state_results": [ { "state": "CA", "ptet_available": true, "ptet_blocked": false, "mandatory": false, "ptet_tax": 37200, "state_marginal_ptet_rate": 0.093, "federal_savings_ptet": 13764, "individual_salt_deduction_available": 37200, "individual_salt_savings": 13764, "gross_ptet_benefit": 0, "qbi_interaction_cost": 2752.8, "addback_required": false, "addback_tax": 0, "net_ptet_benefit": -2752.8, "recommend_ptet": false, "election_deadline": "3/15", "consent_required": false, "consent_rule": "majority", "notes": [ "Owner credit is nonrefundable but carries forward 5 years; SB 113 allows the credit against tentative minimum tax." ] } ], "total_ptet_tax_to_pay_at_entity_level": 37200, "total_federal_savings_ptet": 13764, "total_qbi_interaction_cost": 2752.8, "total_net_ptet_benefit_all_states": -2752.8, "recommend_ptet_any_state": false, "estimated_cash_flow_impact": { "entity_level_ptet_paid": 37200, "owner_level_state_credits": 37200, "description": "The entity pre-pays $37,200 of state tax (often via estimated payments during the tax year); owners recover it as state credits on their individual returns — a timing/cash-flow cost even when the election is beneficial." }, "obbba_salt_cap_note": "SALT cap for 2026 is $40,400 (single/joint per OBBBA, P.L. 119-21; $20,200 MFS); PTET benefit is calculated vs. this cap. The cap increases 1% annually through 2029 and reverts to $10,000 in 2030.", "notes": [] } } }, { "id": "qbi-199a-phasein", "api": "qbi-199a", "suite": "premium", "title": "§199A QBI with W-2/UBIA limits — MFJ $600k", "why": "Above the MFJ threshold the deduction is capped by the greater of 50% of W-2 wages or 25% of wages plus 2.5% of qualified property, computed per business.", "endpoint": "/qbi/calculate-deduction", "request": { "tax_year": 2026, "filing_status": "mfj", "taxable_income": 600000, "businesses": [ { "name": "marketing agency", "qbi": 200000, "is_sstb": false, "w2_wages": 20000, "entity_type": "s_corp" }, { "name": "commercial real estate LLC", "qbi": 50000, "is_sstb": false, "w2_wages": 0, "unadjusted_basis_qualified_property": 1000000, "entity_type": "partnership" } ] }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "IRC §199A as amended by OBBBA (P.L. 119-21) §70105 — deduction made permanent; 20% rate retained; phase-in range widened to $75,000 ($150,000 joint) for tax years beginning after 12/31/2025; new §199A minimum deduction of $400 (inflation-indexed after 2026) for taxpayers with at least $1,000 of QBI from active qualified trades or businesses (material participation)", "Treas. Reg. §§1.199A-1 through 1.199A-6" ], "expected": { "result": { "tax_year": 2026, "filing_status": "mfj", "taxable_income": 600000, "taxable_income_base": 600000, "phase_out": { "floor": 403550, "ceiling": 553550, "position": "above_ceiling", "phase_out_ratio": 1 }, "net_qbi_after_losses": 250000, "qualified_business_loss_carryforward_to_next_year": 0, "qbi_component": 20000, "reit_ptp_component": 0, "taxable_income_cap": 120000, "deduction_before_minimum": 20000, "minimum_deduction_applied": false, "qbi_deduction": 20000, "per_business": [ { "name": "marketing agency", "businesses": [ "marketing agency" ], "aggregated": false, "is_sstb": false, "qbi_input": 200000, "se_tax_deduction": 0, "qbi_after_adjustments": 200000, "sstb_applicable_percentage": null, "excluded": false, "exclusion_reason": null, "apportioned_loss": 0, "qbi_after_loss_netting": 200000, "tentative_deduction": 40000, "wage_limit_method_a": 10000, "wage_limit_method_b": 5000, "wage_limit": 10000, "wage_limit_binding": true, "deduction": 10000 }, { "name": "commercial real estate LLC", "businesses": [ "commercial real estate LLC" ], "aggregated": false, "is_sstb": false, "qbi_input": 50000, "se_tax_deduction": 0, "qbi_after_adjustments": 50000, "sstb_applicable_percentage": null, "excluded": false, "exclusion_reason": null, "apportioned_loss": 0, "qbi_after_loss_netting": 50000, "tentative_deduction": 10000, "wage_limit_method_a": 0, "wage_limit_method_b": 25000, "wage_limit": 25000, "wage_limit_binding": false, "deduction": 10000 } ], "aggregation_election_benefit": null, "aggregation_election_note": null, "sstb_impact": null, "notes": [ "S-corp \"marketing agency\": reasonable compensation paid to the owner must be excluded from qbi (§199A(c)(4)(A)); it DOES count in w2_wages when reported on a Form W-2 issued by the business. Verify the inputs reflect this split (FM2).", "Partnership \"commercial real estate LLC\": guaranteed payments to partners must be excluded from qbi and are never W-2 wages (§199A(c)(4)(B))." ] } } }, { "id": "qsbs-exclusion", "api": "qsbs", "suite": "premium", "title": "§1202 QSBS gain-exclusion eligibility", "why": "Exclusion depends on original-issue C-corp stock, the $50M gross-assets test at issuance, an active qualified trade, and the holding period.", "endpoint": "/qsbs/check", "request": { "company": { "entity_type": "C_CORP", "state_of_incorporation": "DE", "gross_assets_at_issuance": 42000000, "gross_assets_pre_issuance": 38000000, "active_business": true, "qualified_trade_or_business": true, "excluded_types": [] }, "stock": { "acquisition_date": "2024-03-15", "acquisition_price_per_share": 1.2, "shares_acquired": 500000, "acquired_from": "corporation", "original_issue": true }, "holder": { "entity_type": "individual", "state_of_residence": "CA" }, "disposition_date": "2029-04-01" }, "tier": "beta", "data_as_of": "2026-06-01", "formula_version": "2026.1", "citations": [ "IRC §1202 as amended by OBBBA (P.L. 119-21) — tiered exclusion, $15M cap, and $75M asset test apply to stock issued after 7/4/2025; prior law applies to earlier stock", "Cal. Rev. & Tax. Code §17024.5, former §18152.5; Cutler v. Franchise Tax Board, 208 Cal.App.4th 1247 (2012); FTB Notice 2012-03" ], "expected": { "result": { "is_qsbs": true, "gates_passed": [ "c_corp", "gross_assets_at_issuance", "active_business", "qtob", "original_issue", "acquired_from_corp", "non_corporate_holder" ], "rules_applied": "pre_obbba_100pct_2010_2025", "holding_period_years": 5.04, "holding_period_full_years": 5, "federal_exclusion_pct": 100, "cost_basis": 600000, "per_issuer_cap": 10000000, "ten_x_basis_cap": 6000000, "max_exclusion_federal": 10000000, "realized_gain": null, "eligible_gain": null, "gain_excluded_federal": null, "gain_taxable_federal": null, "amt_preference_applies": false, "state_treatment": { "CA": { "conforms": false, "exclusion_pct": 0, "note": "California does not conform to IRC §1202. The state QSBS exclusion (former R&TC §18152.5) was held unconstitutional (Cutler v. FTB, 2012) and is inoperative for post-2012 years. The entire gain is taxable by California at ordinary rates (top marginal rate 13.3%; 14.4%+ with SDI on wage income — VERIFY current top rate). A 100% federal exclusion does NOT reduce California tax." } }, "warnings": [ "CALIFORNIA: California does not conform to IRC §1202. The federally excluded gain remains FULLY taxable by California at ordinary rates (top marginal rate 13.3% — VERIFY current-year rate). A 100% federal exclusion provides $0 of California relief. Confirm with a CPA." ] } } }, { "id": "ss-pia-benefit", "api": "ss-pia", "suite": "retirement", "title": "Social Security PIA at full retirement age", "why": "The primary insurance amount applies the bend-point formula to 35 years of wage-indexed earnings; claiming age then adjusts the benefit.", "endpoint": "/social-security/estimate", "request": { "birth_year": 1963, "birth_month": 4, "earnings_history": [ { "year": 2023, "earnings": 84000 }, { "year": 2024, "earnings": 84000 }, { "year": 2025, "earnings": 84000 } ], "claiming_age": 67 }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "SSA National Average Wage Index series, https://www.ssa.gov/oact/cola/AWI.html and https://www.ssa.gov/oact/cola/awiseries.html (values 1951-2023)", "SSA PIA bend point table by year of eligibility, https://www.ssa.gov/oact/cola/bendpoints.html (statutory formula: 42 U.S.C. §415(a)(1)(B) — 1979 bend points $180/$1,085 indexed by AWI two years prior / AWI 1977 $9,779.44, rounded to nearest dollar)", "SSA cost-of-living adjustments, https://www.ssa.gov/oact/cola/colaseries.html (each entry is the COLA effective December of the listed year, payable January of the following year; 42 U.S.C. §415(i))", "SSA contribution and benefit base (taxable maximum) by year, https://www.ssa.gov/oact/cola/cbb.html", "Full retirement age by birth year: 42 U.S.C. §416(l), Social Security Amendments of 1983 (P.L. 98-21); table at https://www.ssa.gov/benefits/retirement/planner/agereduction.html" ], "expected": { "result": { "full_retirement_age": "67-0", "eligibility_year": 2025, "indexing_year": 2023, "mode": "earnings_history", "aime": 600, "pia_at_eligibility": 540, "pia": 555.1, "benefit_at_claiming_age": 555, "claiming_age": 67, "benefit_scenarios": [ { "age": 62, "monthly": 388, "reduction_pct": -30 }, { "age": 63, "monthly": 416, "reduction_pct": -25 }, { "age": 64, "monthly": 444, "reduction_pct": -20 }, { "age": 65, "monthly": 481, "reduction_pct": -13.33 }, { "age": 66, "monthly": 518, "reduction_pct": -6.67 }, { "age": 67, "monthly": 555, "reduction_pct": 0 }, { "age": 68, "monthly": 599, "increase_pct": 8 }, { "age": 69, "monthly": 643, "increase_pct": 16 }, { "age": 70, "monthly": 688, "increase_pct": 24 } ], "spousal_benefit": null, "survivor_benefit": null, "bend_points_used": { "first": 1226, "second": 7391, "eligibility_year": 2025 }, "colas_applied": [ { "effective_december": 2025, "pct": 2.8 } ], "cola_applied": "2026", "rules_version": "2026", "indexed_earnings_used": [ { "year": 2023, "earnings": 84000, "capped_earnings": 84000, "index_factor": 1, "indexed_earnings": 84000, "used_in_aime": true }, { "year": 2024, "earnings": 84000, "capped_earnings": 84000, "index_factor": 1, "indexed_earnings": 84000, "used_in_aime": true }, { "year": 2025, "earnings": 84000, "capped_earnings": 84000, "index_factor": 1, "indexed_earnings": 84000, "used_in_aime": true } ], "notes": [ "Only 3 year(s) of covered earnings: 32 zero year(s) fill the 35-year computation period.", "Fewer than 10 years of covered earnings — the worker may not be insured for retirement benefits (40 credits generally required).", "All amounts are estimates in current dollars (future COLAs are not projected). Verify against the worker's official record at my.ssa.gov before making claiming decisions." ] } } }, { "id": "ssdi-wep-offset", "api": "ssdi", "suite": "retirement", "title": "SSDI benefit with workers'-comp offset", "why": "SSDI plus workers' compensation cannot exceed 80% of average current earnings; the excess reduces the SSDI benefit (the reverse-offset states differ).", "endpoint": "/ssdi/estimate-benefit", "request": { "birth_year": 1972, "disability_onset_year": 2020, "disability_onset_month": 7, "application_year": 2021, "earnings_history": [ { "year": 1994, "earnings": 65000 }, { "year": 1995, "earnings": 65000 }, { "year": 1996, "earnings": 65000 }, { "year": 1997, "earnings": 65000 }, { "year": 1998, "earnings": 65000 }, { "year": 1999, "earnings": 65000 }, { "year": 2000, "earnings": 65000 }, { "year": 2001, "earnings": 65000 }, { "year": 2002, "earnings": 65000 }, { "year": 2003, "earnings": 65000 }, { "year": 2004, "earnings": 65000 }, { "year": 2005, "earnings": 65000 }, { "year": 2006, "earnings": 65000 }, { "year": 2007, "earnings": 65000 }, { "year": 2008, "earnings": 65000 }, { "year": 2009, "earnings": 65000 }, { "year": 2010, "earnings": 65000 }, { "year": 2011, "earnings": 65000 }, { "year": 2012, "earnings": 65000 }, { "year": 2013, "earnings": 65000 }, { "year": 2014, "earnings": 65000 }, { "year": 2015, "earnings": 65000 }, { "year": 2016, "earnings": 65000 }, { "year": 2017, "earnings": 65000 }, { "year": 2018, "earnings": 65000 }, { "year": 2019, "earnings": 65000 } ], "workers_comp_monthly": 2800, "state": "tx" }, "tier": "beta", "data_as_of": "2026-01-01", "formula_version": "2026.1", "citations": [ "SSA 2026 fact sheet (October 2025 COLA announcement), https://www.ssa.gov/cola/ — SGA amounts, quarter-of-coverage amount, trial work period amount; SGA regulation 20 CFR 404.1574(b)(2); waiting period 42 U.S.C. §423(a)(1)(E) / (c)(2); WC offset 42 U.S.C. §424a, POMS DI 52150; disability family maximum 42 U.S.C. §403(a)(6), POMS RS 00615.742; dropout years 42 U.S.C. §415(b)(2)(A), 20 CFR 404.211(e)", "Insured status for DIB: 42 U.S.C. §423(c)(1), §414(a); 20 CFR 404.110, 404.130; POMS DI 25501.310/.320, RS 00301.105/.120/.240; SSA Pub. No. 05-10029 (duration-of-work table); quarter-of-coverage amounts by year: https://www.ssa.gov/oact/cola/QC.html", "Reverse-offset (reverse jurisdiction) workers' compensation plans: 42 U.S.C. §424a(d) (grandfather clause for state plans in effect February 18, 1981); POMS DI 52105.001 (Reverse Offset Plans) — states where the state WC benefit, not SSDI, is reduced", "SSA National Average Wage Index series, https://www.ssa.gov/oact/cola/AWI.html and https://www.ssa.gov/oact/cola/awiseries.html (values 1951-2023)", "SSA PIA bend point table by year of eligibility, https://www.ssa.gov/oact/cola/bendpoints.html (statutory formula: 42 U.S.C. §415(a)(1)(B) — 1979 bend points $180/$1,085 indexed by AWI two years prior / AWI 1977 $9,779.44, rounded to nearest dollar)", "SSA cost-of-living adjustments, https://www.ssa.gov/oact/cola/colaseries.html (each entry is the COLA effective December of the listed year, payable January of the following year; 42 U.S.C. §415(i))", "SSA contribution and benefit base (taxable maximum) by year, https://www.ssa.gov/oact/cola/cbb.html", "Full retirement age by birth year: 42 U.S.C. §416(l), Social Security Amendments of 1983 (P.L. 98-21); table at https://www.ssa.gov/benefits/retirement/planner/agereduction.html" ], "expected": { "result": { "eligible": true, "work_credits": { "insured": true, "age_at_onset": 48, "test_applied": "age_31_plus", "total_credits_earned": 104, "total_credits_required": 26, "recent_credits_earned": 36, "recent_credits_required": 20, "recent_window": { "from_year": 2011, "to_year": 2020 }, "recent_test_waived_blind": false, "deficit": null, "notes": [ "Work-credit windows are approximated at calendar-year granularity (annual earnings input): SSA measures the recent-work test in calendar quarters (e.g. the 20/40 rule's 40-quarter period ending with the quarter of onset)." ] }, "monthly_benefit": 1532, "family_total_monthly": 1532, "computation": { "eligibility_year": 2020, "indexing_year": 2018, "elapsed_years": 26, "dropout_years": 5, "computation_period_years": 21, "computation_months": 252, "aime": 8171 }, "pia_at_eligibility": 2765.9, "pia_current": 3507.1, "bend_points_used": { "first": 960, "second": 5785, "eligibility_year": 2020 }, "colas_applied": [ { "effective_december": 2020, "pct": 1.3 }, { "effective_december": 2021, "pct": 5.9 }, { "effective_december": 2022, "pct": 8.7 }, { "effective_december": 2023, "pct": 3.2 }, { "effective_december": 2024, "pct": 2.5 }, { "effective_december": 2025, "pct": 2.8 } ], "family_maximum": { "fmb_at_eligibility": 4148.8, "fmb_current": 5260.6, "formula": "max(PIA, min(150% x PIA, 85% x AIME)) per 42 U.S.C. 403(a)(6)", "dependents_count": 0, "per_dependent_before_offset": 0, "dependents": [] }, "workers_comp_offset": { "workers_comp_monthly": 2800, "ace_monthly": 5416, "ace_method": "high_1", "ace_calculation": { "high_1_monthly": 5416.67, "high_1_year": 2015, "high_5_monthly": 5416.67, "high_5_years": { "from": 1994, "to": 1998 } }, "eighty_pct_ace": 4332.8, "total_family_benefit_before_offset": 3507.1, "applicable_limit": 4332.8, "offset_amount": 1974.3, "reverse_offset_state": false, "offset_applies": true }, "sga": { "threshold_monthly": 1620, "blind": false, "trial_work_period_monthly": 1160, "current_monthly_earnings": null, "exceeds_sga": null }, "waiting_period": { "onset": "2020-07", "waiting_months": 5, "first_entitlement_month": "2021-01" }, "full_retirement_age": "67-0", "indexed_earnings_used": [ { "year": 1994, "earnings": 65000, "capped_earnings": 60600, "index_factor": 2.1952863, "indexed_earnings": 133034.35, "used_in_aime": true }, { "year": 1995, "earnings": 65000, "capped_earnings": 61200, "index_factor": 2.1106823, "indexed_earnings": 129173.76, "used_in_aime": true }, { "year": 1996, "earnings": 65000, "capped_earnings": 62700, "index_factor": 2.0122714, "indexed_earnings": 126169.42, "used_in_aime": true }, { "year": 1997, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.9013272, "indexed_earnings": 123586.27, "used_in_aime": true }, { "year": 1998, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.8067636, "indexed_earnings": 117439.64, "used_in_aime": true }, { "year": 1999, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.7113907, "indexed_earnings": 111240.39, "used_in_aime": true }, { "year": 2000, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.6217102, "indexed_earnings": 105411.16, "used_in_aime": true }, { "year": 2001, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.5839234, "indexed_earnings": 102955.02, "used_in_aime": true }, { "year": 2002, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.5681962, "indexed_earnings": 101932.75, "used_in_aime": true }, { "year": 2003, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.5307758, "indexed_earnings": 99500.42, "used_in_aime": true }, { "year": 2004, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.4627748, "indexed_earnings": 95080.36, "used_in_aime": true }, { "year": 2005, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.4111408, "indexed_earnings": 91724.15, "used_in_aime": true }, { "year": 2006, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.3491306, "indexed_earnings": 87693.49, "used_in_aime": true }, { "year": 2007, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.2905626, "indexed_earnings": 83886.57, "used_in_aime": true }, { "year": 2008, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.261542, "indexed_earnings": 82000.23, "used_in_aime": true }, { "year": 2009, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.2808582, "indexed_earnings": 83255.78, "used_in_aime": true }, { "year": 2010, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.2512841, "indexed_earnings": 81333.47, "used_in_aime": true }, { "year": 2011, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.2132683, "indexed_earnings": 78862.44, "used_in_aime": true }, { "year": 2012, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.1765306, "indexed_earnings": 76474.49, "used_in_aime": true }, { "year": 2013, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.1616827, "indexed_earnings": 75509.38, "used_in_aime": true }, { "year": 2014, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.1218609, "indexed_earnings": 72920.96, "used_in_aime": true }, { "year": 2015, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.0841431, "indexed_earnings": 70469.3, "used_in_aime": false }, { "year": 2016, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.0720291, "indexed_earnings": 69681.89, "used_in_aime": false }, { "year": 2017, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1.0362449, "indexed_earnings": 67355.92, "used_in_aime": false }, { "year": 2018, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1, "indexed_earnings": 65000, "used_in_aime": false }, { "year": 2019, "earnings": 65000, "capped_earnings": 65000, "index_factor": 1, "indexed_earnings": 65000, "used_in_aime": false } ], "rules_version": "2026", "notes": [ "Work-credit windows are approximated at calendar-year granularity (annual earnings input): SSA measures the recent-work test in calendar quarters (e.g. the 20/40 rule's 40-quarter period ending with the quarter of onset).", "1994 earnings capped at the $60,600 Social Security wage base.", "1995 earnings capped at the $61,200 Social Security wage base.", "1996 earnings capped at the $62,700 Social Security wage base.", "The child-rearing dropout (additional dropout years for years caring for a child under 3 with no earnings, 20 CFR 404.211(e)(4)) is not modeled.", "Workers' compensation offset applies: combined WC + SSDI family benefits exceed the applicable limit (higher of 80% of Average Current Earnings and the total family benefit). The offset ends when WC ends or the worker reaches full retirement age; triennial ACE redeterminations and lump-sum WC prorations are not modeled.", "ACE uses unindexed gross earnings as reported (amounts above the taxable wage base may count if evidence supports them — POMS DI 52150.045).", "SSDI cash benefits begin after a 5-month waiting period (first month of entitlement: 2021-01); retroactive benefits are limited to 12 months before the application month. Medicare begins after 24 months of entitlement.", "At full retirement age (67-0) the disability benefit converts to a retirement benefit of the same amount and any workers' compensation offset ends.", "All amounts are estimates in current dollars. SSA's final determination governs; verify against the worker's official earnings record at my.ssa.gov." ] } } } ] }