Repository: PolicyEngine/policyengine-us (language: python)

Issue:
MN Standard Deduction Limitations 2024

![MN sd limit](https://github.com/user-attachments/assets/41fd0a34-58f5-45c7-84fa-e2dc538787c2)

[Reference](https://www.revenue.state.mn.us/sites/default/files/2023-12/inflation-adjusted-amounts-ty-2024.pdf)

Lower Threshold: 

https://github.com/PolicyEngine/policyengine-us/blob/304c2a856b6fe809c7dd4921b628aac6968a206b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/low.yaml#L1-L74

Higher Threshold: 

https://github.com/PolicyEngine/policyengine-us/blob/304c2a856b6fe809c7dd4921b628aac6968a206b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/high.yaml#L1-L58

Alternate Threshold ($1,000,000):

https://github.com/PolicyEngine/policyengine-us/blob/304c2a856b6fe809c7dd4921b628aac6968a206b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/alternate/income_threshold.yaml#L1-L5


Discussion / hints:

Fix patch:
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
index e69de29bb2d..3ed12913c9d 100644
--- a/changelog_entry.yaml
+++ b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    - Minnesota 2024 standard deduction limitations update.
diff --git a/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/high.yaml b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/high.yaml
index 9e80d9b7591..0d88009d0c6 100644
--- a/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/high.yaml
+++ b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/high.yaml
@@ -10,10 +10,13 @@ metadata:
     href: https://www.revisor.mn.gov/statutes/cite/290.0123#stat.290.0123.5
   - title: 2023 Minnesota Schedule M1SA form, Worksheet for Line 26
     href: https://www.revenue.state.mn.us/sites/default/files/2023-12/m1sa-23.pdf#page=8
+  - title: Tax Year 2024 Inflation-Adjusted Amounts In Minnesota Statutes, 290.0123, Subd. 5
+    href: https://www.revenue.state.mn.us/sites/default/files/2023-12/inflation-adjusted-amounts-ty-2024.pdf#page=2
 
 JOINT:
   values:
     2023-01-01: 304_970
+    2024-01-01: 321_350
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -23,6 +26,7 @@ JOINT:
 HEAD_OF_HOUSEHOLD:
   values:
     2023-01-01: 304_970
+    2024-01-01: 321_350
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -32,6 +36,7 @@ HEAD_OF_HOUSEHOLD:
 SURVIVING_SPOUSE:
   values:
     2023-01-01: 304_970
+    2024-01-01: 321_350
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -41,6 +46,7 @@ SURVIVING_SPOUSE:
 SINGLE:
   values:
     2023-01-01: 304_970
+    2024-01-01: 321_350
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -50,6 +56,7 @@ SINGLE:
 SEPARATE:
   values:
     2023-01-01: 152_485
+    2024-01-01: 160_675
   metadata:
     uprating:
       parameter: gov.irs.uprating
diff --git a/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/low.yaml b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/low.yaml
index fdc1bae554e..828373cbca0 100644
--- a/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/low.yaml
+++ b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/agi_threshold/low.yaml
@@ -16,12 +16,15 @@ metadata:
     href: https://www.revenue.state.mn.us/sites/default/files/2023-01/m1sa_22.pdf#page=7
   - title: 2023 Minnesota Schedule M1SA form, Worksheet for Line 26
     href: https://www.revenue.state.mn.us/sites/default/files/2023-12/m1sa-23.pdf#page=8
+  - title: Tax Year 2024 Inflation-Adjusted Amounts In Minnesota Statutes, 290.0123, Subd. 5
+    href: https://www.revenue.state.mn.us/sites/default/files/2023-12/inflation-adjusted-amounts-ty-2024.pdf#page=2
 
 JOINT:
   values:
     2021-01-01: 199_850
     2022-01-01: 206_050
     2023-01-01: 220_650
+    2024-01-01: 232_500
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -33,6 +36,7 @@ HEAD_OF_HOUSEHOLD:
     2021-01-01: 199_850
     2022-01-01: 206_050
     2023-01-01: 220_650
+    2024-01-01: 232_500
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -44,6 +48,7 @@ SURVIVING_SPOUSE:
     2021-01-01: 199_850
     2022-01-01: 206_050
     2023-01-01: 220_650
+    2024-01-01: 232_500
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -55,6 +60,7 @@ SINGLE:
     2021-01-01: 199_850
     2022-01-01: 206_050
     2023-01-01: 220_650
+    2024-01-01: 232_500
   metadata:
     uprating:
       parameter: gov.irs.uprating
@@ -66,6 +72,7 @@ SEPARATE:
     2021-01-01: 99_925
     2022-01-01: 103_025
     2023-01-01: 110_325
+    2024-01-01: 116_250
   metadata:
     uprating:
       parameter: gov.irs.uprating
diff --git a/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/alternate/income_threshold.yaml b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/alternate/income_threshold.yaml
index 893411d389c..369d7114b6e 100644
--- a/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/alternate/income_threshold.yaml
+++ b/policyengine_us/parameters/gov/states/mn/tax/income/deductions/standard/reduction/alternate/income_threshold.yaml
@@ -1,6 +1,7 @@
 description: Minnesota reduces the standard deduction by a flat rate for filers with adjusted gross income above this threshold.
 values:
   2023-01-01: 1_000_000
+  2024-01-01: 1_053_750
 
 metadata:
   period: year
@@ -11,3 +12,5 @@ metadata:
     href: https://www.revisor.mn.gov/statutes/cite/290.0123#stat.290.0123.5
   - title: 2023 Minnesota Schedule M1SA form, Worksheet for Line 26
     href: https://www.revenue.state.mn.us/sites/default/files/2023-12/m1sa-23.pdf#page=7
+  - title: Tax Year 2024 Inflation-Adjusted Amounts In Minnesota Statutes, 290.0123, Subd. 5
+    href: https://www.revenue.state.mn.us/sites/default/files/2023-12/inflation-adjusted-amounts-ty-2024.pdf#page=2
diff --git a/policyengine_us/parameters/gov/states/mn/tax/income/rates/head_of_household.yaml b/policyengine_us/parameters/gov/states/mn/tax/income/rates/head_of_household.yaml
index 0c7cc569636..88f1fa904a4 100644
--- a/policyengine_us/parameters/gov/states/mn/tax/income/rates/head_of_household.yaml
+++ b/policyengine_us/parameters/gov/states/mn/tax/income/rates/head_of_household.yaml
@@ -65,4 +65,4 @@ metadata:
   - title: 2023 Minnesota M1 form instructions, Tax Rate Schedules
     href: https://www.revenue.state.mn.us/sites/default/files/2024-02/m1-inst-23.pdf#page=32
   - title: Tax Year 2024 Inflation-Adjusted Amounts In Minnesota Statutes 
-    href: https://www.revenue.state.mn.us/sites/default/files/2023-12/inflation-adjusted-amounts-ty-2024.pdf
\ No newline at end of file
+    href: https://www.revenue.state.mn.us/sites/default/files/2023-12/inflation-adjusted-amounts-ty-2024.pdf


Test patch:
diff --git a/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_itemized_deductions.yaml b/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_itemized_deductions.yaml
index 067867ef8ba..7c08b4540e9 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_itemized_deductions.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_itemized_deductions.yaml
@@ -54,3 +54,25 @@
     state_code: MN
   output:
     mn_itemized_deductions: 4_000
+
+- name: 2024 For earnings above the threshold, the itemized deduction should be 80% of the amount
+  absolute_error_margin: 0.01
+  period: 2024
+  input:
+    filing_status: JOINT
+    adjusted_gross_income: 750_000
+    itemized_deductions_less_salt: 2_000
+    state_code: MN
+  output:
+    mn_itemized_deductions: 400
+
+- name: 2024 MN itemized deduction unit test 1
+  absolute_error_margin: 0.01
+  period: 2024
+  input:
+    filing_status: SINGLE
+    adjusted_gross_income: 300_000
+    interest_deduction: 10_000
+    state_code: MN
+  output:
+    mn_itemized_deductions: 7_997.5
diff --git a/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_standard_deduction.yaml b/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_standard_deduction.yaml
index 5604a7a25b1..6654f868d9e 100644
--- a/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_standard_deduction.yaml
+++ b/policyengine_us/tests/policy/baseline/gov/states/mn/tax/income/mn_standard_deduction.yaml
@@ -101,7 +101,7 @@
     adjusted_gross_income: 260_000
     state_code: MN
   output:
-    mn_standard_deduction: 21_097.5
+    mn_standard_deduction: 21_075
 
 - name: Post 2024 an alternative reduction applies, higher income reduction bracket
   absolute_error_margin: 0.01
@@ -111,7 +111,7 @@
     adjusted_gross_income: 310_000
     state_code: MN
   output:
-    mn_standard_deduction: 19_597.5
+    mn_standard_deduction: 19_575
 
 - name: 2024 For earnings above the threshold, the standard deduction should be 80% of the amount
   absolute_error_margin: 0.01