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added Medical Expense. Auto inflate single values on input
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Auto inflate gains, dividends, yearlyOAS, pensionIncome, medicalCosts if only a number (rather than a column) is specified.  e.g. your input for medical expenses entered as 4000 (for year) and inflation is entered as 2 (%).  First year would be 4000, second year would then be 1080.
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@demmings
demmings committed Dec 15, 2024
1 parent 86b6089 commit 495a347
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Showing 3 changed files with 182 additions and 86 deletions.
6 changes: 5 additions & 1 deletion .gitignore
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Original file line number Diff line number Diff line change
@@ -1 +1,5 @@
*.sh
*.sh
appsscript.json
.clasp.json
.claspignore
.gitignore
128 changes: 87 additions & 41 deletions dist/CanadianTaxes.js
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Original file line number Diff line number Diff line change
Expand Up @@ -40,7 +40,7 @@ const TestCantaxData =
function TEST_CANTAX() {
const output = [["Age", "Net Income", "Dividends", "Eligible Capital Gains", "OAS", "Pension Credit Eligible Income", "Gross Income (calculated)", "Expected Gross", "Gross Diff. (calc-expected)", "Pass/Fail", "Net Income (calculated)", "Gross Diff. (calc-expected)", "Pass/Fail"]];
for (const testItem of TestCantaxData) {
const grossIncome = GET_GROSS_INCOMES_V2(testItem[1], testItem[0], 59, 0, 2024, testItem[4], testItem[3], testItem[5], testItem[6]);
const grossIncome = GET_GROSS_INCOMES_V2(testItem[1], testItem[0], 59, 0, 2024, testItem[4], testItem[3], testItem[5], testItem[6], 0);
const netIncome = GET_NET_INCOMES_V2(testItem[2], testItem[0], 59, 0, 2024, testItem[4], testItem[3], testItem[5], testItem[6]);

const grossDiff = Math.round(grossIncome[0][0]) - testItem[2];
Expand Down Expand Up @@ -74,6 +74,8 @@ class CanadianTaxRates {
this.maxIncomePensionTaxCredit = 2000;
this.OASclawbackThreshold = 90997;
this.OASclawbackRate = 0.15;
this.medicalExpenseThreshold = 2759;
this.medicalExpenseThresholdPercent = 0.03;

/**
* @type {BracketObject}
Expand Down Expand Up @@ -165,6 +167,7 @@ class FederalTaxes extends CanadianTaxRates {
this.ageThreshold = CanadianIncomeCalculator.futureValue(this.ageThreshold, 1, inflation, yearsToInflate);
this.OASclawbackThreshold = CanadianIncomeCalculator.futureValue(this.OASclawbackThreshold, 1, inflation, yearsToInflate);
this.taxBracketInfo = CanadianIncomeCalculator.inflateBracket(this.taxBracketInfo, yearsToInflate, inflation);
this.medicalExpenseThreshold = CanadianIncomeCalculator.futureValue(this.medicalExpenseThreshold, 1, inflation, yearsToInflate);
}
}

Expand Down Expand Up @@ -214,10 +217,15 @@ class OntarioTaxes extends OntarioTaxRates {
* @property {Number} subtotalFederalAndProvIncomeTaxes
* @property {Number} totalTaxesClawbacksAndCPP
* @property {Number} federalAgeCredit
* @property {Number} fedEligiblePensionIncome
* @property {Number} provincialEligiblePensionIncome
* @property {Number} provAgeCredit
* @property {Number} ontHealthPremium
* @property {Number} grossedUpEligibleDividends
* @property {Number} taxableCapitalGains
* @property {Number} medicalExpenses
* @property {Number} fedMedicalExpenseCreditAmount
* @property {Number} provincialMedicalExpenseCredit
* @property {Boolean} debug
* @property {function} getTaxItem
*/
Expand All @@ -240,14 +248,16 @@ class OntarioTaxes extends OntarioTaxRates {
* @param {any} projectedGains - amount of assets sold each year subject to capital gains tax
* @param {any} projectedDividends - amount of dividends received each year
* @param {any} yearlyOAS - Old Age Security amount. Used to determine clawback (which is counted as a tax)
* @param {any} incomeEligibleForPensionCredit - income that qualifies as pension credit eligible income
* @param {any} medicalExpenses
* @returns {Number[][]} - GROSS Income from ALL taxable sources EXCLUDING capital gains and dividends, but including RRSP, CPP, OAS, ...(all taxable sources)
* Basically, we are trying to find how much to withdraw from RRSP so RRSP = gross - (CPP + OAS + other taxable sources)
* @customfunction
*/
function GET_GROSS_INCOMES_V2(income = 0, ageInFuture = 60, currentAge = null, projectedInflation = null, taxYear = null, projectedGains = null, projectedDividends = null, yearlyOAS = null, incomeEligibleForPensionCredit = null, debug=true) {
function GET_GROSS_INCOMES_V2(income = 0, ageInFuture = 60, currentAge = null, projectedInflation = null, taxYear = null, projectedGains = null, projectedDividends = null, yearlyOAS = null, incomeEligibleForPensionCredit = null, medicalExpenses = null, debug = true) {
if (debug) Logger.log("GET_GROSS_INCOMES");

const taxData = CanadianIncomeCalculator.validateIncomeSettings(income, ageInFuture, currentAge, taxYear, projectedInflation, projectedGains, projectedDividends, yearlyOAS, incomeEligibleForPensionCredit, debug);
const taxData = CanadianIncomeCalculator.validateIncomeSettings(income, ageInFuture, currentAge, taxYear, projectedInflation, projectedGains, projectedDividends, yearlyOAS, incomeEligibleForPensionCredit, medicalExpenses, debug);

return CanadianIncomeCalculator.getGrossIncomes(taxData);
}
Expand All @@ -262,11 +272,13 @@ function GET_GROSS_INCOMES_V2(income = 0, ageInFuture = 60, currentAge = null, p
* @param {any} capitalGains
* @param {any} dividendIncome
* @param {any} pension
* @param {any} medicalExpenses
* @param {any} debug
* @returns {Number[][]}
* @customfunction
*/
function GET_NET_INCOMES_V2(yearlyGrossIncome = 0, ageInFuture = 60, currentAge = null, inflation = null, taxYear = null, capitalGains = null, dividendIncome = null, OAS = null, pension = null) {
const taxData = CanadianIncomeCalculator.validateIncomeSettings(yearlyGrossIncome, ageInFuture, currentAge, taxYear, inflation, capitalGains, dividendIncome, OAS, pension);
function GET_NET_INCOMES_V2(yearlyGrossIncome = 0, ageInFuture = 60, currentAge = null, inflation = null, taxYear = null, capitalGains = null, dividendIncome = null, OAS = null, pension = null, medicalExpenses = null, debug = true) {
const taxData = CanadianIncomeCalculator.validateIncomeSettings(yearlyGrossIncome, ageInFuture, currentAge, taxYear, inflation, capitalGains, dividendIncome, OAS, pension, medicalExpenses, debug);

return CanadianIncomeCalculator.getNetIncomes(taxData);
}
Expand Down Expand Up @@ -353,19 +365,22 @@ class CanadianIncomeCalculator {
* @param {any} pensionIncome
* @returns {TaxData}
*/
static validateIncomeSettings(yearlyIncome, ageOfRetiree, age, taxYear, inflationPercent, gains, dividends, yearlyOAS, pensionIncome, debug) {
const incomes = CanadianIncomeCalculator.prepTaxInput(yearlyIncome, yearlyIncome);
const ageInFuture = CanadianIncomeCalculator.prepTaxInput(yearlyIncome, ageOfRetiree);
const capitalGains = CanadianIncomeCalculator.prepTaxInput(yearlyIncome, gains);
const eligibleDividends = CanadianIncomeCalculator.prepTaxInput(yearlyIncome, dividends);
const OAS = CanadianIncomeCalculator.prepTaxInput(yearlyIncome, yearlyOAS);
const incomeEligibleForPensionCredit = CanadianIncomeCalculator.prepTaxInput(yearlyIncome, pensionIncome);

const currentAge = age === null ? (Array.isArray(ageInFuture) ? ageInFuture[0] : ageInFuture) : Number(age);
static validateIncomeSettings(yearlyIncome, ageOfRetiree, age, taxYear, inflationPercent, gains, dividends, yearlyOAS, pensionIncome, medicalCosts, debug) {
const items = Array.isArray(yearlyIncome) ? yearlyIncome.length : 1;
const inflation = inflationPercent === null ? 0 : Number(inflationPercent);

const incomes = CanadianIncomeCalculator.prepTaxInput(items, inflation, yearlyIncome);
const ageInFuture = CanadianIncomeCalculator.prepTaxInput(items, null, ageOfRetiree);
const capitalGains = CanadianIncomeCalculator.prepTaxInput(items, inflation, gains);
const eligibleDividends = CanadianIncomeCalculator.prepTaxInput(items, inflation, dividends);
const OAS = CanadianIncomeCalculator.prepTaxInput(items, inflation, yearlyOAS);
const incomeEligibleForPensionCredit = CanadianIncomeCalculator.prepTaxInput(items, inflation, pensionIncome);
const medicalExpenses = CanadianIncomeCalculator.prepTaxInput(items, inflation, medicalCosts);

const currentAge = age === null ? (Array.isArray(ageInFuture) ? ageInFuture[0] : ageInFuture) : Number(age);
const year = taxYear === null || taxYear === '' || typeof taxYear === 'undefined' ? new Date().getFullYear() : Number(taxYear);

const taxData = { incomes, ageInFuture, currentAge, year, inflation, capitalGains, eligibleDividends, OAS, incomeEligibleForPensionCredit, debug };
const taxData = { incomes, ageInFuture, currentAge, year, inflation, capitalGains, eligibleDividends, OAS, incomeEligibleForPensionCredit, medicalExpenses, debug };

/**
*
Expand All @@ -383,7 +398,9 @@ class CanadianIncomeCalculator {
capitalGains: this.capitalGains[i],
eligibleDividends: this.eligibleDividends[i],
OAS: this.OAS[i],
incomeEligibleForPensionCredit: this.incomeEligibleForPensionCredit[i]
incomeEligibleForPensionCredit: this.incomeEligibleForPensionCredit[i],
medicalExpenses: this.medicalExpenses[i],
debug: this.debug
};
}

Expand All @@ -392,20 +409,25 @@ class CanadianIncomeCalculator {
}

/**
* @param {any} yearlyIncome
* If 'val' is not an array and 'items' > 1, val will be replicated for 'items' length and adjusted
* for 'inflation'
* @param {any} items
* @param {Number} inflation - rate (2% entered as 2). null - increment by one instead of inflate.
* @param {any} val
* @returns {Number[]}
*/
static prepTaxInput(yearlyIncome, val) {
static prepTaxInput(items, inflation, val) {
let taxProperty = [];
if (Array.isArray(val)) {
taxProperty = CanadianIncomeCalculator.convertRowsToSingleArray(val).map(inc => Number(inc));
}
else {
taxProperty = [val === null ? 0 : Number(val)];
let startVal = val === null ? 0 : Number(val);

for (let i = 0; i < items; i++) {
taxProperty.push(startVal);

if (Array.isArray(yearlyIncome)) {
taxProperty = Array(yearlyIncome.length).fill(0);
startVal = inflation === null ? startVal+1 : startVal * (1 + inflation / 100);
}
}

Expand Down Expand Up @@ -478,7 +500,7 @@ class CanadianIncomeCalculator {
* @param {TaxData} taxData
*/
static logTaxSummary(taxData) {
if (! taxData.debug) {
if (!taxData.debug) {
return;
}
Logger.log("============ T A X S U M M A R Y ============");
Expand All @@ -490,6 +512,8 @@ class CanadianIncomeCalculator {
Logger.log(`Tax before non-refundable tax credits (A) Line 40400. Fed = ${taxData.federalTaxBeforeCredits}. Prov = ${taxData.ontTaxBeforeCredits}`);
Logger.log(`Basic personal amount Line 30000. Fed = ${taxData.AdjustedBPA}, Prov = ${taxData.provAdjustedBPA}`);
Logger.log(`Age amount (reduced above certain income levels) Line 30100. Fed = ${taxData.federalAgeCredit}. Prov = ${taxData.provAgeCredit}`)
Logger.log(`Pension amount Line 31400. Fed = ${taxData.fedEligiblePensionIncome}. Prov = ${taxData.provincialEligiblePensionIncome}`);
Logger.log(`Medical expenses Line 33099. Fed = ${taxData.fedMedicalExpenseCreditAmount}. Prov = ${taxData.provincialMedicalExpenseCredit}`);
Logger.log(`Subtotal for non-refundable tax credits (B) Line 33500. Fed = ${taxData.totalNonRefundableFedTaxCredits}, Prov = ${taxData.totalNonRefundableProvTaxCredits}`);
Logger.log(`Total non-refundable tax credits before dividend tax credits Line 35000. Fed = ${taxData.totalFedNonRefundableTaxCreditsBeforeDividendTaxCredits}. Prov=${taxData.totalProvNonRefundableTaxCreditsBeforeDividendTaxCredits}`);
Logger.log(`Fed Line 42000 Net federal tax = ${taxData.netFederalTax}`);
Expand Down Expand Up @@ -607,19 +631,17 @@ class CanadianIncomeTax {
* @returns {Number}
*/
getFederalTaxCredits(taxData, grossIncome, age, incomeEligibleForPensionCredit, grossedUpDividends) {
let fedEligiblePensionIncome = incomeEligibleForPensionCredit;
if (fedEligiblePensionIncome > this.fedTaxRates.maxIncomePensionTaxCredit) {
fedEligiblePensionIncome = this.fedTaxRates.maxIncomePensionTaxCredit;
}
taxData.fedEligiblePensionIncome = incomeEligibleForPensionCredit > this.fedTaxRates.maxIncomePensionTaxCredit
? this.fedTaxRates.maxIncomePensionTaxCredit
: incomeEligibleForPensionCredit;

const fedAgeCredits = this.getAgeCredit(age, grossIncome + grossedUpDividends, this.fedTaxRates.ageAmount, this.fedTaxRates.ageThreshold, this.fedTaxRates.ageExcessPercent);
taxData.federalAgeCredit = fedAgeCredits;
const fedBasicPersonalAmount = this.getFederalBasicPersonalAmount(taxData, grossIncome + grossedUpDividends);
const totalNonRefundableFedTaxCredits = fedBasicPersonalAmount + fedAgeCredits + fedEligiblePensionIncome;
taxData.totalNonRefundableFedTaxCredits = totalNonRefundableFedTaxCredits;
taxData.federalAgeCredit = this.getAgeCredit(age, grossIncome + grossedUpDividends, this.fedTaxRates.ageAmount, this.fedTaxRates.ageThreshold, this.fedTaxRates.ageExcessPercent);
taxData.AdjustedBPA = this.getFederalBasicPersonalAmount(taxData, grossIncome + grossedUpDividends);
taxData.fedMedicalExpenseCreditAmount = this.getFederalMedicalExpenseCredit(taxData);
taxData.totalNonRefundableFedTaxCredits = taxData.AdjustedBPA + taxData.federalAgeCredit + taxData.fedEligiblePensionIncome + taxData.fedMedicalExpenseCreditAmount;

const lowestTaxRate = CanadianIncomeTax.getMarginalTaxRate(this.fedTaxRates.taxBracketInfo, 0);
taxData.totalFedNonRefundableTaxCreditsBeforeDividendTaxCredits = totalNonRefundableFedTaxCredits * lowestTaxRate;
taxData.totalFedNonRefundableTaxCreditsBeforeDividendTaxCredits = taxData.totalNonRefundableFedTaxCredits * lowestTaxRate;
const dividendTaxCredits = grossedUpDividends * this.fedTaxRates.eligibleDividendTaxCreditRate;
const totalFedCredits = taxData.totalFedNonRefundableTaxCreditsBeforeDividendTaxCredits + dividendTaxCredits;

Expand All @@ -643,24 +665,40 @@ class CanadianIncomeTax {
}

const adjustedBasicPersonalAmount = this.fedTaxRates.basicPersonAmount - reduction;
taxData.AdjustedBPA = adjustedBasicPersonalAmount;

return adjustedBasicPersonalAmount;
}

/**
*
* @param {TaxData} taxData
* @returns {Number}
*/
getFederalMedicalExpenseCredit(taxData) {
let thresholdValue = taxData.netIncomeForTaxPurposes * this.fedTaxRates.medicalExpenseThresholdPercent;
thresholdValue = this.fedTaxRates.medicalExpenseThreshold < thresholdValue
? this.fedTaxRates.medicalExpenseThreshold
: thresholdValue;

const medicalExpenseCreditAmount = taxData.medicalExpenses - thresholdValue;

return medicalExpenseCreditAmount <= 0 ? 0 : medicalExpenseCreditAmount;
}

/**
* @param {TaxData} taxData
* @param {Number} grossIncome
* @returns {Number}
*/
getProvincialTaxCredits(taxData, grossIncome) {
let provincialEligiblePensionIncome = taxData.incomeEligibleForPensionCredit;
if (provincialEligiblePensionIncome > this.provTaxRates.provMaxIncomePensionTaxCredit) {
provincialEligiblePensionIncome = this.provTaxRates.provMaxIncomePensionTaxCredit;
}
taxData.provincialEligiblePensionIncome = taxData.incomeEligibleForPensionCredit > this.provTaxRates.provMaxIncomePensionTaxCredit
? this.provTaxRates.provMaxIncomePensionTaxCredit
: taxData.incomeEligibleForPensionCredit;

taxData.provAgeCredit = this.getAgeCredit(taxData.ageInFuture, grossIncome + taxData.grossedUpEligibleDividends, this.provTaxRates.ontAgeAmount, this.provTaxRates.ontAgeThreshold, this.fedTaxRates.ageExcessPercent);
taxData.totalNonRefundableProvTaxCredits = this.getProvBasicPersonalAmount(taxData) + taxData.provAgeCredit + provincialEligiblePensionIncome;
taxData.provincialMedicalExpenseCredit = this.getProvincialMedicalExpenseCredit(taxData);
taxData.provAdjustedBPA = this.getProvBasicPersonalAmount(taxData);
taxData.totalNonRefundableProvTaxCredits = taxData.provAdjustedBPA + taxData.provAgeCredit + taxData.provincialEligiblePensionIncome + taxData.provincialMedicalExpenseCredit;
const lowestTaxRate = CanadianIncomeTax.getMarginalTaxRate(this.provTaxRates.ontTaxBracketInfo, 0);

const provincialTaxCredits = taxData.totalNonRefundableProvTaxCredits * lowestTaxRate;
Expand All @@ -674,9 +712,7 @@ class CanadianIncomeTax {
* @returns
*/
getProvBasicPersonalAmount(taxData) {
taxData.provAdjustedBPA = this.provTaxRates.ontBasicPersonAmount;

return taxData.provAdjustedBPA;
return this.provTaxRates.ontBasicPersonAmount;
}

/**
Expand Down Expand Up @@ -706,6 +742,16 @@ class CanadianIncomeTax {
return ageCredit;
}

/**
*
* @param {TaxData} taxData
* @returns {Number}
*/
getProvincialMedicalExpenseCredit(taxData) {
// Same as federal for now.
return taxData.fedMedicalExpenseCreditAmount;
}

/**
* Finds the taxable income to withdraw to receive the specified net income.
* @param {TaxData} taxData
Expand Down
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