ME 2025 HoH 259Kpensions 30Kgssi 30Kproptax 20Kmortgage 2depx

[feenberg]

See http://taxsim.nber.org/out2psl/883

PE and TA differ on taxable income. I wonder if it has to do with the new for 2025 Pension Exclusion Phaseout. See the first item on page 2 of

https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_1040me_gen_instr_w_cover_pg.pdf

[PavelMakarchuk]

Tracked in policyengine-us#8276 — me_pension_income_deduction is missing the 2025 federal-AGI phaseout per 36 M.R.S. § 5122(2)(M)/(M-1) and the 2025 1040ME General Instructions p. 3. PR will cap the deduction by (1 − excess/$100K) for federal AGI above $125K/$187.5K/$250K (single/HoH/joint) per the Worksheet for Phaseout of Non-Military Pension Income Deduction. Integration test on this filer is included in the PE-US issue.

[PavelMakarchuk]

Verified fixed by policyengine-us#8277 (now merged), which applies the 2025 federal-AGI phaseout to me_pension_income_deduction per 36 M.R.S. § 5122(2)(M-1). Re-running this case on the patched build: me_pension_income_deduction = $392 (vs $18,216 pre-fix), matching the 2025 Pension Income Deduction Worksheet line P8. Integration test for this filer is locked in by the PR.