Tax Bracket calculator

DOCUMENTATION.md

@@ -76,6 +76,9 @@ The initial price of the product or service. |
 |                               |                                      | - `operating_expenses` (int): The amount of operating expenses. |
 |                               |                                      | - `interest_expense` (int): The cost incurred by an entity for borrowed funds. |
 |-------------------------------|----------------------------------------|---------------------------------------------------------|
+| POST /tax_bracket_calculator | Calculate Tax Bracket Calculator    | - `income` (float): The total income earned by the individual.  |
+|                               |                                      | - `filing_status` (String): The tax filing status of the individual.|
+|-------------------------------|----------------------------------------|---------------------------------------------------------|
 | POST /margin_of_safety        | Calculate margin of safety             | - `current_sales` (float): The amount of current sales. |
 |                               |                                        | - `break_even_point` (float): The break_even_point amount. |
-|--------------------------- ---|----------------------------------------|---------------------------------------------------------|
+|--------------------------- ---|----------------------------------------|---------------------------------------------------------|

ENDPOINTS.md

@@ -2329,6 +2329,23 @@ Sample Output
   "Interest Coverage Ratio": "3.75%",
 }
 ```
+
+**POST** `/tax_bracket_calculator`
+
+- Request body : `{
+  "income": 50000,
+  "filing_status": single,
+}`
+- Sample output
+
+```py
+{
+  "Tag": "Tax Bracket Calculator"
+  "applicable_tax_bracket": 12.00%,
+  "tax_liability": 6000.00,
+}
+```
+
 **POST** `/margin_of_safety`
 
 - Request body : `{

helpers/functions.py

@@ -2077,8 +2077,38 @@ def interest_coverage_ratio(revenue:float, cost_of_goods_services:float, operati
 	ratio = EBIT / interest_expense 
 	return ratio
 
+
+# Function to Calculate Tax Bracket Calculator
+
+def tax_bracket_calculator(income:float, filing_status:str):
+        tax_brackets = {
+            'single': {0: 0.10, 9875: 0.12, 40125: 0.22, 85525: 0.24, 163300: 0.32, 207350: 0.35, 518400: 0.37},
+            'married_joint': {0: 0.10, 19750: 0.12, 80250: 0.22, 171050: 0.24, 326600: 0.32, 414700: 0.35, 622050: 0.37},
+            'head_of_household': {0: 0.10, 14100: 0.12, 53700: 0.22, 85500: 0.24, 163300: 0.32, 207350: 0.35, 518400: 0.37}
+        }
+
+        if filing_status not in tax_brackets:
+            raise ValueError("Invalid filing status.")
+
+        applicable_brackets = tax_brackets[filing_status]
+        tax_liability = 0
+        remaining_income = income
+
+        for bracket, tax_rate in applicable_brackets.items():
+            if remaining_income <= bracket:
+                tax_liability += remaining_income * tax_rate
+                break
+            else:
+                taxable_income_in_bracket = bracket - max(0, income - remaining_income)
+                tax_liability += taxable_income_in_bracket * tax_rate
+                remaining_income -= taxable_income_in_bracket
+
+        tax_ratio = tax_liability / income
+
+        return {"Tax Ratio": "{:.2%}".format(tax_ratio)}
+
 # Function to Calculate Margin of Safety
 
 def margin_of_safety(current_sales:float, break_even_point: float):
 	margin = ((current_sales - break_even_point) / current_sales) * 100
-	return margin
+	return margin

main.py

@@ -135,16 +135,16 @@
 from tasks.cash_conversion_cycle import cash_conversion_cycle_task
 from tasks.financialAssestRatio import financial_assest_ratio
 from tasks.PolicyPremium import calculate_policy_premium
-from validators.request_validators import SimpleInterestRateRequest, calculatePension, compoundInterest, futureSip, paybackPeriod, capmRequest, DebtServiceCoverageRatio, futureValueOfAnnuity, futureValueOfAnnuityDue, ProfitPercentage, LossPercentage, DefensiveIntervalRatio, CashConversionCycle, RateofReturn, financialAssestRatio, PriceElasticity, PolicyPremium, AveragePaymentPeriod, ModifiedInternalRateOfReturn, SavingGoal, InterestCoverageRatio, MarginOfSafety
+from validators.request_validators import SimpleInterestRateRequest, calculatePension, compoundInterest, futureSip, paybackPeriod, capmRequest, DebtServiceCoverageRatio, futureValueOfAnnuity, futureValueOfAnnuityDue, ProfitPercentage, LossPercentage, DefensiveIntervalRatio, CashConversionCycle, RateofReturn, financialAssestRatio, PriceElasticity, PolicyPremium, AveragePaymentPeriod, ModifiedInternalRateOfReturn, SavingGoal, InterestCoverageRatio, MarginOfSafety, TaxBracketCalculator
 from tasks.financialAssestRatio import financial_assest_ratio
 from tasks.PriceElasticity import calculate_price_elasticity
 from tasks.average_payment_period import average_payment_period_task
 from tasks.Saving_Goal import saving_goal
 from tasks.modified_internal_rate_of_return import calculate_modified_internal_rate_of_return_task
 from tasks.interest_coverage_ratio import interest_coverage_ratio_task
+from tasks.tax_bracket_calculator import tax_bracket_calculator
 from tasks.margin_of_safety import margin_of_safety_task
 
-
 # Creating the app
 app = FastAPI(
     title="FinTech API",
@@ -2014,6 +2014,16 @@ def interest_coverage_ratio(request: InterestCoverageRatio):
     return interest_coverage_ratio_task(request.revenue, request.cost_of_goods_services,
     request.operating_expenses, request.interest_expense)
 
+# Endpoint to calculate Tax Bracket Calculator
+
+@app.post(
+    "/tax_bracket_calculator",
+    tags=["tax_bracket_calculator"],
+    description="Calculates Tax Bracket Calculator",
+)
+def tax_bracket_calculator(request: TaxBracketCalculator):
+    return interest_coverage_ratio_task(request.income, request.filing_status)
+
 # Endpoint to calculate Margin of Safety
 
 @app.post(

tasks/tax_bracket_calculator.py

@@ -0,0 +1,48 @@
+from helpers import functions
+from fastapi import HTTPException, status
+
+def tax_bracket_calculator(income: float, filing_status: str,):
+  try:
+        """
+        Calculate the applicable tax bracket and tax liability based on a user's income and tax filing status (United States, 2021 tax brackets for single filers).
+
+        Parameters:
+            income (float): The user's total income.
+            filing_status (str): The user's tax filing status ('single', 'married_joint', 'married_separate', 'head_of_household').
+
+        Returns:
+            dict: A dictionary containing the applicable tax bracket and tax liability.
+                - 'Tax Bracket': The user's applicable tax bracket as a percentage.
+                - 'Tax Liability': The calculated tax liability amount.
+        """
+        # Tax brackets and their corresponding tax rates (United States, 2021 tax brackets for single filers)
+        tax_brackets = {
+            0: 0.10,
+            9875: 0.12,
+            40125: 0.22,
+            85525: 0.24,
+            163300: 0.32,
+            207350: 0.35,
+            518400: 0.37,
+        }
+
+        # Find the applicable tax bracket and calculate the tax liability
+        tax_liability = 0
+        remaining_income = income
+
+        for bracket, tax_rate in tax_brackets.items():
+            if remaining_income <= bracket:
+                tax_liability += remaining_income * tax_rate
+                break
+            else:
+                taxable_income_in_bracket = bracket - max(0, income - remaining_income)
+                tax_liability += taxable_income_in_bracket * tax_rate
+                remaining_income -= taxable_income_in_bracket
+
+        return {
+            "Tag": "Accrued Interest",
+            'Tax Bracket': "{:.2%}".format(tax_rate),
+            'Tax Liability': tax_liability,
+        }
+     except:
+         return HTTPException(status_code=status.HTTP_500_INTERNAL_SERVER_ERROR)

validators/request_validators.py

@@ -666,6 +666,10 @@ class InterestCoverageRatio(BaseModel):
 	operating_expenses:float
 	interest_expense:float
 
+class TaxBracketCalculator(BaseModel):
+	income:float
+	filing_status:str
+
 class MarginOfSafety(BaseModel):
 	current_sales:float 
 	break_even_point: float