HUD Handbook 4350.3 § 5-6
Calculating Income—Elements of Annual Income (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
HUD guidance — not codified law
In Force
Verified 9/24/2026 · Next check 10/1/2026
effective 9/24/2026FederalSection 8 HCVOperative Text
HUD Handbook 4350.3 § 5-6
A. Income of Adults and Dependents
1. Figure 5-2 summarizes whose income is counted.
2. Adults. Count the annual income of the head, spouse or co-head, and
other adult members of the family. In addition, persons under the age of
18 who have entered into a lease under state law are treated as adults,
and their annual income must also be counted. These persons will be
either the head, spouse, or co-head; they are sometimes referred to as
emancipated minors.
NOTE: If an emancipated minor is residing with a family as a member
other than the head, spouse, or co-head, the individual would be
considered a dependent and his or her income handled in accordance
with subparagraph 3 below.
3. Dependents. A dependent is a family member who is under 18 years of
age, is disabled, or is a full-time student
The head of the family, spouse, co-head, foster child, or live-in aide are
never dependents. Some income received on behalf of family
dependents is counted and some is not.
a. Earned income of minors (family members under 18) is not
counted.
b. Benefits or other unearned income of minors is counted.
Figure 5-2: Whose Income is Counted?
Employment Other Income
Income (including income
Members from assets)
Head Yes Yes
Spouse Yes Yes
Co-head Yes Yes
Other adult (including foster adult) Yes Yes
Dependents
-Child under 18 No Yes
Full-time student over 18 See Note Yes
Foster child under 18 No Yes
Nonmembers
Live-in aide No No
NOTE: The earned income of a full-time student 18 years old or older who is
a dependent is excluded to the extent that it exceeds $480.
c. When more than one family shares custody of a child, and both
families live in assisted housing, only one family at a time can
claim the dependent deduction. The family that counts the
dependent deduction also counts the unearned income of the
child. The other family claims neither the dependent deduction
nor the unearned income of the child.
d. For full-time students, who are 18 years of age or older *and* are
dependents, a small amount of their earned income will be
counted. Count only earned income up to a maximum of $480 per
year for full-time students, age 18 or older, who are not the head
of the family; spouse or co-head.*If the earned income is less than
$480 annually, count all of the income. If the earned income
exceeds $480 annually,* count $480 and exclude the amount that
exceeds $480.
e. The income of full-time students 18 years of age or older who are
members of the household but away at school is counted the
same as the income for other full-time students. The income of
minors who are members of the household but away at school is
counted as the income for other minors.
f. All income of a full-time student, 18 years of age or older, is
counted if that person is the head of the family, spouse, or co-
head.
g. Payments received by the family for the care of foster children or
foster adults are not counted. This rule applies only to payments
made through the official foster care relationships with local
welfare agencies.
h. Adoption assistance payments in excess of $480 are not counted.
B. Income of Temporarily Absent Family Members
1. Owners must count all income of family members approved to reside in
the unit, even if some members are temporarily absent.
2. If the owner determines that an absent person is no longer a family
member, the individual must be removed from the lease and the HUD-
50059.
3. A temporarily absent individual on active military duty must be removed
from the family, and his or her income must not be counted unless that
person is the head of the family, spouse, or co-head.
a. However, if the spouse or a dependent of the person on active
military duty resides in the unit, that person’s income must be
counted in full, even if the military member is not the head, or
spouse of the head of the family.
b. The income of the head, spouse, or co-head will be counted even
if that person is temporarily absent for active military duty.
Examples – Income of Temporarily Absent Family Members
John Chouse works as an accountant. However, he suffers from a disability that periodically
requires lengthy stays at a rehabilitation center. When he is confined to the rehabilitation center, he
receives disability payments equaling 80% of his usual income.
During the time he is not in the unit, he will continue to be considered a family member. The owner
will conduct an interim recertification. Even though he is not currently in the unit, his total disability
income will be counted as part of the family’s annual income.
Mirna Martinez accepts temporary employment in another location and needs a portion of her
income to cover living expenses in the new location. The full amount of the income must be
included in annual income.
Charlotte Paul is on active military duty. Her permanent residence is her parents' assisted unit
where her husband and children live. Charlotte is not currently exposed to hostile fire. Therefore,
because her spouse and children are in the assisted unit, her military pay must be included in
annual income. (If her dependents or spouse were not in the unit, she would not be considered a
family member and her income would not be included in annual income.)
C. Deployment of Military Personnel to Active Duty
Owners are encouraged to be as lenient as responsibly possible to support
affected households in situations where persons are called to active duty in the
Armed Forces. Specific actions that owners should undertake to support military
households include, but are not limited to:
1. Allow a guardian to move into the assisted unit on a temporary basis to
provide care for any dependents the military person leaves in the unit.
Income of the guardian temporarily living in the unit for this purpose is not
counted as income.
2. Allow a tenant living in an assisted unit to provide care for any
dependents of persons called to active duty in the Armed Forces on a
temporary basis, as long as the head and/or co-head of household
continues to serve in active duty. Income of the child (e.g., SSI benefits,
military benefits) is not counted as income of the person providing the
care.
3. Exclude from annual income special pay received by a household
member serving in the Armed Services who is exposed to hostile fire (see
Exhibit 5-1).
4. Give consideration for any case involving delayed payment of tenant rent.
Determine whether it is appropriate to accept a late payment.
5. Allow the assistance payment and the lease to remain in effect for a
reasonable period of time (depending on the length of deployment)
beyond that required by the Soldiers’ and Sailors’ Civil Relief Act of 1940,
50 U.S.C. §§ 501-591, even though the adult members of the military
family are temporarily absent from the assisted unit.
D. Income of Permanently Confined Family Members
1. An individual permanently confined to a nursing home or hospital may not
be named as family head, spouse, or co-head but may continue as a
family member at the family’s discretion. The family’s decision on
whether or not to include the permanently confined family member as a
family member determines if that person’s income will be counted.
a. Include the individual as a family member and the income and
allowable deductions related to the medical care of the
permanently confined individual are counted; or
b. Exclude the individual as a family member and the income and
allowances based on the medical care of the permanently
confined individual are not counted.
If the family elects to include the permanently confined member, the
individual is listed on the HUD-50059 as an adult who is not the head,
spouse, or co-head, even when the permanently confined family member
is married to the person who is or will become the head of the family.
The owner should consider extenuating circumstances that may prevent
the confined member from being able to sign the HUD-50059. If the
owner determines the confined member is unable to sign the HUD-
50059,he owner must document the file why the signature was not
obtained. If the family elects not to include the permanently confined
member, the individual would not be listed on the HUD-50059.
E. Educational Scholarships or Grants
All forms of student financial assistance (grants, scholarships, educational
entitlements, work study programs, and financial aid packages) are excluded
from annual income except for students receiving Section 8 assistance. This is
true whether the assistance is paid to the student or directly to the educational
institution
For students receiving Section 8 assistance, all financial assistance a student
receives (1) under the Higher Education Act of 1965, (2) from private sources, or
(3) from an institution of higher education that is in excess of amounts received
for tuition is included in annual income except if the student is over the age of 23
with dependent children or the student is living with his or her parents who are
receiving Section 8 assistance. See Paragraph 3-13 for further information on
eligibility of students to receive Section 8 assistance and the Glossary for the
definition of Student Financial Assistance.
F. Alimony or Child Support
Owners must count alimony or child support amounts awarded by the court
unless the applicant certifies that payments are not being made and that he or
she has taken all reasonable legal actions to collect amounts due, including filing
with the appropriate courts or agencies responsible for enforcing payment.
1. The owner may accept printouts from the court or agency responsible for
enforcing support payments, or other evidence indicating the frequency
and amount of support payments actually received.
2. Child support paid to the custodial parent through a State child support
enforcement or welfare agency may be included in the family’s monthly
welfare check and may be designated in different ways. In some states
these payments are not identified as separate from the welfare grant. In
these states, it is important to determine which portion is child support
and not to count it twice. In other states, the payment may be listed as
child support or as “pass-through” payments. These amounts must be
counted as annual income.
3. When no documentation of child support, divorce, or separation is
available, either because there was no marriage or for another reason,
the owner may require the family to sign a certification stating the amount
of child support received.
G. Regular Cash Contributions and Gifts
1. Owners must count as income any regular contributions and gifts from
persons not living in the unit. These sources may include rent and utility
payments paid on behalf of the family, and other cash or noncash
contributions provided on a regular basis.
Examples – Regular Cash Contributions
The father of a young single parent pays her monthly
utility bills. On average he provides $100 each
month. The $100 per month must be included in the
family’s annual income.
The daughter of an elderly tenant pays her mother’s
$175 share of rent each month. The $175 value
must be included in the tenant’s annual income.
2. Groceries and/or contributions paid directly to the childcare provider by
persons not living in the unit are excluded from annual income.
3. Temporary, nonrecurring, or sporadic income (including gifts) is not
counted.
H. Income from a Business
When calculating annual income, owners must include the net income from
operation of a business or profession including self-employment income. Net
income is gross income less business expenses, interest on loans, and
depreciation computed on a straight-line basis.
1. In addition to net income, owners must count any salaries or other
amounts distributed to family members from the business, and cash or
assets withdrawn by family members, except when the withdrawal is a
reimbursement of cash or assets invested in the business.
2. When calculating net income, owners must not deduct principal payments
on loans, interest on loans for business expansion or capital
improvements, other expenses for business expansion, or outlays for
capital improvements.
3. If the net income from a business is negative, it must be counted as zero
income. A negative amount must not be used to offset other family
income.
I. Periodic Social Security Payments
Count the gross amount, before deductions for Medicare, etc., of periodic Social
Security payments. Include payments received by adults on behalf of individuals
under the age of 18 or by individuals under the age of 18 for their own support.
*See Section J below regarding adjustments for overpayment of benefits and
Section O for calculating the income for tenants in ICF/MR or ICF/DD projects
and assisted living units in elderly projects.*
*Example: Mary’s gross social security benefit is
$700 per month. The owner calculates annual income
by annualizing the gross monthly social security
benefit amount.
$700 per month x 12 months = $8,400 gross annual
income.*
J. Adjustments for Prior Overpayment of Benefits
If an agency is reducing a family's benefits to adjust for a prior overpayment (e.g.,
social security, SSI, TANF, or unemployment benefits), count the amount that is
actually provided after the adjustment.
Example – Adjustment for Prior Overpayment of
Benefits
Lee Park’s social security payment of $250 per month is
being reduced by $25 per month for a period of six months
to make up for a prior overpayment. Count his social
security income as $225 per month for the next six months
and as $250 per month for the remaining six months.
K. Public Assistance Income in As-Paid Localities
1. Special calculations of public assistance income are required for “as-paid”
state, county, or local public assistance programs. An “as-paid” system is
one:
a. In which the family receives an amount from a public agency
specifically for shelter and utilities; and
b. In which the amount is adjusted based upon the actual amount the
family pays for shelter and utilities.
2. The public assistance amount specifically designated for rent and utilities
is called the “welfare rent.”
3. To determine annual income for public assistance recipients in “as-paid”
localities, include the following:
a. The amount of the family’s grant for other than shelter and utilities;
and
b. The maximum amount the welfare department can pay for shelter
and utilities for a family of that size (i.e., the welfare rent). This
may be different from the amount the family is actually receiving.
4. Each as-paid locality works somewhat differently, and many are subject
to court-ordered modifications to the basic policy. Owners should discuss
how the rules are applied with the HUD Field Office.
Example – Welfare Income in “As Paid” Localities
At application, a family’s welfare grant is $300, which includes $125 for
basic needs and $175 for shelter and utilities (based upon where the family
is now living). However, the maximum the welfare agency could allow for
shelter and utilities for this size family is $190.
Count the following as income:
$125 Amount family receives for basic needs
$190 Maximum for shelter and utilities
$315 Monthly public assistance income
L. Periodic Payments from Long-Term Care Insurance, Pensions, Annuities,
and Disability or Death Benefits
1. The full amount of periodic payments from annuities, insurance policies,
retirement funds, pensions, and disability or death benefits is included in
annual income. (See subparagraph O below for information on the
withdrawal of cash or assets from an investment.) Payments such as
Black Lung Sick Benefits, Veterans Disability, and Dependent Indemnity
Compensation for the Widow of a Killed in Action Serviceman are
examples of such periodic payments.
2. Withdrawals from retirement savings accounts such as Individual
Retirement Accounts and 401K accounts that are not periodic payments
do not fall in this category and are not counted in annual income (see
paragraph 5.6.L.3).
Example – Withdrawals from IRAs or 401K Accounts
Isaac Freeman retired recently. He has an IRA account but is not receiving
periodic payments from it because his pension is adequate for his routine
expenses. However, he has withdrawn $2,000 for a trip with his children.
The withdrawal is not a periodic payment and is not counted as income.
3. If the tenant is receiving long-term care insurance payments, any
payments in excess of $180 per day must be counted toward the gross
annual income. (NOTE: Payment of long-term care insurance premiums
are an eligible medical expense – see paragraph 5-10 D.8.k.)
4. Federal Government/Uniformed Services pension funds paid to a former
spouse.
Federal Government/Uniformed Services pension funds paid directly to
an applicant’s/tenant’s former spouse pursuant to the terms of a court
decree of divorce, annulment, or legal separation are not counted as
annual income. The state court has, in the settlement of the parties’
marital assets, determined the extent to which each party shares in the
ownership of the pension. That portion of the pension that is ordered by
the court (and authorized by the Office of Personnel Management (OPM),
to be paid to the applicant’s/tenant’s former spouse is no longer an asset
of the applicant/tenant and therefore is not counted as income. However,
any pension funds authorized by OPM, pursuant to a court order to be
paid to the former spouse of a Federal government employee, is counted
as income for a tenant/applicant receiving such funds.
Example: Joan Carson is a retired Federal government employee
receiving a retirement pension. She is also the recipient of Section 8
housing assistance and involved in a divorce proceeding. In settling the
assets of the marriage between Mrs. Carson and her former husband, the
court ordered that one half of her pension be paid directly to her former
husband in the amount of $20,000. The court provided OPM with clear,
specific and express instructions acceptable for OPM to process the
payment to Mrs. Carson’s former husband. OPM authorized the payment
of pension benefits to Mrs. Carson’s former husband in the amount of
$20,000. The $20,000 represents an asset disposed of as a result of a
court decree. At the interim reexamination of her income, Mrs. Carson
indicated a change in her income due to the court ordered payment of
pension benefits to her former husband. The PHA requested that Mrs.
Carson provide a copy of her statement from OPM evidencing the
payment of pension benefits to her (her statement reflected the line item
payment to her former husband due to the court order). That portion of
the pension paid to her former husband no longer belongs to Mrs. Carson
and is not counted as income.
The OPM is responsible for handling court orders (any judgments or
property settlements issued by or approved by any court of any state, the
District of Columbia, the Commonwealth of Puerto Rico, Guam, The
Northern Mariana Islands, or the Virgin Islands in connection with the
divorce, annulment of marriage, or legal separation of a Federal
government employee or retiree) affecting current and retired Federal
government employees. See 5 C.F.R. § 838.103. OPM must comply
with court orders, decrees, or court-approved property settlement
agreements in connection with divorces, annulments of marriage, or legal
separations of employees that award a portion of the former Federal
government employee’s retirement benefits. Id. at § 838.101(a)(1). State
courts ordering a judgment or property settlement in connection with
divorce, annulment of marriage, or legal separation have the
responsibility of issuing clear, specific, and express instructions to OPM
with regards to providing benefits to former spouses. Id. at § 838.122. In
response to instructions from state courts, OPM will authorize payments
to the former spouses. Id. at § 838.121. Once the payments have been
authorized by OPM, the reduced pension amount paid to the retired
Federal employee (the tenant/applicant) will be reflected in the
tenant’s/applicant’s statement from OPM. Former spouses of Federal
government employees receiving court ordered pension benefits are
provided a Form-1099 reflecting pension benefits received from the
retired Federal government employee. In verifying the income of
tenants/applicants, owners should require that tenants/applicants provide
any copies of statements from OPM verifying pension benefits (including
any reductions pursuant to a court order, decree or court-approved
property settlement agreement), and any evidence of survivor benefits,
pensions or annuities received from retired Federal government
employees including, but not limited to, a Form-1099. (See Paragraph 5-
7.G.5 for more information on the treatment of income from Federal
government pensions.)
5. Other State, local government, social security or private pensions paid to
a former spouse.
Other state, local government, social security or private pension funds
paid directly to an applicant’s/tenant’s former spouse pursuant to the
terms of a court decree of divorce, annulment, or legal separation are
also not counted as annual income and should be handled in the same
manner as 4, above. The decree and copies of statements should be
obtained in order to verify the net amount of the pension that should be
applied in order to determine eligibility and calculate rent.
M. Income from Training Programs
1. Amounts received under HUD-funded training programs are excluded
from annual income.
2. Incremental earnings and benefits received by any family member due to
participation in qualifying state or local employment training programs are
excluded. Income from training programs not affiliated with a local
government, and income from the training of a family member resident to
serve on the management staff, is also excluded.
a. Excluded income must be received under employment training
programs with clearly defined goals and objectives and for a
specific, limited time period. The initial enrollment must not
exceed one year, although income earned during extensions for
additional specific time periods may also be eligible for exclusion
b. Training income may be excluded only for the period during which
the family member participates in the employment training
program.
c. Exclusions include stipends, wages, transportation or child care
payments, or reimbursements.
d. Income received as compensation for employment is excluded
only if the employment is a component of a job training program.
Once training is completed, the employment income becomes
income that is counted.
e. Amounts received during the training period from sources that are
unrelated to the job training program, such as welfare benefits,
social security payments, or other employment, are not excluded.
2. Owners may ask to use project funds or funds from the Residual Receipts
account to underwrite all or a portion of the cost of developing,
maintaining, and managing a job training program for project residents if
funds are available.
a. The Field Office will make the determination if the job training
program may be approved, and if project funds are sufficient to
fund the job training program and maintain the physical and
financial integrity of the project. Job training programs may be
either on-site at the project or off-site. For example, job training
programs that have partnerships with local colleges, community
based organizations, or local business, may have in-house job
training programs designed for project residents.
b. Funds that an owner may choose to use to underwrite a job
training program may include Section 8 funds, Community
Development Block Grant funds, or housing authority funds.
These funds may be used to cover the costs of various
components of a job training program, including course materials,
computer software, computer hardware, or personnel costs. Also,
contractors and subcontractors, in connection with work
performed under a Flexible Subsidy contract, may elect to hire
project residents to perform certain skills required under the
contract. If the employment of the project residents was pursuant
to an apprenticeship program, this could constitute a training
program using HUD funds, and income received by the tenants in
the apprenticeship program will qualify as an exclusion from
income.
N. Resident Services Stipends
Resident services stipends are generally modest amounts of money received by
residents for performing services such as hall monitoring, fire patrol, lawn
maintenance, and resident management.
1. If the resident stipend exceeds $200 per month, owners must include the
entire amount in annual income.
2. If the resident stipend is $200 or less per month, owners must exclude the
resident services stipend from annual income.
O. Income Received by a Resident of an Intermediate Care Facility for the
Mentally Retarded or for the Developmentally Disabled (ICF/MR or ICF/DD)
and Assisted Living Units in Elderly Projects
1. An intermediate care facility is a group home for mentally retarded or
developmentally disabled individuals (ICF/MR or ICF/DD). The term
“intermediate care facility” is one used by state mental health
departments for group homes serving these residents.
2. Assisted living units are units in projects developed for elderly residents
with project-based assistance that have been converted to assisted living
units.
3. The local agency responsible for Medicaid provides funds directly to
group home operators and assisted living providers for services.
4. Annual income at an ICF/MR, ICF/DD, or assisted living unit must
include:
a. The SSI payment a tenant receives or the facility receives on
behalf of the tenant; plus
b. All other income the tenant receives from sources other than SSI
that are not excluded from income by HUD regulations (see
Exhibit 5-1). Examples of other sources of income include wages,
pensions, income from sheltered workshops, income from a trust,
or other interest income.
c. The personal allowance of an individual residing in an ICF/MR or
ICF/DD is not included in annual income. If the owner is unable to
determine the actual amount of the personal allowance, use $30.
5. Annual income does not include the enhanced benefit portion of the SSI
that is provided to pay for services. In some instances, a resident’s SSI
income may be reduced between annual recertifications if the resident’s
earnings exceed a specified amount. If this happens, the resident may
request an interim recertification.
P. Withdrawal of Cash or Assets from an Investment
The withdrawal of cash or assets from an investment received as periodic
payments should be counted as income. Lump sum receipts from pension and
retirement funds are counted as assets. If benefits are received through periodic
payments, do not count any remaining amounts in the account as an asset. See
Paragraph 5-7 for guidance on calculating income from an asset.
Q. Lump Sum Payments Counted as Income
1. Generally, lump sum amounts received by a family, such as inheritances,
insurance settlements, or proceeds from sale of property are considered
assets, not income.
2. When social security or SSI benefit income is paid in a lump sum as a
result of deferred periodic payments, that amount is excluded from annual
income.
3. *For Section 8 tenants only, any deferred Department of Veterans Affairs
(VA) disability benefits that are received in a lump sum or in prospective
monthly amounts are excluded from annual income.*
4. Settlement payments from claim disputes over welfare, unemployment, or
similar benefits may be counted as assets, but lump sum payments
caused by delays in processing periodic payments for unemployment or
welfare assistance are included as income.
How lump sum payments for delayed start of benefits are counted
depends upon the following:
a. When the family reports the change;
b. When an interim re-examination is conducted; and
c. Whether the family’s income increases or decreases as a result.
A lump sum payment resulting from delayed benefit income may be
treated in either of the two ways illustrated in the example shown in
Figure 5-3.
5. Lottery winnings paid in one payment are treated as assets. Lottery
winnings paid in periodic payments must be counted as income.
Figure 5-3: Treatment of Delayed Benefit Payments Received in a Lump Sum
Family member loses his/her job on October 19 and applies for unemployment benefits. The family
receives a lump sum payment of $700 in December to cover the period from 10/20 to 12/5 and begins
to receive $100 a week effective 12/6.
Option A: The owner processes one interim re-examination immediately effective 11/1 and a
second interim after unemployment benefits are known.
10/1 11/1 12/1 1/1 2/1
Monthly gross income 800 *0 *0 492** 492**
Monthly allowances (three minors x 480 / 12 120 - - 120 120
months)
Monthly adjusted income 680 0 0 372 372
Total tenant payment (TTP) 204 25 25 25*** 112***
* The family’s income is calculated at $0/month beginning November 1, continuing until benefits
actually begin and new income is calculated. TTP is set at the minimum rent.
** Family’s actual income for 1/1 is $100/week x 52 weeks = $5,200 / 12 = $433.
However, because the family’s TTP was calculated at zero income for the months of November and
December (the period eventually covered by the $700 lump sum payment), the annual income to be
used in calculating monthly gross income should be as follows:
$100/week benefit x 52 weeks = $5,200 + $700 lump sum payment = $5,900 annual gross income/
12 = $492.
*** Increased rent does not start until 2/1 in order to give the family notice of rent increase.
Option B: The owner processes one interim re-examination after unemployment benefits are known.
10/1 11/1 12/1 1/1 2/1
Monthly gross income 800 0/800* 0/800* 433* 433*
Monthly allowances (three minors x 480 / 12 Months) 120 120 120 120 120
Monthly adjusted income 680 0/680 0/680 313 313
Total tenant payment 204 204* 204* 94 94
Recalculated TTP - 94*** 94* 94 94
Rent credit (204 – 94=) - 110 110 - -
* Family’s actual income for 11/1 and 12/1 is zero, but because the owner does not process an
interim re-examination, the family’s TTP continues to be calculated using $800 as monthly gross
income. Beginning 1/1, monthly gross income is known to be $100/week, or $433/month.
** The lump sum payment is taken into account by making the recertification retroactive to 11/1.
Annual income is calculated as $5,200 / 12 = $433 monthly gross income.
*** TTP for November and December recalculated as $433 monthly gross income and $313 monthly
adjusted income x .30 = 94 with credit or refund to family of $110/month for each of these two
months for difference between TTP paid of $204 and recalculated TTP of $94.
R. Exclusions from Income
1. Regulations for the multifamily subsidized housing programs covered by
this handbook specifically exclude certain types of income from annual
income. However, many of the items listed as exclusions from annual
income under HUD requirements are items that the IRS includes as
taxable income. Therefore, it is important for owners to focus specifically
on the HUD program requirements regarding annual income.
2. Among the items that are excluded from annual income is the value of
food provided through:
a. The Meals on Wheels program, food stamps, or other programs
that provide food for the needy;
b. Groceries provided by persons not living in the household; and
c. Amounts received under the School Lunch Act and the Child
Nutrition Act of 1966, including reduced lunches and food under
the Special Supplemental Food Program for Women, Infants and
Children (WIC).
Examples – Income Exclusions
The Value of Food Provided through the Meals on Wheels Program or Other
Programs Providing Food for the Needy. Jack Love receives a hot lunch each
day during the week in the community room and an evening meal in his
apartment. One meal is provided through the Meals on Wheels program. A local
church provides the other. The value of the meals he receives is not counted as
income.
Groceries provided by persons not living in the household. Carrie Sue Colby’s
mother purchases and delivers groceries each week for Carrie Sue and her two
year old. The value of these groceries is not counted as income despite the fact
that these are a regular contribution or gift.
Amounts Received Under WIC or the School Lunch Act. Lydia Jeffries’ two
children receive a free breakfast and reduced priced lunches at school every day
through the Special Supplemental Food Program for Women, Infants and
Children (WIC). The value of this food is not counted as income.
3. Some additional examples of income that are excluded from the
calculation of annual income follow.
Examples – Income Exclusions
Resident service stipends. Rich Fuller receives $50 a month for
distributing flyers for management. This amount is excluded from
annual income.
Deferred periodic payments of social security benefits. Germain
Johnson received $32,000 in deferred social security benefits following
a lengthy eligibility dispute. This delayed payment of social security
benefits is treated as an asset, not as income.
Income from training programs. Jennifer Jones is participating in a
qualified state-supported employment training program every afternoon
to learn improved computer skills. Each morning, she continues her
regular job as a typist. The $250 a week she receives as a part-time
typist is included in annual income. The $150 a week she receives for
participation in the training program is excluded in annual income.
Earned Income Tax Credit refund payments. Mary Frances Jackson is
eligible for an earned income tax credit. She receives payments from
her employer each quarter because of the tax credit. These payments
are excluded in annual income.Source: Legislative text reproduced verbatim
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Sep 24, 2026
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Related Rules
§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 5.512
§ 5.512 Verification of eligible immigration status.