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Earned Income - Section 8

Annualizing Your Income

When determining your family's financial eligibility for Section 8 assistance and the amount that you have to pay for rent and utilities, your Public Housing Agency (PHA) uses your annual income. If your income is not expected to be stable for the entire next year, the PHA may annualize your current income by multiplying your current monthly income by 12. If so, the PHA would then re-determine your annual income when (and if) your monthly income later changes.

When answering WorkWORLD's questions about your annual income, if your income is not expected to remain stable, you should follow the procedure used by your PHA in annualizing your income. If you do not know what that procedure is, assume that the PHA multiplies your current monthly income by 12. If you later find that your PHA uses a different method, then revise your answers using your PHA's method.

Types of Earned Income

For purposes of determining both your family's eligibility for Section 8 assistance and the amount that you have to pay for rent and utilities, your PHA takes into account the following types of earnings: (Enter into WorkWORLD the total of the full amounts of these earnings for every member of your family.)

·      Employment: The full amount, before any payroll deductions, of wages and salaries, of overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services;

·      Business & Self-Employment: The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family;

·      Military Pay: All regular pay, special pay and allowances of a member of the Armed Forces.

Exclusions from Earned Income:

Your PHA excludes the following types of earned income.

NOTE: After you have entered the total amount of your family's earnings as described above, WorkWORLD asks you about exclusions. WorkWORLD subtracts your exclusion amounts, if any, from your gross earned income in calculating your Section 8 eligibility and rent payments.

·      Child Earnings: Income from employment of children (including foster children) under the age of 18 years;

·      Care of Foster Child or Adult: Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone);

·      Live-in Aide Earnings: Income of a Live-in Aide;

·      Earning from HUD Training Programs: Amounts received under training programs funded by HUD;

·      Earnings Included in a PASS: Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan for Achieving Self-Support (PASS);

·      Resident Service Stipend: Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time;

·      Employment Training Program Earnings: Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program;

·      Temporary, nonrecurring or sporadic income;

·      Student Earnings over $480: Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household and spouse);

·      Hostile Fire Special Pay: Special pay for a member of armed forces for being exposed to hostile fire.

For information about all of the types of income that are excluded (earned and unearned) when determining your Gross Non-Excluded Income, see: Income Exclusions for Section 8.

NOTE: A work incentive for families that include certain individuals with disabilities in the Tenant-Based Voucher Program is available. It allows families to have 100% of their increased earnings excluded for one year, and 50% of their increased earnings excluded during an additional year, when calculating their Section 8 rent. See the Earned Income Disregard - Section 8 topic for additional information.

See Also:

Unearned Income

Income from Assets

Income Exclusions for Section 8

Financial Eligibility for Section 8

Tenant Rent

Family Rent to Owner

Source:

Code of Federal Regulations (CFR): 24CFR5.609

Back to:

Section 8 Housing Overview

Federal Rent Assistance

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