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Income Exclusions for Section 8

In determining your Gross Non-Excluded Income, WorkWORLD asks you about, and subtracts most of the following types of income.

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

·      Foster Care Payments: 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);

·      Lump-Sum Additions: Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except for payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay, which are counted);

·      Medical Expense Reimbursements: Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;

NOTE: If you participate in the Medicare Prescription Drug Program, any assistance or benefit received from the Medicare prescription discount card or the transitional assistance must be excluded as annual income for the purpose of calculating any rent or assistance. (See Section 8 Rent and the Medicare Prescription Drug Program for details.)

·      Live-In Aide: Income of a live-in aide.

·      Student Aid: The full amount of student financial assistance paid directly to the student or to the educational institution;

·      Hostile Fire Pay: The special pay to a family member serving in the Armed Forces who is exposed to hostile fire;

·      HUD Training Program: Amounts received under training programs funded by HUD;

·      PASS Amounts: 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);

NOTE: If PASS is the only excluded income your household has, then answer NO to the question about excluded income. You will not have to go through all of the questions about exclusions, but you still will be asked about PASS if you have any work expenses or employability investments.

·      Reimbursements: Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;

·      Resident Service Stipends: 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 Public Housing Agency (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;

·      Training Programs: 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 (including gifts);

·      Nazi Reparations: Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era;

NOTE: WorkWORLD does not ask about this type of excluded income. If you have such income, enter it in answer to the question about other "Income Excluded by Statute."

·      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);

·      Adoption Assistance over $480: Adoption assistance payments in excess of $480 per adopted child;

·      Deferred SSI or SSDI: Deferred periodic amounts from supplemental security income and social security benefits that are received in a lump sum amount or in prospective monthly amounts.

·      Property Tax Refunds: Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit;

·      DD Assistance: Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or

·      Other Federal Exclusions: Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24CFR5.609(c) apply. A notice will be published in the Federal Register and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. pdates will be published and distributed when necessary.

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:

Gross Non-Excluded Income

Adjusted Monthly Income

Source:

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

Back to:

Section 8 Housing Overview

Federal Rent Assistance

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