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What is not counted as income?

 

Both state and federal public housing have rules stating that certain income should be ignored, or excluded, when determining your rent. These are called exclusions. Exclusions are not counted when calculating your gross or annual income.

Both state and federal public housing

If you live in either state or federal public housing, the following income is not counted when calculating rent:xviii

Regular payments

  • Food stamps,
  • Fuel assistance,
  • Payments under the SSI PASS (Plan for Achieving Self-Support) Program,
  • Payments under the Domestic Volunteer Services Act of 1973.

One-time (or lump sum ) payments

  • Irregular gifts, inheritances, life insurance proceeds, or return on an investment (return on capital).

Earnings of the following people

  • Minor,
  • Live-in attendant for person with a disability,
  • A member of armed forces in a war zone.

Earned income tax credit refunds

Amounts received for medical care and expenses

xix

Compensation for injury or loss of property

  • Court judgments or settlements,
  • Workers compensation,
  • Insurance payouts.

State public housing only

If you live in state public housing, the following income is not counted:

Compensation for income lost

  • when tenant was not living in public housing (including lump sum payments).

Relocation payments

from state or federal relocation funds.

Education-related payments:

  • Scholarships or stipends for housing paid by a non-household member (for full-time or part-time students).

Training:

Payments associated with training for employment programs to cover costs such as transportation, fees, books, or child care during training. (This does not apply to wages from on-the-job training.)

Earnings of the following people:

  • Full-time student 18-25 years old (who is not head of house or spouse).
  • A senior working over 20 hours per week at minimum wage.
  • People who started working who received government cash assistance
    for 12 months before working. See If I work and my rent increased a lot, what can I do?.

Veterans:

  • Amounts paid to a veteran for tuition or other costs.
  • All but $1,800 received from federal government by unemployable disabled veteran (discretionary).

Federal public housing only

If you live in federal public housing, the following income is not counted:

Social Security:

Deferred payments from SSI and SSDI that are lump sum payments or in prospective monthly amounts. (While this amount is not counted as income, it becomes an asset. See How are lump sums calculated? & Are assets counted as income?.)

Education-related payments:

Student financial assistance paid to the student or education institution.

Property tax rebates

Regular payments:

  • Foster care for children or adults;
  • Adoption assistance payments over $480;
  • First $200 per month of a resident service stipend (includes resident commissioners);
  • Payments to crime victims;
  • Certain payments from federal programs: AmeriCorps, Job Training Partnership Act, Workforce Investment Act, the Child Care and Development Block Grant Act, the Older Americans Act of 1965 (senior aide program);
  • Reparations for persecution during Nazi era;
  • Certain repayments to Native Americans.

Education-related payments:

  • Certain assistance or work-study paid to student or the institution,
  • HUD-funded training programs,
  • Incremental earnings when participating in an employment training program.

Welfare-related payments:

Reimbursements of out-of-pocket expenses (clothing, special equipment, transportation, child care) in order to participate in specific training programs.

Medical-related payments:

Payments by a state agency to a family member with developmental disability for costs of services or equipment to keep family member at home.

Medicare:

Any subsidy received to assist low-income people in paying for Medicare prescription drug plan costs.xx

Earnings of the following people:

xviii State gross income exclusions : 760 C.M.R. § 6.05(3); Federal annual income exclusions : 42 U.S.C. § 1437a(b)(5); 24 C.F.R. § 5.609(c); 66 Fed. Reg. 20318 (April 20, 2001).

xix State: 760 C.M.R. § 6.05(3)(b). Federal: 42 U.S.C. § 1437a(b)(5)(A)(ii); 24 C.F.R. § 5.609(c)(4).

xx HUD PIH Notice 05-37.


Produced by Massachusetts Law Reform Institute
Created April 14, 2006


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