Income Calculations

Follow Five Dos & Don'ts When Calculating Income of Student Household Members

September 28, 2017    

If you have part-time or full-time students living at your tax credit site, it’s important to know how to calculate their income properly. However, be mindful that all student eligibility requirements are met for your LIHTC site before you consider student income in a household. In other...

Four Tips for Estimating Freelance Income Correctly

July 31, 2017    

With the rise of gig economy companies such as Uber, Lyft, and Instacart, you may have noticed more applicants earning money from these companies as independent freelancing contractors. When you’re calculating household income, a “freelancer” presents special challenges....

Avoid Mistakes that Could Trigger Resident Exceeding Income Limits

January 31, 2017    

When recertifying households, you, as the site tax credit manager, probably know that households that go over-income don’t cease to qualify as tax credit units. To continue receiving tax credits on a unit whose household goes over-income, you must follow the available unit rule. The rule...

How to Count Absent Members When Calculating Household Size and Income

June 30, 2016    

A household can consist of one or more persons. A household may report to you that one of its members will be absent from the unit. For instance, an applicant may report that she has a daughter who’s away at school. Or an applicant may report that his wife recently had a stroke and will be...

How to Handle Assets Disposed of for Less than Fair Market Value

August 31, 2015    

During the certification or recertification process, residents are required to report all income from all sources to the owner or manager during certification or recertification. One component of annual income is any income the household’s assets generate. And sometimes, households may...

HUD Releases 2015 Multifamily Tax Subsidy Income Limits

March 31, 2015    

On March 6, HUD released the 2015 income limits, available at huduser.org. According to Revenue Ruling 94-57, you have 45 days to begin using them to certify and recertify low-income households at your tax credit site. This means this year’s income...

IRS Issues New Standard Mileage Rates

December 23, 2014    

The IRS recently issued the 2015 optional standard mileage rates. Starting Jan. 1, 2015, when calculating the deductible costs of operating an automobile, the new rates will be 57.5 cents per mile for business miles driven, 23 cents per mile driven for medical or moving purposes, and 14 cents...

New Passbook Rate to Be Effective Feb. 1, 2015

November 26, 2014    

On Oct. 31, 2014, HUD issued Housing Notice 2014-15, “Passbook Savings Rate Effective February 1, 2015 and Establishing Future Passbook Savings Rates.” The HUD passbook rate is used to impute asset income on households who have $5,000 or more in assets. Currently, the HUD passbook...

How to Treat Trusts When Calculating Household Income

January 30, 2013    

 

When certifying or recertifying households at your tax credit site, it’s not uncommon to discover that a household member is the creator or beneficiary of a trust. If so, you’ll need to account for the trust when calculating the household’s income. If you don...

HUD Releases 2013 Income Limits

December 21, 2012    

On Dec. 4, HUD released income limits for 2013, but revised the limits after discovering a calculation error. The revised numbers were issued Dec. 11. Under the Housing and Economic Recovery Act of 2008 (HERA), income limits are used to determine qualification levels as well as set maximum...

How to Avoid Common Mistakes When Calculating Annual Income

April 12, 2012    

Annual income is an important factor that influences the eligibility of an applicant for the tax credit program. To become income eligible, an applicant's household gross annual income must be equal to or less than the income limit applicable to your site.

HUD's List of Sources of Income

January 16, 2012    
  1. Wages and salaries. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services.

  2. Net income from operation of a business or...

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