1 / 66

Annie Stevenson

Adjusted Income. Annie Stevenson. Welcome to Lunch N Learn!. Today’s Topics: Elderly/disabled allowances Dependant and child care allowances Medical and disability allowances Verification of allowances. Welcome to Lunch N Learn!. Upcoming topics for the occupancy series:

nailah
Download Presentation

Annie Stevenson

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Adjusted Income Annie Stevenson

  2. Welcome to Lunch N Learn! • Today’s Topics: • Elderly/disabled allowances • Dependant and child care allowances • Medical and disability allowances • Verification of allowances

  3. Welcome to Lunch N Learn! • Upcoming topics for the occupancy series: • 5/2/08: Verification Issues • 6/12/08: PH Rent Calculation • 6/13/08: HCV Rent Calculation

  4. Adjusted Income - Background • Previous sessions: • Annual Income • Inclusions • Exclusions • Income from assets

  5. Adjusted Income - Background • Formula: • Gross Income • Including asset income • Minus exclusions • Equals annual income • First major building block in rent calculation

  6. Adjusted Income - Introduction • Today’s topic: • ADJUSTED INCOME • Second major building block in rent calculation

  7. Adjusted Income - Introduction • Form HUD-50058 Section 8 • Calculation of adjusted income

  8. HUD-50058 Section 8: Expected Income Per Year

  9. HUD-50058 Section 8: Expected Income Per Year

  10. HUD-50058 Section 8: Expected Income Per Year

  11. Definitions • Adjusted Income • Elderly Family • Disabled Family • Dependent • Household Vs. Family

  12. Definition of Adjusted Income • Total Annual Income minus allowances • Dependents • Elderly/disabled allowance • Child care • Medical expenses • Disability expenses • Permissible deductions (PH only)

  13. Deductions and Allowances

  14. Dependent Allowance • $480 for each family member: • Under 18 • Full-time student 18 or older • Person with a disability 18 or older • Head, spouse, co-head, foster child or foster adult, live-in aide are never a dependent

  15. Elderly/Disability Allowance • $400 per family where the head or spouse is at least 62 or disabled • $400 is the maximum amount the family can receive, even if both head and spouse are elderly or disabled

  16. Child Care Allowance • Includes reasonable child care expenses • PHA determines what is reasonable • Care provided for children under 13 years of age • including foster children

  17. HUD Interpretation of Child Care Expenses • A PHA may not disallow a deduction for child care expenses because there is an unemployed adult family member who may be available to provide the care. • A PHA may not decide who will provide child care for an applicant’s or a participant’s child(ren).

  18. HUD Interpretation of Child Care Expenses • A PHA may not decide the type of child care available for a participant’s child(ren). • Citation: Verification Guidebook

  19. Child Care Expenses • Care enables a family member to • Work • Actively seek work • Attend school

  20. Child Care Expenses • Costs may be higher in summer and during holidays • Applicant should certify whether any costs are being reimbursed • Child support payments don’t qualify

  21. Child Care Expenses • Child care allowance for work cannot exceed the income that a family member earns • If more than one member working - which worker enabled by child care? • Member works and attends school • Prorate expense to compare with amount earned

  22. Learning Activity 1 • Becky Walker’s annual income is $14,621 • All from employment • Becky has three children, all under 13 years of age. She is paying a total of $60 per week for child care while she works

  23. Learning Activity 1 Answers 14,621

  24. Learning Activity 1 Answers

  25. Learning Activity 1 Answers 3 480 1,440 3,120 4,560 10,061

  26. Allowance for Disability Assistance Expense • Anticipated expenses for: • Care attendants • Auxiliary apparatus • Wheelchairs, ramps, vehicle adaptations, special equipment for the blind, etc.

  27. Allowance for Disability Assistance Expense • IF such expenses • Enable a family member (could be person with the disability) to WORK • Exceed 3% of annual income • Don’t exceed the earnings of person enabled to work

  28. Disability Assistance Expense • If the disability assistance expense enables more than one person to be employed • PHA must combine the income of those persons to determine the cap

  29. Allowance for Disability Assistance Expense • Question: • Must a family meet HUD’s definition of a Disabled Family in order to qualify for Disability Assistance Expenses?

  30. Disability Assistance Expense • Disability assistance expense/child care • If both child care and disability assistance expense are needed to enable a person in the family to work, • the employment income used to justify the child care allowance may NOT also be used to justify disability assistance allowance

  31. Learning Activity 2 • Family Name: Gilmore • Head: 38 Earned Income: $ 11,000 • Spouse: 32 Earned Income: $ 9,000 • Son: 14 (with a disability) • Disability assistance expense/year $ 4,600 • enables spouse to work

  32. Learning Activity 2 Answers 20,000

  33. Learning Activity 2 Answers 600 4,600 4,000 9,000 4,000 0 4,000 4,000

  34. Learning Activity 2 Answers 1 480 480 4,480 15,520

  35. Medical Expenses • Permitted ONLY for family where head, spouse or co-head is at least 62 or disabled • If family eligible, medical expenses deducted for all family members • Anticipate expenses to be incurred during 12 months following certification

  36. Example • Head disabled 50 years old • Son 16 • Daughter 12 • Daughter 1 • Live-in attendant • Whose anticipated medical expenses qualify?

  37. Allowable Medical Expenses • PHA policy determines allowable medical expenses • PHAs may use IRS Publication 502 as a tool • Available at www.irs.gov

  38. Typical Allowable Medical Expenses • Professional services • Services of health care facilities • Prescription/nonprescription medicines • Medical insurance premiums/co-payments (includes Medicare premiums)

  39. Typical Allowable Medical Expenses • Live-in or periodic medical assistance • Nursing services • Costs for assistive animal and its care • Long term care insurance premiums

  40. Typical Allowable Medical Expenses • Transportation for treatment • Dental expenses • Eyeglasses, hearing aids • Monthly payment on accumulated medical bills

  41. Medicare Prescription Drug Discounts and Assistance • PIH 2005-37 • Transitional assistance ended in May 2006 • Under MMA’s permanent plan, deduction is based on actual anticipated unreimbursed prescription costs • Include Medicare prescription drug plan premium, if paid by family • See chart at end of notice

  42. Medical Allowance • Medical allowance • portion of anticipated medical expenses that exceed 3% of Annual Income

  43. Learning Activity 3 • Family Name: Alden • Head: 81 • Spouse: 80 • Annual Income: $13,500

  44. Learning Activity 3 • Anticipated medical expenses: • Health Insurance premium- $55 monthly • Eyeglasses $300 annually, each • Doctor visits 4 times a year at $20 each visit • Anticipated yearly prescription costs of $425 • Balance Due on a medical bill of $325 • (Will be paying it off at $15 a month)

  45. Learning Activity 3 • Anticipated medical expenses: • Health Insurance premium - $55 monthly • $55 x 12 = $660 • Eyeglasses $300 annually, each • $300 x 2 = $600 • Doctor visits 4 times a year at $20 each visit • $20 x 4 = $80

  46. Learning Activity 3 • Anticipated medical expenses: • Anticipated yearly prescription costs of $425 • $425 x 1 = $425 • Balance Due on a medical bill of $325 • (Will be paying it off at $15 a month) • $15 x 12 = $180

  47. Learning Activity 3 • Total anticipated medical expenses: • Health Insurance premium - $ 660 • Eyeglasses - $ 600 • Doctor visits - $ 80 • Prescriptions - $ 425 • Medical bill - $ 180 • TOTAL $1945

  48. Learning Activity 3 Answers 13,500

  49. Learning Activity 3 Answers 405 1,945 1,945 1,540

  50. Learning Activity 3 Answers 400 1,940 11,560

More Related