A. Income of Adults and Dependents

1. Figure 5-2 summarizes whose income is counted.

HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent

6/07

5-7

Section 1: Determining Annual Income

4350.3 REV-1

2. Adults. Count the annual income of the head, spouse or co-head, and other adult members of the family. In addition, persons under the age of 18 who have entered into a lease under state law are treated as adults, and their annual income must also be counted. These persons will be either the head, spouse, or co-head; they are sometimes referred to as emancipated minors.

NOTE : If an emancipated minor is residing with a family as a member other than the head, spouse, or co-head, the individual would be considered a dependent and his or her income handled in accordance with subparagraph 3 below.

3. Dependents. A dependent is a family member who is under 18 years of age, is disabled, or is a full-time student

The head of the family, spouse, co-head, foster child, or live-in aide are never dependents. Some income received on behalf of family dependents is counted and some is not.

• a. Earned income of minors (family members under 18) is not counted.

• b. Benefits or other unearned income of minors is counted.

Figure 5-2: Whose Income is Counted?

NOTE: The earned income of a full-time student 18 years old or older who is a dependent is excluded to the extent that it exceeds $480.

HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent

6/09

5-8

Section 1: Determining Annual Income

4350.3 REV-1

  - c. When more than one family shares custody of a child, and both families live in assisted housing, only one family at a time can claim the dependent deduction.  The family that counts the dependent deduction also counts the unearned income of the child.  The other family claims neither the dependent deduction nor the unearned income of the child. 

  - d. For full-time students, who are 18 years of age or older *and* are dependents, a small amount of their earned income will be counted. Count only earned income up to a maximum of $480 per year for full-time students, age 18 or older, who are not the head of the family; spouse or co-head.*If the earned income is less than $480 annually, count all of the income. If the earned income exceeds $480 annually,* count $480 and exclude the amount that exceeds $480. 

  - e. The income of full-time students 18 years of age or older who are members of the household but away at school is counted the same as the income for other full-time students.  The income of minors who are members of the household but away at school is counted as the income for other minors.

• f. All income of a full-time student, 18 years of age or older, is counted if that person is the head of the family, spouse, or cohead.

  - g. Payments received by the family for the care of foster children or foster adults are _not_ counted.  This rule applies only to payments made through the official foster care relationships with local welfare agencies. 
  
  - h. Adoption assistance payments in excess of $480 are not counted. 
  

• B. Income of Temporarily Absent Family Members

  1. Owners must count all income of family members approved to reside in the unit, even if some members are temporarily absent.

  2. If the owner determines that an absent person is no longer a family member, the individual must be removed from the lease and the HUD50059.

  3. A temporarily absent individual on active military duty must be removed from the family, and his or her income must not be counted unless that person is the head of the family, spouse, or co-head.

     • a. However, if the spouse or a dependent of the person on active military duty resides in the unit, that person’s income must be counted in full, even if the military member is not the head, or spouse of the head of the family.

HUD Occupancy Handbook Chapter 5: Determining Income & Calculating Rent

8/13

5-9

Section 1: Determining Annual Income

4350.3 REV-1

• b. The income of the head, spouse, or co-head will be counted even if that person is temporarily absent for active military duty.