Ch 8-Income Flashcards
What are the different types of income?
There’s earned income, unearned, excluded income
What verification is needed for income?
Gross income can be pay stubs, tax records anything that shows gross income.
if verification is unsuccessful, in good faith then show they’re doing it we will take a sworn statement as a last resort or 
When working with income, what is frequency mean?
Frequency is based upon when they are paid either
weekly
biweekly
Semi-month or
once a month to find gross monthly average
What factor do we use when a person is paid weekly defined out how much they make a month?
4.33.
What is a factor we use when a person is paid bi-weekly to find out they’re gross monthly income?
2.167.
What is a factor we use when a person is paid twice a month to find out they’re gross monthly income
2
How do you calculate gross income for those who have self-employment
Applicant can choose do use exact expenses but must provide receipts to be verified or they can use the standard deduction of 40% to how much they bring in monthly example they say they make $1000 a month and they choose standard deduction of 40% you and multiply 40% to 1000 then subtract that amount from 1000 which would leave you 600 and that would be the person with self-employment at $600 gross a month
Self-employed person has a choice on if they which type of deduction they want to use if they choose actual expenses to be deducted how many days do we give them to bring in the receipts?
We offer them 10 days if they do not turn them in or we have no response, we will go to the 40% deduction the customer may then change it change the option at their six month SAR or their renewal date
What is considered unearned income?
Unearned income are
pensions,
Social Security,
unemployment,
child support that’s been received into the home,
rental income, etc.
What is considered excluded income?
Excluded income is income that is not countable against the budget. This includes student loans, child support being paid outside the home, a minor child’ income because working, ineligible students, grants, tax refunds, etc.
