5-10 Calculating Adjusted Income

• A. Dependent Deduction

  1. A family receives a deduction of $480 for each family member (except foster children and foster adults) who is:

     • a. Under 18 years of age;

     • b. A person with disabilities; or

     • c. A full-time student of any age.

It is not necessary for a member of the family to have legal custody of a dependent in order to receive the dependent deduction.

2. Some family members may never qualify as dependents regardless of age, disability, or student status.

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• a. The head of the family, the spouse, and the co-head may never qualify as dependents.

• b. A foster child, foster adult, an unborn child, a child who has not yet joined the family or a live-in aide may never be counted as a dependent.

3. A full-time student is one who is carrying a full-time subject load at an institution with a degree or certificate program. A full-time load is defined by the institution where the student is enrolled.

4. When more than one family shares custody of a child and both live in assisted housing, only one family at a time can claim the dependent deduction for that child. The family with primary custody or with custody at the time of the initial certification or annual recertification receives the deduction. If there is a dispute about which family should claim the dependent deduction, the owner should refer to available documents such as copies of court orders or an IRS return showing which family has claimed the child for income tax purposes.

• B. Child Care Deduction

  1. Anticipated expenses for the care of children under age 13 (including foster children) may be deducted from annual income if all of the following are true:

     • a. The care is necessary to enable a family member to work, seek employment, or further his/her education (academic or vocational).

     • b. The family has determined there is no adult family member capable of providing care during the hours care is needed.

     • c. The expenses are not paid to a family member living in the unit.

     • d. The amount deducted reflects reasonable charges for child care.

     • e. The expense is not reimbursed by an agency or individual outside the family.

     • f. Child care expenses incurred to permit a family member to work must not exceed the amount earned by the family member made available to work during the hours for which child care is paid.

  2. When child care enables a family member to work or go to school, the rule limiting the deduction to the amount earned by the family member made available to work applies only to child care expenses incurred while the individual is at work. While that family member is at school or looking for work, the expense for child care is not limited.

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