COS Income Calculations & Rent Determination 3

Question 1

A household's annual income is $24,000. They have $900 in eligible childcare expenses monthly. What is their annual childcare deduction?

Accepted Answer

$10,800

Answer

Childcare deductions are calculated annually: $900 × 12 months = $10,800.

Question 2

Which of the following BEST describes 'gross rent' for HUD housing assistance calculations?

Accepted Answer

Contract rent plus utility allowance

Answer

Gross rent = contract rent + utility allowance, and is used as the basis for assistance calculations.

Question 3

A single elderly person earns $9,600/year. After the $400 elderly deduction, their adjusted monthly income is used to calculate TTP. What is the 30% TTP?

Accepted Answer

$228

Answer

Adjusted annual income = $9,600 − $400 = $9,200; monthly = $766.67; 30% TTP = $230... Actually: $9,200 ÷ 12 = $766.67 × 0.30 = $230. Let me recalculate: ($9,600 − $400) / 12 × 0.30 = $9,200 / 12 × 0.30 = $766.67 × 0.30 = $230. The correct answer is $230.

Question 4

Self-employment income is calculated for HUD purposes as:

Accepted Answer

Net income after business expenses

Answer

Self-employment income equals gross receipts minus ordinary and necessary business expenses.

Question 5

A tenant's utility allowance is $120/month and their contract rent is $750/month. The household's TTP is $780/month. What does the tenant pay the landlord?

Accepted Answer

$660

Answer

Tenant rent = TTP − utility allowance = $780 − $120 = $660 paid to the landlord.

(COS) Certified Occupancy Specialist Practice Test

(COS) Certified Occupancy Specialist Practice Test

COS Income Calculations & Rent Determination 3