TCS Income Calculation and Verification 2

Question 1

Assets valued at $5,000 or less are subject to which income calculation method?

Accepted Answer

Only actual income earned is counted

Answer

When total household assets are $5,000 or less, only the actual income earned from those assets is counted.

Question 2

When household assets exceed $5,000, the income counted must be the:

Accepted Answer

Greater of actual or imputed income

Answer

When assets exceed $5,000, the income counted is the greater of the actual income earned or the imputed income calculated using the HUD passbook rate.

Question 3

Which of the following is considered an asset under LIHTC income calculation rules?

Accepted Answer

Equity in a mobile home used as a primary residence

Answer

Equity in a mobile home that is the household's primary residence is counted as an asset under LIHTC rules.

Question 4

A household member quits a full-time job before move-in. How should this income be treated?

Accepted Answer

It is included as imputed income if the person voluntarily reduced income

Answer

Income from assets or employment voluntarily reduced or terminated must be counted as imputed income to prevent households from manipulating qualification.

Question 5

Overtime and seasonal income should be projected based on:

Accepted Answer

Historical averages provided by the employer or documented by the employee

Answer

Overtime and seasonal income are projected using historical averages, typically verified through employer letters or prior pay stubs.

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Income Calculation and Verification 2