TCS Income Calculation and Verification 1 — Questions and Answers
Question 1: Which form is used by applicants to self-certify their income under the LIHTC program?
- Form 8609
- Tenant Income Certification (TIC) (Correct answer)
- Form 1040
- HUD-50058
Correct answer: Tenant Income Certification (TIC)
The Tenant Income Certification (TIC) is used to document and certify a household's income at move-in and recertification.
Question 2: Under LIHTC rules, how many months of pay stubs are typically required to annualize employment income?
- 1 month
- 2 months
- 3 months (Correct answer)
- 6 months
Correct answer: 3 months
Most state agencies require at least 3 months of recent pay stubs to accurately project annualized employment income.
Question 3: Child support income for a household member must be counted as:
- Only verified court-ordered amounts
- Zero if not consistently received
- The full anticipated amount based on all sources (Correct answer)
- Only the amount deposited into a bank account
Correct answer: The full anticipated amount based on all sources
All anticipated child support income, including informal payments, must be counted when calculating household income.
Question 4: What is the income test for a household to qualify for a 50% AMI unit?
- Household income must be at or below 50% AMI (Correct answer)
- Household income must be exactly 50% AMI
- Household income must be below 60% AMI
- Household income must be at or below 80% AMI
Correct answer: Household income must be at or below 50% AMI
To occupy a 50% AMI unit, the household's total gross annual income must be at or below 50% of the Area Median Income.
Question 5: Full-time student households are generally ineligible for LIHTC units UNLESS they meet which exception?
- They are veterans
- They receive TANF assistance
- They are single parents with dependent children
- Both B and C (Correct answer)
Correct answer: Both B and C
Full-time student households may qualify if they receive TANF or if the household consists of a single parent with dependent children who are also full-time students.
Question 6: Social Security income must be verified using:
- A prior-year tax return only
- An SSA benefit verification letter or current award letter (Correct answer)
- A bank statement showing deposits
- Self-certification by the applicant
Correct answer: An SSA benefit verification letter or current award letter
Social Security income must be documented with an SSA award letter or benefit verification letter reflecting the current benefit amount.
TCS Income Calculation and Verification 1
Which form is used by applicants to self-certify their income under the LIHTC program?