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Chapter: 1800 Income Program: FS 6 1810.0205 BAH Payments (FS) Basic allowance for quarter (BAQ) and basic allowance for subsistence (BAS) have been consolidated into one payment called basic allowance for housing (BAH).

Payments received by members of the military, basic allowance for housing (BAH) is considered earned income if included on a Leave and Earnings Statement (LES). Payments included on an LES are made directly to the individual.

The eligibility specialist should question the possible receipt of National Guard/Reserves and other military service income. 1810.0206 Tips (FS) The amount of tips reported by the employee will be included as income. Many times an employer will include on the pay stub of the employee an amount the employer must report to the IRS for tax purposes. This is an allocated amount and cannot be interpreted as the amount actually earned or received by the employee. The tip amount reported by the employee can be accepted unless questioned.

In some instances, the employee reports actual tips to the employer. In this instance, the employer can verify actual tips earned. The individual should keep records on a daily basis if the tips are not reported to the employer, so this information can be used for verification.

Examples of individuals who earn tips are:

1. Waiter/Waitress 2. Bartender 3. Hairdresser 4. Bell man 5. Delivery persons 6. Grocery attendant 1810.0207 Verification of Earned Income (FS) All non-exempt earned income must be verified at application and recertification unless otherwise specified.

All non-exempt earned income must be verified by the employer. Information that must be verified includes:

1. the first and last dates of employment (when income begins or ends), 2. the first and last day of pay, 3. gross income including overtime and tips, 4. frequency of payment, 5. the day of the week payment is received, and 6. the number of hours and days employed.

Note: Verification of terminated income from the employer, including the amount and date of last pay, is only required for an applicant when income is received in the month of application. The individual’s statement is acceptable for income terminating prior to the month of application.

Acceptable forms of verification are:

1. 1099 forms, W-2 forms and income tax returns, including all schedules, for self-employed individuals, 2. wage receipts, 3. wage statements,