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The Basic Allowance for Housing (BAH) is one monthly payment, replacing the Variable Housing Allowance (VHA) and Basic Allowance for Quarters (BAQ). BAH (BAQ or VHA) is countable earned income. MILITARY PAY: Military pay is countable wages if earned. EXCEPTION: The mandatory salary reduction for military service personnel used to fund the GI Bill is excluded from income. MILITARY RE-ENLISTMENT BONUSES: Military re-enlistment bonuses are paid in one of two ways: a lump sum; or up to 50% of the bonus amount as an initial payment with the remainder of the bonus paid in equal annual payments. It is up to the military service to decide which military grades/series receive re-enlistment bonuses and how much the re-enlistment bonus is. This means the Navy, Marines, Army, and Air Force can have their own policies regarding payment of re-enlistment bonuses. The eligibility staff member must verify what the payment policy is depending on the military service. How the bonus is paid out determines how it is counted: 1. If a household receives a lump-sum re-enlistment bonus, it is exempt from income as a non- recurring lump sum payment. The money is counted as a resource in the month it is received. 2. If a household receives up to half of the bonus pay as an initial payment with the remaining bonus paid in equal annual installments, the bonus is counted as earned income. It is averaged over a 12-month period since the bonus is paid annually. OLDER AMERICANS ACT: Payments are excluded from programs funded under Title V of the Older Americans Act of 1987 and include: 1. Experience Works Inc., also known as Green Thumb; 2. Forest Service; 3. American Association of Retired People (AARP); 4. National Council on Aging; 5. National Council of Senior Citizens; and, 6. Foster Grandparent Program. PLAN FOR ACHIEVING SELF-SUPPORT (PASS): Money diverted from an individual’s income to a PASS account is excluded. ROYALTY INCOME: Definition of Royalties - royalties include compensation paid to the owner for the use of property usually copyrighted material such as books, music, etc., or natural resources such as, mineral, oil, gravel or timber, etc.