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Families and Children Manual Policy Manual Number: 010.020 Section: Financial Eligibility Chapter: Countable and Excluded Income
September 1, 2026 Division of Tenncare 6 c. Cleaning and maintenance; d. Utilities; e. Fire and liability insurance; f. Taxes; g. Interest; h. Commissions for the collection of rent; i. Ordinary and necessary travel and transportation; and j. Legal and other professional fees. 3. Other considerations: If an individual only rents part of his property, expenses must be divided between the part of the property that is used for rental purposes and the part of the property that is used for personal purposes. This also applies if an individual has any personal use of a dwelling unit, such as a vacation home, which he rents. 1. Counting Rental Income:
a. Income Received on a Regular Basis. If an individual has a federal tax return available to verify the earnings from last year and the rental situation has not changed, prorate the reported annual profit over 12 months. Count the result as self-employment income, taking into account any changes for the prorated period. If this is the case, consider the individual self-employed. Rental income should be considered unearned income if the individual is not self-employed. If the individual does not have a federal tax return available from the previous year, determine the monthly income based on the rental/lease agreement in effect and any expenses the individual has paid or expects to pay in that month. b. Income Received Annually or Infrequently. If rental income is received on an annual or infrequent basis, prorate the annual amount including the anticipated changes over 12 months and count the monthly income as self-employment income.
2. Verification
If verification is required for rental income, request at least one of the following documents: a. A copy of the rental or lease agreement in effect during the period under consideration; b. A copy of the receipt the individual prepared upon receiving rental income; or c. A copy of the previous year’s federal income tax return.