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Tennessee Housing Development Agency 2025 LIHEAP Policy Manual for Regular and Crisis Assistance 28

This detailed breakdown helps ensure consistency and fairness in evaluating household income for the purpose of LIHEAP eligibility determination.

2.14 Calculation of Income Current income is defined as the total income received by the household within the past thirty (30) days from the date of the LIHEAP application. The SmartSimple Software Current Income Detail must be included in the applicant record to support accurate income verification. In the event that the SmartSimple Software is unavailable, the following alternative methods will be used to calculate income: • Weekly payments: Multiply the weekly average by 4.33 and round to the nearest cent. • Bi-weekly payments: Multiply the bi-weekly average by 2.16 and round to the nearest cent. • Semi-monthly payments: Multiply the semi-monthly average by 2. • Year-to-Date (YTD): If the income is not typical, year-to-date (YTD) figures are encouraged, especially if they better reflect the applicant's ongoing income. To determine income: o Step 1. Count the number of days from the beginning of the year to the last day of the pay period on the paystub. o Step 2. Divide that amount by 7 to get your total weeks. o Step 3. Divide YTD amount by the total weeks, which equals your average weekly income. o Step 4. Multiply that number by 4.33 this equals your average monthly income. Income Calculation Example 1. Determine Weeks of Employment o Last day of pay period on paystub = 157 days. o Convert days to weeks: 157÷7=22.48 weeks157÷7=22.48 weeks 2. Calculate Average Weekly Income o YTD earnings = $12,456.49. o Divide by total weeks worked: 12,456.49÷22.48=554.11