Effective Date: November 1, 2021

No Previous Policy

A. Rental Income

Rental income is countable income for CHIP and can be earned or unearned income. The individual must report the net rental income (after allowable expenses) that is expected during the year.

1. Rental income is earned income if the individual is involved in some aspect of the management. This may be as simple as collecting the rent from tenants. Rental income may be part of a self-employment business, but often it is not.

2. The income is unearned if both of the following are true:

a. The individual is not involved in any aspect of managing the property, and

b. The rental property is not part of a self-employment business.

See section 419-2 to determine allowable expenses.

B. Acceptable verifications

1. A federal tax return is usually the best verification of income and expenses.

2. If the individual has not filed a tax return or the tax return is not reflective of the current self- employment, the individual may self-declare their income and expenses with a ledger or other bookkeeping system. Only request receipts if the individual has no other record keeping system for expenses.

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Effective Date: November 1, 2021

Official source

No Previous Policy

A. Rental Income

Rental income is countable income for CHIP and can be earned or unearned income. The individual must report the net rental income (after allowable expenses) that is expected during the year.

1. Rental income is earned income if the individual is involved in some aspect of the management. This may be as simple as collecting the rent from tenants. Rental income may be part of a self-employment business, but often it is not.

2. The income is unearned if both of the following are true:

a. The individual is not involved in any aspect of managing the property, and

b. The rental property is not part of a self-employment business.

See section 419-2 to determine allowable expenses.

B. Acceptable verifications

1. A federal tax return is usually the best verification of income and expenses.

2. If the individual has not filed a tax return or the tax return is not reflective of the current self- employment, the individual may self-declare their income and expenses with a ledger or other bookkeeping system. Only request receipts if the individual has no other record keeping system for expenses.