Page 48

PY26 WHEAP Manual

47 Revised: August 2025 d. Check the box on the fuel question indicating, “Do not pay.” e. Collect a signed and dated Certification Page from each applicant/resident. (For more guidance see Section 4.4.29) 5. Deductions from Income

Do not make deductions from gross income for employment-related expenses, childcare, medical expenses, or for any other reason not stated in this chapter. No deductions from gross income are allowed except as specifically identified in this chapter, or as part of the Income Deducted Table (Section 3.3.8).

Garnishments removed from income are not an allowable deduction from income. Take care to ensure the income counted is the total gross income amount for each pay period. 6. Managed care cases residing in an owner-occupied AFH (Adult Family Home) Residents living in an owner-occupied AFH are considered part of the economic unit. They should be listed as household members and the income they receive shall be recorded as part of the household income. Money paid to the caregiver as their “rent” should be ignored income. Money paid to the caregiver as part of their general care should be counted as wage income for the caregiver. Because these residents are part of the economic unit, this income shall not be calculated as self-employment income. Contact the HE+ Help Desk if there are questions on managed care income. 7. Pensions, Annuities, and Deferred Compensation (IRA, 401K, 503b, etc.) Pensions, Annuities, and Deferred Compensation are intended to provide income during retirement. They are different sources with different rules regarding when and how they are paid out. At any point that money is received from these sources as income, they are counted income. Situations in which withdrawals are made from any of these accounts ahead of retirement will determine if this income is considered counted income or ignored income. The point at which an IRA or Annuity is annualized or at the time the holder is required to make withdrawals, it is counted as income.

Reminder: Deductions for Medicare Part B, Part C, and Part D should be subtracted from the gross amount of Social Security Retirement benefits. In addition to subtracting this deduction from Social Security Retirement, this deduction should also be applied to those receiving federal pensions and Railroad Retirement who are not eligible for Medicare benefits because of these prior employments. No other medical deductions are allowed. See Section 3.3.9 under Medicare. a. Pensions are payments earned from employment and are usually paid on a monthly basis. Gross income should be counted. Some pensions can include deductions for various purposes and benefits can fluctuate from year to year. Retired Military Compensation should be recorded as Veterans benefits. b. Annuities that are paying out regular payments should be counted as income. If paid monthly, include this income in the test period. If payments are received quarterly or annually, annualize the income and divide by 12 to calculate the monthly income amount for the test period. c. Deferred Compensation is a retirement savings account. At the point the individual is receiving regular payments, they are counted as income. If payments are