Rent CALCULATION WORKBOOKRENT CALCULATION WORKBOOK This workbook contains practice problems to accompany various subject covered in the CVR Rent Calculation Training. Westchester ,

RENT CALCULATION WORKBOOK

This workbook contains practice problems to accompany various subject covered in the CVR Rent Calculation Training.

Westchester, NY

Rent Calculation Workbook

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Contents Part I: Beginners .................................................................................................... 3

Practice 1.1: Bunny Slope ................................................................................... 3

Practice 1.2: Warming Up .................................................................................. 4

Practice 1.3: Training Wheels ............................................................................ 5

Practice 1.4: Completing the 50058 ................................................................... 6

Part II: Deductions & Allowable Expenses ........................................................... 11

Practice 2.1: Allowable Expenses ..................................................................... 11

Practice 2.2: Disability Assistance Expense ....................................................... 14

Practice 2.3: Disability Assistance Expense ...................................................... 15

Practice 2.4: Disability Assistance Allowance ................................................... 16

Practice 2.5: Medical Expense ......................................................................... 18

Practice 2.6 - Medical Expenses ........................................................................ 19

Practice 2.7: Disability Assistance / Medical Allowance ................................... 21

Practice 2.8: Disability Assistance / Medical Allowance .................................... 23

Practice 2.9: Disability Assistance / Medical Allowance ................................... 25

Practice 2.10: Disability Assistance / Medical Allowance ................................. 27

Practice 2.11: Disability Assistance / Medical Allowance ................................. 29

Practice 2.12: Disability Assistance / Medical Allowance .................................. 31

Practice 2.13: Disability Assistance / Child Care Expenses ................................ 32

Practice 2.14: Dependent and Child Care Allowance ....................................... 35

Part III: Some Asset Issues ................................................................................... 37

Practice 3.1: Easy Asset Goes ........................................................................... 37

Practice 3.2: Annuity Could Do It ...................................................................... 37

Practice 3.3: Retirement Account ..................................................................... 38


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Part IV: Different Flavors of Annual Income ........................................................ 39

Practice 4.1: Annual Income (Unearned) EIV Social Security ............................ 39

Practice 4.2: Annual Income (Unearned) Award Letter Social Security ............ 43

Practice 4.3: Annual Income (Unearned Income) Award Letter Social Security with Overpayment ............................................................................................ 46

Practice 4.4: Annual Income (Unearned Income) Child Support ...................... 54

Practice 4.5: Annual Income (Unearned Income) Social Security Income with Medical Expense ............................................................................................... 60

Practice 4.6: Annual Income (Earned Income) Child Care Payments ................ 64

Practice 4.7: Annual Income (Earned Income) Check stubs ............................. 68

Practice 4.8: Annual Income (Earned Income) The Work Number ................... 77

Practice 4.9: Annual Income (Unearned Income) Social Security with COLA & Overpayment.................................................................................................... 82

Practice 4.10: Annual Income (Unearned Income) Unemployment Income .... 83

Part V: Grad School ............................................................................................. 84


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Part I: Beginners

Practice 1.1: Bunny Slope

1. Ms. Pierce receives a total of $600 TANF benefits per month for herself and her two children.

Annual Income: ________ Monthly Income: __________

2. Mr. Anderson receives a gross wage of $300 bi-weekly.

Annual Income: _________ Monthly Income: __________

3. Ms. Flowers (age 42) has 3 children (ages 12, 8 and 4). She receives $200

per week from her mother since she has no other income and does not want to apply for Welfare.


4. Mr. Bernhart earns $410 semi-monthly from his job as a sales clerk.

Annual Income: _________ Monthly Income: __________

5. Mrs. Stinson works as a teacher's assistant 40 hours per week earning

$6.00 per hour.

Annual Income: _______ Monthly Income: __________


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Practice 1.2: Warming Up ANTICIPATING INCOME

Use current circumstances to anticipate income. Project for a full 12 months, even if income is not expected to continue, unless verification forms indicate an imminent change, or income is unique (such as seasonal workers).

EXAMPLE OF IMMINENT CHANGE EXPECTED

Employer reports a full-time (40 hrs.) employee, receiving $6.00 per hour, will receive this for seven weeks

In the eighth week, after the effective date of the recertification, the employee will begin to receive $6.25 per hour

How is annual income calculated?

ANNUAL INCOME

It is September, and the Housing Specialist gathering information for Julia’s annual recertification, which is effective December 1. The Housing Specialist has verified that Julia currently earns $250 semi-monthly, but will be receiving a 3% increase effective February1.

What is Julia’s annual income?


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Practice 1.3: Training Wheels

Family Name: Sorenson

Head: Wages $7.25 per hr (40 hrs/wk)

Spouse: Social Security $650 per month Annual Income ___________ Family Name: O'Neil Head: Child Support $300 semi-monthly Head: Unemployment $160 weekly Annual Income ___________ Family Name: Pickett Head: Pension $500 monthly

F/T Student, 20: Wages $10.00 per hr (25 hrs/wk) Annual Income ___________


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Practice 1.4: Completing the 50058 Don Whitfield works full-time (40 hrs.) as a mailroom clerk; he makes $11.50 per hour. His wife, Valerie Whitfield is a child care provider for two children; she earns $100 per week for each child. TASK Calculate the total household income by completing section 7 (7a through 7i) of the 50058 form.


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Practice 1.5: Imputed Welfare Income

Jean August and her three children currently receive TANF benefits. They do not have any other sources of income. The welfare agency has notified you that Ms. August’s benefits are being reduced because of fraud. Ms. August’s regular TANF amount is $650 per month. Her TANF is being reduced to $350 per month, and the reduction is expected to last for the next 12 months. She continues to receive the reduced TANF benefits for $300 each month.

Using Section 7 of the 50058s on the following page calculate the August family’s total annual income (lines 7a through 7i) using the scenarios below.

- Scenario 1: Calculate the imputed income and total income

for family.


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Scenario 2: At the next annual, Ms. August now begins to receive $150 per month in child support. She continues to receive the $350 per month in TANF. The welfare sanction reducing her TANF benefit from $650 a month to $350 a month is still in place. Calculate the imputed welfare income and total annual income on part 7 of the form HUD 50058.


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Scenario 3: It is now six months later. Ms. August has a new job at which she earns $500 monthly. She continues to receive the $150 a month in child support. The welfare sanction reducing her TANF from $650 a month to $350 a month is still in place. Calculate the imputed welfare and total annual on part 7 of the form HUD 50058.


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Part II: Deductions & Allowable Expenses

Practice 2.1: Allowable Expenses

1. Gloria Estefan Annual Income: ________ Annual Expense: ________ Adjusted Annual Income: ________

2. Demi Moore Annual Medical Expense: ________


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Practice 2.2: Disability Assistance Expense Gary Dillard pays an attendant $100 a week to stay with his disabled 18-year-old daughter so that he may go to work every day. These payments are an eligible disability expense. Mr. Dillard works at Mr. Tire and earns $300 a week. How is the disability assistance expense deduction calculated?


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Practice 2.3: Disability Assistance Expense • George (Head) -38- Earned Income $ 8,168 • Georgia (Spouse) -36- Earned Income $14,851 • George, Jr. (Son) -6- Disabled • Annual expenses for care of disabled son = $3,500


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Practice 2.4: Disability Assistance Allowance Family Name: Coleman Head: 44 Earned Income: $14,300 Spouse: 28 Earned Income: $9,467 Son: 15 (disabled)


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Practice 2.5: Medical Expense Wilbert Manning, 62 years old, is the sole member of the household. He receives $600 in Social Security. A $54.80 Medicare Deduction is withheld from his benefit check, resulting in a net benefit of $545.20. Mr. Manning also reports that his average monthly out of pocket costs for prescriptions is $75.00 (verified by the PHA). What is Mr. Manning’s adjusted annual income (8y)?


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Practice 2.6 - Medical Expenses

Family Name: Willard Head: 78 Spouse: 80 Annual Income: $15,580

Task:

1. Calculate the total annual anticipated medical expense in the chart below. 2. Complete section 8 of the HUD-50058 to determine Adjusted Annual

Income.

Health Insurance Premium $55 monthly $____ X ____ = $____________ Eyeglasses $300 per year (each) $____ X ____ = $____________ Doctor’s Office Visits $20 each/ 4 times per year $____ X ____ = $_____________ Prescription Drugs Anticipated cost $425 $____ X ____ = $_____________ Balance on emergency room bill $600 (paying $30 per month) $____ X ____ = $_____________ Total: ______________

Medical expense $ Amount times/years Yearly


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Practice 2.7: Disability Assistance / Medical Allowance The Santos family qualifies for the elderly/disability allowance. There are no dependents in the family. The following information is known:

- SSI: $8,350 - Employment Income: $8,500 - Total Disability Assistance Expense: $ 500 - Total Medical Expense: $1,200

Task:

Using the information above complete section 8 of the HUD-50058 form to determine Adjusted Annual Income


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Practice 2.8: Disability Assistance / Medical Allowance

The Spears family qualifies for the elderly/disability allowance. There are no dependents in the family. The following information is known:

- SSI: $7,520 - Employment Income: $9,650 - Total Disability Assistance Expense: $4,300 - Total Medical Expense: $1,420

Task:

Using the information above complete section 8 of the HUD-50058 form to determine Adjusted Annual Income


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Jill Smith (Head of Household) is employed at Margo’s Florist and earns $10,000 a year and receives disability benefits totaling $5,000 a year. Ms. Smith is disabled and has a disabled adult son (John Moore). Jill Smith also receives disability benefits totaling $5,000 annually for her son John. The family has $3,000 in medical expenses and $4,000 in expenses for disability assistance that allows Ms. Smith to work.

Let’s work through the calculations:


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Practice 2.10: Disability Assistance / Medical Allowance Example (When DAE exceeds the amount earned by the family member enabled to work):

Harry Gordon (Head of Household) is employed at Bob’s Carpets and earns $3,000 a year and receives disability benefits totaling $10,000 a year. Mr. Gordon is disabled and has a disabled adult child (Gary Gordon). Gary Gordon also receives disability benefits totaling $5,000 a year. The family has $1,000 in medical expenses and $4,000 in expenses for disability assistance that allows Harry Gordon to work.


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Practice 2.11: Disability Assistance / Medical Allowance Example (When DAE is less than 3% of Annual Income)

Sophia Bailey (Head of Household) is an elderly participant with an adult, disabled and employed family member (Karen Bailey). Karen Bailey earns $4,000 a year and receives $6,000 in disability payments a year. Sophia Bailey receives $10,000 in old age survivor’s benefits a year. The family has $1,000 in medical expenses and $500 in expenses for disability assistance that allows Karen Bailey to work.



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The Grand family (assume elderly) has $2,000 in medical expenses and $3,500 in Disability Assistance Expenses. Annual income is $20,000. Only $2,400 of annual income is earned because the disability assistance enables a family member to work.



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Practice 2.13: Disability Assistance / Child Care Expenses

• Samsonite Family

• Head earns $10,000/yr. and Spouse earns $12,000/yr. Total annual income = $22,000

• Son age 10 , Son age 15 (disabled)

• Both sons are cared for by one care provider who charges $100 per week; prorated at: $50 for Child Care and $70 for Disability Care

• Annual CC Expense = $50 x 52 = $2600

• Annual DAE = $70 x 52 = $3640

• Threshold for DAE = 3% of Annual Income

• $22,000 x .03 = 660

• Max DAE = $3,640 -$660 = $2,980

• $2,600 CC Expense + $3,190 Max DAE = $5,790 Total CC plus DAE Expenses

• $5,000 - Earnings made possible by the child care and disability expenses

• $5,790 = Total Allowable Expenses (does not exceed the lower wage earner’s income of $10,000)



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Practice 2.14: Dependent and Child Care Allowance Randolph Duke annual income is $15,700 all from employment.

Randolph has four children all under 13 years of age. He is paying a total of $66 per week for child care while he works.

Complete section 8 of the HUD-50058 form to get the Adjusted Annual

Income.


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Part III: Some Asset Issues

Practice 3.1: Easy Asset Goes

1. Marty McFly has a checking account with a 6 month balance of $3500 and an interest rate of .035%. Assume the HUD Passbook Rate is 1.0% Annual Income _______________

2. Biff Tannen has a savings account with a 6 month balance of $7540 and an interest rate of .05. Assume the HUD Passbook rate is 1.0% Annual Income _______________

Practice 3.2: Annuity Could Do It

Jim Boeheim has received $200 a month from an annuity for 8 years. Mr. Beoheim provided a statement confirming that he paid $20,000 for the annuity when he purchased it 8 years ago. Four months after his annual reexamination becomes effective, Mr. Beoheim will have reclaimed the full amount of his original investment. What amount of annuity payments, if any, will be included in Mr. Boeheim’s annual income?

Answer: _______________


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Practice 3.3: Retirement Account

A 401(k) account is an employer-sponsored retirement fund. Typically, a 401(k) account includes cash invested by an employee as well as contributions by the employer. The employee owns any contributions he or she makes to the account but may own none, some, or all of the employer’s contributions depending on how long he or she has worked for the company. Derek Jeter has a 401(k) account sponsored by his employer in which his employer has matched 50% of his contributions. Derek’s employer has verified that the account currently has a balance of $10,000. Derek is able to withdraw the funds in the account without quitting his job with a 40% penalty to any employer contributions. He would also pay a tax penalty of 10 percent, or $1,000.

What is the Cash Value of the 401(k)?

Answer: _______________


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Part IV: Different Flavors of Annual Income

Practice 4.1: Annual Income (Unearned) EIV Social Security

1. Jennifer Lopez


2. Miley Cyrus Annual Income: ________ Monthly Income: __________

3. Marc Anthony



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Practice 4.2: Annual Income (Unearned) Award Letter Social Security

1. Brian Urlacher Annual Income: ________ Monthly Income: __________

2. Michael Jackson



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Practice 4.3: Annual Income (Unearned Income) Award Letter Social Security with Overpayment

1. Practice 1: • Note the date of the letter – September 6, 2012 vs. the Effective Date

(12/1/2012) • Calculate gross amount based on amount received: $564 x 12 = $6,768

• Calculate how long the overpayment will last

o $940.31 / 98.40 = 9.56 month

• Reduce the overpayment by the months that are no longer valid o October and November are no longer valid; re-exam is effective

12/1/12 o $940.31 – 98.40 – 98.40 = 743.51

• 743.51 will be the new overpayment balance as of 12/1/12

• Subtract new overpayment balance from gross amount

o $6,768 – 743.51 = $6,024.49 Annual Income


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2. Jackie Kennedy


3. Foxy Brown


4. Nicki Minaj Annual Income: ________ Monthly Income: __________

5. Older Lady


6. Billy Madison



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Practice 4.4: Annual Income (Unearned Income) Child Support 1. Angelina Jolie


2. Paulina Rubio


3. Seuss Goose


4. Kimberly Kardashian


5. Wonder Woman



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Practice 4.5: Annual Income (Unearned Income) Social Security Income with Medical Expense 1. Victoria Beckham


2. Michael Jordan


3. Michelle Obama



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Practice 4.6: Annual Income (Earned Income) Child Care Payments 1. Homes ‘Granny’ Torra


2. Ms. Torra



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Practice 4.7: Annual Income (Earned Income) Check stubs 1. Justin Bieber

Annual Income: ________ Monthly Income: __________ 2. Selena Gomez


3. Jay Leno


4. Dick Cheney


5. John Adams


6. Thomas Jefferson


7. Aaron Burr


8. George Clinton



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Practice 4.8: Annual Income (Earned Income) The Work Number

1. Jeremy Pivens Annual Income: ________ Monthly Income: __________

2. Gary Bussey Annual Income: ________ Monthly Income: __________


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Practice 4.9: Annual Income (Unearned Income) Social Security with COLA & Overpayment 1. Tony Starks - Consider a 3.7% COLA Increase



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Practice 4.10: Annual Income (Unearned Income) Unemployment Income

1. Christopher Columbus Annual Income: ________ Monthly Income: __________


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Part V: Grad School

Practice 5.1: Queen

Queen Nefertiti

A. Use pgs. 89 & 90 Annual Income: ________ Monthly Income: __________

B. Use pgs. 88, 89, & 90 Annual Income: ________ Monthly Income: __________

C. Use pgs. 88-91 Annual Income: ________ Monthly Income: __________


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Part I: BeginnersPractice 1.1: Bunny SlopePractice 1.2: Warming UpPractice 1.3: Training WheelsPractice 1.4: Completing the 50058Practice 1.5: Imputed Welfare Income

Part II: Deductions & Allowable ExpensesPractice 2.1: Allowable Expenses1. Gloria Estefan2. Demi Moore

Practice 2.2: Disability Assistance ExpensePractice 2.3: Disability Assistance ExpensePractice 2.4: Disability Assistance AllowancePractice 2.5: Medical ExpensePractice 2.6 - Medical ExpensesPractice 2.7: Disability Assistance / Medical AllowancePractice 2.8: Disability Assistance / Medical AllowancePractice 2.9: Disability Assistance / Medical AllowancePractice 2.10: Disability Assistance / Medical AllowancePractice 2.11: Disability Assistance / Medical AllowancePractice 2.12: Disability Assistance / Medical AllowancePractice 2.13: Disability Assistance / Child Care ExpensesPractice 2.14: Dependent and Child Care Allowance

Part III: Some Asset IssuesPractice 3.1: Easy Asset GoesPractice 3.2: Annuity Could Do ItPractice 3.3: Retirement Account

Part IV: Different Flavors of Annual IncomePractice 4.1: Annual Income (Unearned) EIV Social Security1. Jennifer Lopez2. Miley Cyrus3. Marc Anthony

Practice 4.2: Annual Income (Unearned) Award Letter Social Security1. Brian Urlacher2. Michael Jackson

Practice 4.3: Annual Income (Unearned Income) Award Letter Social Security with Overpayment1. Practice 1:2. Jackie Kennedy3. Foxy Brown4. Nicki Minaj5. Older Lady6. Billy Madison

Practice 4.4: Annual Income (Unearned Income) Child SupportPractice 4.5: Annual Income (Unearned Income) Social Security Income with Medical ExpensePractice 4.6: Annual Income (Earned Income) Child Care PaymentsPractice 4.7: Annual Income (Earned Income) Check stubsPractice 4.8: Annual Income (Earned Income) The Work Number1. Jeremy Pivens2. Gary Bussey

Practice 4.9: Annual Income (Unearned Income) Social Security with COLA & OverpaymentPractice 4.10: Annual Income (Unearned Income) Unemployment Income1. Christopher Columbus

Part V: Grad SchoolPractice 5.1: QueenQueen Nefertiti

Documents

Rent CALCULATION WORKBOOKRENT CALCULATION WORKBOOK This workbook contains practice problems to accompany various subject covered in the CVR Rent Calculation Training. Westchester ,