Adjusted income means, with respect to a family, the amount (as determined by the Housing Development Agency) of the income of the members of the family residing in a dwelling unit or the persons on a lease, after any income exclusions as follows:
(1) Mandatory exclusions. In determining adjusted income, a Housing Development Agency must exclude from the annual income of a family the following amounts:
(i) Elderly and disabled families. $400 for any elderly or disabled family.
(ii) Medical expenses. The amount by which three percent of the annual family income is exceeded by the sum of:
(A) Unreimbursed medical expenses of any elderly family or disabled family;
(B) Unreimbursed medical expenses of any family that is not covered under paragraph (1)(ii)(A) of this definition, except that this paragraph (1)(ii)(B) only applies to the extent approved in appropriation Acts; and
(C) Unreimbursed reasonable attendant care and auxiliary apparatus expenses for each handicapped member of the family, to the extent necessary to enable any member of such family (including such handicapped member) to be employed.
(iii) Child care expenses. Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education.
(iv) Minors, students, and persons with disabilities. $480 for each member of the family residing in the household (other than the head of the household or his or her spouse) who is less than 18 years of age or is attending school or vocational training on a full-time basis, or who is 18 years of age or older and is a person with disabilities.
(v) Child support payments. Any payment made by a member of the family for the support and maintenance of any child who does not reside in the household, except that the amount excluded under this clause may not exceed $480 for each child for whom such payment is made; except that this clause only applies to the extent approved in appropriations Acts.
(vi) Spousal support expenses. Any payment made by a member of the family for the support and maintenance of any spouse or former spouse who does not reside in the household, except that the amount excluded under this clause must not exceed the lesser of the amount that such family member has a legal obligation to pay, or $550 for each individual for whom such payment is made; except that this clause only applies to the extent approved in appropriations Acts.
(vii) Earned income of minors. The amount of any earned income of a member of the family who is not:
(A) 18 years of age or older; and
(B) The head of the household (or the spouse of the head of the household).
(2) Permissive exclusions for public housing. In determining adjusted income, a Housing Development Agency may, at the discretion of the agency, establish exclusions from the annual income of a family residing in a public housing dwelling unit. Such exclusions may include the following amounts:
(i) Excessive travel expenses. Excessive travel expenses in an amount not to exceed $25 per family per week, for employment or education-related travel.
(ii) Earned income. An amount of any earned income of the family, established at the discretion of the Housing Development Agency, which may be based on:
(A) All earned income of the family,
(B) The amount earned by particular members of the family;
(C) The amount earned by families having certain characteristics; or
(D) The amount earned by families or members during certain periods or from certain sources.
(iii) Others. Such other amounts for other purposes, as the Housing Development Agency may establish.
20 CFR § 688.120
In addition to the definitions at sec. 3 of the Workforce Innovation and Opportunity Act (WIOA) and 675.300 of this chapter, the following definitions apply: