1. What is HUD Adjusted Gross Income?

HUD Adjusted Gross Income (AGI) is a calculation used by the U.S. Department of Housing and Urban Development to determine eligibility for various housing assistance programs. It represents gross income minus certain allowable adjustments.

2. How Does the Calculator Work?

The calculator uses the HUD AGI formula:

Where:

• Gross Income — Total income from all sources before any deductions
• Adjustments — Allowable deductions as defined by HUD regulations

Explanation: This calculation helps determine the actual income considered for HUD program eligibility by subtracting specific allowable adjustments from total gross income.

3. Importance of AGI Calculation

Details: Accurate AGI calculation is crucial for determining eligibility for HUD housing programs, setting appropriate rental payments, and ensuring fair distribution of housing assistance resources.

4. Using the Calculator

Tips: Enter gross income in dollars per year, adjustments in dollars per year. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What counts as gross income for HUD calculations?
A: Gross income includes wages, salaries, tips, interest, dividends, Social Security benefits, and all other cash income from any source before deductions.

Q2: What are common HUD allowable adjustments?
A: Common adjustments include certain disability assistance expenses, medical expenses for elderly/disabled families, child care expenses, and other specific deductions outlined in HUD guidelines.

Q3: How often should AGI be calculated?
A: AGI should be recalculated whenever income or adjustment circumstances change, and typically at annual recertification for HUD programs.

Q4: Does HUD AGI differ from IRS AGI?
A: Yes, HUD uses its own definition of adjustments which may differ from IRS allowable deductions. Always use HUD-specific guidelines for housing program calculations.

Q5: Where can I find official HUD adjustment guidelines?
A: Official guidelines are available in HUD Handbook 4350.3, which details all income calculations and allowable adjustments for HUD programs.