Updated List of Federally Mandated Income Exclusions

An updated list of income exclusions specifically mandated by federal laws was published in the Federal Register on May 20, 2014, as Docket No. FR-5741-N-01.

There were three new exclusions and changes to two of the existing exclusions, and due to the addition of (xvi), the exclusions following it have been re-numbered. Please remember that there are several other income exclusions in Handbook 4350.3 that are mandated by HUD, rather than by Congress.

Changes from the most recent list (published on December 14, 2012) are:

Exclusion (vii) still excludes the first $2000 of per capita shares and income received by individual Indians in trust or restricted lands, as it did before. However, the following was added: This exclusion does not include proceeds of gaming operations regulated by the Commission.

(xxiii), which was the old (xxii), still excludes payments to individual Indians per the Agreement in the Elouise Cobell et al case. The change is that these payments are only excluded for a period of one year from receipt.

New exclusions are:

(xvi) excludes allowances paid to children of Vietnam veterans and of certain Korean veterans born with spina bifida as well as children of women Vietnam veterans born with certain birth defects.

(xxiv) excludes amounts in an “individual development account”, per the Assets for Independence Act.

(xxv) excludes per capita payments from the proceeds of Indian Tribal Trust Cases described in PIH Notice 2013-30.

We recommend that you print out the 3 pages from the Federal Register, and insert them into your 4350.3 Handbook at Exhibit 5-1, which lists HUD income inclusions and exclusions. Click here for the pages.

View 38 U.S. Code Chapter 18 – Benefits for Children of Vietnam Veterans and Certain Other Veterans