When completing your application, you will be asked to provide income information for each person in your household, including your spouse and all tax dependents. If someone has more than one source of income, report each source separately.
Income You Should Report
Report income from the following sources:
- A job
- Self-employment
- Unemployment
- Pension
- Social Security
- Capital gains
- Investments
- Retirement
- Alimony, if the divorce or separation agreement was finalized before January 1, 2019
- Farming or fishing
- Rental or royalty income
- Other income
Income You Should NOT Report
Do not report income from the following sources:
- Alimony, if the divorce or separation agreement was finalized on or after January 1, 2019
- Child support
- Veterans' payments
- Workers' compensation
- Supplemental Security Income (SSI)
- Gifts
- Proceeds from loans, such as student loans
Income From a Job
Look at a recent pay stub that shows what you usually earn. Your income is generally the amount you earn before taxes are taken out.
Important: Report your federal taxable income. When reporting your income, do not include money your employer deducts from your paycheck for expenses such as child care, health insurance, or retirement plans. These deductions should be listed separately on your pay stub. Subtract them from the total income shown on your pay stub and report the resulting amount as your income.
If your pay stub lists federal taxable income, you can use that amount.
Self-Employment Income
Self-employment income is the net income you earn from your own trade or business. For example, any net income, or profit, you earn from goods you sell or services you provide to others generally counts as self-employment income. Self-employment income may also include a distributive share from a partnership.
Your net self-employment income is generally the amount you report on Schedule C — Profit or Loss From Business when filing your federal income taxes.
If you select Self-employment, you will be asked to describe the type of work you perform. There is no special format required; simply describe the work. For example, if you clean houses, enter house cleaning. If you make jewelry, enter jewelry making. If you work on construction projects, enter construction.
For more information, see the Instructions for Schedule C or IRS Publication 334.
When entering your net income from self-employment, enter either a positive or negative number:
- If your business income is greater than your expenses, the difference is your net income, also known as net profit. Enter a positive number.
- If your business expenses are greater than your income, the difference is a net loss. Enter a negative number.
- If you are a partner, include your distributive share from the partnership.
For more information about expenses you may be able to deduct from your self-employment income, refer to IRS guidance.
Unemployment
Unemployment compensation generally includes amounts you receive under an unemployment compensation law of the United States or a state. You usually must include unemployment benefits, including certain benefits from an employer or union, as income.
For information about limited exceptions, see IRS Publication 525.
If you select Unemployment, you will be asked to enter the name of the employer or state government providing the benefit, the amount of income you receive, and how often you receive it.
Pension
A pension is generally a payment or series of payments made after a person retires from work. The amount of income from a pension account distribution generally depends on the type of pension account, how much was contributed to the account, and whether those contributions were already taxed.
You generally do not have to include a qualified distribution from a designated Roth account as income. For more information, see IRS Publication 575.
If you select Pension, you will be asked how much you receive from pension account distributions and how often you receive that amount. Enter distributions you receive from your pension even if you are not retired.
Social Security Benefits
Social Security benefits include amounts you receive from Social Security disability, retirement benefits, including certain railroad retirement benefits (RRB), or survivor benefits.
If you select Social Security benefits, enter the amount you receive and indicate how often you receive it, such as one time only, monthly, or yearly.
You can find the benefit amount on the cost-of-living adjustment notice you receive from Social Security each year. Enter the full amount before deductions for items such as Medicare premiums, income tax withholding, overpayments, child support, or alimony. Include any non-taxable portion as income.
Do not include Supplemental Security Income (SSI) benefits.
If you are receiving an additional Social Security payment during the month, include it when entering your monthly amount.
Capital Gains
Capital gains are profits you receive from selling property. For example, if you buy stock for $1,000 and sell it for $1,250, you have a capital gain of $250.
In some situations, you may not have to include a capital gain from the sale of your main home. For more information, see IRS Publication 17 or IRS Publication 544.
If you select Capital gains, you will be asked how much you expect to receive in net capital gains for the year. Enter your expected capital gains income after subtracting estimated capital losses. Enter a positive number if you expect a gain or a negative number if you expect a loss.
Investment Income
Investment income is income you receive from investments. Examples include interest earned from a bank account or dividends received from stocks.
For more information, see IRS Publication 550.
If you select Investment, you will be asked to enter the amount of investment income you receive, such as interest and dividends, and how often you receive it. Include any non-taxable interest income.
Retirement Income
A retirement benefit is generally a payment or series of payments made after someone retires from work. The amount of income from a retirement account distribution generally depends on the type of retirement account, how much was contributed to the account, and whether those contributions were already taxed.
You generally do not have to include a qualified distribution from a designated Roth account as income. For more information, see IRS Publication 575.
If you select Retirement, you will be asked how much you receive from retirement account distributions and how often you receive that amount. Enter distributions you receive from retirement investments even if you are not retired.
Alimony
Alimony is money you receive from a spouse you no longer live with or from a former spouse when the payment is made as part of a divorce agreement, separation agreement, or court order.
Child support payments and non-taxable property settlements ordered or designated in the agreement are not considered alimony. For more information, see IRS Publication 504.
If you select Alimony, you will be asked to enter the amount you receive and how often you receive it.
If your divorce or separation was finalized:
- Before January 1, 2019: Include alimony as income. You may also be able to deduct it as an expense.
- On or after January 1, 2019: Do not include alimony as income. You cannot deduct it as an expense.
Farming or Fishing Income
If you have income from farming or fishing, you can report it as either Farming or fishing income or Self-employment income, but you should report it only once.
You are generally considered to be in the business of farming if you cultivate, operate, or manage a farm for profit as an owner or tenant. A farm may include livestock, dairy, poultry, fish, or fruit operations, as well as plantations, ranches, ranges, and orchards.
For more information about farming income, see IRS Publication 225.
Fishing income generally includes amounts you receive from catching, taking, harvesting, cultivating, or farming fish, shellfish, crustaceans, sponges, seaweed, or other aquatic forms of animal or plant life. It may also include income from patronage dividends, fuel tax credits, and refunds.
For more information about fishing income, visit the IRS Fishing Tax Center.
If you select Farming or fishing, you will be asked how much income you receive and how often you receive it. Enter your net farming or fishing income, which is your profit after subtracting business expenses. Enter a positive number if you made a profit or a negative number if you sustained a loss.
If you select Self-employment instead, describe the work as Farming or fishing. For additional IRS information, see the Instructions for Schedule C or IRS Publication 334.
Remember: Each type of income should be reported only once. Report farming or fishing income as either Farming or fishing or Self-employment, but not both.
Rental or Royalty Income
Rental income is the amount someone pays you to use your property after you subtract eligible property expenses. See IRS Publication 17 for more information about rental housing or renting personal property, such as equipment.
Royalty income includes payments you receive from a patent, copyright, or certain natural resources you own. See IRS Publication 17 for more information.
If you select Rental or royalty, you will be asked how much income you receive and how often you receive it. Enter your net rental or royalty income, which is your profit after subtracting costs. Enter a positive number if you made a profit or a negative number if you sustained a loss.
Other Income
You and other members of your household may have types of income that are not listed above. If so, select Other income.
If you are a member of the clergy or a religious order, exclude the same income that you exclude on your federal income tax return.
You should not report every type of income. Review the Income You Should NOT Report section above for examples of income that should not be included on your application.
If you select Other income, you will be asked to enter the amount of income you receive and how often you receive it.
Examples of Other Income to Report
Canceled debts: If you incurred debt from a loan or from purchasing something on credit and a portion of the amount you owed was discharged or forgiven, the forgiven amount may generally be considered income. For more information, see IRS Publication 17.
Court awards: If you received money as the result of a lawsuit, some or all of the payment may be reportable as taxable income depending on the nature of the claim. Payments for lost wages or punitive damages are examples of court awards that may be taxable.
Examples of lawsuit payments that may not be taxable include certain amounts awarded for personal physical injury or illness and certain payments received as compensation for property damage. For more information, see IRS Publication 17.
Jury duty pay: If you are paid for jury duty service, enter the amount you receive, including reimbursement for transportation. If your jury duty pay is paid directly to your employer, do not enter it here.
Cash support: Enter this type of income only if someone who is not your parent or spouse claims you as a dependent on their tax return and includes you on their application for health coverage.
If this applies to you, enter the amount of cash support you receive from the person who claims you as a tax dependent. For example, if the tax filer gives you $200 per month to help pay for rent or other living expenses, include that amount.
Do not include in-kind support, such as the value of room and board or clothing purchased for you by the tax filer.
Gambling winnings, prizes, or awards: This includes income such as lottery winnings. It does not include non-taxable prizes, such as most academic scholarships.
Taxable scholarships and grants: If you receive income from a taxable scholarship or grant, enter the amount and how often you receive it.
This income may not count toward Medicaid or the Family Access to Medical Insurance Security Plan (FAMIS) if the scholarship or grant is being used for qualified expenses such as tuition and books. You should also report income received from a work-study job.
For More Information
For additional information about reporting income, see IRS Publication 17.