Combined Disposable Income Worksheet (Page 2 of 4) in pdf

REV 64 0002e (w)

(12/07/10)

Instructions for Completing the Income Section

How is disposable income calculated?

What if my income changed in mid-year?

“Disposable income” was given a specific definition by

If your income was substantially reduced (or increased)

the Legislature in RCW 84.36.383(5). It is defined as

for at least two months before the end of the year and the

adjusted gross income, as defined in the federal

change in income is expected to continue indefinitely, you

internal revenue code, plus all of the following that were

can use your new average monthly income to estimate

not included in, or were deducted from, adjusted gross

your annual income. Calculate your income by

income:

multiplying your new average monthly income (during the

months after the change occurred) by twelve.

♦ Capital gains, other than a gain on the sale of a

principal residence that is reinvested in a new

Example: You retired in September and your monthly

principal residence;

income was reduced from $2,000 to $1,000 beginning in

♦ Amounts deducted for losses or depreciation;

October. Multiply $1,000 x 12 to estimate your new

annual income. Provide documentation that shows your

♦ Pensions and annuities, including federal Social

new monthly income and when the change occurred.

Security Act and railroad retirement benefits;

What is combined disposable income?

♦ Military pay and benefits other than attendant-care

Combined disposable income is defined in RCW

and medical-aid payments;

84.36.383(4) as your disposable income plus the

♦ Veterans pay and benefits other than attendant-care

disposable income of your spouse or domestic partner

payments and medical-aid payments; veterans

and any co-tenants, minus amounts paid by you or your

disability benefits and dependency and indemnity

spouse or domestic partner for:

compensation; and

♦ Prescription drugs;

♦ Dividend receipts and interest received on state and

♦ Treatment or care for you or your spouse/domestic

municipal bonds.

partner, received in the home (Care or treatment in

♦ These income sources are included in

your home means medical treatment or care received

disposable income whether or not they are

in the home. You can deduct costs for items such as

taxable for IRS purposes.

oxygen, special needs furniture, attendant-care, light

Include all income sources and amounts for you, your

housekeeping tasks, meals-on-wheels, life alert, and

spouse/domestic partner, and any co-tenants that you

other services that are part of a necessary or

received during the application/assessment year. The

appropriate in-home service.);

application/assessment year is the year before the

♦ Treatment or care for you or your spouse/domestic

taxes are actually due.

partner in a nursing home, boarding home, or adult

Special instructions for Lines G and H.

family home; and

♦ Health care insurance premiums for Medicare. (At

In 2008, the Legislature passed SSB5256 which allows

you to exclude veterans’ disability benefits and

this time, other types of insurance premiums are not

dependency and indemnity compensation as defined in

an allowable deduction.)

Title 38, part 3, sections 3.4 and 3.5 of the code of

♦ Report these costs on Lines L through O.

federal regulations. If you are receiving these benefits,

you no longer have to include those amounts in your

What are the program benefits?

disposable income. You must still include other military

If you meet the qualifications, the taxable value of your

and veterans’ benefits other than attendant-care and

home will be “frozen” as of January 1 in the year you first

medical-aid payments. CRSC benefits must still be

qualify for this program. Even though your assessed

included in disposable income.

value may increase, your taxable value will remain

Special instructions for Line P.

constant. In addition, your combined disposable income

determines your level of reduction (exemption) in your

If you had adjustments to your income for any of the

annual property taxes.

following and you did not file an IRS return, report the

amounts on Line P and include the IRS form or

Levels of Reduction

worksheet you used to calculate the amount of the

Income

adjustment.

0 - $25,000

Exempt from regular property taxes

♦ Certain business expenses for teachers, reservists,

on $60,000 or 60% of the valuation,

performing artists, and fee-basis government officials

whichever is greater, plus

♦ Self-employed health insurance or contributions to

exemption from 100% of excess

levies.

pension, profit-sharing, or annuity plans

♦ Health savings account deductions

$25,001 - $30,000 Exempt from regular property taxes

on $50,000 or 35% of the

♦ Moving expenses

valuation, whichever is greater, not

♦ IRA deduction

to exceed $70,000, plus exemption

♦ Alimony paid

from 100% of excess levies.

♦ Student loan interest, tuition, and fees deduction

$30,001 - $35,000 Exempt from 100% of excess

levies.

♦ Domestic products activities deduction

Please contact your county assessor’s office for

assistance in completing this form.

Combined Disposable Income Worksheet Page 2

Related Articles

Related forms

Related Categories