Determining Household Size

• Your 2019 Federal Tax Return should be used to determine the size of your household
• If members of the same household filed separate 2019 Federal Tax Returns, the AGI for each return should be added together to determine the total household income.
• If the household size on the tax return is not accurate, the parent/guardian must complete the Household Summary Form with supporting documentation.
• A copy of the tax return(s) and the Household Summary Form, if applicable, must be kept in the student's file.

• Foster Children and Foreign Exchange Students
  • Foster children and foreign exchange students are considered to be members of the household in which they reside.
• Divorce or Separation
  • Children of divorced or separated parents are part of the household that has 50% or more custody.
  • When joint custody has been awarded and the child physically changes residence, the child is considered part of the household where s/he resides for the majority of the year
• Emancipated Children
  • A child living alone or as a separate economic unit is considered to be a household of one
• Family Members Living Apart
  • Family members living apart on a temporary basis are considered household members.
  • Family members not living in the household for an extended period of time are not considered members of the household for purpose of determining eligibility, but any money made available by them or on their behalf for the household is included as income to the household.
• Child Attending an Institution
  • A child who attends, but does not reside, in an institution is considered a member of the household in which the child resides.
• Child Away at School
  • A child who is temporarily away at school (college or boarding school) is included as a member of the household.
• Child Living with One Parent, Relative, or Friend.
  • In cases where no specific welfare agency or court is legally responsible for the child or where the child is living with one parent, other relatives, or friends of the family, the child is considered to be a member of the household with whom the child resides.
• Deployed Service Personnel
  • Any member of the armed services who is activated or deployed in support of any military combat operation is counted as a household member.

Determining Household Income

• The Adjusted Gross Income (AGI) on the 2019 Federal Tax Return should be used to determine income eligibility.
• If members of the same household filed separate 2019 Federal Tax Returns, the AGI for each return should be added together to determine the total household income.
• The following types of income must be included in the total household income:
  • Earnings from work
    • Wages, salaries, tips, commissions,Wages,salaries,tips,commissions
    • overtime pay, bonuses
  • Welfare/Child Support/Alimony
    • Public assistance payments / welfare benefits
    • Alimony or child support payments
  • Child’s Income
    • Earnings of a child who is a full-time or regular part-time employee are included
    • Social Security
    • Supplemental security income
  • Retirement/ Disability Benefits
    • Pensions, retirement income, veterans' benefits employee are included
    • Social Security
    • Supplemental security income
    • Disability benefits
  • Other Income
    • Distributions from retirement or investment accounts
    • Rental income, annuities, and royalties
    • Interest and dividend income
    • Inheritance, income from estates, trusts, and/or investments
    • Regular contributions from persons not living in the household
    • Cash or investment gifts
    • Military pay that is not received as a result of the service member's deployment to or service in an area that has been designated as a combat zone
    • Military pay that is received prior to the service member's deployment to or service in the designated combat zone
    • Life insurance benefits
    • Living allowance
  • The following types of income are excluded from the total household income:
    • Student financial assistances provided for the costs of attendance at an educational institution, such as grants and scholarships
    • Payments received for the care of foster children
    • Loans, such as bank loans
    • Value of non-cash benefits
    • Value of benefits under the Supplemental Nutrition Assistance Program (SNAP) or Food Distribution Program on Indiana Reservations (FDPIR)
    • Military pay received as a result of the service member's deployment to or service in an area that has been designated as a combat zone
    • Occasional earnings received on an irregular basis (not recurring, such as payment for occasional baby-sitting or mowing lawns)
    • Adoption subsidies
  • Proof of total income must be accurate and submitted for each household member. It is the responsibility of the family to provide supporting documentation to the school. Schools should never submit a Choice Scholarship application without the supporting documentation on file.