Income Averaging

Income Averaging. A. The household’s anticipation of income fluctuations during the certification period will be used when averaging income. B. An average must be recalculated at recertification and in response to changes in circumstances related to income. C. By contract or self-employment households which derive their annual income in a period of time shorter than one year will have that income averaged over a 12-month period provided the income form the contract is not received on an hourly or piecework basis. D. Earned and unearned educational income (after allowable exclusions) will be averaged over a period that it is intended to cover.