Definition at a glance
Countable income for housing benefit is the sum of the annual income of all household members, reduced by statutory deduction amounts and allowances. The gross income at the time of application is decisive.
What is countable income?
For housing benefit, not the current net income is used, but a specially calculated annual income. All taxable positive income as well as certain tax-free income (e.g. wage replacement benefits) are taken into account.
What typically counts as income?
Taken into account are, among others:
- Wages, salaries and other payments from non-self-employed work.
- Profits from business operations, agriculture and forestry or self-employed work.
- Pensions and retirement benefits.
- Wage replacement benefits such as unemployment benefit I, sickness benefit or parental allowance.
- Income from letting and leasing as well as capital assets.
What is not counted?
Certain benefits are non-countable for housing benefit:
- Child benefit and child supplement.
- Benefits from long-term care insurance.
- Basic pension according to the Federal War Victims Relief Act.
Deductions and Allowances
A flat rate of 10% each is deducted from gross income if taxes, contributions to health/long-term care insurance, or contributions to pension insurance are paid (maximum 30%). In addition, there are allowances for:
- Flat-rate deductions for taxes and social security (10% each).
- Professional expenses (at least the employee allowance).
- Special allowances for severe disability or single parents.
Legal Basis
The determination of income is regulated in detail in Sections 14 to 18 of the Housing Benefit Act (WoGG).