What is the difference between "adjusted income" and "gross income" for Housing Choice Voucher purposes?

The distinction between "adjusted income" and "gross income" is crucial for the Housing Choice Voucher (HCV) program. Adjusted income specifically refers to gross income after certain allowable deductions are applied. These deductions include items such as medical expenses, childcare costs, and various allowances for dependents, which lower the total income amount considered by the program.

On the other hand, gross income encompasses the total income before any deductions, including wages, benefits, and any other sources of income. Understanding this difference is important for accurately determining eligibility and the amount of assistance a household can receive through the HCV program. Thus, the correct choice reflects the process of calculating adjusted income by reducing gross income by these permissible deductions. This adjustment ensures that the measure of income more accurately reflects a household's actual financial situation and ability to afford housing.