Acceptable documents for proof of Verification of Income

All gross income received by or on behalf of the claimed dependent, whether taxable or nontaxable, and whether received monthly quarterly, or yearly, must be listed. If any income received during the 12 months was a lump-sum (one-time) payment, be sure to state this. Income verification documents are required. Unless specifically noted, any substantiating documentation submitted must be dated within the past 12 months of receipt of application.

Countable Income Includes:

• Wages, salaries, and tips from competitive employment. Seasonal or variable income such as part-time job or sales is averaged over 12 months to get monthly income.  (NOTE: Do NOT consider the following items as countable income: Wages, salaries, and tips from employment in a sheltered work environment open only to disabled or handicapped persons. A statement from the employer is required.
• Funds received by a claimed dependent from the sponsor for services performed, such as working in the sponsor's business, child care, or housekeeping.
• Social Security Payments (NOTE: If claimed dependent is over the age of 62; or widowed and over the age of 60 and not receiving Social Security payments, we must have a copy of a letter of ineligibility from the Social Security Administration. Letter must be dated within 90 days of the application.
• Supplemental Security Income (SSI). SSI is a form of welfare paid through the Social Security Administration.
• Social Security Disability Insurance (SSDI)
• Veterans Affairs (VA) benefits.
• Unemployment compensation or severance pay  (NOTE: If a dependent has no income listed and does not receive income from the SSA, we must have a letter of ineligibility from the unemployment administration to support their claim. Letter must be dated within 90 days of the application.
• Retirement benefits, annuities, insurance, private pension, foreign pensions, and disability. (Compensation received because of prior employment).
• Interest withdrawn from an individual retirement account (IRA)
• Interest or dividends earned from savings, investments, or certificates of deposit, even if allowed to accrue.(NOTE: If the dependent does not report interest earned on savings or investments, interest will be computed at 5.25% per year.
• Interest from a trust fund set up for the dependent from any source including the sponsor when the sponsor does not retain legal control of the trust fund.
• Alimony payments from a separated or divorced spouse.
• Net income from rental property, business, and/or farming.(NOTE: To compute net income, deduct expenses for the enterprise from the gross income. Divide the net income by 12 to get the monthly figure.
• Cash, check, or money order contributions to dependent from persons other than the sponsor, who do not reside with the dependent.
• Funds distributed by a Federal, State, Country, or Local agency based upon right
• Federal, State, or Local Income tax refund(s)
• Educational scholarships and grants (NOTE: Assistance will be considered ONLY to reduce the reported school expenses by the amount of assistance received. If amount of assistance is greater than school expenses, do NOT report an amount for school expenses.

DFAS CANNOT accept the following documents to show Income:

• Wages, salaries, and tips from employment in a sheltered work environment open only to disabled or handicapped persons. (NOTE: A statement from the employer is required.
• Welfare payments, such as Aid to Dependent Children (ADC) and state and local welfare agency payments (including old age assistance and payment of utilities).
• Aid and assistance from churches, civic or fraternal charitable organizations, United Fund, American Red Cross, or similar agencies.
• Interest not withdrawn from an individual retirement account (IRA).
• Food Stamp Payments
• Payments such as ADC, SSI, social security, SSDI, welfare, or VA to the claimed dependent in behalf of minor children who reside with the dependent.
• Funds received by the dependent from an apportionment of the sponsor's benefits such as VA. (NOTE: A document from the agency is required to verify the funds are an apportionment of the sponsor's entitlement.
• Loans obtained by the dependent such as a personal or educational loan.
• State funds for schooling of incapacitated children.
• Interest and principal used for current support from a trust fund set up for the dependent by the sponsor when the sponsor retains legal control of the trust fund.
• Capital assets, such as stocks, bonds, mutual or trust funds (NOTE: Unliquidated capital assets are not income. Dependents are not required to deplete their capital assets to establish dependency on a sponsor. However, proceeds from the liquidation of capital assets may be considered income depending on the disposition of such proceeds. Count all monies obtained from the liquidation of capital assets as the dependent's income, unless reinvested in another capital asset.
• Life Insurance (NOTE: Unliquidated capital assets are not income. Dependents are not required to deplete their capital assets to establish dependency on a sponsor. However, proceeds from the liquidation of capital assets may be considered income depending on the disposition of such proceeds. Count all monies obtained from the liquidation of capital assets as the dependent's income, unless reinvested in another capital asset.
• Real Estate (NOTE: Unliquidated capital assets are not income. Dependents are not required to deplete their capital assets to establish dependency on a sponsor. However, proceeds from the liquidation of capital assets may be considered income depending on the disposition of such proceeds. Count all monies obtained from the liquidation of capital assets as the dependent's income, unless reinvested in another capital asset.