What Is Elderly Deduction
An elderly deduction is a $400 annual deduction from adjusted gross income for households where the head of household, spouse, or co-head is age 62 or older. Under 24 CFR 5.611, this deduction reduces the income figure used to calculate the tenant's portion of rent in Section 8 Housing Choice Voucher programs.
Eligibility and Calculation
The elderly deduction applies only once per household, regardless of how many household members are age 62 or older. A household qualifies if the head, spouse, or co-head meets the age requirement as of the effective date of the lease or voucher authorization.
To see the deduction's effect on rent burden, consider this example: A household with $20,000 annual income and a head of household age 64 would have adjusted income of $19,600 ($20,000 minus $400). If the PHA sets the tenant contribution at 30 percent of adjusted income, the monthly tenant rent payment would be $490 instead of $500. This $10 monthly difference compounds to $120 annually.
PHAs must verify the age of the head of household through documents such as a birth certificate, driver's license, or passport during the recertification process. Many PHAs now request this documentation during initial move-in to avoid confusion at recertification.
Interaction with Other Deductions
The elderly deduction is separate from and in addition to other allowable deductions under the HCV program, including:
- Dependent deduction ($480 per dependent annually)
- Disability deduction ($400 annually for households with a disabled member)
- Medical expense deduction (actual out-of-pocket expenses exceeding 3 percent of adjusted income)
- Childcare deduction (actual reasonable expenses)
A household may claim both an elderly deduction and a disability deduction if different household members qualify, but not both deductions for the same person.
Common Questions
- What if the head of household turns 62 during the lease year? The deduction becomes effective on the next recertification date or lease anniversary. It does not apply retroactively mid-year unless the PHA chooses to process an interim recertification.
- Does the elderly deduction count toward income limits for initial eligibility? No. Deductions apply only to rent calculation for existing tenants, not to income limits for admission to the program. Income limits use gross income without deductions.
- Can a tenant claim the elderly deduction if they receive Social Security? Yes. The deduction applies to all adjusted gross income, including Social Security benefits. No income type is excluded from this deduction.