When a household's Federal Income Tax return (1040) shows income or a loss on Line 17, the amount shown will also be reflected on their Schedule E ("Supplemental Income and Loss"). The Schedule E will indicate the type(s) of supplemental income or losses being reported. Part I of the Schedule E shows "Income or Loss from Rental Real Estate and Royalties," and most expenses shown on Side 1, except for depreciation & depletion, are allowable.
Part II of the Schedule E, "Income or Loss from Partnerships and S Corporations," will indicate to the case manager if the household is involved in a Partnership or an "S" Corporation. If there is an entry in Part II of the Schedule E, the case manager must request additional tax documents from the household.
(Rev. November 1, 1999)